Miami Bankruptcy Attorney Blog

When you file for bankruptcy you automatically get appointed a trustee in your case.  You also automatically have a court date scheduled for a meeting of the creditors (341 meeting).  At the meeting of the creditors your appointed trustee will be asking you certain questions about your bankruptcy petition in order to determine whether or not you have committed fraud or have attempted to hide assets prior to your bankruptcy filing.   Prior to your meeting your attorney will have to send the trustees office certain documents (including bank statements, tax returns, inventory lists, investment statements, car titles, etc.) for the trustee to review prior to your hearing.

So what is the purpose of the trustee asking you for your bank statements?  The trustee will look at your bank statements to determine whether or not you have depleted your assets prior to your bankruptcy filing.  Did you withdraw large sums of money over the last year?  Did you transfer monies to your friends or relatives account?  Did you transfer lots of money into your 401k or your IRA?  Did you intentionally state your income as X when really your income was Y based on your bank statements.  Things like these put your bankruptcy in serious jeopardy and will likely lead to adversary proceedings (which are lawsuits within a bankruptcy case).

If you are thinking of filing for bankruptcy and would like to speak with a bankruptcy lawyer then please contact Shmucher Law, PL at 954.309.5559 or 305.741.5553. We offer free consultations in Boca Raton, Fort Lauderdale, Miami, Plantation, and Sunrise Florida.

If you are ever online in website such as craigslist.org or similarly related sites you may have come across an advertisement for a bankruptcy preparer.  Most people don’t  know what a bankruptcy preparer is and what services they offer.  People see the low price that a preparer offers and automatically think that they can save money and use the preparer services.  Be warned that the hiring a preparer comes with consequences, here are a few:

• A bankruptcy preparer is NOT an attorney.  Under Florida law a bankruptcy preparer is barred from providing any legal advice to their clients.  That means they are not allowed to tell you what assets you can keep (exempt), which bankruptcy is right for you (either chapter 7 or chapter 13), or even tell you if you qualify to file for bankruptcy at all.  If you retain the services of a bankruptcy lawyer then he or she will be able to answer all your questions, help you protect your assets, as well as time your bankruptcy perfectly to make sure you don’t have to pay anything in a chapter 7 or make sure you qualify for the bankruptcy you need.
• Upon the filing of a bankruptcy, the debtor is required to attend a 341 meeting of the creditors.   During the meeting of the creditors the bankruptcy trustee will ask the debtor about their bankruptcy petition.  Also creditors will be allowed to ask the debtor similar questions.  The bankruptcy preparer is not allowed to attend the 341 meeting with the debtor, nor are they allowed to explain to the debtor on how to answer questions likely to be asked at a 341 meeting.  If you hire a bankruptcy lawyer then that lawyer will attend the 341 with you.  They will prepare you for the 341 meeting, including providing you with example questions and answers that you will be asked
• A debtor may be sued within a bankruptcy by a creditor.  If a debtor is sued then they cannot be represented by a bankruptcy preparer.
• A bankruptcy preparer has no knowledge of the local bankruptcy trustees and the documents they require.  Upon the filing of the bankruptcy the trustee will ask the debtor to supply certain documents by a certain date.  Each trustee requests different documents and provides different methods to produce the documents.  The failure to produce the documents will either delay or dismiss your case.  Using a bankruptcy attorney will ensure that those documents are provided in a timely manner so as not to hinder or delay the bankruptcy case.

Don’t make the costly mistake of using a bankruptcy preparer, instead use a bankruptcy attorney who will guide you the whole way through your bankruptcy case.  If you would like to schedule a free consultation with a bankruptcy attorney then please contact Shmucher Law, PL at 954.309.5559 or 305.741.5553.  We offer free bankruptcy consultations in Boca Raton, Fort Lauderdale, Miami, Plantation, and Sunrise Florida.

When many people purchased a home in Florida they obtained two mortgages (an 80/20 split).   A great number of other people obtained home equity lines of credit on their homes as well.  Did you know that by filing for bankruptcy in Florida it is possible to wipeout or discharge a 2^nd 3^rd or even home equity line on your primary residence?

If you file for a Chapter 13 bankruptcy in Florida you may be eligible to wipe out a 2^nd, 3^rd, home equity line of credit on your home, allowing you to keep your home with only one mortgage.  Here is a simple breakdown of how it works.

