Miami Bankruptcy Attorney Blog

I often meet clients who have become trapped in a payday loan problem.  They go to one of these payday loan stores, located on every corner in Florida, and can easily get some quick money.  The problem is they don’t read or realize just how much money they have to pay back if they accept a loan from these companies.  Soon after the clients are stuck renewing the loans and getting charged additional fees.  I have seen payday loans with interest rates as high at 1000%.

When you sign up with these companies they tell you (incorrectly) that you can’t file for bankruptcy if you accept these payday loans.  They do this to try to scam you, because in reality you are allowed to file for bankruptcy if you have these types of debts and the debt can be discharged (wiped out in bankruptcy).

The payday loan companies may even try to tell you that you may be charged with a crime for writing a bad check, if you chose to file for bankruptcy.  Again this is a lie, it will not be a criminal offense if you chose to file for bankruptcy.

If you have obtained a payday loan or a check cashing loan in Florida you should be aware that those debts are dischargeable in bankruptcy and you will not be charged with any crime.  If you would like to speak with a Florida bankruptcy lawyer then contact Shmucher Law, PL at 954.309.5559 or 305.741.5553.  We offer free consultations in our office locations including: Boca Raton, Fort Lauderdale, Miami, Plantation and Sunrise Florida.

So you have decided that you want to file for bankruptcy and you have met with a lawyer or two and they have quoted a flat fee price for your bankruptcy case.  The next question that generally comes to your mind is how am I going to pay the attorney fee?   Your first thought is to use your credit card to pay for your attorney fee.  No bankruptcy attorney will ever accept your credit card to file your bankruptcy because you are going to be discharging the debt on your credit card after you file your case.

Most bankruptcy lawyers will only accept a cash or a check, and sometimes will have a machine available to run a debt card.  Few attorneys will have a credit card machine to run a credit card from a family member or a friend of yours (not likely).

If you are thinking of filing for 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 bankruptcy consultations in any of our offices throughout South Florida including Boca Raton, Fort Lauderdale, Miami, Plantation, and Sunrise Florida.

Clients come see me on a regular basis and I tend to ask them a lot of questions regarding their assets, debts, and regular income.  Every once in a while I come across a client that I would consider to be borderline, and by that I mean they have either the option to file for bankruptcy or because their debts aren’t too high when compared to their income, there may be an alternative means to resolve their problem.  Here is an example:

If someone came to see me who has 20k in credit card debt but makes 50k a year and has the ability to save money and settle the debts then I would likely have them speak to a debt negotiator to see if settlement is the best option for them.  For debt settlement the debtor will need to pay about 30-50% of the debt they owe, either in a few payments or as one lump settlement.

If we use the same example above but the person had no job, no source of income, then ideally I would file their bankruptcy no questions asked.

Here are your options if you are in the gray area

Debt Settlement -  In the debt settlement world the client will likely not be able to negotiate with the credit card company if they are current on their debts.  Instead the client needs to be between three to four months delinquent before credit card companies will be interested in a settlement.   These type of settlement will be between 30-50% of the debt owed in either a lump sum payment of a few months worth of payments.  Be careful of companies that you use to settle your debts for you.  Many companies put you on a monthly payment plan where they front load their fees.  I.E. a monthly payment plan of $500 a month where $475 is their fee and $25 goes into an escrow account.

Debt Consolidation – Consumer credit counseling companies put you into a monthly repayment plan where you pay 100% of your debts back, but in a longer period of time.  They also tack on an additional 10-20% for their fees.  You don’t really save anything by choosing this option.

If your debt isn’t too great then perhaps it would be wise to consider non-bankruptcy alternatives in Florida.  However if you feel that you can’t afford to pay back the debt then maybe bankruptcy would be the best option for you.

If you are thinking of filing for bankruptcy or would like options about bankruptcy alternatives then contact Shmucher Law, PL at 954.309.5559 or 305.741.5553.  We offer free consultations in any of our office locations including Boca Raton, Fort Lauderdale, Miami, Plantation, and Sunrise Florida.

Filing for bankruptcy in Florida will offer a debtor a fresh start because the debtor will likely be able to wipe out all of his or her debts upon the completion of their bankruptcy.  One of the most important things a debtor needs to do is to determine who they owe money to in order to list them on their bankruptcy schedules.  So debtors often ask me, how do I make sure I have listed all my creditors/debts on my bankruptcy petition.   Here is how we accomplish this:

Credit Report – Your attorney will likely run a special program that pulls information from all three credit bureaus.  The attorney will give you a copy of the credit report to take home and review.

