Miami Bankruptcy Attorney Blog

I tend to meet clients who have visited other bankruptcy attorneys so I typically ask them what they thought of the previous attorney.  I was shocked to learn what some of my clients told me.  So here is a compiled list of things to be on the lookout out for when meeting a bankruptcy attorney:

Your consultation is with the paralegal or law clerk and not the attorney

This has to be one of the worst things I hear from clients who met other attorneys.  I’ll ask them what they thought of the previous attorney and they tell me that they never met the attorney, instead they had a consultation with the paralegal.  If that doesn’t scare you, it SHOULD.  Paralegals cannot give you legal advice and more likely than not what they tell you is incorrect.  If the attorney isn’t even willing to meet with you then how do you know they will even review your case before it is filed?

When you call the schedule a consultation they tell you there is a fee

A consultation fee, while allowed, is probably a good reason to walk away from the potential bankruptcy attorney .  Bankruptcy attorneys in particular must consider their clients circumstances, limited funds, and thus should always offer individual debtors

The attorney only does Chapter 7 bankruptcy

If you meet an attorney and they tell you that they only handle Chapter 7 cases it may not be in your best interest to stay there.  They may try to push you into filing a Chapter 7 and you may have to give up certain assets to do so.  However sometimes Chapter 7 isn’t the best fit for a client, sometimes a Chapter 13 bankruptcy is useful because the client can wipe out the 2^nd mortgage on a home or decrease the loan amount on a vehicle.

The attorney only looks at your paystubs and tells you that you can’t file for Chapter 7 bankruptcy

The easiest way to determine if someone can qualify for Chapter 7 bankruptcy is to look at their paystubs and see if they fit under the median income.  HOWEVER, even if a debtor doesn’t fit under the median income does not prevent them from filing a Chapter 7 bankruptcy, it just requires the attorney to do more work and to compare the debtor’s income to his or her expenses.

If you are looking for a bankruptcy attorney in South Florida then please consider calling Shmucher Law, PL at 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.

If you have a judgment against you then one of the remedies your creditors can seek is to wage garnish you up to 25 (twenty five) percent every paycheck until the amount of the judgment plus interest and fees is paid back.  If a wage garnishment order is granted against you then there really aren’t too many ways to have it cease.  However the filing of a bankruptcy in Florida will automatically cease a wage garnishment.

When a person files for bankruptcy in Florida, whether it is Chapter 7 bankruptcy or Chapter 13 bankruptcy the automatic stay comes into play.  The automatic stay is basically a freeze of all other proceedings or actions against the debtor, and in order to continue any of those proceedings or to start a new one a creditor is required to get permission from the bankruptcy court.

So in the case of a wage garnishment, the filing of the bankruptcy would automatically stop the wage garnishment and prevent the creditor from getting any monies from the debtor’s paycheck.

If you are currently going through a wage garnishment or recently have had a judgment granted against you 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 Boca Raton, Fort Lauderdale, Miami, Plantation, and Sunrise Florida.

I’ve recently met some clients, in my Miami Florida Bankruptcy office, who have asked me when they can file for bankruptcy again.  All of these clients had previously filed for chapter 7 bankruptcy and due to the economy would like to file for bankruptcy again.  While there is no rule on how many times a person can file for bankruptcy, there is a rule stating that a person is not eligible to obtain a discharge (wipeout all of the debts) if they have previously filed for bankruptcy within the last eight years.

Section 737(a)(8) of the bankruptcy code states that “The court shall grant the debtor a discharge unless the debtor has been granted a discharge under this section, under section 1141 of this title or under section 14, 371 or 476 of the Bankruptcy Act, in a case commenced within 8 years before the date of the filing of the petition.

So what does that mean in English -  If you filed for chapter 7 bankruptcy on June 15, 2003 then you could not file for chapter 7 bankruptcy again until June 16, 2011, you must wait eight (8) years.