First – Determine the value of your home.

We first must determine the value of your residence.  For court purposes we use the Broward, or Miami-Dade property appraiser websites found here:

For Broward – http://www.bcpa.net/search.asp

For Dade –  http://www.miamidade.gov/pa/property_search.asp

For Palm – http://www.pbcgov.com/papa/aspx/GeneralSearch/GeneralSearch.aspx

Look at the “Market Value” that is given by the property appraiser.

Second – Determine the value owed on your first mortgage

You next need to determine the value owed on your first mortgage.  This can be done either by looking at your last statement or by calling your mortgage company.

Third – Compare the market value of your home to the amount owed on the first mortgage

Compare the market value of your home (from the property appraiser website) to the amount owed on your first mortgage.  If the value of the first mortgage exceeds the market value of your home then a chapter 13 bankruptcy will be able to help you remove, wipeout, or discharge any 2^nd, 3^rd, or home equity line of credit on the residence.  Here is an illustration:

Home Value (per property appraiser) = $200,000

First Mortgage = $280,000

Second Mortgage = $50,000

Home Equity Line = $45,000

In this example the first mortgage greatly exceeds the value of the home.  A filing of a chapter 13 bankruptcy could wipe out BOTH the second mortgage and the home equity line of credit, leaving you owing only $280,000 on the home.

Home Value (per property appraiser) = $300,000

First Mortgage = $280,000

Second Mortgage = $50,000

Home Equity Line = $45,000

In this example the value of the home exceeds the first mortgage.  Unfortunately when the value of the home exceeds the first mortgage there is nothing that can be done to remove the second mortgage or the home equity line.  If you purchased your home in the last seven years this  example will most likely not be the case.

If you would like to sit down and discuss your home situation with a bankruptcy lawyer then contact Ofer Shmucher at Shmucher Law, PL. We offer free consultations in Boca Raton, Fort Lauderdale, Miami, Plantation, and Sunrise Florida.

One of the most common issues that my clients have is that while they do want to file for bankruptcy, they don’t have the money to do so.  Here are some options on how you can get money to pay your attorney:

Payment Plan:

Most bankruptcy law firms will accept a payment plan, but this payment plan isn’t exactly what you think it is.  A chapter 7 bankruptcy attorney is NOT allowed to accept any money after filing the bankruptcy petition.  This payment plan works as follows: you meet with the bankruptcy attorney and set up a payment plan with the attorney.  The attorney will be working on your case and have it ready to file.  Upon you finish paying the agreed amount the attorney will be able to file your case.

Stop Paying Certain Bills:

If you know you are going to file for bankruptcy then there is no need for you continue to pay some bills.  Stop paying some of your unsecured debts, mostly your credit cards, and save that money to use for an attorney.  Don’t stop paying your utility bills, insurance, car payments (unless you are going to surrender), or mortgage (unless you are going to surrender).

Sell some Assets:

If you don’t have the necessary money in the bank then you could sell some of your assets in order to file for bankruptcy.  Don’t sell these assets at below fair market value or to friends and family members.  If you have an mutual funds or stock accounts then you could sell or liquidate them to pay for your bankruptcy legal fees.

Ask Friends and Family to Help:

If you cannot come up with the money on your own then it may be time to call upon your family and friends for a favor.  Inform them of your situation and ask them if they would be willing to help you out.

It is well worth the effort to come up with the money to pay for your bankruptcy legal fees.  Having your case done right with a successful outcome is well worth the price.

If you are thinking of filing for bankruptcy in Florida and would like to speak with a bankruptcy attorney then please contact Shmucher Law, PL at 954.309.5559 or 305.741.5553.  We offer free consultations in Boca Raton, Fort Lauderdale, Miami, Plantation, and Sunrise Florida.

After filing numerous Chapter 7 bankruptcy petitions in the State of Florida I have come up with a mini-guide on how to painlessly and successfully file for bankruptcy.  The following are tips that any debtor should follow:

Tip 1:  Find a Bankruptcy Attorney

First and foremost if you are looking for a smooth and painless bankruptcy filing then find a bankruptcy lawyer in your area.   When you meet your lawyer ask them how many cases they have filed in the last year.  Remember just because the attorney looks old or has 30 plus years experience it doesn’t mean he or she has ANY experience in bankruptcy.  It may be the case that the attorney’s true field of practice has yielded no business and the attorney now is attempting to obtain new business by marketing him or herself as a bankruptcy attorney.

