Jacksonville Bankruptcy Lawyer Blog

Published on: September 14, 2011

NFL Star In Trouble In His Chapter 7 Bankruptcy

NFL Star Rick Sanford initially filed for Chapter 7 bankruptcy in February 2009 in South Carolina. Sanford did not list all his assets, however. He failed to disclose his interest in a Colorado condo, which later sold, netting him $70,000.00. When the trustee in Sanford’s case challenged his listing of assets, Sanford withdrew his bankruptcy petition. He was subsequently charged with fraud and plead guilty. The court sentenced him to 2 years probation, 30 days home confinement, and 100 hours of community service.

When filing for bankruptcy, it is very important to be honest and list all of your assets. Oftentimes, your Jacksonville Bankruptcy Attorney can exempt your assets so you can keep them away from creditors.

Published on: September 13, 2011

Toni Braxton Receives Bankruptcy Discharge

By David M. Goldman

Famous singer Toni Braxton filed for relief under Chapter 7 Bankruptcy in September of 2010, listing luxurious personal property items, such as a Porsche, lavish household contents, and expensive jewelry. She claimed around $1.6 million in assets. The judge in her case has now granted her a discharge. This means that she will no longer be liable for certain debts. This is her second bankruptcy preceding since 1998.

To see what assets of yours you would get to keep after filing for bankruptcy, contact a Jacksonville Bankruptcy Attorney today to discuss your specific situation.

Published on: September 12, 2011

My Home Has Been Foreclosed And There Is A Sale Date. What Can I Do?

By David M. Goldman

Filing for bankruptcy will stop the future sale date of your home, even if there has been a final order foreclosing the property. This is due to an automatic stay that is immediately put into place upon filing for bankruptcy. Under the automatic stay, a creditor cannot take any action against you to try and collect a debt. So your foreclosure suit will halt immediately and your sale date will be cancelled; no more action will be taken in the case until the automatic stay is no longer in place.

The automatic stay will be effective until the conclusion of your bankruptcy. In a Chapter 7, this will probably be a short amount of time, around 4-6 months. But this extra time may give you the opportunity to catch up on your mortgage, achieve a modification, or sell your property. However, in a Chapter 13 bankruptcy, your case will not be concluded until after your Plan payments are finished. This will be anywhere from 3-5 years. Within those years, your Plan will allow you the opportunity to catch up on arrearages and so cure your deficiency with your mortgage company.

There are many ways in which a bankruptcy might be in your financial best interest. Help with mortgages that are in default is just one way a Jacksonville Bankruptcy Attorney can help you. Call us today at 904-685-1200 to schedule a free consultation.

Published on: September 9, 2011

Mortgage Help In Bankruptcy

By David M. Goldman

Many people find that bankruptcy is the right option for them if they are having problems paying their mortgage. First, a Chapter 13 bankruptcy can give you time to catch up on the arrearages that you owe through a Chapter 13 Plan. Also, your Jacksonville Bankruptcy Attorney can file a motion within your bankruptcy requesting that your Judge order the mortgage company attend mediation, where your Jacksonville Bankruptcy Attorney can negotiate on your behalf to reach an amicable resolution. Finally, if you feel that you cannot or do want to catch up on your mortgage and are ready to walk away from your house, surrendering the property in your bankruptcy will shield you from any liability from a deficiency judgment.

If you are behind on your mortgage, contact a Jacksonville Bankruptcy Attorney today to discuss your options.

Published on: September 8, 2011

What Should I Do If I Receive a Summons From A Collection Agency?

By David M. Goldman

If you receive a summons from a collection agency, you have two options: respond or do not respond. If you do not respond, you will get a default judgment against you. This opens you up for garnishments or liens on your property. The better option is to respond to the complaint filed against you. This will give you the opportunity to defend yourself and/or negotiate a settlement. You only have a certain amount of time to respond to the summons, so you must do so in a timely manner. The time limit that you have should be listed on your summons, it is usually between 21 and 30 days.

If you have received a summons and would like to speak with Jacksonville Bankruptcy Attorney call 904-685-1200 today.

Published on: September 8, 2011

Private School Loans Dischargeable in Bankruptcy?

