Jacksonville Bankruptcy Lawyer Blog

Published on: July 7, 2015

What should I not do before filing Bankruptcy?

Bankruptcy often comes with a negative social stigma, but bankruptcy is not a moral choice. Bankruptcy is an important financial planning tool that allows debtors a legal option to get out of a desperate situation. Studies by the Federal Reserve Bank of New York have shown that people in debt who file for bankruptcy do better financially than those who do not. So declaring for bankruptcy can be a great way to get back on track; however, there are some things that a person in debt should not do before declaring bankruptcy.

Do not create new debt.

If you plan on filing for bankruptcy, try to avoid creating new debt. The consequences of creating new debt can be severe, as a new creditor can claim the debtor took out a new loan, opened a credit card, or acquired a new debt without the intent of paying it back. A creditor could argue this is fraud because the debtor never intended to pay it back. If the court agrees the act was fraudulent, the debt will not be discharged in bankruptcy and the debtor will still owe the whole debt.

Continue reading →

Published on: June 30, 2015

How can I stop a foreclosure through bankruptcy?

By Kendal Schoepfer

If you are deep in debt and facing the foreclosure of your home, bankruptcy might be able to help you save your home or relieve you of the debt depending on which type of bankruptcy you declare.

For those not familiar with foreclosure, foreclosure usually begins when a homeowner falls significantly behind on his or her mortgage payments. The lender then begins the legal process within the court system of obtaining a Judgment of Foreclosure, which allows the home to be sold through a public auction. The process is usually lengthy and includes many steps.

Since the foreclosure process generally does not begin until a homeowner has missed several payments, the owner may have some time to try alternative methods to foreclosure first. Alternative methods include but are not limited to a modification, loan forbearance plan, short sale, or deed in lieu of foreclosure. If these methods have already failed, it may be time to consider bankruptcy.

Continue reading →

Published on: June 22, 2015

How will my debts discharged in bankruptcy appear on my credit report?

By Kendal Schoepfer

Filing for a Chapter 7 or 13 Bankruptcy is a great way to start over and free yourself from overwhelming debt. A question I often receive is how does the discharged debt appear on my credit report after the bankruptcy court has officially granted me a discharge. This article will explain what information should and should not appear on your credit report once your debt has been discharged through bankruptcy.

The Fair Credit Reporting Act.

The Fair Credit Reporting Act, or FCRA, is the act that controls how creditors, buyers of credit, and credit reporting agencies may report debt. This act was enacted to ensure creditors and the like maintain accurate information regarding a person’s credit information. Creditors are required to truthfully and accurately report information to consumer reporting agencies.

Continue reading →

Published on: June 18, 2015

Separation and Bankruptcy in Florida: Can I file without my spouse if we are separated?

By Kendal Schoepfer

First, it is very important to note that Florida does not legally recognize “legal separation.”

However, the current bankruptcy laws allow a debtor to file an individual bankruptcy regardless of whether he or she is married or in the process of getting a divorce. A debtor is allowed to file a joint or individual bankruptcy during a marriage or during an ongoing divorce.

Generally, when a person is married and filing bankruptcy, either individually or jointly, the income of both spouses determines what type of bankruptcy a debtor can file; either a Chapter 7, 13 or 11. This is known as household income in bankruptcy. Even if only one spouse is filing bankruptcy, the income of the other non-filing spouse will be taken into consideration and must be disclosed to the trustee and court.

Continue reading →

Published on: June 11, 2015

Is bankruptcy right for you?

By Kendal Schoepfer

Filing for Bankruptcy can be both a scary and exciting prospect that allows a person deep in debt to make a fresh financial start. However, bankruptcy isn’t always the right answer. Here are a few factors to consider when deciding if declaring bankruptcy is right for you.

What type of bankruptcy should I file?

When a person decides to file for bankruptcy, he or she may be able to file two different types of bankruptcy: Chapter 7 or Chapter 13.

Continue reading →

Published on: June 5, 2015

Can bankruptcy eliminate my past due child support payments?

