A recent potential client asked me how long do they need to live in Florida before they can file for bankruptcy here.  The client had recently moved to Florida but was anxious to obtain a fresh start by filing for chapter 7 bankruptcy in Miami-Dade county.

If a person just recently moved to Florida they must wait 91 days before they can file for bankruptcy here.  It is also beneficial if during that time period the person obtains a Florida drivers license and obtains Florida plates for their vehicles.   However, just because you can file for bankruptcy in Florida it doesn’t necessarily mean that Florida laws will apply to your case.  It is best to consult a qualified local bankruptcy attorney to determine what laws will apply to your case.

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.  We offer free consultations in our main Miami office, as well as our Satellite offices (by appointment) including Boca Raton, Fort Lauderdale and Plantation Florida.

The goal of filing for bankruptcy is to get the debtor out of debt or in bankruptcy we refer to it as discharging (wiping out/eliminating ) debt.    The only way a debt can be eliminated in a bankruptcy is if that debt is actually listed on the bankruptcy petition (the document filed with the court).   So the following question arises, “how do I find out who I owe money to?”   The answer to that question is to run your credit report and review it.

The credit report plays a vital role in the bankruptcy of a debtor because it will provide the names, addresses, account numbers, and balances of MOST if not all the debtor’s debts.  If those debts are listed in the bankruptcy petition then the debts will most likely be discharged throughout the bankruptcy.  It would be ideal for the debtor to run a credit report that takes information from all three credit bureaus so as to list as much information as possible.

However, a credit report will likely not list all of the debtor’s debts, certain debts like medical bills or payday loans will likely not appear on a credit report.   A debtor should provide those documents to their bankruptcy attorney to ensure those debts are discharged in a bankruptcy.

If you are thinking about filing for bankruptcy then one of the first things that you should do is to find an experienced bankruptcy attorney to help you determine whether or not bankruptcy is an option for you.  When you see your bankruptcy attorney have him run your credit report and provide you a copy.   Review the credit report for inaccuracies as well as omitted creditors, and provide your attorney with any additional information necessary to add all of your creditors.

Shmucher Law, PL is a Florida based law firm with its practice limited to bankruptcy law.  We offer free consultations in any of our office locations including Miami and our satellite offices (by appointment only) Boca Raton, Fort Lauderdale, Plantation and Sunrise Florida.

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.

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.

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.

I often speak with debtors over the phone who are ready to file for bankruptcy and they are always wondering what the best steps they should do to prepare for the bankruptcy filing.  My answer every time is to get your paperwork organized.   Here are a couple of things you should consider:

Do I need to bring a list of all my creditors to the bankruptcy consultation?

No, typically the majority of your debts will be found by running your credit,  however debts such as medical debts, personal loans, and payday loans will not show up on credit reports.  If you have any medical debts, personal loans, or payday loans you should bring copies of them to your consultation.

Documents you need to bring to your initial consultation:

Always provide copies of your last three years of tax returns.  If you don’t have a copy or can’t find them, then you need to go to your local IRS office and ask for tax transcripts (they are free).

Provide copies of your last six bank statements for ANY bank account that has your name on it.

Provide copies of your last six months of any investment account that has your name on it.

Provide copies of the last six months of paystubs (paystubs determine which bankruptcy you qualify for) and the last six months of a spouses paystubs (even if the spouse is not filing).

Provide a detailed description of any vehicle driven, any boat, or any mode of transportation owned by or titled to the debtor.  The description should include the make, model, trim package, mileage and condition.

Provide copies of any litigation/lawsuit in which you are party to.

Providing documentation, to your bankruptcy attorney, is probably the best step that any debtor can take in order to ensure a successful bankruptcy filing.   If you are thinking of filing for bankruptcy and would like to schedule a consultation with a local bankruptcy lawyer, 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.

When people have personal injury lawsuits they tend to take quite some time before they actually receive any money.  During that time period where the personal injury lawsuit is pending a person may consider filing for bankruptcy.  A question I receive from potential clients is whether or not they can file for bankruptcy while they have a pending personal injury lawsuit.  The answer is YES a person can file a bankruptcy while they have a pending personal injury lawsuit, but the more important question to ask is WHETHER they should file for bankruptcy with a pending personal injury lawsuit.

In the world of bankruptcy a personal injury lawsuit is considered an asset and in some cases it is a very lucrative asset.  A debtor, when filing for bankruptcy, must exempt the assets they want to keep and under Florida law there is NO exemption for a personal injury lawsuit.  A debtor may use the wildcard exemption or the $1,000 personal property exemption on the lawsuit but likely the debtor may not be able to cover much of the personal injury claim.  SO what happens if you have a lucrative personal injury claim and you file for bankruptcy?  In most cases you will transfer your rights in the personal injury lawsuit to the bankruptcy trustee and upon receiving any monies from the lawsuit, the monies will be used to pay off your debt.

If you have a pending personal injury lawsuit and are thinking of filing for bankruptcy then I suggest you meet with a qualified bankruptcy lawyer to determine how bankruptcy would affect your claim.  If you would like to schedule a free consultation with Shmucher Law, PL then call 305.741.5553 or 954.309.5559.  We offer consultations in any of our office locations including Boca Raton, Fort Lauderdale, Miami, Plantation, and Sunrise Florida.