Miami Bankruptcy Attorney Blog

Clients who come to my office will always tend to ask me the following question… can I get a payment plan to pay your attorney fees if I file chapter 7 bankruptcy in Florida? The answer to this question is it depends.  Chapter 7 bankruptcy attorneys are NOT allowed to accept any money from a client after they have filed the client’s case.  That is why in all chapter 7 bankruptcy cases the attorney states that they must be paid up front, or before the filing.  So if you are looking for an attorney who will put you on a payment plan, file your bankruptcy, then continue to allow you to make payments after your case has been filed, you will be looking for a long time because they don’t exist.  However bankruptcy attorneys can work with you with regard to the fee.  Here is how I do it in my office.

If a client comes to see me, wants to file bankruptcy but doesn’t have enough money to do so I will put them on a quasi-payment plan.  In this plan the client will give me an initial down payment ranging from $100-$300.  When the client pays me this fee I can begin to work on their case, which will include running the client’s credit, determining what their assets are, as well as determining which of their assets will be exempted from creditors when the client chooses to file for bankruptcy.   After the initial deposit is made, the client will make any arrangements they can to come up with the rest of the money, whether it’s  monthly payments, bi-monthly payments, quarterly payments, etc… during this time I will continue to work on their file and have the bankruptcy petition ready to file when necessary.  Finally when the client has paid my attorney fee, I will review the petition with the client and then immediately file their case.

If you know someone who is looking to file for chapter 7 bankruptcy in the greater Miami, Fort Lauderdale, or Palm Beach county then please call Shmucher Law, PL at 954.309.5559 or 305.741.5553 to schedule a free initial consultation in one of our five conveniently located offices throughout Broward, Miami-Dade, or Palm Beach counties.

A lot of clients that I see in my Miami or Fort Lauderdale office are not US Citizens but rather aliens, here on a work visa, or permanent residents.  Those clients always ask the same question:  ”How will filing for bankruptcy in Florida affect my immigration status.”   The filing of a Chapter 7 or a Chapter 13 bankruptcy in Florida will not have any affect on your immigration status.   Immigrants seeking permanent residence or citizenship cannot be discriminated against for filing bankruptcy.   Another question my immigrant clients ask me is if they are even eligible to file for bankruptcy, and the answer is generally yes.  Immigrant clients seeking to file bankruptcy will still be afforded all the rights as any other person looking to file bankruptcy and will likely to be able to discharge any credit card debt, medical bills, wage garnishments, judgments, or deficiency judgments they have against them.

If you are thinking about filing for bankruptcy and would like to speak with a bankruptcy attorney in Miami, Fort Lauderdale or Boca Raton then please contact Ofer Shmucher at Shmucher Law, PL to schedule your free initial consultation in any of our five office locations.

I have a lot of clients who come into my Miami office and one of their first questions always is, how much will filing for bankruptcy cost me? That question depends on a number of factors: including if you are filing for a Chapter 7 or a Chapter 13 bankruptcy, if you are a filing with a spouse, if you own a business, and the complexity of a case.   A standard Chapter 7 bankruptcy in South Florida will usually run between $1,500-$4,000 depending on who you use. At Shmucher Law, PL we charge $1,530 for a Chapter 7 individual filing and $1,830 for a joint filing.   Cases involving numerous properties or self-employed debtors may affect the price of the Chapter 7 bankruptcy filing. The legal fees include the following: $299.00 (bankruptcy filing fee, court fee), $35 (credit report and 12 months of creditor monitoring. The services provided with this fee are the following: initial consultation, additional appointments with the bankruptcy attorney to make sure your file is correct, an attorney to attend the 341 meeting of the creditors with you, and finally an attorney to review and help you sign a reaffirmation agreement on your vehicles or property. The only other fee the debtor must incur is the credit counseling course that must be taken prior to filing for bankruptcy.

If you are thinking about bankruptcy and would like to schedule an appointment with a bankruptcy attorney in Miami, Fort Lauderdale, or Boca Raton then please contact Ofer Shmucher at Shmucher Law, PL to schedule your free initial consultation in any of our five office locations.

