Chapter 7

Published on: August 1, 2011

Will Bankruptcy Relieve my Obligation to Pay Punitive Damages?

Using an example, let’s say you have a former judgment against you and are required to pay punitive damages. The answer differs depending on which type of bankruptcy you are filing, whether it’s under Chapter 7 or Chapter 13 of the bankruptcy code. For example, damages owed due to drunk driving, willful injuries, and malicious fraud will not likely be discharged under a Chapter 7 plan in Jacksonville. Chapter 13 of the Bankruptcy Code is more liberal and may allow you to discharge these debts; however, there are certain conditions on this general .

Also, punitive damages related to a fraud case will likely not be discharged in any bankruptcy proceeding. To find out if your punitive damage judgment qualifies for discharge, contact a Jacksonville Bankruptcy Attorney today.

Published on: July 25, 2011

Jacksonville Bankrupcty Lawyer: How Long Does the Automatic Stay Last in Bankruptcy?

By David M. Goldman

When you file for bankruptcy in Jacksonville or Florida, an automatic stay goes into effect immediately. (Unless there has been aprevious bankruptcy, then you have to ask the Judge for one). This halts virtually all legal actions and collection actions against you or if they continue and a stay in in place they can be undone in most cases. This can really bring relief to those with creditors calling all day long. This also means that any foreclosure or garnishment action is halted, and a creditor cannot repossess your car, or the court cannot sell your home. So if you are behind on payments and think your collateral may be subject to repossession, a Florida bankruptcy can help to protect your assets while you figure out your next step.

If you think that getting a fresh start by filing for bankruptcy might help your situation, contact a Jacksonville bankruptcy attorney today at 904-685-1200 to assess your needs.

Published on: July 23, 2011

Jacksonville Beach Bankruptcy: Bankruptcy Filing Rates Drops Six Percent

By David M. Goldman

Four times each year, various agencies across the country conduct extensive surveys and collect data in order to get a snapshot of how the nation’s economy looks. After the first quarter of 2011, the American Bankruptcy Institute and the National Bankruptcy Research Center are reporting good news: the number of filings in the first three months of 2011 dropped from this time last year.

There were 363,215 bankruptcy filings after the first quarter of 2010. After the first quarter of 2011, however, there were 340,012. That’s a drop of 6%, which analysts see as a positive sign that the economy might be recovering – if only slightly.

However, others are pointing to the fact that credit is more difficult to come by, meaning people aren’t as able to accumulate unmanageable debt and file for bankruptcy. Others speculate that the reduction is due to the backlog of foreclosures in Florida, which has allowed people to stay in their homes for longer than they otherwise would have. This allows them to avoid bankruptcy – at least for now. Whatever the case may be, the numbers are encouraging.

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Published on: July 1, 2011

Are IRAs protected in Bankruptcy?

By David M. Goldman

As you’re probably aware, an Individual Retirement Account, or IRA, is a type of savings account primarily used in preparing for retirement. Monetary contributions to traditional IRAs are tax-deductible, making them an attractive option for retirement.

As with most assets, IRAs are transferable to a named beneficiary upon death. When transferred, the IRA is referred to as an inherited Individual Retirement Account.

In bankruptcy, traditional IRAs are considered exempt under Florida law. This means that any assets you have in an IRA cannot be touched by your creditors. (As a caveat, you can typically contribute $5000 to $6000 per year to your IRA, depending on your age. So, you can’t put all your assets into an IRA and then declare bankruptcy.) Under the old version of Florida law, only traditional IRAs were considered exempt; creditors could, in fact, go after inherited IRAs.

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Published on: June 30, 2011

Florida Bankrupcy Lawyer: Free Online Bankruptcy Forms: Why Should I Hire an Attorney?

By David M. Goldman

There are certain websites that will allow you to print out legal forms, often telling you that doing so can save you thousands on legal fees. While such claims might sound promising, you should know that it is very rare for a pro se individual (that is, someone acting without an attorney) to successfully file bankruptcy.

You’re probably thinking, “Of course a blog written by a Jacksonville Bankruptcy Lawyer would recommend I hire a lawyer.” That’s a fair thought. However, that doesn’t take away from the real difficulties that come with filing for Florida Bankruptcy Lawyer , nor does it relinquish the potential damages that can occur if you do not file correctly.

Further, each person who files for bankruptcy is expected to be familiar with the United States Bankruptcy Code and the Federal Rules of Bankruptcy Procedure. You must also be familiar with the local rules of the court in which your case is filed. Failure to follow these rules can result in dismissal of your case “with prejudice.” For example, if you fail to file a required document on time (or never file it), your creditor(s) might be granted rights to your property without your knowledge. This could result in loss of property, and your time to object will have passed. This is just one of the many negative aspects of not using a qualified attorney.

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Published on: June 29, 2011

Jacksonville Bankrupcy Lawyer: What is a "Creditors" or "341" Meeting?

