Businesses are going bankrupt to deal with the slowdown and loss of revenue.  Many national retailers have filed bankruptcy, or soon will.  J. Crew, Neiman Markus and JC Penney have filed bankruptcy. Just last week, Jacksonville-based Stein Mart filed Chapter 11 and is closing stores. When discount retailers like Stein Mart go under, it does not bode well for the economy.

Corporations have used the bankruptcy code as a way to bail themselves out financial straits for decades.  Individuals can also use bankruptcy law to get a fresh start. In an interview with a then 80-year-old St. Augustine grandmother in 2008, a national news magazine asked:

A recent article in the California Law Review Online declared that, “The coronavirus pandemic is set to metastasize into a debt collection pandemic. This is because while evictions, foreclosures and student loan payments have been stayed by various government  orders and federal regulations, there is no blanket moratorium or order stopping debt collection lawsuits. Many debt collection law firms have ramped up credit card collections lawsuits since they have not been able to bring or finish foreclosure lawsuits. Many credit card collection lawsuits end up with the consumer getting a default judgment entered against them, since they believe there is nothing that they can do to stop these lawsuits. Debt collection law firms nationwide kept filing new cases during the shutdown, consumers be damned. For example, in Maryland, two major debt collectors alone filed over 2,000 suits in April.  These law firms must keep their gravy train rolling, even if many Americans have lost their jobs or part of their income, through no fault of their own.

After a homeowner gets a judgment against him or her, the law firm will usually attempt to get paid–voluntarily at first, and then by using court process to take the homeowner’s income and assets. There are several ways in Florida that a judgment creditor can collect on a judgment.

Americans who have become used to using credit cards as a stop-gap measure to survive pay-cuts might not be able to rely  on this method since nearly 50 million Americans just had their credit card limits cut.

For centuries, companies have used bankruptcy as a tool to survive, reorganize or to shut-down. Several airlines have filed bankruptcy over the past three decades, primarily to break contracts and modify pensions.

Americans are now bracing for the worst week since COVID-19 came on the scene. President Trump warned that the upcoming two-week period will be “painful.” However, Dr. Fauci, a key member of President Donald Trump’s Coronavirus Task Force, added: “We should hope that within a week, maybe a little bit more, we’ll start to see a flattening out of the curve and coming down.”

People who still have jobs are worried about how long the virus will stick around and keep businesses shuttered. Tourism is dead in the Sunshine state and the governor finally issued a stay-at-home order. When people are at home, they do not support the local economy.  This lessened demand for products and services has a ripple effect, which impacts all sectors of the economy. People are not only learning how interdependent the economy is, but also that some jobs are more “essential” than others.

With tax season upon us, some student loan borrowers are shocked to find out that their student loan servicers can intercept their tax refunds in order to pay delinquent student loan debt.

While Americans can file bankruptcy to get relief from most types of debts, student loans are among the types of debts that a debtor may not discharge in bankruptcy unless paying them back would be an “undue hardship”  on the debtor. (This standard is extremely hard to meet and in one older case from Jacksonville, even a lawyer who said an auto accident left her disabled, failed to meet the high standard). In order to address this issue, the U.S. Bankruptcy Court for the Middle District of Florida (Jacksonville, Orlando, Tampa and Ft. Myers) recently instituted a “Student Loan Management Program” (Program).

Florida has seen bankruptcy filings for older Floridians increase in recent years. A bankruptcy filing is the term used when an individual or company cannot repay their debts and asks a Court for relief. A Jacksonville Bankruptcy Petition filed with the Court begins the bankruptcy filing. Older Floridians refer to individuals who are 65 or older and primarily live in Florida.

Bankruptcy filings for older Floridians have tripled over the last 25 years. This is a trend seen across the entire U.S. In 1991, only 1.2 out of every 1,000 Americans between ages 65 and 74 filed bankruptcy. By 2016, that increased to 3.6 out of every 1,000 Americans. Interestingly, while bankruptcy filings have increased for older Americans, bankruptcy filings have decreased among young Americans.

Bankruptcy filings for older Floridians have tripled over the last 25 years. This is a trend seen across the entire U.S. In 1991, only 1.2 out of every 1,000 Americans between ages 65 and 74 filed bankruptcy. By 2016, that increased to 3.6 out of every 1,000 Americans. Interestingly, while bankruptcy filings have increased for older Americans, bankruptcy filings have decreased among young Americans.

Bankruptcy Filings increase for Older Floridians for multiple reasons.

1. Increased healthcare costs: Healthcare costs have increased dramatically in recent decades. Baby boomers are reaching retirement age with higher health risks due to obesity, diabetes, and an overall lower rate of good health. All of which is leading to unexpected and higher healthcare costs.
2. Reduced income: The average income of older Americans filing bankruptcy is only $17,390.
3. Delayed eligibility age for full social security: To receive 100% full social security in 2018, you must be 66 years and 4 months of age. You can begin to receive partial social security at age 62.
4. Vanishing pensions/retirement savings: Baby boomers have only put away roughly 5% of their income for retirement. Only 54% of baby boomers have any retirement savings at all. There is not enough money saved to last throughout retirement or much room for unexpected expenses that may arise.
5. Too much debt: Older Americans have spent money and incurred debt to help their elderly parents and their children. Baby boomers increasingly need to care for their parents, which is an enormous burden. Parents are cosigning for their children’s student loans due to the high cost of college tuition. Overall, Americans are entering retirement age with higher debt.
6. Waiting too long: By the time older Americans decide to file bankruptcy, it is often too late. Their wealth is already gone, and there is not enough time to regain their footing. Many Americans wait too long to file bankruptcy due to bankruptcy’s negative connotation. Instead, bankruptcy should be looked at from a business perspective; removing emotion and focusing on making the best decision for you and your family.