Tip 2:  Disclose Everything to your Attorney

When you have your first bankruptcy consultation with an attorney make sure to answer all his or her questions TRUTHFULLY.  Failure to answer questions truthfully or with incorrect information could have severe consequences in your case, including lawsuits against family members or friends, loss of assets, or denial of discharge.  If your attorney isn’t asking you LOTS of questions about your situation then you need to find a different attorney.  Expect your attorney to ask you specific questions going back up to two years before your bankruptcy filing.

Tip 3:  Come Prepared to your Consultation

Debtors need to come prepared to their consultation meetings. Prepared involves the gathering of certain documents including bank statements, tax returns, paystubs, valuations on real estate, vehicles, or any other assets.  Again if your bankruptcy attorney doesn’t ask you to provide these documents then you need to go find another bankruptcy attorney.

Tip 4:  Review and sign your bankruptcy petition before it’s filed

When your bankruptcy attorney puts your information into the computer he or she will generate a bankruptcy petition (what gets filed with the court).  You need to review and sign the petition before it gets filed with the court.  Do NOT let an attorney file a bankruptcy petition that you haven’t reviewed.

Tip 5:  Prepare for and Attend the Meeting of Creditors (341 meeting)

Yes, the dreaded meeting of creditors (341 meeting).  Surprisingly this should be the easiest and quickest part of the whole bankruptcy process.  Speak to your attorney a few days before the 341 meeting so they can prepare you on how to answer questions.   Hopefully you have an attorney who will show up to the 341 meeting with you, rather than send you an associate that you have never met before.

Tip 6:  Complete Post-Petition Bankruptcy Course

In order to obtain your bankruptcy discharge you must complete the debtor’s education course.  This course is usually done on the computer and takes two hours to complete.  Failure to complete this course will close your case without giving you a bankruptcy discharge.  Why complete 99% of the work and not obtain a discharge.  Call your bankruptcy attorney and he or she will tell you where to take the class.

That’s it!  Hire the correct bankruptcy attorney and follow those steps to have a successful and painless bankruptcy filing in Florida.

If you are thinking of filing for bankruptcy and would like to schedule a free consultation with a bankruptcy lawyer then please contact Shmucher Law, PL at 954.309.5559 or 305.741.5553. We offer free consultations in Boca Raton, Fort Lauderdale, Miami, Plantation, and Sunrise Florida.

The filing of a Chapter 13 bankruptcy, in Florida, requires the debtor(s) to create a three to five year repayment plan to pay off a portion of their debts.  You may wonder, why would I want to do a chapter 13 bankruptcy and make monthly payments when I can just file for a chapter 7 bankruptcy and not make any monthly repayments.  Well, there are certain benefits to chapter 13 bankruptcy that are not obtainable in a chapter 7.  Examples of chapter 13 benefits include:

1. Stripping or wiping out a second, third, forth, etc. mortgage or home equity line on your house.
2. Helping the debtor keep their house by allowing them to play catch up on their missed mortgage or vehicle payments.
3. Allowing the debtor to keep all their assets (unexempted).
4. Allowing the debtor to create a repayment plan with backed owed taxes or support obligations.
5. Allowing the debtor to strip down the car loan to the true value of the car and not what the debtor owes.

Furthermore some debtors don’t qualify for Chapter 7 bankruptcy and thus are required to file a Chapter 13.

So if you have decided that a chapter 13 bankruptcy is right for you then you will need to prepare to supply documents, more documents than you have EVER supplied in your life.  A chapter 13 bankruptcy trustee can and will ask you to provide proof of everything and anything.  Here is a great way to get started.

