Miami Bankruptcy Attorney Blog

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.

If you have filed for bankruptcy in the past and are thinking about filing for bankruptcy again then you may or may not be eligible to file again depending on date since you last filed.   If you previously filed for Chapter 7 bankruptcy in Florida then you must wait eight years from the date of filing in order to be able to file for bankruptcy again.   The important date to remember is the date that you filed not the date that you received your discharge.

If you are thinking of filing for bankruptcy and would like to schedule a free consultation with a local bankruptcy lawyer then please contact Shmucher Law, PL by calling 305.741.5553 or 954.309.5559.  We offer free in-house or phone consultations and can see clients in any of our office locations including Boca Raton, Fort Lauderdale, Miami, Plantation, and Sunrise Florida.

If you do a quick search for bankruptcy attorney in South Florida on Google you will find dozens of firms saying they are experienced in bankruptcy law.  If you decide to call and schedule an appointment with one of them, here are some questions to ask them when you meet them:

How much of the firm’s work is bankruptcy law? 

If you see a website of a law firm that says they practice bankruptcy, family law, probate, personal injury, criminal, immigration, etc. etc. then you really should know that the bankruptcy practice of the firm is probably very limited.  Ask how many cases the attorney has filed (monthly, yearly, lifetime), you may see a firm say they have 30 years of experience but if they only do 1 or 2 bankruptcy cases a year their 30 years of experience is really worthless.

Who is going to handle my case?

You may walk into a firm and meet attorney X and if you sign with that firm you may never see that attorney again, perhaps the majority of the work in your case and your communication might be only with a paralegal or secretary.  If you are paying thousands of dollars to file for bankruptcy, then I suggest you actually meet and communicate with the bankruptcy attorney rather than his or her staff.

Do I even need to file for bankruptcy?  

Ask an attorney if bankruptcy is right for you, it may not necessarily be.  You may be able to negotiate a settlement with your debts,  do a short-sale or a deed in lieu and keep yourself out of bankruptcy entirely.  Have the attorney explain the differences between the bankruptcy options available to you as well as the non-bankruptcy options.

How will bankruptcy affect me in a negative way?

Make sure that the attorney goes over with you the consequences that are incurred when one files for bankruptcy.  If an attorney informs you that there are no consequences then you should run away.  Furthermore an attorney should explain the process of rebuilding your credit after filing for bankruptcy.

How will bankruptcy affect me in a positive way?

Ask the attorney what benefits you will be receiving if you file for bankruptcy.  Make sure the attorney can tell you which debts will be wiped out in the bankruptcy and which debts (if any) will survive.

How much do you charge?

The first question that any debtor will ask a bankruptcy attorney is how much they charge to file for bankruptcy in Florida.  Typically a Chapter 7 bankruptcy will run between $1500-$2000 for non-complicated cases.  Be very weary of attorneys who advertise a very low price as they are just trying to get people in the door and/or their advertised price doesn’t include things such as the filing fee $300, credit report fee, reaffirmations, or numerous other miscellaneous charges that an attorney can add.

Will you be attending the court hearing with me and will you prepare me?

Every debtor in a bankruptcy case needs to attend bankruptcy court one time for a short hearing called a meeting of the creditors.  The debtor will be accompanied by a bankruptcy attorney who will be there to assist them in answering questions.  Some firms send a designated person to court with you, and chances are it will be a person you have not met and maybe even someone who is not familiar with your case.  Furthermore ask the attorney how they will proceed in preparing you for the hearing.  Some firms will just file your case and meet you at the hearing, without preparing you in any way.

Remember that just because you had a free consultation with a bankruptcy attorney doesn’t mean you need to sign a retainer agreement with them on the same visit.  You may want to visit more than one bankruptcy attorney to see how the answer the questions listed above, maybe you communicate better with one than the others.  Remember the filing of a bankruptcy is a decision that should be made after careful consideration and professional advice.  Never make the decision to hire a bankruptcy lawyer strictly because their price is lower than another attorney.  You will usually get what you pay for.