Once in a while a client will come to my office and ask me the following question, if I am going to file for bankruptcy can I just go max out all my credit cards and then file, or can I take out cash advances?  The answer to that question is No, No, No, and I would be weary of representing a client like that in Florida.  Why should a debtor do this?  Under the bankruptcy code a creditor can sue the debtor for any monies spent within the 90 days before filing bankruptcy if the items purchased are deemed to be a luxury good and have an aggregate value of $500 or more.  Ok so what does that mean to a regular person?  It means that if you used your credit card within the 90 days before filing and you purchased airplane tickets, electronics, fancy dinners, sporting equipment, jewelry, or anything that would be considered a luxury good then be prepared to be sued by that creditor.  Creditors who sue the debtor, in the instance above, will be able to win a judgment against the debtor and the judgment debt will be non0dischargeable (i.e. survive the bankruptcy).  Debtors will then continue to be liable for those debts even after their other debts have been wiped out in the bankruptcy.

As for cash advances, any cash advances, obtained by the debtor, within 70 days prior to filing for bankruptcy will be deemed non-dischargeable and thus the debtor will continue to be liable for the debt even after their other debts have been discharged.

If you are thinking of filing bankruptcy and have used your credit card in the 90 days before filing then it would be a good idea to bring those credit card statements to your attorney for him to review to determine the best approach to filing your bankruptcy.  Debtors in the greater Miami or Fort Lauderdale in been of credit counseling and who would like to schedule a free consultation, to review their bankruptcy options, should contact Ofer Shmucher at Shmucher Law, PL.

Another common question I receive from clients is if I am married does my spouse in Florida  have to file too?  The answer to that question, like most other legal questions, is that it depends on your current situation.  The simple answer is no, married couples are not required to file together and a spouse could choose not to file.  However sometimes it might be wise for married couples to file together, it all comes down to whose debt is it.

If all the debt is in one spouses name alone and the other spouse is not liable for any of that debt then it would be wise that only the person who has all the debt file.  For example if a client’s home, in say Miami or Fort Lauderdale, was recently foreclosed and only his name was on the mortgage then there is no need for the client’s spouse to file because his or her name is not on the mortgage debt.

However more likely than not both spouses are responsible for the debt.  When you get your credit card statement and both names are on the outside then both spouses are responsible for the debt, same goes for mortgages, medical bills judgments, etc.

What if only one spouse files for Chapter 7 or 13 Bankruptcy and the debt is in both names?   Example husband and wife have a credit card in both their names with an outstanding debt of $50,000.  In this case only the husband files for bankruptcy.  By filing for bankruptcy the husband eliminates his liability towards that debt but the wife is now 100% responsible for the debt amount.

Sometimes debtors have to decide whether or not to file jointly.  If you are unsure whether or not to file bankruptcy jointly and would like to speak to managing partner Ofer Shmucher of Shmucher Law, PL, then contact us to schedule your free consultation in one of our five conveniently  located offices throughout the greater Miami and Fort Lauderdale areas in Florida.

Often times I get clients that come into my office that are planning on filing for bankruptcy but are just not at the point to do so right away.  So the first question these clients ask me is if I am planning on filing bankruptcy can I stop making payments to my creditors?  The answer to that question is, it depends.

House – If you are planning on keeping your home, then you should continue to make payment on that home.

Vehicles – If you are keeping your vehicles that you lease or financed then yes continue to make payments on those vehicles or else they will likely be repossessed prior to your bankruptcy filings.

Utility Bills – Any bill that you are currently using and will continue to use post bankruptcy you should continue to pay.

Credit Cards – If you are planning on filing bankruptcy then there is no need to continue to pay for your credit cards because you are just throwing away money.  When you file bankruptcy your credit cards debts will be discharged so there is no reason to continue to pay them if you are 100% sure that you will be filing.   It is also a wise idea to stop using your credit card before you file bankruptcy as there could be severe negative consequences if you use your credit card excessively prior to filing bankruptcy.

Before you decide to stop paying your bills make sure that bankruptcy is right for you.  Feel free to contact the Miami Bankruptcy Attorneys at Shmucher Law, PL to schedule your free consultation, with managing partner Ofer Shmucher, in one of our five conveniently located offices throughout the greater Miami or Fort Lauderdale area.