1. Bank Statements
   1. Get copies of the last six months worth of bank statements and all canceled checks.
   2. Pay stubs
      1. Six months worth of paystubs in order to determine the debtor’s income.
      2. Tax returns
         1. Two years worth of tax returns
         2. Retirement/Investment Accounts
            1. Copies of the most recent statement for your retirement, IRA, or 401k institution.
            2. Bills (VERY IMPORTANT) The trustee wants proof of your monthly payments therefore obtain copies of the last six months of all of your household bills:
               1. Power bill
               2. Water/Sewer bill
               3. Home phone
               4. Cell phone
               5. Internet
               6. Cable
               7. Alarm
               8. Landscaping
               9. HOA/ Monthly maintenance bills
               10. Car insurance
               11. Life Insurance
               12. Car payment
               13. Secured debt payments (i.e. furniture, or electronics paid for on a store credit card)

Having these documents ready and in hand when you meet your bankruptcy attorney will allow the chapter 13 bankruptcy process to go faster and smoother.  Delaying or failure to provide these documents could have a substantial impact on your case including increases in your monthly payments due to incorrect amounts used.

Remember Chapter 13 bankruptcy is a process that takes time and requires meticulous attention to each bill or expense of the debtor.  Your bankruptcy attorney can only use the numbers based on the documents you provide them, so make sure to provide everything any anything you can, and then expect the bankruptcy trustee to ask you for EVEN MORE documents.

If you are thinking of filing for Chapter 13 bankruptcy in Florida and would like to schedule a free consultation with a bankruptcy lawyer then please contact Shmucher Law, PL at 954.309.5559 or 305.741.5553.  We offer free consultations in Boca Raton, Fort Lauderdale, Miami, Plantation, and Sunrise Florida.

When you file for bankruptcy in Florida you need to list all of your assets and all of your debts.  One asset people tend to forget is their tax return.  Your tax return is an asset and should be listed on your bankruptcy schedule.  If you have yet to file you should list the tax return as an asset with amount unknown.  If you filed and you owe taxes then you don’t need to list the tax return as an asset.

So if you are going to be receiving an a refund then you must protect the asset through exemptions.

Part of your tax return is excluded and exempted automatically:

Any part of your tax return that is for Earned Income Credit (children) is exempted, however anything else is subject to the bankruptcy estate and could be lost in the bankruptcy.

How to keep your tax return:

The best way to keep your tax return is to do your taxes, file them, obtain the refund, spend the money (on certain items), and THEN FILE FOR BANKRUPTCY.

Here is a non-exclusive list of items that you can spend the tax refund on prior to the filing of your bankruptcy:

1. Attorney fees
2. Rent
3. Mortgage
4. Groceries
5. Utility Bills
6. Medical and Dental Expenses
7. Food
8. Car Payments
9. Insurance

Things NOT to spend the tax return on:

1. Paying back a friend or family member for a loan
2. Luxury goods (electronics, jewelry, trips)

If you are thinking of filing for bankruptcy and would like to speak with a Florida bankruptcy lawyer then please contact Shmucher Law, PL at 954.309.5559 or 305.741-5553.  We offer free consultations in Boca Raton, Fort Lauderdale, Miami, Plantation and Sunrise Florida.

The majority of the homes, condominiums (condos), or townhomes in Florida have Home Owner Association (HOA) fees that are usually paid either monthly or quarterly.  A very common question that I receive is what happens to my owed HOA fees when I am filing for bankruptcy, or are my HOA fees discharged (wiped out)  in the bankruptcy?    If the debtor is filing for Chapter 7 bankruptcy in Florida then the answer to those questions depends on whether the debtor is surrendering or keeping their home.

HOA’s in Florida have a great deal of power and can even foreclose on your property for failure to pay dues.   If a debtor, who owns real estate, is filing for bankruptcy then they must inform the bankruptcy court what their intentions are with the property.

Surrender the Property:

If you choose to surrender the property in your Florida bankruptcy filing then it is very important that you list the monies you owe to your HOA on your bankruptcy petition so that you will be able to discharge that debt in the bankruptcy.  Failure to list the debt in your bankruptcy petition could cause the debt to survive bankruptcy.  If you are surrendering the home and you list your HOA dues on your petition then your HOA dues are FULLY dischargeable in your bankruptcy filing.

HOWEVER – one precaution, any HOA dues that are accrued after filing, IE from the time you file your case until the bank takes possession of the home, are technically post-petition charges and the creditor could come after you for those fees.  However it is highly unlikely that they do, as the HOA usually gets their fees paid by the bank upon the bank taking possession of the home.