Medical Bills – Typically your medical bills won’t be reported on your credit report.  You will need to provide your attorney copies of any medical bills you have in order to include them in your bankruptcy petition.  You may want to call or go to the hospital you were treated at to ask for copies of your bills.

Review your Mail – Your mail will likely be filled with letters from creditors saying you owe them money.  Review your mail and compare it with your credit report.  Any bill that isn’t showing up on your credit report should be provided to your attorney to add to your bankruptcy petition.

Adding Creditors after filing – If you have already filed for bankruptcy and you failed to list a creditor, then it is still possible to add a creditor but it costs money.  Attorneys charge different amounts to add creditors, depending on the amount of time it takes.

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

A lot of my clients use their credit cards as means for survival (food and gas), so when they come see me they ask me the following question:  If I have recently used my credit card can I still file for bankruptcy, and will it be a problem?   There are some specific bankruptcy code guidelines that deal with this exact issue.

Under Bankruptcy Code Section 523 states that:

consumer debts owed to a single creditor and aggregating more than $500 for luxury goods or services incurred by an individual debtor on or within 90 days before the order for relief under this title are presumed to be nondischargeable; and cash advances aggregating more than $750 that are extensions of consumer credit under an open end credit plan obtained by an individual debtor on or within 70 days before the order for relief under this title, are presumed to be nondischargeable;

The Code also defines the term “luxury goods or services” as any good or service that is not reasonably necessary for the support or maintenance of the debtor or a dependent of the debtor.

So what does this mean?  It means that any money you spent on a credit card within the last 90 days can be deemed non-dischargeable (ie it will survive bankruptcy).  How can you remedy this problem?  You can inform your bankruptcy attorney about your recent credit card use, stop using your credit card and wait until the 90 day period is up.  Defintely inform your lawyer about your credit card usage.

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 our offices in Boca Raton, Fort Lauderdale, Miami, Plantation and Sunrise Florida.

When you file for bankruptcy in Florida you need to list all of your debts and all of your assets.  The jewelry you own is considered an asset and in some instances could have significant value.  I often get asked how much jewelry can I exempt in Florida or what are the Florida exemptions specific to jewelry.

Value your Jewelry

If you own any jewelry the first thing you want to do is to go get it valued.  To value jewelry the best thing to do is to first itemize what you own and then take it to your local pawnshop/jeweler.  Have them tell you how much one they would give you for each item.  This will give you an idea of how much to list on your bankruptcy schedules.

Exempting you Jewelry

Florida unlike most states has no specific  exemption  for jewelry.  Instead Florida has a bankruptcy exemption of $1,000 for personal propert/;y.  Personal property includes bank accounts, clothes, cash, investment accounts,  and jewelry.    If it is a joint filing then the number is doubled to $2,000.  As you can see Florida’s personal property exemption is not very debtor friendly.

Surrendering a home

If you don’t own a home or are surrendering your home in a bankruptcy then Florida allows you to use an additional $4,000 wildcard exemption which can be applied to anything including jewelry.   Again if it a joint filing (husband and wife) you get double the wildcard or $8,000.

As you can see Florida doesn’t provide too many exemptions for debtors assets.  If a debtor has numerous assets worth significant value then it may be in the debtors best interest to file a chapter 13 bankruptcy whereby the debtor would be able to keep all their assets so long as they create a payment plan for either three or five years.

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

One of the things that people are most scared about, when it comes to bankruptcy, is that people believe that they will never be able to obtain credit again.  They think that no one will give them a credit card, no one will give them a car loan, and finally no one will let them buy a house again.  This is completely false.  While bankruptcy does remain on your credit report for ten years, it doesn’t entirely prevent you from obtaining credit to get a credit card, a car, or a home.

A debtor is able to obtain an FHA loan for a home approximately two years after their bankruptcy discharge as long as their credit score is 650 or higher and they are able to put down 3.5% of the purchase price.

