Miami Bankruptcy Attorney Blog

Some people are ashamed that they have filed for bankruptcy and want to keep it private, and so they ask me if there is anything they can do to keep their bankruptcy filing private.  Unfortunately the filing of a bankruptcy is a public filing and is a matter of public record.

What is a public record? 

A public record is any information that is maintained by a government agency.   When a bankruptcy case is filed it is assigned a district in the United States Bankruptcy Court.  For clients filing in the Broward, Dade, or Palm Beach Counties the district is the Southern District of Florida.   While most of your bankruptcy petition is available as a public record, information such as social security numbers, credit card numbers, or any sensitive information will not be made public.

Will family members find out that you filed for bankruptcy?

More likely than not, your family members will not find out that you have filed for bankruptcy UNLESS you owed them money and listed them on your bankruptcy petition.    Family members that you owe money to must be listed on your bankruptcy petition and they will receive notice

Will my bankruptcy filing be reported in the newspaper?

Depending on the district where you file your case, there is a chance that your bankruptcy case may be published in a local newspaper.  Published in the local newspaper basically means that it will display Jones, Tom case: 11-49944 Southern District of Florida.   If you file for bankruptcy in the Southern District of Florida then your filing will be reported in the Daily Business Review public records section.

If you are thinking of filing for bankruptcy and would like to speak 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 our main Miami office, as well as at any of our satellite offices (by appointment) including Boca Raton, Fort Lauderdale, Plantation, and Sunrise Florida.

Clients always ask me the following question “Can I go max out my credit cards and then come back and file for bankruptcy?”  The answer to that question is NO and it could lead to severe consequences including having the credit card companies sue you while you are in bankruptcy, and if they win the debt incurred will survive bankruptcy.

What do the credit card companies look for?

When you file your bankruptcy each credit card company, that you owed money to, will look back 90 days to determine whether or not you made charges on their card during that period.  Credit cards will look at the charges and determine if any of the charges are considered luxury goods.  A good rule of thumb is that anything other than food and gas is probably going to be considered a luxury good.  The credit card companies can sue you on anything they deem a luxury good. 

What do the courts look at to see if the debtor intended to defraud the creditor?

This is a non-exclusive list of factors that the court may use to determine whether or not the debtor, while using their credit card within the 90 day period before bankruptcy, intended to defraud the credit card.

1. 1.      The length of time between the charges made and the filing of bankruptcy
2. 2.      Whether or not an attorney has been consulted concerning the filing of bankruptcy before the charges were made
3. 3.      The number of charges made
4. 4.      The amount of the charges
5. 5.      The financial condition of the debtor at the time of the charges
6. 6.      Whether the charges were above the credit limit of the account
7. 7.      Whether the debtor made multiple charges on the same day
8. 8.      Whether or not the debtor was employed
9. 9.      The debtor’s prospects for employment
10. 10.   Financial sophistication of the debtor
11. 11.   Whether there was a sudden change in the debtor’s buying habits; and
12. 12.   Whether the purchases were made for luxuries or necessities

If you are thinking of filing for bankruptcy in the greater Fort Lauderdale-Miami area 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 our main Miami office as well as our satellite offices (by appointment) including Boca Raton, Fort Lauderdale, Plantation, and Sunrise Florida.

Clients that come see me tend to have one or two credit cards that they are current on.  These credit cards are typically low balance cards just for an emergency.  The client will usually ask me if they can keep these low balance credit cards after filing for bankruptcy in Florida, and unfortunately the answer to that question is NO.  Debtors will not be allowed to keep any credit cards they have, whether they are current, in default, or have been written off.

If you are worried about not having a credit card after filing for bankruptcy for an emergency use then it may be beneficial for you to get a secured credit card.   Otherwise you will be able to obtain credit card offers approximately three months after your bankruptcy case is over.

If you are thinking of filing for bankruptcy in the greater Miami-Fort Lauderdale area 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 our Miami office or any of our satellite offices (by appointment) including Boca Raton, Fort Lauderdale, 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.

