Chapter 7

Published on: August 25, 2011

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.

Published on: August 24, 2011

Bankruptcy Trustee Found Guilty of Wire Fraud

By David M. Goldman

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.

Published on: August 23, 2011

What is Debt Counseling and Do I Have To Do It To File Bankruptcy?

By David M. Goldman

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.

Published on: August 23, 2011

More People May Qualify for Alternative Bankruptcy Options

By David M. Goldman

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.

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Published on: August 22, 2011

Can My Tax Debt Be Discharged in Bankruptcy?

By David M. Goldman

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.

Published on: August 18, 2011

Will Marrying Someone Who Has Filed Bankruptcy Affect My Credit?

By David M. Goldman

There are two aspects of this question: marrying someone who is currently filing bankruptcy, and marrying someone who has already filed bankruptcy. One thing to keep in mind is that the bankruptcy code allows a person to file individual bankruptcy even if married, so marrying someone who is currently undergoing bankruptcy proceedings isn’t necessarily going to drag you into the mix. However, the person in the bankruptcy might have to disclose to the court the new income that marriage will bring into the household.

Whether you’re marrying someone currently undergoing bankruptcy or someone who filed years ago, you should know that you both have separate credit scores, so your spouse’s bad credit won’t kill your good credit just because you tie the knot. As time goes on, your spouse’s credit will improve and the bankruptcy will not matter as much.

If you or your new spouse is thinking about filing bankruptcy, you should contact a Jacksonville Bankruptcy Attorney to discuss the ramifications for both you both.

Published on: August 15, 2011

Will I lose My Child Support if I File For Bankruptcy?

By David M. Goldman

No, your will not lose any rights to your child support by filing for bankruptcy. You must disclose in your bankruptcy how much child support you receive. However, this child support is exempt from being taken to in order to pay your creditors (meaning it is exempt property) for any amount reasonably necessary to help support your children.

The child support that you receive is considered income for purposes of the means test. The means test is the mechanism used to determine if you qualify for a Chapter 7 bankruptcy. (If you do not qualify for a 7, you can always file for Chapter 13 bankruptcy if you meet the debt ceiling to do so.)

To find out more about child support in bankruptcy, contact a Jacksonville bankruptcy attorney today. We do free consultations, just give us a call at 904-685-1200 to schedule yours today!

Published on: August 12, 2011

How Often Can a Person File Bankruptcy?

By David M. Goldman

The answer to this question depends on what type of bankruptcy you qualify for. You cannot receive a discharge in a Chapter 7 bankruptcy if you have received a discharge in a Chapter 7 in the past 8 years or if you have filed a Chapter 13 within the past 6 years. On the other hand, if you received a discharge in a Chapter 13, you can file a Chapter 13 again in 2 years.

However, you do not want to abuse this process, as there task forces in place to seek out those who do so. Contact a Jacksonville bankruptcy attorney today to see if filing for bankruptcy is beneficial for your situation.

Published on: August 10, 2011

Can You Go to Jail for Being in Debt?

By David M. Goldman

If you’ve ever seen (or read) Master in Commander, you may recall that the central character was attempting to flee debtor’s prison. Debtor’s prison was very common for many years, and the question is often asked: can the government put you in jail for owing money to a private party? The answer is no. The United States used to have a Federal prison for unpaid debts; however, it was abolished in 1833. Some states still allow debt collectors to seek arrest warrants for debtors in default, but Florida is not one of those states. Further, the US constitution prevents incarcerating someone simply for owing a debt.

However, if you owe a debt to the state or federal government, you may find yourself in jail. The recent economic downturn has caused thousands of Floridians to owe court fees, and some of them are being jailed — not for owing a debt, but for “failing to follow a court order”.

Defaulting on a debt is rarely a good thing. If you have mounting debt and are unsure of what to do, contact a Jacksonville Bankruptcy Attorney to discuss whether bankruptcy is a good option.

Published on: August 8, 2011

Should You File Bankruptcy Before or After Divorce?

By David M. Goldman

If you and your spouse are still facing piling debt, you may be thinking about bankruptcy. However, since money issues are often the cause of divorce, you may also be thinking about splitting up as well. This dilemma leads to the question: Should you file bankruptcy now, or wait until after you split?

First, you should know that it is possible to file bankruptcy separately even if you are still married. This is often best for couples who know they are about to split and don’t think they can work well together during their joint bankruptcy. The rules differ for spouses who are still cohabitating as opposed to those who have separated, so *talk with an attorney to figure out what’s best for you.

However, if you and your spouse believe you can work together during the bankruptcy, it might make sense to file bankruptcy before your divorce. Only married couples can file jointly, and it helps keep down numerous costs. Filing bankruptcy prior to the divorce may effect alimony payments and other divisions of assets during the divorce process. Keep in mind, however, it is not always possible to discharge certain spousal payments such as alimony or child support payments in divorce. To find out which situation will be best for you, call a Jacksonville Bankruptcy Attorney.