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

I often get phone calls from people saying they need to file for bankruptcy but are unsure of which one.  Sometimes they do a little research online and tell me they want to file a Chapter 7, Chapter 13, or even Chapter 11, however usually these people have mixed up the definitions of each one.  Chapter 7 bankruptcy is referred to as  straight bankruptcy or bankruptcy liquidation while Chapter 13 is referred to as wage earners bankruptcy.  Here are some functions of each:

Chapter 7

1. 90 day process start (filing) to finish (discharge or wipe out of debts)
2. If you and your family (if applicable) make less than the median income for Florida you automatically qualify
   1. 1 person $40,029
   2. 2 people, $50,130
   3. 3 people, $54,594
   4. 4 people, $65,135
   5. 5 people, $72,635
   6. 6 people, $80,135
   7. If you make more than the median income for Florida, you can still qualify so long as you pass the means test.
   8. You make NO MONTHLY REPAYMENTS on your debt
   9. You may be able to keep all of your assets
   10. Your home is fully protected in a bankruptcy

Chapter 13 bankruptcy:

1. If your income is above the median income and you don’t pass the means test then you will likely file a Chapter 13 bankruptcy.
2. You will likely be able to keep all of your assets
3. You will have to make monthly repayments to a bankruptcy trustee for either three or five years
4. You can play catch up on secured debt
   1. If you are behind on your home you can catch up the payments over your payment plan
   2. If you are behind on your car you can catch up the payments over your payment plan
   3. You may be able to wipe out a 2^nd, 3^rd, home equity line of credit on your home.
   4. You may be able to reduce the interest payment on your car loan
   5. You may be able to reduce your car loan payment

Those are the main differences between a Chapter 7 and a Chapter 13 bankruptcy.  If you are thinking of filing for Bankruptcy then contact Shmucher Law, PL at 305.741.5553 or 954.309.5559.  We offer free consultations in Boca Raton, Fort Lauderdale, Miami, Plantation and Sunrise Florida.

I see many clients who have attempted to stay afloat by taking out loans against their 401k retirement plans.  Basically the clients have X saved in a work retirement plan and they have borrowed against it, usually to receive a lump sum payment, and then the client is required to make monthly repayments back on the loan.  These clients typically ask me the following “what happens to my 401k loan if I choose to file for bankruptcy.”  The answer is NOTHING.

If you file for bankruptcy in Florida and you have a 401k loan the loan will not be affected in bankruptcy and the debtor will need to continue to pay the 401k loan.  The 401k loan cannot be discharged or wiped out in a bankruptcy.

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

Shmucher Law, PL is a Florida bankruptcy law firm that handles individual and business bankruptcies.  For immediate assistance or to schedule a free consultation please contact our office at 305-741-5553 or 954-309-5559.

Over the last few months I have met numerous clients who have had the following happen to them:   The clients at one point owned a home that had more than one mortgage (either a 1^st and a 2^nd or a 1^st and a home equity line) on it.  The client loses the house to foreclosure and they think nothing of it, unfortunately sometime in the future the second mortgage (or home equity line) creditor decide to take action against the debtor.  The action usually involves suing on the promissory note of the mortgage or the home equity line.  The lawsuit is for the amount owed on the second mortgage, so you can imagine getting sued for 30, 50 or even one hundred thousand dollars.  Once a judgment is entered against the debtor, by the mortgage holder, they can begin to attempt to collect either by freezing a bank account, levying personal property, or garnishing wages.

So then next question would be what can you do if you get sued by a second mortgage or a home equity line creditor on a home that was already fore closured.   There are two options that a debtor can pursue:

Settlement – The debtor can attempt to negotiate a settlement with creditor.  This option may be tough because the creditor would probably only be willing to settle if the debtor can provide a payment of between 30-50% of the debt payable in one shot.  Not many debtors will be able to come up with that much money.

Bankruptcy – The more feasible option for a debtor would be to file either a Chapter 7 or a Chapter 13 bankruptcy.    When the debtor files for bankruptcy he or she will include the amount owed to the judgment creditor as a debt owed and that debt will be discharged in the bankruptcy.  If the debtor is eligible and files a chapter 7 bankruptcy then the debtor will likely not have to pay anything back on the owed amount.  If the debtor doesn’t qualify for chapter 7 and is required to file a chapter 13 bankruptcy then he or she will likely have to make a monthly payment (pennies on the dollar) for the amounts of debts owed.  Furthermore the filing of a bankruptcy will also prevent a future deficiency judgment by the original mortgage.

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

When you file for bankruptcy in Florida you need to list all of your debts and assets.  Your debts are usually automatically generated from  a credit report that your attorney will run for you.  However sometimes debts don’t show up on your credit report and it is your responsibility to provide those debts to the bankruptcy attorney handling your case.

Every once in a while a debt is not listed on your bankruptcy and you don’t know it until sometime in the future when you receive a bill from that creditor.  What are you supposed to do now?  Don’t panic, likely you won’t have to do anything, and there is a good likelihood that the debt of the creditor you failed to include is discharged anyway.