Clients come see me on a regular basis and I tend to ask them a lot of questions regarding their assets, debts, and regular income.  Every once in a while I come across a client that I would consider to be borderline, and by that I mean they have either the option to file for bankruptcy or because their debts aren’t too high when compared to their income, there may be an alternative means to resolve their problem.  Here is an example:

If someone came to see me who has 20k in credit card debt but makes 50k a year and has the ability to save money and settle the debts then I would likely have them speak to a debt negotiator to see if settlement is the best option for them.  For debt settlement the debtor will need to pay about 30-50% of the debt they owe, either in a few payments or as one lump settlement.

If we use the same example above but the person had no job, no source of income, then ideally I would file their bankruptcy no questions asked.

Here are your options if you are in the gray area

Debt Settlement -  In the debt settlement world the client will likely not be able to negotiate with the credit card company if they are current on their debts.  Instead the client needs to be between three to four months delinquent before credit card companies will be interested in a settlement.   These type of settlement will be between 30-50% of the debt owed in either a lump sum payment of a few months worth of payments.  Be careful of companies that you use to settle your debts for you.  Many companies put you on a monthly payment plan where they front load their fees.  I.E. a monthly payment plan of $500 a month where $475 is their fee and $25 goes into an escrow account.

Debt Consolidation – Consumer credit counseling companies put you into a monthly repayment plan where you pay 100% of your debts back, but in a longer period of time.  They also tack on an additional 10-20% for their fees.  You don’t really save anything by choosing this option.

If your debt isn’t too great then perhaps it would be wise to consider non-bankruptcy alternatives in Florida.  However if you feel that you can’t afford to pay back the debt then maybe bankruptcy would be the best option for you.

If you are thinking of filing for bankruptcy or would like options about bankruptcy alternatives then contact Shmucher Law, PL at 954.309.5559 or 305.741.5553.  We offer free consultations in any of our office locations including Boca Raton, Fort Lauderdale, Miami, Plantation, and Sunrise Florida.

Filing for bankruptcy in Florida will offer a debtor a fresh start because the debtor will likely be able to wipe out all of his or her debts upon the completion of their bankruptcy.  One of the most important things a debtor needs to do is to determine who they owe money to in order to list them on their bankruptcy schedules.  So debtors often ask me, how do I make sure I have listed all my creditors/debts on my bankruptcy petition.   Here is how we accomplish this:

Credit Report – Your attorney will likely run a special program that pulls information from all three credit bureaus.  The attorney will give you a copy of the credit report to take home and review.

Medical Bills – Typically your medical bills won’t be reported on your credit report.  You will need to provide your attorney copies of any medical bills you have in order to include them in your bankruptcy petition.  You may want to call or go to the hospital you were treated at to ask for copies of your bills.

Review your Mail – Your mail will likely be filled with letters from creditors saying you owe them money.  Review your mail and compare it with your credit report.  Any bill that isn’t showing up on your credit report should be provided to your attorney to add to your bankruptcy petition.

Adding Creditors after filing – If you have already filed for bankruptcy and you failed to list a creditor, then it is still possible to add a creditor but it costs money.  Attorneys charge different amounts to add creditors, depending on the amount of time it takes.

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

A lot of my clients use their credit cards as means for survival (food and gas), so when they come see me they ask me the following question:  If I have recently used my credit card can I still file for bankruptcy, and will it be a problem?   There are some specific bankruptcy code guidelines that deal with this exact issue.

Under Bankruptcy Code Section 523 states that:

consumer debts owed to a single creditor and aggregating more than $500 for luxury goods or services incurred by an individual debtor on or within 90 days before the order for relief under this title are presumed to be nondischargeable; and cash advances aggregating more than $750 that are extensions of consumer credit under an open end credit plan obtained by an individual debtor on or within 70 days before the order for relief under this title, are presumed to be nondischargeable;

The Code also defines the term “luxury goods or services” as any good or service that is not reasonably necessary for the support or maintenance of the debtor or a dependent of the debtor.

So what does this mean?  It means that any money you spent on a credit card within the last 90 days can be deemed non-dischargeable (ie it will survive bankruptcy).  How can you remedy this problem?  You can inform your bankruptcy attorney about your recent credit card use, stop using your credit card and wait until the 90 day period is up.  Defintely inform your lawyer about your credit card usage.

