Jacksonville Bankruptcy Lawyer BlogIf the debt was properly listed on your bankruptcy schedules and subsequently discharged, the creditor no longer has the right to collect that debt from you. If the creditor is continuing to harass you, you should have your Jacksonville Bankruptcy Attorneywrite a cease and desist letter to the creditor. This usually cures the problem and the creditor will stop contacting you. If, however, the creditor continues to try and collect the debt, this is illegal and your Jacksonville Bankruptcy Attorney will file a complaint against them for possible discharge violations, FDCPA violations, FCCPA violations, and/or FDUTPA violations. Often times attorneys will take these cases on a contingency basis, meaning that you and the attorney would each get a share of the monies recovered, so that you would not have to pay any legal fees up front. If a creditor is harassing you, contact a Jacksonville Bankruptcy Attorney today to discuss your options.
Articles Posted in Chapter 13
Will filing for bankruptcy in Orange Park Florida affect my credit?
One of the first questions new clients ask me as a Orange Park Bankruptcy Attorney is if filing for bankruptcy will negatively affect their credit. There is no completely clear answer to this question, but I tend to lean towards yes, it will affect your credit.
A bankruptcy will appear on an individual’s credit report for ten years. However, the odds of obtaining credit after a bankruptcy discharge are very good. In fact, some credit card companies target individuals right after a bankruptcy discharge because the credit card companies know they have a clean slate.
To learn more about bankruptcy and the possible effects on your credit contact an Orange Park Bankruptcy Attorney today to schedule a free consultation.
Jacksonville Bankruptcy Attorney: The 341 Meeting
In the majority of Florida bankruptcy cases including those in Jacksonville bankruptcy court, debtors do not have to appear in court for every hearing. However, debtors do have to attend a proceeding called the “meeting of creditors” or a “341 meeting”. At this meeting the debtor meets with the Florida bankruptcy trustee and any present creditors (who rarely attend). In Jacksonville the trustee and any present creditors ask the debtor a few questions about the financial documents the debtor filed with the court. The process takes just a few minutes and is normally pain-free if you are prepared for the questions and have discussed your answers with a Jacksonville Bankruptcy Lawyer.
The only time the debtor may have to appear in court is if a creditor or the bankruptcy Trustee files a motion or an adversary action, or if the debtor’s Jacksonville Bankruptcy Lawyer chooses to dispute a debt.
Normally these hearings are not included in a standard bankruptcy fee and you should discuss the costs with your Jacksonville Bankruptcy Lawyer.
What Are Some Main Reasons One Might File For Bankruptcy?
There are many reasons that it would be advantageous to file for bankruptcy, but here are some of the most common reasons:
1. The first reason to file for bankruptcy is to stop a foreclosure sale. Filing for bankruptcy immediately stops a halts a foreclosure suit against you. This can give you time to reorganize your finances, try to sell your home, negotiate a modification, or find another place to live. Your chapter 13 Plan can let you catch up on your arrearages over a 5-year time span and so cure your default. If your home has been foreclosed upon, bankruptcy might be a good option for you.
2. Filing for bankruptcy not only stops a foreclosure suit, it halts almost all legal actions taken against you, such as a garnishment or auto repossession. If your auto is in danger of being repossessed, filing for bankruptcy will keep the creditor from doing so. You can value your auto in the bankruptcy and pay only fair market value to the creditor. This means that if you owe $20,000 on your auto and it is only worth $10,000. you can pay the $10,000 to the creditor through your bankruptcy and own the vehicle outright after your Plan is completed.
How do I reconcile a bankruptcy with my religion?
Many people considering bankruptcy have religious concerns and wonder if they can still be a good Christian or Jew and simultaneously file bankruptcy. Very few people know that the origins of bankruptcy actually come from Deuteronomy 15:1-2 which reads:
“At the end of every seventh year you are to cancel the debts of those who owe you money the Lord himself has declared the debt canceled.”
This is the reason why people can only file a Chapter 7 bankruptcy every eight years (eight years being the end of the seventh year). To take things further, the United States Bankruptcy Code permits a substantial tithe contribution to qualified charities if made under certain circumstances.
Ray Guy Surrenders His Super Bowl Rings In Bankruptcy
Ray Guy, who used to play for the Oakland Raiders, auctioned his Super Bowl rings as part of his bankruptcy case. Guy won 3 Super Bowls throughout his career, in 1976, 1980, and 1983. Guy had filed for bankruptcy in Georgia in April 2010.
You may be wondering if you must give up your personal property if you file for bankruptcy. You might. If you have any unexempt personal property, you will either have to surrender that property or buy back its value from the trustee. To see if your personal property is exempt, call a Jacksonville Bankruptcy Lawyer at 904-685-1200 to discuss your options.
Bankruptcy Trustee Found Guilty of Wire Fraud
Marika Tolz, a trustee in southern Florida, was sentenced on August 10, 2011 to 81 months in prison. Tolz was found guilty of wire fraud conspiracy. Tolz was a Chapter 7 trustee in Hollywood, Florida, who misappropriated approximately $16 million in funds from cases assigned to her. Ironically, one of the cases she defrauded was that of a Ft. Lauderdale man, Scott Rotstein, who was accused of orchestrating a ponzi scheme that defrauded victims out of a substantial amount of money.
If you feel the trustee in your Chapter 7 or Chapter 13 bankruptcy case is acting inappropriately, contact a Jacksonville Bankruptcy Lawyer to discuss your options and your specific situation.
What is Debt Counseling and Do I Have To Do It To File Bankruptcy?
As of 2005, every debtor who wants to file for bankruptcy must complete two credit counseling requirements. The first class is called credit counseling and must be done within the 6 months prior to filing for bankruptcy. The second class is called debtor education and must be completed after you file for bankruptcy. In a Chapter 7, the debtor education course must be completed within 60 days after the first date set for the meeting of creditors in your case. In a Chapter 13, the debtor education course must be completed before the last payment is due under your Chapter 13 Plan.
If you have a bankruptcy question, or if you would like to discuss a consumer law issue with a Jacksonville Bankruptcy Lawyer, call 904-685-1200 today.
More People May Qualify for Alternative Bankruptcy Options
Supreme Court Modifies Means Testing for Certain People
When determining whether you are eligible to file a Chapter 7 bankruptcy, you usually must show that your annual household income is less than that of the average family in your area. The test that makes this determination is informally called the “Means Test”, i.e. do you have the means to pay your creditors. Being ineligible for a Chapter 7 would mean considering other Chapters for relief from debt, which may not be as favorable to your financial situation.
For the purposes of the Means Test, your annual income is calculated by taking your last six months of household income and multiplying that amount by two. By looking at your last six months of income, the court is able to estimate your projected disposable income for the next year. Because the Internal Revenue Service (IRS) considers just about any money that comes to you as income, things like disability benefits are included in the calculation of your income. This caused problems for people whose benefits ceased within the six months prior to filing because their income appears to be higher than it will be in the future.
Can My Tax Debt Be Discharged in Bankruptcy?
Yes, if it is a non-priority debt. Taxes become non-priority debt when 1. the return was due more than 3 years prior to filing the bankruptcy 2. the return was filed at least 2 years before you filed for bankruptcy 3. the tax debt was assessed at least 240 days prior to filing AND 4. you are not guilty of any type of fraudulent behavior, like tax evasion. Also, you cannot have signed a settlement agreement with the IRS. This can be an in-depth analysis, so it is best to have a competent attorney look at your specific situation. To schedule a free consultation today, get in touch with a Jacksonville Bankruptcy Attorney by calling 904-685-1200.