Don’t let the word “bankruptcy” scare you into believing that you will never be able to live your life again, rather think of bankruptcy as a means to obtain a fresh start.  If you are thinking about filing for bankruptcy and would like to discuss your options with a bankruptcy lawyer in Florida 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 want to file for bankruptcy successfully then the first thing you should do is to find a bankruptcy lawyer.  The best way to find a bankruptcy lawyer is to ask someone to refer you to someone or look for one online.  If you find someone then try to find out a little information about them via the internet.  Usually Google, Avvo, or Yelp will have reviews about the attorney and or practice.  Once you meet with the attorney you will be quoted a price and while that price may be agreeable to you, you still may have a difficult time coming up with the funds.  So often times I get a question similar to the following “can I have my friend or family member pay for my attorney fees.”  The answer to that question is yes, you can personally pay your own fees, or you can have a friend or a family member pay for your fees.  Don’t expect a bankruptcy attorney to allow you to pay with a credit card, usually cash or a check will be the only method they accept.

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

Are you being routinely harassed by creditors calling you at all times throughout the day, including early in the morning and late at night?  Have you come to the point where you either just shut your phone off or ignore every call that is coming in?  The filing of a bankruptcy can help by preventing creditors from calling you again.

As a bankruptcy attorney I often ask my clients how often they are being harassed from their creditors.  I have heard of stories where the creditors call the client’s work, the client’s relatives or even in some cases they will call the client’s neighbors to try to get information about them.  Basically if you are in debt your creditors likely are causing you, your family members, your work, and even your neighbors a headache!

Here is how bankruptcy can help:

Hire a bankruptcy attorney (prior to filing):  Once you hire a bankruptcy attorney you can tell all of your creditors that you are represented by counsel, provide them the phone number, and they will not call you anymore.

File for bankruptcy – Upon the filing of the bankruptcy every creditor will get notified that you have filed for bankruptcy and the law prevents them from contacting you.  Within a day or two after filing you will be able to enjoy your life again because no creditor will be calling you.  If by any chance a creditor does call you, then you need to give them your bankruptcy case number and they will cease calling you.

If you are being harassed by your creditors and you would like to see if bankruptcy is right for you then please contact Shmucher Law, PL to schedule a free consultation.  We offer consultations in our Miami office or in any of our satellite locations (by appointment) including Boca Raton, Fort Lauderdale, Plantation and Sunrise Florida.  You may contact us by calling 954.309.5559 or 305.741.5553.

Ok, so you have decided that perhaps bankruptcy might be a good option for you, you found an attorney who offers a free consultation (be weary of attorneys who don’t offer a free consultation for bankruptcy).  So now you are wondering what you can expect to get out of the free consultation.

Determine whether you are a good candidate for bankruptcy at all, and if yes which chapter would be best for you.

Be prepared to explain your story and how you got into your financial problem to the bankruptcy attorney.  Make sure not to leave out any critical parts because they could have a huge impact on your case.  Also be prepared to explain to the attorney any monies that you have received over the last year and more specifically the wages you received over the last six months.   The attorney will ask you questions about your assets as well.  Assets will include anything you own (bank accounts, cars, houses, jewelry, furniture, investment accounts, etc.)   If your name is on a title of something but you don’t think you own it, be sure to inform the attorney that you are on the title.  Based on these answers your attorney will be able to determine which type of bankruptcy would be right for you.

Bankruptcy No-No’s

Your attorney should ask you questions on whether or not you have transferred any assets in the last few years, whether you have paid off any debts to family members, or whether you have committed fraud for bankruptcy purposes.

Your Debts

You will need to explain to the attorney about the debts you have.  You don’t have to be too specific as to the amount but you need to be specific as to the type of debt, when it was incurred, and whether or not you made any repayments towards that debt.

Differences between Chapter 7 bankruptcy and Chapter 13 bankruptcy

Your attorney will be able to explain the difference between the two bankruptcy options as well as help you determine which one is better suited for your case.    The attorney can make that decision based on your assets and your income.

The Bankruptcy process

Your attorney will be able to explain the bankruptcy process to you in a manner that you can understand.  He or she will be able to inform you of the costs, the documents you will need, as well as the court process.

The Meeting of the Creditors

The attorney will need to explain to you about the meeting of the creditors (341 meeting).  This is your one “court” appearance.   You should ask the attorney about what questions will be asked of you and how you should answer them.

Life after bankruptcy

Make sure to have your bankruptcy attorney explain to you how your life will be post bankruptcy.  Ask questions about getting credit cards, getting a car loan, or getting approved for a home loan.

If you would like to schedule a free consultation with a bankruptcy lawyer then contact Shmucher Law, PL at 954.309.5559 or 305.741.5553.  We offer consultations in our main Bankruptcy Office in Miami or in our satellite offices (by appointment) in Boca Raton, Fort Lauderdale, Plantation, or Sunrise Florida.