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

One of the things that people are most scared about, when it comes to bankruptcy, is that people believe that they will never be able to obtain credit again.  They think that no one will give them a credit card, no one will give them a car loan, and finally no one will let them buy a house again.  This is completely false.  While bankruptcy does remain on your credit report for ten years, it doesn’t entirely prevent you from obtaining credit to get a credit card, a car, or a home.

A debtor is able to obtain an FHA loan for a home approximately two years after their bankruptcy discharge as long as their credit score is 650 or higher and they are able to put down 3.5% of the purchase price.

Don’t let the word “bankruptcy” scare you into believing that you will never be able to live your life again, rather think of bankruptcy as a means to obtain a fresh start.  If you are thinking about filing for bankruptcy and would like to discuss your options with a bankruptcy lawyer in Florida then please contact Shmucher Law, PL at 954.309.5559 or 305.741.5553.  We offer free consultations in Boca Raton, Fort Lauderdale, Miami, Plantation, and Sunrise Florida.

Are you being routinely harassed by creditors calling you at all times throughout the day, including early in the morning and late at night?  Have you come to the point where you either just shut your phone off or ignore every call that is coming in?  The filing of a bankruptcy can help by preventing creditors from calling you again.

As a bankruptcy attorney I often ask my clients how often they are being harassed from their creditors.  I have heard of stories where the creditors call the client’s work, the client’s relatives or even in some cases they will call the client’s neighbors to try to get information about them.  Basically if you are in debt your creditors likely are causing you, your family members, your work, and even your neighbors a headache!

Here is how bankruptcy can help:

Hire a bankruptcy attorney (prior to filing):  Once you hire a bankruptcy attorney you can tell all of your creditors that you are represented by counsel, provide them the phone number, and they will not call you anymore.

File for bankruptcy – Upon the filing of the bankruptcy every creditor will get notified that you have filed for bankruptcy and the law prevents them from contacting you.  Within a day or two after filing you will be able to enjoy your life again because no creditor will be calling you.  If by any chance a creditor does call you, then you need to give them your bankruptcy case number and they will cease calling you.

If you are being harassed by your creditors and you would like to see if bankruptcy is right for you then please contact Shmucher Law, PL to schedule a free consultation.  We offer consultations in our Miami office or in any of our satellite locations (by appointment) including Boca Raton, Fort Lauderdale, Plantation and Sunrise Florida.  You may contact us by calling 954.309.5559 or 305.741.5553.

It seems that most Americans rely on their credit cards on a regular basis and people would find it very difficult to do their day to day operations without one.  One of the questions I hear all the time is once I file for bankruptcy will I ever be able to get a credit card again?   The answer to that question is absolutely yes.

A bankruptcy will be listed on your credit report for ten years but that doesn’t mean your credit score will be poor during that time.  More likely than not your credit score will actually INCREASE approximately 12 months after your bankruptcy case is over.

As for a credit card, debtors are usually offered credit cards approximately three to six months after their bankruptcy has been discharged.  However, debtors should be weary because these credit cards tend to have significantly high interest rates (20-30%).   Furthermore if a debtor again gets into trouble with these credit cards and cannot pay them, then they will not be able to file for bankruptcy again for another eight years.    By obtaining a credit card post bankruptcy the debtor will likely help increase his or her credit score on a faster basis as the credit card companies will report that the debtor is paying the debts.

An alternative for a standard credit card is to obtain a secured credit card.  A secured credit card is similar to a debt card because you pay in advance and then are able to use the card.  Example,  you sign up with Orchard Bank for one of their secured credit cards.  You pay in advance for the card for the amount you want to use ($500.00).  You then use the card and pay on it with the $500 you put down.  Every time you pay on the card the bank will report you to the credit bureaus.

If you are thinking about filing for bankruptcy and would like to discuss the consequences of doing so please contact Shmucher Law, PL at 954.309.5559 or 305.741.5553.  We offer free consultations in our offices located in Boca Raton, Fort Lauderdale, Miami, Plantation, and Sunrise Florida.