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

A few years ago when people purchased homes and those homes increased in values the banks offered the homeowners an equity line of credit, which was a way to borrow against the home.  These equity lines of credit ranged from just a few thousand to several hundreds of thousands, depending on the valuation of the home.   When the homeowners obtained an equity line of credit they are basically obtaining another mortgage on the home and they must continue to pay on the equity mortgage.  So a question I receive is what happens when a homeowner, who has an equity line of credit, files for bankruptcy.  Here are a few scenarios:

Filing Chapter 7 and surrendering the home:

If a debtor is filing for chapter 7 bankruptcy in Florida and is surrendering the home then the debt of the mortgage, including the debt of the home equity line of credit will be discharged in the bankruptcy.  HOWEVER if the debtor took out a significant amount of money with the home equity line, the bankruptcy trustee will question the debtor to determine what the debtor did with the funds.

Filing a Chapter 7 and retaining the home:

If the debtor chooses to file a chapter 7 bankruptcy and is retaining the home, then there is nothing that can be done with the equity line of credit.  The equity line of credit will not be dischargeable and the debtor must continue to pay on the equity line of credit or they could potentially be foreclosed on.

In Florida a debtor is not allowed to strip off a second mortgage or an equity line of credit in a chapter 7 bankruptcy filing.

Filing a Chapter 13 bankruptcy and retaining the home:

If a debtor chooses to file a chapter 13 bankruptcy in Florida then he or she has the ability to strip off or wipeout the second mortgage and or home equity line of credit on their residence.  In order for a debtor to strip off the second mortgage he or she must show that the value of the first mortgage exceeds the value of the home.  Example:

House 1 – value $240,000

First Mortgage – $300,000

Equity line of Credit – $100,000

In the case above the debtor would be able to strip off the equity line of credit because the value of the first mortgage exceeds the value of the home.

House 2 – value $240,000

First Mortgage – $200,000

Equity line of Credit – $100,000

In the case above the debtor would not be able to strip off the equity line of credit because the value of the home exceeds the value of the first mortgage.

Filing a Chapter 13 and surrendering the home:

If a debtor is filing for chapter 13 bankruptcy in Florida and is surrendering the home then the debt of the mortgage, including the debt of the home equity line of credit will be discharged in the bankruptcy.

If you have a home equity line of credit and are thinking of filing for bankruptcy and would like to schedule a free consultation with a local bankruptcy lawyer then please contact Shmucher Law, PL by calling 305.741.5553 or 954.309.5559.  We offer free consultations in any of our office locations including Boca Raton, Fort Lauderdale, Miami, Plantation, and Sunrise Florida.

I spend a lot of time looking at my website data, and one of the most common questions people type into Google is: what is the average price of a bankruptcy attorney in Boca Raton, Florida?  Here is a breakdown of the fees required to pay in a Chapter 7 bankruptcy:

Filing Fee:
The filing fee is mandatory, unless a client gets a waiver (not likely), and is $299.00

Credit Report Fee:
Your attorney will need to run a credit report for you, and the fee varies by credit bureau but you can expect to pay anywhere from $35-50. 

Pre-Filing Course Certificate:
Each debtor, prior to the filing of a bankruptcy, is required to take a budget and credit counseling course.  This course can range anywhere from $30-50, depending on where you take it online. 

Post-Filing Course Certificate:
Each debtor, after the filing of a bankruptcy, is required to take a financial management course.  This course can range anywhere from $15-50, depending on where you take it online. 

Those are the only mandatory fees that a debtor must pay for when filing for Chapter 7 bankruptcy in Boca Raton, Florida.  However an attorney will likely charge you for their time, and usually this is a FLAT FEE.

Attorney Fees:
If you scour the internet, and make numerous phone calls, then you will find the prices for a local Boca Raton bankruptcy attorney to range drastically.   This is likely because attorneys will quote on their website, one price, but then they forget to tell you about the other fees, listed above, or inform you that your case is a lot more complicated than that of a regular case and thus they will need to charge you more.  Prices in Boca Raton range from $1,000 to $3,000, depending on the law firm.