When your debt is more than you can handle, it is important to take immediate action. Taking action sooner will give you more time to rebuild your savings and credit so you can fully recover. Contact the Law Office of David M. Goldman, PLLC today for a free initial bankruptcy consultation. A Jacksonville Bankruptcy Lawyer can help you decide if filing bankruptcy is best for your future.

Questionnaire: Your bankruptcy attorney will most likely begin by asking you to fill out a fairly extensive questionnaire. Not only will the questionnaire ask you to list all of your debts, income, and assets, it will ask many questions about many different types of assets you might have held and transactions you have done in the past two to five years. The questionnaire will give your attorney a very good overall picture of what your financial profile really looks like and will help them determine what other types of information is needed to file bankruptcy in Jacksonville, Florida.

Credit Report: You will be asked to pull your credit report. This will allow the highest chance of all of your debts being including in your bankruptcy. I usually recommend, when possible, pulling your credit report from all three credit bureaus to make sure a debt is not forgotten.

Proof of Income: For determination of whether you can file a Chapter 7 Bankruptcy or a Chapter 13 Bankruptcy, your attorney will need proof of the last six months of your income. If you receive pay stubs, this means six months of your paystubs. If you own your own business, this means a profit and loss statement for the most recent six month period. If your income only consists of Social Security or retirement income, you will need the most recent year’s award letter.

Other types of information is needed to file Bankruptcy in Jacksonville, Florida may include your tax returns from the past two years, bank statements for at least the last six months, titles to assets such as real property and vehicles, and your most recent mortgage statement, to name a few. The list could go on and on depending on your specific financial profile.

The most important thing to keep in mind when gathering all of the information your attorney requests from you is that Federal Law requires you to disclose absolutely everything. You know your financial profile better than anyone else. Therefore, if you are unsure whether or not something should be included or listed in your bankruptcy petition, be sure to ask your attorney as your attorney only has the information you have provided to them. He or she will then be able to tell you if it is something that needs to be disclosed to the bankruptcy court.

Contact the Law Office of David M. Goldman, PLLC today to get your bankruptcy started and you on your way to a fresh start. (904) 685-1200

In order to bring your mortgage current through Bankruptcy, you must first file a Chapter 13 Bankruptcy even if you qualify for a Chapter 7 Bankruptcy. A Chapter 13 Bankruptcy is a reorganization of your debts through a 60 month payment plan; referred to as a Chapter 13 Plan. Based on your income and family size, you make payments to a trustee. The trustee then distributes these monthly payments proportionally to your creditors. Whichever debts have not been paid off at the end of the 60 months are discharged. 

Bringing your mortgage current through Bankruptcy in Jacksonville, FL requires you to start making your regular monthly mortgage payment through your Chapter 13 Plan. Not only do you have to immediately start paying your normal mortgage payment again, you also have to pay a portion of your past due payments each month.

For example, before falling behind on your mortgage, your payments were $1,200.00 per month. You are now 15 months behind on your mortgage payments at the time you file a Chapter 13 Bankruptcy to bring your mortgage current. Your Chapter 13 Plan would require you to pay your $1,200.00 mortgage payment plus an additional $300.00 in arrears. Your Chapter 13 Plan will also include a trustee fee and an additional amount to your unsecured creditors based on your monthly income and family size.

Your income and how far behind you are on your mortgage payments will determine if bringing your mortgage current through bankruptcy in Jacksonville, FL is actually an affordable option for you. While a Chapter 13 Bankruptcy does give you the option to bring your mortgage current, it can be very difficult and not always an affordable option. If you are extremely far behind on your mortgage payments, your Chapter 13 Plan Payments might be too much for you to afford.

For example, prior to filing a Chapter 13 Bankruptcy, your mortgage payments were $1,200.00, but you were 36 payments behind. Your Chapter 13 Plan would include your $1,200.00 mortgage payment and $720.00 in arrears. Your Chapter 13 Plan would be almost $2,000.00 prior to adding the trustee’s fees and any other additional amount required by your income and family size. Potentially making your Chapter 13 Plan unaffordable.

This is why I always stress to my clients the importance of trying every other option to save their home when they are behind on their mortgage before turning to bankruptcy. Contact the Law Office of David M. Goldman, PLLC today to speak with an attorney who can help you go through all options and help you pick the best option to save your home and bring your mortgage current.

Even if you are lucky enough to have the credit card company or credit bureaus acknowledge the debt is not yours and was the result of identity theft, they often will still send the debt to a collection company who will try to collect the debt from you. If you have ever been contacted by a debt collector, you are probably all too familiar with their scare tactics and relentless calls in their efforts to collect anything they can from you. It is never easy having to deal with a collection agency. It can be very stressful and overwhelming. Not to mention the continued adverse effect these debts have on your credit report, lowering your credit score and preventing you from obtaining credit yourself.

This is why after years of frustration and not being able to clear oneself of these debts, many turn to bankruptcy after identity theft in Jacksonville, Florida. Bankruptcy can finally get you away from debt left behind by identity theft. Since bankruptcy discharges most types of debts that are the result of identity theft (such as credit card debts and personal loans), not only can bankruptcy relieve you from owing identity theft debts, it can also help you to finally improve your credit score as the debts on your credit report will show that they have been discharged through bankruptcy and that you no longer owe them. Once your credit score finally recovers after some time, you will be able to obtain your own new credit.

While bankruptcy after identity theft in Jacksonville, Florida is usually a very last resort, it can most likely give you the relief you have been seeking. Bankruptcy is also a lot less expensive than hiring an attorney to help you go after each credit card company individually. Contact the Law Office of David M. Goldman, PLLC today for a free consultation. An experienced bankruptcy attorney can help you finally put identity theft behind you.