By David M. Goldman

There is current legislation before both the US Senate and US House of Representatives that would allow private school loans to be discharged in bankruptcy, as most of them were before the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005. Legislators are reasoning that there is a strong interest in not allowing federally backed student loans to be discharged in bankruptcy, but these reasons do not apply to private school loans and so they are rethinking the laws. The New York Times wrote an interesting article on the topic.

To see if your loans qualify for discharge, contact a Jacksonville Bankruptcy Attorney today to discuss your situation.

Published on: September 7, 2011

Am I Still Liable For A Bill That Is Eight Years Old?

By David M. Goldman

In Florida, a statute of limitations puts a limit on the amount of time for which you are liable for a debt. For an oral contract, the limit is 4 years. For a written contract or promissory note, the limit is 5 years. On a revolving balance contract, such as credit card, the statute of limitations is 4 years.

If you think that you do not owe a debt because the statute of limitations has run out, contact a Jacksonville Consumer Law Attorney at 904-685-1200 for a free consultation to find out.

Published on: September 6, 2011

How Long Will It Take Me to Pay Off My Debts With A Chapter 13 Bankruptcy?

By David M. Goldman

When you file for Chapter 13 bankruptcy, you will pay off your debts through a Chapter 13 Plan that lasts anywhere from 3-5 years. A Chapter 13 Plan allows a debtor to catch up on most any debt, including mortgage arrearages, owed taxes, missed payments on vehicles, HOA dues, legal fees, fines owed to the city or state, and more.

Your unsecured creditors might also get some payments through the Chapter 13 Plan. If they will and how much will they receive is determined by your means test and the amount of unexempt property that you have. Any amount of unsecured debt that you have over this amount will be discharged at the successful conclusion of your Chapter 13 bankruptcy. For example, if you owe $20,000 in unsecured debt and your case only dictates that you must repay $5,000 to unsecured creditors, the $15,000 balance gets discharged or forgiven when you successfully complete your Chapter 13 Plan. If your case dictates that no money must be paid to unsecured creditors, then the entire balance of $20,000 would be forgiven.

To see how a Chapter 13 Plan would be structured for your specific situation, contact a Jacksonville Bankruptcy Attorney today for a free consultation.

Published on: September 5, 2011

Florida Case allows ex-spouse partial discharge of alimony obligation

By David M. Goldman

In a Florida bankruptcy case stemming from a divorce, a husband’s lawyer argued that an alimony obligation was in part dischargeable by showing that it was not completely of a supportive nature. There are several kinds of alimony in the state of Florida, such as temporary, rehabilitative or lump sum. In this case, the alimony was labeled as rehabilitative. Rehabilitative alimony is usually intended to aid or help educate the person receiving it so they can increase their income to what it would have been had they not lost time and educational opportunities while helping their ex-spouse reach their career goals.

In general, alimony is considered to be for the support of another, making it non-dischargeable in bankruptcy under section 523(a)(5). As a result, family law attorneys will sometimes label what is actually a property settlement “alimony” so their client won’t have to worry about their ex-spouse discharging the debt. However, in the case of In re Harrell, the Judge found that an alimony award can be either supportive in nature or a property settlement and that it is the distinction between that those two that indicates the portion that can be discharged. In that case, only $500.00 of a monthly alimony obligation of $1,150.00 was found to be support and the remainder was discharged.

Many bankruptcy clients are mistakenly advised by their own family law attorneys who say that alimony is always a support obligation and that support obligations are non-dischargeable in bankruptcy. Although it is accurate to say that true “support obligations” are non-dischargeable, I would take a serious look at any alimony obligation before determining it to be untouchable in bankruptcy.
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Published on: September 2, 2011

My Mom Gives Me Money Every Month To Help Pay My Bills. Will I Have To Disclose This In My Bankruptcy?

By David M. Goldman

Yes. You must disclose all sources of income on your bankruptcy schedules. You can, however, put on the schedules that this support is not likely to continue in the future, but you must disclose any monies received in the prior six months from any source. Some income, however, is exempt from counting towards your Current Monthly Income calculation as reported on the means test. Some social security income, unemployment income, pension income, etc. will not count towards your Current Monthly Income. Your Ponte Vedra Bankruptcy Attorney will know how to list your income so it will be most beneficial to you. Contact us today at 904-685-1200.