Shmucher Law, PL Fees:
Our website fees are located directly on the main page of the website and are as follows:  For the majority of our cases (individual (not-joint), don’t own a business, one home, and don’t foresee anything exciting in a bankruptcy) then the attorney fee is $1,200 plus $30 credit report plus $299 filing fee for a grand total of $1,530.00 . 

If you are thinking of filing for bankruptcy in South Florida and would like to schedule a free consultation with a local bankruptcy attorney then please contact Ofer Shmucher at Shmucher Law, PL by calling 305.741.5553 or 954.309.5559.   Shmucher Law, PL has a satellite office in Boca Raton (by appointment only) as well as in other cities including Fort Lauderdale, Miami, Plantation and Sunrise Florida.

I spend a lot of time looking at my website data, and one of the most common questions people type into Google is: what is the average price of a bankruptcy attorney in Miami, Florida?  Here is a breakdown of the fees required to pay in a Chapter 7 bankruptcy:

Filing Fee:
The filing fee is mandatory, unless a client gets a waiver (not likely), and is $299.00

Credit Report Fee:
Your attorney will need to run a credit report for you, and the fee varies by credit bureau but you can expect to pay anywhere from $35-50.

Pre-Filing Course Certificate:
Each debtor, prior to the filing of a bankruptcy, is required to take a budget and credit counseling course.  This course can range anywhere from $30-50, depending on where you take it online.

Post-Filing Course Certificate:
Each debtor, after the filing of a bankruptcy, is required to take a financial management course.  This course can range anywhere from $15-50, depending on where you take it online.

Those are the only mandatory fees that a debtor must pay for when filing for Chapter 7 bankruptcy in Miami, Florida.  However an attorney will likely charge you for their time, and usually this is a FLAT FEE.

Attorney Fees:
If you scour the internet, and make numerous phone calls, then you will find the prices for a local Miami bankruptcy attorney to range drastically.   This is likely because attorneys will quote on their website, one price, but then they forget to tell you about the other fees, listed above, or inform you that your case is a lot more complicated than that of a regular case and thus they will need to charge you more.  Prices in Miami range from $1,000 to $3,000, depending on the law firm.

Shmucher Law, PL Fees:
Our website fees are located directly on the main page of the website and are as follows:  For the majority of our cases (individual (not-joint), don’t own a business, one home, and don’t foresee anything exciting in a bankruptcy) then the attorney fee is $1,200 plus $30 credit report plus $299 filing fee for a grand total of $1,530.00 .

If you are thinking of filing for bankruptcy in South Florida and would like to schedule a free consultation 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 any of our office locations including Boca Raton, Fort Lauderdale, Miami, Plantation and Sunrise Florida.

Some of my clients have recently asked me if they can include their 401k loans into the bankruptcy. Typically clients dip into their 401k as a last resort, in an attempt to pay off debts they owe, but they fail to realize the consequences of doing so. Unfortunately the filing of a bankruptcy, whether chapter 7 or chapter 13, in Florida will have no affect on your 401k loan and you will still be required to pay for them.

If you are thinking of filing for bankruptcy in South Florida and would like to schedule a free consultation 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 consultation in any of our office locations including Boca Raton, Fort Lauderdale, Miami, Plantation, and Sunrise Florida.

I recently had a client ask me the following question:  Does it matter if you are working or not if you want to file for Chapter 7 bankruptcy?  In his case my client was unemployed, for an extended period of time, and he wasn’t sure if you could file for bankruptcy while unemployed.   The answer to his question is YES, your current employment status has no bearing on whether or not you can file for Chapter 7 bankruptcy in Florida.  Furthermore if you are receiving any unemployment checks from the government, the filing of the bankruptcy will not affect those payments.