Usually Chapter 7 bankruptcy cases are declared “no asset” cases which basically means that creditors in this case will not get anything back.  If your case was a no asset case and you failed to omit the creditor then the debt will be discharged anyways.

However if you intentionally or fraudulently failed to list a creditor then it becomes a whole new story.

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

If you are thinking of filing for bankruptcy in Florida and you are married here is what you need to know:

There are three types of way that a married person can file for bankruptcy in Florida:

Both Spouses File For Bankruptcy – The first option would be that both spouses file for bankruptcy.  In this instance each spouse can include his or her debt whether owed jointly or solely.  Debtors will be allowed to take double the allowed bankruptcy exemptions.  When filing jointly BOTH INCOMES are included in the bankruptcy as well as their combined expenditures.

Married and not Filing Jointly  Same Household-  The second option on filing for bankruptcy when married is “not filing jointly without declaration of separate household.”  What that basically means is that you are married and you live in the same house as your spouse, however your spouse will not be filing for bankruptcy with you.   Because the spouse still lives with the filing debtor BOTH incomes must be included as well as both expenditures.   In this instance the filing debtor will be able to discharge his or her debt but not the debt of the spouse.  The non-filing spouse’s credit will not be impacting by their partners’ bankruptcy.   The benefit of not filing jointly is that any asset that is titled in both names or is owned jointly is fully exempted in the bankruptcy.

Married and not Filing Jointly, with Declaration of Separate Household – The third option for filing for bankruptcy when married is “with declaration of separate household.”  What this option basically says is that the debtors are separated and live in separate households.  The debtor must be willing to swear in court that the information is correct.  This third option allowed the debtor to only include his or her income and doesn’t require the debtor to provide the income of the spouse that is not living with them.

If you are married and thinking of filing for bankruptcy in Florida then please contact Shmucher Law, PL at 305.741.5553 or 954.309.5559 to schedule a free consultation in any of our office locations including Boca Raton, Fort Lauderdale, Miami, Plantation and Sunrise Florida.

If you haven’t paid your credit cards or any other debts for approximately nine months then your credit card company or whatever creditor you have will charge off your debt.   What charge off means is somewhat misleading .  When a creditor charges off debt they are really doing one of the following things:

Write Off the Debt –

Once a creditor charges off your debt they can simply write off the debt as “bad debt.”  When a creditor writes off your debt as bad debt what they are basically saying is that the debt is uncollectable and that they would rather get a small tax break on the bad debt, rather than continue spending money attempting to collect it.  Once a debt has been written off then the debtor will no longer be responsible for it.  Too good to be true right?  Well the fact of the matter is VERY few debts are ever written off as bad debt.  Typically only small debts, usually from small a small medical practice will ever be written off as bad debt.

3^rd Party Collections –

A creditor can send your charged off debt to a 3^rd party collections agency, which basically means they are selling your debt for pennies on the dollar to someone.  Once your charged off debt is sold to a 3^rd party collections agency prepare to be bombarded with phone calls to your home,  your work, your neighbors and finally your friends and family.

Turned over to an Attorney –

A creditor can turn over your charged off debt to an attorney.  When the debt is turned over to an attorney the attorney will begin by filing a demand letter.  Failure to make a payment arrangement based on the demand letter will lead the attorney to file a lawsuit against you and potentially garnishing your wages,  levy your property, or even freeze your bank account.

DON’T WORRY, if your debt has been charged off you can still file for bankruptcy.

If your debt has been charged off by your credit card company and you would like to speak with a bankruptcy attorney regarding your options then please contact Shmucher Law, PL at 954.309.5559 or 305.741.5553. We offer free consultations in any of our Bankruptcy Law  office locations in Boca Raton, Fort Lauderdale, Miami, Plantation, and Sunrise Florida.

Generally when you file for bankruptcy you want to include all of your debts, so that you can get them discharged, and eventually obtain a fresh start.  When you meet with a bankruptcy attorney they will likely run your credit through their computer system.  My computer program runs the clients credit on three major credit bureaus and it lists the account numbers, amounts owed, and addresses for every creditor that the debtor owes money to.  However more often than not medical bills, especially ones under $500 will not show up on credit reports.  The fact that they don’t show up on credit reports doesn’t mean that they are not owed money.   What I tell my clients to do is to take home the credit report and review it, if there is something missing I request that my client find out the name and address, account number and debt amount for the missing creditor.  While this may require the debtor to do some leg work by calling their doctor’s offices or hospitals, it will allow the debt to be discharged though the bankruptcy.

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