Sometimes I meet with clients who are looking to file for bankruptcy in the greater Miami or Fort Lauderdale area, and my clients are either over their exemptions or have non-exempt assets but would still like to file for a Chapter 7 bankruptcy.   They can, but they risk the chance of losing their non-exempt assets or having to buy-back the portion that they are over on their current assets.  Here is how the process works.  If a debtor files for bankruptcy and has a car worth $4,000, under Florida law they can only exempt $1,000 leaving them approximately $3,000 over in exemptions, the trustee can do one of three things:

1. The trustee will give the debtor the option to buy-back the non-exempted portion of the asset.  This can happen in either a lump sum payment or a payment plan setup with the trustee.  In our example above the trustee can suggest the following:  A. Pay me a lump-sum amount to keep the asset.  If the debtor agrees to a lump-sum amount they can expect to receive a little discount over the $3,000 amount.  The lump-sum would likely be due within 10 days.  B.  Pay me $3,000 over several months to keep the asset.  Typically the payment plan will not exceed four months.
2. If the debtor cannot come up with the money to keep either the non-exempt asset or cannot pay for the overage of the exempted asset, then the trustee is entitled to take the asset and sell it to pay creditors.

If you are unsure whether or not you have assets that may be exempted or not then contact Shmucher Law, PL to schedule a free consultation with managing partner Ofer Shmucher in one of our five conveniently located offices throughout the greater Miami or Fort Lauderdale area.

Approximately 30 days after a debtor files for bankruptcy in the greater Miami or Fort Lauderdale area they are required to appear at meeting of the creditors (the “341 meeting”).  The 341 meeting is a scheduled court appearance in Florida where the debtor will be asked questions regarding his or her assets and debts.  Typically the only person that will ask the debtor questions about their case are the Bankruptcy Trustees but in rare occasions creditors will show up to ask questions.  Here are examples of typical questions that a debtor will be asked in the 341 meeting:

1. Did you review your bankruptcy petition with your attorney?
2. Do you remember signing your bankruptcy petition?
3. Is your bankruptcy petition correct with regards to your assets?
4. Do you owe any alimony or child support?
5. Have you given or transferred any assets in the last year?
6. Do you owe anyone money that you didn’t list on your bankruptcy petition?
7. Specific questions regarding your assets including
   1. When you purchased your home
   2. How long you have lived in your home
   3. If you own your own business – what the business does, and if it owns any assets?

Typically it is best for a debtor to answer every question with a simple yes or no and only supply additional information when the trustee requests.  The trustee’s questions are not intended to trick or deceive the debtor but rather they are questions that the debtor should be able to easily answer.  If the debtor doesn’t know the answer to a question it is ok.

If you are considering bankruptcy, contact Shmucher Law, Pl to schedule a free consultation.  Managing attorney Ofer Shmucher will personally meet with you in a confidential setting and help determine if bankruptcy is the right option for you.

One of the first questions clients ask me when they come into my office is what will happen to my stuff if I file for bankruptcy?  More specifically what will happen to my car.  Under Florida law when a debtor files for bankruptcy he or she is entitled to exempt $1,000 worth of equity in a vehicle, and an additional exemption if they don’t own a vehicle.    What does that really mean?  It depends on three different situations, whether you 1. Own your car outright, 2. Make monthly payments on your car, or 3. Lease your vehicle.  Let’s start with the easiest one first:

Lease a vehicle – if you lease a vehicle you are basically renting a car, and in this case you have no equity in your car.  So in a bankruptcy you can keep your leased car no questions asked.  However if you file bankruptcy and you have a leased car that you don’t want to keep, you can surrender the vehicle in the bankruptcy and all the outstanding debt will be discharged.  Additionally if you have more than one leased vehicle you are entitled to keep them in a bankruptcy if you want.

Finance a car – Typically when I meet clients in Miami that have financed a car they are upside down on the loan.  Upside down means that the loan value exceeds the car value ie. Owe $14,000 on a car that is worth $9,000.  If a client is upside on a vehicle they have no equity in a vehicle and thus they can keep it if they want.  Again the client is able to return the vehicle in the bankruptcy if they wish.

Own a car outright – If a debtor owns a car outright, we first must determine what the vehicle is worth.  To do this we take the make, model, mileage, and condition of the vehicle and we look up the value of the car on Kelly Blue Book.  When looking at the Kelly blue book we average the trade-in value with the private party value to determine the value of the car.  Under Florida bankruptcy law a debtor can only deduct $1,000 in a vehicle, so if the debtor’s car is worth $5,000 the debtor can only exempt $1,000 and will be liable for the additional $4,000.  If the debtor cannot pay the additional $4,000 value of the vehicle the bankruptcy trustee is entitled to take the vehicle and sell it, return $1,000 to the debtor and use the rest of the funds to pay creditors.  However if the debtor does not own a home or is surrendering their home in a bankruptcy they are entitled to an additional $4,000 in any goods.  So in the case of a $5,000 car the debtor can use the $1,000 along with the $4,000 to fully exempt their vehicle in a bankruptcy.