By David M. Goldman

The 341 Meeting is one of the first hearings that happens in a Chapter 7 Bankruptcy or Chapter 13 Bankruptcy. The 341 Meeting is a meeting with the judge and trustee where you will be asked a series of questions pertaining to your Jacksonville Bankruptcy petition. You must attend the 341 Meeting. If someone told you that you need not attend, they are probably misinformed.

This is an important part of all Jacksonville Bankruptcy proceedings and it is very important that you attend this meeting. At the 341 meeting, you’ll answer several questions. The questions may differ slightly, but generally the court will ask you to explain how your debt situation evolved, what actions you’ve taken with your property, and the status of other financial information. You must answer these questions truthfully if you want your bankruptcy petition to be successful.

With a Bankruptcy in Jacksonville, The 341 meeting takes place at the federal courthouse and can be intimidating if you do not know what to expect. You may want to get to the courthouse early in order to watch some other 341 hearings before yours; this will let you become comfortable with the environment and the questions that you might be asked. Not all 341 proceedings are the same (each debtor has different creditors who may or may not attend); however, if you feel uncomfortable, you have the right to a Bankruptcy Lawyer at your 341 hearing.

Published on: June 27, 2011

What is the Means Test In a Florida Bankruptcy

By David M. Goldman

In order for you to begin filing bankruptcy, there is a test that is used to determine which Chapter of bankruptcy you will be allowed to file. The “Means Test” is comprised of an average income for the region of the U.S. in which you live, and your income in comparison with that average. If your income does not pass the Means Test, then you will likely have to file Chapter 13 Bankruptcy. However, if you pass the Means Test it is possible for you to file for Chapter 7 Bankruptcy, which allows a liquidation of your debts.

The Means Test was put into place so as to deter people from abusing the Bankruptcy process. No matter your income, you might want to consider filing Bankruptcy in Jacksonville if you are struggling to pay your bills and should contact a Jacksonville bankruptcy attorney to discuss your options.

Published on: June 26, 2011

Divorce and Bankruptcy

By David M. Goldman

Filing for Bankruptcy in Jacksonville is often a complicated and frustrating process. Many believe that bankruptcy in Florida simply wipes out a person’s debts — however, sometimes this is not the case. For example, federal law states that almost all types of debts arising from a divorce are non dischargeable. So, if you have gone through a Florida divorce and have a decree from a judge, the debts listed on that decree will likely not be discharged in a bankruptcy proceeding under most types of Florida bankruptcy proceedings.

Even if you have gone through a divorce, some of your debts arising from that divorce might be discharged if you qualify for a Chapter 13 Bankruptcy Plan. The differences between the different chapters of bankruptcy proceedings is complicated, which is why you should contact a Jacksonville Bankruptcy Attorney in order to help you understand your options.

Additionally, it might make sense for some to file bankruptcy in Jacksonville prior to filling for divorce. If you are considering filling for divorce, contact a Jacksonville Divorce Attorney to discuss your situation.

Published on: June 24, 2011

I Walked Away from my Mortgage. Can I Get Rid of the Deficiency Judgment by Filing Bankruptcy?

By David M. Goldman

If you are one of the many people who walked away from your home before filing for bankruptcy, you might still owe the bank some cash. Generally, when you walk away from your mortgage, the bank will foreclose on your home, sell it, and likely take the loss on that sale (the selling price is usually lower than what you might have owed the bank).

However, Jacksonville Bankruptcy Lawyers are seeing an increase in what is called a “deficiency judgment.” Banks might ask for a deficiency judgment, which is essentially a lawsuit filed by the bank against you. It means the bank wants you to pay the difference between what you owed on the home and what it sold for.

For example, let’s say you walk away from a mortgage that you owe $200,000 on. The bank forecloses on your home and sells it for $50,000. The bank might then seek a deficiency judgment. If the court grants the judgment, you’ll be on the hook for that $150,000 + interest.

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Published on: June 22, 2011

Jacksonville Bankruptcy: Strategic Defaults: Will They Work for my Student Loans?

By David M. Goldman

You’ve probably heard of people using a “strategic default” on their home mortgages in Florida. This means the homeowner stops making payments because the value of the home is less — often substantially less — than the amount remaining on the mortgage. This often makes financial sense; but can it work for something like student loans?

The short answer: no. The obvious point is that student loans are much different than home loans, in that the market for the products (i.e., a home vs. your degree) is much different. Despite this, some people think that ceasing payments on a student loan will prompt the lender (generally the Government) to negotiate a settlement. This is rarely — if ever — a wise choice.

Interest on your loan continues to accrue even if you have stopped paying. After a few years, this interest can amount to thousands of dollars in fees that you might not otherwise have accumulated. Further, even if the government decides to settle with you for a smaller amount, that amount will likely be somewhere around 90% of what you originally owed. Since you’ve accumulated that additional interest, that settlement might not be less at all.

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