By Kendal Schoepfer

Filing for bankruptcy can be a great way to finally get out of debt and start your financial life over. However, there are some debts that bankruptcy does not eliminate. For instance, a bankruptcy will not remove a debtor’s student loans or owed child support payments. The good news is that a Chapter 13 Bankruptcy repayment plan may help a debtor bring their missed child support payments current.

Why are child support payments not included in a bankruptcy?

The federal government has decided that some debts are too important to be erased by bankruptcy. Congress decided that it would be too fundamentally unfair to allow a person to get out of their obligation of paying child support by filing for bankruptcy. A child support payment is court ordered and the money is spent on a child’s welfare.

Continue reading →

Published on: June 1, 2015

How does bankruptcy affect a debtor’s retirement funds?

By Kendal Schoepfer

Those who file for bankruptcy in Florida may be surprised to learn it is possible to keep your pension and retirement funds you have worked so hard for.

When someone files for bankruptcy, the bankruptcy estate can take the debtor’s nonexempt assets to pay off his or her creditors. What property is exempt will depend on whether the debtor files a chapter 7 or chapter 13 bankruptcy, and the bankruptcy exemptions of the state in which the debtor resides.

Congress overhauled the bankruptcy codes in 2005 under the Employee Retirement Income Security Act (ERISA). Since then, most retirement accounts and pension plan funds have been deemed property that is exempt from creditors during bankruptcy.

Continue reading →

Published on: May 29, 2015

Should I file bankruptcy before I get married?

By Kendal Schoepfer

Deciding when the best time to file for bankruptcy can be a very difficult issue for couples. Especially for couples who are planning to be married. While married couples can still file for bankruptcy jointly and/or separately, being married can make it more difficult to qualify for the bankruptcy chapter you wish to file.

Filing a joint bankruptcy is normally a more convenient process as it allows a couple to wipe out their debts together in a single bankruptcy. This means the couple will not have to attend separate hearings. A joint filing will save the couple money on court costs, as the filing fees are the same for an individual or joint bankruptcy. And attorneys will also charge less for a joint bankruptcy filing than if the attorney was filing two separate bankruptcy petitions.

However, filing a joint bankruptcy may not always be in the best interests of the couple depending on the couple’s income, assets, and debts. Once a couple gets married, they may have a more difficult time qualifying for a Chapter 7 Bankruptcy.

Continue reading →

Published on: May 13, 2015

Chapter 13 – Falling behind on your Monthly Plan Payments

By Kendal Schoepfer

Filing a Chapter 13 Bankruptcy is a very difficult decision to make. The main reason deciding to move forward with a Chapter 13 Bankruptcy can be so difficult is because it can bring with it many limitations that can be hard to swallow.

Working with your attorney, and ultimately your Court appointed Chapter 13 Trustee, you will be put into a Chapter 13 Plan and required to make monthly payments to your Trustee for three (3) to five (5) years. At first this doesn’t sound too bad since you will just make monthly payments for the next three (3) to five (5) years as you would when you finance a new vehicle.

Then you find out more.

Continue reading →

Published on: May 6, 2015

Chapter 7 and Administrative Fees

By Kendal Schoepfer

In many Chapter 7 bankruptcies where the Trustee determines there are assets, the Trustee can collect administrative fees at the close of the bankruptcy case. You are probably first wondering what are administrative fees and what do they mean to me.

First, assets are basically just about everything you own (from money in any sort of financial account, to cash, to your home, to the furniture in your home, and etc.), but the Trustee cannot touch every asset. You are allowed to use certain and specific exemptions to protect all or some of your property. Some exemptions are limited to a dollar amount while others, such as retirement accounts, may be fully protected.

Assets or property that do not qualify for an exemption or are over the dollar amount allowed can be taken by the Trustee and used to pay your debts. However, in many situations, the Trustee may offer you a payment plan equal to the dollar amount of the asset not protected in exchange for you being able to keep the asset.

Continue reading →