Retaining the Property:

If you are filing for bankruptcy in Florida and you wish to retain your home then the unpaid HOA dues are non-dischargeable in bankruptcy.  That means you will need to pay the owed HOA dues or there is a chance that the HOA will foreclose on your property.

If you are thinking of filing for bankruptcy and would like to speak with a Florida bankruptcy attorney then please contact Shmucher Law, PL at 954.309.5559 or 305.741.5553.  We offer free consultations in any of our Florida offices (Boca Raton, Fort Lauderdale, Miami, Plantation and Sunrise).

A common question that my clients ask me is how long before I can buy a house, a car, or get credit cards.  The filing of a bankruptcy has a negative impact on your credit score and it will affect your ability to obtain credit.  If you are filing for bankruptcy and you are surrendering your home, you will likely need to be pro-active on finding a new place to live and rent.  Here are some tips:

Pre-Bankruptcy – If you know that you will be surrendering your home in the bankruptcy, then it may be a good idea to find a new home/apt and sign a lease before you actually file.  If you sign a lease before you file for bankruptcy then your credit report/score will not reflect a bankruptcy filing.

Post-Bankruptcy – If you start looking for places to live after you file bankruptcy then try to find apartments or homes owned by individuals rather than large apartment complexes.  An individual who runs your credit and notices that you have filed for bankruptcy may still be inclined to rent you a home based on your current job/financial status.  A large chain of apartments will likely use a computer to decide whether or not you will be able to rent from them and with a bankruptcy filing on your credit report the answer will almost always be no.

Co-Signer – If you can find someone to co-sign for you on a lease, then your ability to find an apartment increases drastically.  Hopefully the co-signer will have good credit and then the landlords will be more lenient on your credit report.

Purchasing a home – Don’t expect to be able to purchase a home immediately after bankruptcy.  Typically it will take between two to four years after bankruptcy before you will be able to obtain financing to purchase a home.

If you are thinking of filing for bankruptcy and have questions on how bankruptcy will impact your life please feel free to contact Shmucher Law, PL at 954.309.5559 or 305.741.5553.  Shmucher Law offers free consultations in bankruptcy offices located in Boca Raton, Fort Lauderdale, Miami, Plantation, and Sunrise Florida.

If you are considering filing for bankruptcy in Florida and at the same time trying or are in the process of a mortgage modification there are certain things that you should know BEFORE you file for bankruptcy.

Trial Period – If you file for bankruptcy while you are in a trial period with your mortgage company then there is a good likelihood that your mortgage would revert back to its original terms.   What this means is that you will basically start over with a trial period.   The bankruptcy won’t preclude you from reapplying for a new modification with the bank.  Therefore if you are more than a few months into a trial period and believe that the modification is about to become permanent then it might be a good idea to wait until the modification becomes permanent before filing for bankruptcy.

Permanent Modification – If you file for bankruptcy after obtaining a permanent modification then your mortgage will remain exactly the same.  The bankruptcy will not affect the permanent modification and the modification will continue to be permanent as long as you continue to make payments on your mortgage.

Permanent Modification but behind on payments – If you have obtained a permanent modification but again fall behind on payments then you may be able to file a Chapter 13 bankruptcy to play catch up on the delinquent payments.  A Chapter 13 bankruptcy will allow you create a repayment plan that can payback your delinquencies over time and allow you to keep your home.   Keep in mind that a Chapter 13 bankruptcy will only work if the debtor has disposable income (income at the end of the month) that will allow him/her to use to payback delinquencies on their mortgage debts.

File Bankruptcy first then modify – A debtor can file for a mortgage modification after/while the debtor is in bankruptcy.  A modification can be negotiated at the same time the debtor is in bankruptcy.

In conclusion it is vital for the debtor to know whether or not they are in a trial period or a permanent period of their mortgage modification, in order to determine when to file for bankruptcy.  If you are thinking of getting modification or are currently in a modification and would like to discuss your bankruptcy options with a Miami bankruptcy attorney then please contact Shmucher Law, PL at 305.741.5553 or 943.309.5559.  We offer free consultations at the following office locations:  Boca Raton, Fort Lauderdale, Miami, Plantation, and Sunrise Florida.