A recent potential client called me telling me that based on his current income he is below the median income for the state of Florida and wondered if he can automatically qualify to file for Chapter 7 bankruptcy. Unfortunately the answer is NO, just because a debtor is under the median income for the state of Florida doesn’t mean they are automatically qualified to file for Chapter 7 bankruptcy.
In order for a debtor to qualify for Chapter 7 bankruptcy in Florida he or she must pass two tests. The first test is the means test. Any debtor whose median income is lower than that of the state automatically passes the means test. In this case the debtor automatically passed the means test because he was below the median income for his family size.
The second part of the test to qualify for Chapter 7 bankruptcy involves the debtor’s actual income and expenses. The debtor must show that based on his or her actual income and actual expenses he or she has no money left-over to pay back creditors. If the debtor’s income minus expenses is a positive number i.e. he has left over or disposable income then he will NOT be able to file for Chapter 7 bankruptcy (no matter than he is under the median income). However, if the debtor’s actual income minus actual expenses is a negative number then the debtor will be eligible to file for Chapter 7 bankruptcy.
If you are thinking of filing for bankruptcy and would like to schedule a free consultation with an experienced bankruptcy attorney then please contact Shmucher Law, PL by calling 305.741.5553 or 954.309.5559. We offer free consultations in our main Miami office as well as our satellite offices including Boca Raton, Fort Lauderdale, Plantation, and Sunrise Florida.
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One of the most common questions people want to know, when filing for bankruptcy, is what type of debts are dischargeable. While most debts are dischargeable in bankruptcy there are several types of debts that are non-dischargeable. A debtor will not be able to discharge back-owed child support in bankruptcy.
If you are thinking of filing for bankruptcy and would like to schedule a free consultation with a local bankruptcy attorney then please contract Shmucher Law, PL by calling 305.741.5553 or 954.309.5559. We offer free consultations in our main Miami office as well as any of our satellite offices (by appointment) including Boca Raton, Fort Lauderdale, Plantation, and Sunrise Florida.
Sometimes I have potential clients who have had friends or family members that have previously filed for bankruptcy and that family member or friend may have had a good/bad experience with their bankruptcy trustee. So the potential client will ask me if it is possible to know who your bankruptcy trustee will be prior to filing your case? The answer depends on what type of bankruptcy you file.
Chapter 7 Bankruptcy
When you file for Chapter 7 bankruptcy in Broward, Dade or Palm Beach county you will automatically be assigned a bankruptcy trustee at random. So there is no way of knowing who your bankruptcy trustee will be until the actual case is filed.
Chapter 13 Bankruptcy
There is only one standing Chapter 13 bankruptcy trustee for Broward and Palm Beach County and there is only one standing Chapter 13 bankruptcy trustee for Miami-Dade County. So in a Chapter 13 bankruptcy you will be able to know who the trustee is prior to your bankruptcy filing.
If you are thinking if filing for either Chapter 7 or Chapter 13 bankruptcy in South Florida and you would like to speak with a local bankruptcy attorney then please contact Ofer Shmucher at Shmucher Law, PL by calling 305.741.5553 or 954.309.5559. We offer free consultations in our main Miami Office or any of our satellite offices (by appointment) including Boca Raton, Fort Lauderdale, Plantation and Sunrise Florida.
A recent client asked me if she could terminate her cell phone contract through the bankruptcy and not be subject the termination fee of her provider. The answer is YES a debtor can terminate their current cell phone contract by listing the cell phone provider on their bankruptcy petition and “rejecting their contract.” I would put cell phone providers debts into the following three categories:
Old Cell Phone Contract Debt
If at one time you had a contract (and it has expired) and you owed an amount then by listing the old cell phone provider on your schedules you will easily be able to eliminate or discharge the debt through bankruptcy.
Current Cell Phone Contract Debt and Canceling
If you have a current cell phone contract debt and are planning on canceling the debt then you should put the owed debt amount as well as the contract on the bankruptcy petition and mark the contact as “rejected.”
Current Cell Phone Contract and Continuing to Pay
If you have a current cell phone plan and are continuing to pay then you don’t need to list the cell phone contract or the debt on the bankruptcy petition.
If you are thinking of filing for bankruptcy in South Florida and would like to schedule an appointment with a local bankruptcy attorney then please contact Ofer Shmucher at Shmucher Law, PL by calling 305.741.5553 or 954.309.5559. We offer free consultations in our Miami office as well as any of our satellite offices (by appointment) including Boca Raton, Fort Lauderdale, Plantation, and Sunrise Florida.
