Miami Bankruptcy Attorney Blog

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.

One of the most common questions my clients ask me, when they come to one of our bankruptcy law offices in Southern Florida, is what will happen to my student loans once I file for bankruptcy. My answer to them, 99 percent of the time is that you cannot get rid of your student loan debt if you chose to file for bankruptcy. Student loans are considered “non-dischargeable” debt, which means that the debt amount will remain after your bankruptcy. Furthermore continuing to pay your student loan debt after bankruptcy will help rebuild your credit faster.

However, there is a minor exception to discharge student loans in the bankruptcy. In order to discharge your student loans in a bankruptcy you must meet the following three requirements:
1. That in your current situation you can’t maintain a minimum standard of living and repay your loans
2. Your bad financial situation is likely to continue
3. You have made an honest effort to pay off your loans The debtor must file a separate action in the bankruptcy and a judge will make the determination as to whether the elements have been met and this is almost impossible to do.

We can expect major changes with regard to student loans, once the Private Student Loan Fairness Act of 2010 gets approved and made into law. Under the Private Student Loan Fairness Act of 2010 debtors will be able to discharge PRIVATE student loan debt in their bankruptcy. Student loans that are backed by the government will remain non-dischargeable but those backed by private institutions will. While this doesn’t provide 100 percent relief for those debtors who have ample student loan debt, it does provide then with limited relief as to their private student loan debt. Shmucher Law, PL is a bankruptcy law firm located in South Florida. They maintain offices throughout the Broward (Fort Lauderdale), Dade (Miami), and Palm Beach Counties (Boca Raton). If you would like to schedule a free initial consultation to determine if bankruptcy is right for you then please call Shmucher Law, PL at 954.309.5559 or 305.741.5553.

Some of the clients that come into my Miami or Fort Lauderdale office, looking to file bankruptcy, are  unemployed and actively seeking employment.  Their main concern is that if they choose to file bankruptcy in Florida, the bankruptcy filing will have a negative impact on their ability to obtain employment.

Government employment:

Under Bankruptcy Code section 525(a) a Government unit “may not deny, revoke, suspend, or refuse to renew a license, permit, charter, franchise, or other similar grant to, discriminate with respect to such a grant against, deny employment to, terminate the employment of, or discriminate with respect to employment against, a person that is or has been a debtor” under the Bankruptcy Act or who was insolvent before or during such a case.   What that translates to is that a government unit cannot be denied a job to an applicant solely on the basis that the applicant has filed for bankruptcy.

Private employment:

Under Bankruptcy Code section 525(b) state that “No private employer may terminate the employment of, or discriminate with respect to employment against, an individual who is or has been a debtor under this title, a debtor or bankrupt under the Bankruptcy Act, or an individual associate with such debtor or bankrupt.”  What that translates to is that a private employer cannot decline a job application or terminate you from their organization solely due you filing for bankruptcy.

If you are thinking about filing for bankruptcy and would like to speak with a bankruptcy attorney in Miami, Fort Lauderdale or Boca Raton then please contact Ofer Shmucher at Shmucher Law, PL to schedule your free initial consultation in any of our five office locations.