Creditor - Secured Category Archives — Page 6 of 7 — Jacksonville Bankruptcy Lawyer Blog Published by Jacksonville, Florida Bankruptcy Attorneys

Published on: August 22, 2011

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.

Published on: August 19, 2011

US Debt Downgrade: What it Means For You

By David M. Goldman

As you probably know, credit rating agency Standard & Poor recently downgraded the United States’ credit rating from AAA to AA+. S&P also gave the US a negative outlook, which means S&P could downgrade the US again within the next two years to AA+. S&P is not the only rating agency, however. Moody’s and Fitch both left their AAA ratings in tact, but said they might reconsider those ratings at a later date.

But what does this mean to you? Aside from the increased political bickering on TV and in Washington, the downgrade could have some negative side effects for the American consumer.

First, we may see a rise in inflation. This is due in large part to the slowing economy and rising amounts of currency in circulation.

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Published on: August 14, 2011

Deed in Lieu or Foreclosure — Which is more Beneficial?

By David M. Goldman

First of all, as far as your credit score goes, banks usually report a deed in lieu as a foreclosure. In other words, a deed in lieu will probably have the same effect on your credit score as a regular foreclosure. Further, even if a bank has a deed in lieu, they will likely require you to sign a note saying you will pay them any amount left over if the sale of your home is less than what you owe.

You’re probably wondering: What is the advantage of a deed in lieu over a foreclosure? For most people, there isn’t one. If you accept the foreclosure, you should ensure your agreement states you will not owe any amount on a potential deficiency sale. Both deeds in lieu and foreclosures will look the same on your credit score, so bankruptcy is also another consideration here.

If you are thinking of filing bankruptcy, contact a Jacksonville Bankruptcy Attorney today. If your home is facing foreclosure, contact a Florida Foreclosure Defense Attorney to further discuss your options.

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.

Published on: August 2, 2011

Florida Bankrupcty Lawyer: Can I sell my Assets Prior to Filing Bankruptcy?

By David M. Goldman

For example, what if someone thinking about bankruptcy has stock. Can he or she sell that stock before filing bankruptcy and put the money in something else? Generally, if you file bankruptcy, the Court will ask you about your sales of assets in the months prior to filing. They will attempt to see if you have made any fraudulent sales or transfers in an attempt to avoid paying a creditor, during this time and they mainly check to see if you received fair market value for your assets. So, if you sell your stock, you will need to disclose that sale and will need to list the proceeds as an asset.

Further, the court may view your sale as fraudulent in certain circumstances. For example, in Florida there exists an exemption under bankruptcy plans for your homestead. In other words, creditors cannot use the equity in your home to satisfy debts. However, if you have a second home, creditors may use the equity therein to satisfy your debts. Thus the question arises: what if you sell your second home and use the proceeds to pay some (or all) of your mortgage on your primary home?

The 2005 Bankruptcy Abuse Prevention and Consumer Protection Act (BAPCA) largely prevents these practices. The statute now says you might lose your ability to discharge debts if you transfer property solely to hinder, delay or defraud creditors. Courts are left to determine what constitutes hindrance, delay, or fraud, so lawyers are cautious in encouraging such practices. If you are thinking about filing bankruptcy, contact a Ponte Vedra Beach Bankruptcy Attorney at 904-685-1200 to discuss your options.

Published on: July 30, 2011

Can a Creditor Freeze My Account?

By David M. Goldman

Yes, a creditor can freeze or take money out of your bank account if they have a judgment against you from the court. (If your delinquent debt is for unpaid taxes or child support, sometimes the creditor can take out money from your bank account without a judgment.) If you have a joint account and the other person on your account has the judgment, the creditor can also seize the funds from your account. It is up to you to prove at a hearing that these funds taken from the account are yours, and not the joint account holders. A Jacksonville attorney can help you do this properly.

A creditor can take this money from your account with no warning in most cases. They must notify you in writing the next day that they have taken the money, but by that time the damage is already done. Your bank must also notify you after the funds are taken.

A Jacksonville consumer law attorney can quite possibly get this money back for you, however. Oftentimes certain money is exempt from the creditor’s grasp, but you must have a hearing to prove it. Social security income and veterans benefits income are exempt from being taken. Also, certain retirement income and disability income are exempt. There is other exempt monies as well. Contact our Jacksonville lawyer today to see if the money taken from your account is exempt and learn how our legal team can help you get it back.

Published on: July 28, 2011

A Creditor Has a Judgment Against Me. Can the Creditor Garnish My Wages?

By David M. Goldman

First let me say that you should contact a Jacksonville consumer law attorney before the creditor gets a judgment against you. Only by addressing the complaint or lawsuit timely do you have a chance to avoid a judgment.

If a judgment has already been entered against you, a Jacksonville attorney may still be able to help you from getting your wages garnished. There are laws regarding what monies may be garnished and from whom. For example, the wages of the head of a family cannot be garnished unless that person’s net wages are more than $500 per week AND that person has agreed in writing to allow their wages to be garnished. Someone is a “head of the family” if they reside in Florida and provide more than one-half of the support of a dependent. If you do not qualify as a head of the family, you still might have protection against wage garnishment. Contact a Jacksonville attorney who specialized in wage garnishment today if you might be at risk of wage garnishment to protect your rights.

Published on: July 27, 2011

Can a Bankruptcy Judge Order a Mortgage Company to Modify a Mortgage After I filed a Chapter 13 Bankruptcy?

By David M. Goldman

An attempt to pass a law that would allow Bankruptcy judges to modify mortgages never made it passed the Senate. So a judge cannot automatically modify the terms of your existing mortgage. However, filing bankruptcy in Florida can help in other ways.

First, if you are behind on payments, filing a Chapter 13 bankruptcy allows you to catch up the arrearages over time so you are no longer in default. Second, filing bankruptcy oftentimes serves as a strong negotiation point with lenders. Lenders might be willing to work with you more if they know that there is a strong possibility that you might just walk away from the house if they do not work with you. Third, your Orange Park bankruptcy attorney can file a motion within your bankruptcy proceeding to require your mortgage company into mediation with you. So the judge cannot automatically change the terms of your mortgage, but s/he can order your mortgage company into mortgage modification mediation with you. Finally, if your home is in foreclosure, filing bankruptcy will halt the foreclosure proceedings. The automatic stay will go into effect immediately and all activity in the foreclosure case will cease.

To see if filing for bankruptcy is in your best interest, contact an Orange Park bankruptcy attorney today to discuss the particulars of your situation.