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

Clients come see me in my Miami or Fort Lauderdale bankruptcy offices and they easily qualify for Chapter 7 bankruptcy in Florida, however they have assets, and their assets are not going to be fully protected in a Chapter 7 filing.  The clients don’t qualify for the Chapter 13 bankruptcy and so they ask me the following question:  “What happens if I file Chapter 7 bankruptcy in Florida and I am over the allowed exemptions?”

Here are some possible answers/suggestions to the question above:

Surrender the over-exempted assets:

Your first option and probably the easiest option would be to surrender your over-exempted property to the bankruptcy estate.    This may be surrendering your car, jewelry, liquidating a bank or a stock investment account, or turning over any asset you may have.  While this sounds like a bad idea, and my clients tell me they read online that “they can keep all their assets,” from a business stand point this makes perfect sense.   If you think about it, in your bankruptcy you are wiping out thousands, tens of thousands, even hundreds of thousands of dollars worth of debt, and in exchange you may need to give up an asset worth a fraction of the amount that you owe.

Buy Back the over-exempted asset:

Some trustees will give the debtor the option to buy back the items that are not exempted.   This is a win-win for both parties because the trustee doesn’t have to hire someone to sell the item and the buyer can just pay the amount they are over-exempted by and keep their belongings.    While some trustees will allow the debtors to enter into a payment plan to keep the over-exempted belongings (payment plans can range for one to six months), I must stress that the bankruptcy trustees are not “IN THE COLLECTIONS BUSINESS.”  The trustee has the right to do whatever he or she wants, including not allowing you to enter in a payment plan and giving you the option to pay by the end of the week or they will sell the item.  If you are thinking of buying back your over-exempted assets I suggest you call a family member or a friend and ask them if they will be willing to help you out if the trustee will not enter into a payment plan with you.

If you are thinking of filing in South Florida and would like to schedule a free consultation with a local bankruptcy attorney then please contact Ofer Shmucher at Shmucher Law, PL by calling 305.741.5553 or 954.309.5559.  Consultations can take place in our Miami office or any of our satellite offices (by appointment) including Boca Raton, Fort Lauderdale, and Sunrise Florida.

People often do research on bankruptcy online, and some of the information they find out is entirely incorrect.  One of my favorites is when a client tells me that they read online that the bankruptcy court will NOT take your car away if it is your only mode of transportation.   What they are reading is ENTIRELY UNTRUE.   The fact that your vehicle is your only mode of transportation makes no difference as to whether or not you will be able to keep your car if you file for bankruptcy.  There are only three things that matter, regarding your car,

1. The value of the car – Use Kelly Blue Book (Private Party) or NADA Private Party
2. The amount of equity you have an a car -  Subtract the value of the car in number one by the amount you owe on the car.  If it’s positive you have equity, if it’s negative then there is no equity.
3. Your available Florida Exemptions to protect any equity in a car.

Florida Exemptions

Own a Home and Keeping it

Under Florida Law a debtor who owns a home and is keeping the home is entitled to exempt $1,000 in anything they want and an additional $1,000 in a vehicle.

Own a Home and Surrendering it or Rent a Home

Under Florida Law a debtor who owns a home but surrenders it in bankruptcy or a debtor who rents can exempt $5,000 in anything they want and $1,000 in a vehicle.  The debtor can use the $5,000 to protect the vehicle.

So if you own a car and you have excessive equity (ie you own the car outright) and can’t exempt all of the equity in the car, then you are left with TWO choices:  Either pay the difference or Surrender the car to the bankruptcy.

If any attorney tells you that they won’t take your car away BECAUSE IT IS YOUR ONLY CAR…. I suggest you run away, because your attorney is telling you false information.

If you are thinking if filing for bankruptcy and would like to schedule a free consultation with a local bankruptcy attorney then please contact Ofer Shmucher at Shmucher Law, PL by calling 305.741.5553 or 954.309.5559.  Shmucher Law, PL offers free consultations in any of our Bankruptcy office locations including Boca Raton, Fort Lauderdale, Miami, Plantation, and Sunrise Florida.