Miami Bankruptcy Attorney Blog

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.

Sometimes clients of mine try other methods to eliminate their debts, including debt consolidation.  In a debt consolidation plan all of the debtor’s debts are lumped together and the debtor is only required to make one monthly payment in order to pay it down.  However, due to changes in circumstances, some debtors cannot proceed with a debt consolidation plan and thus would lean towards filing for bankruptcy.  So a common question I receive is whether or not debts that have been consolidated can be included in your bankruptcy, and the answer is YES.

Debts that have been consolidated or currently in a repayment plan are dischargeable in a bankruptcy.

When you fill out your bankruptcy papers be sure to include each creditor that you owe monies to and not just the debt consolidation company.

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 our office at 305.741.5553 or 954.309.5559.  We offer free consultations and can meet clients in any of our office locations including 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.

If you are ever online in website such as craigslist.org or similarly related sites you may have come across an advertisement for a bankruptcy preparer.  Most people don’t  know what a bankruptcy preparer is and what services they offer.  People see the low price that a preparer offers and automatically think that they can save money and use the preparer services.  Be warned that the hiring a preparer comes with consequences, here are a few:

• A bankruptcy preparer is NOT an attorney.  Under Florida law a bankruptcy preparer is barred from providing any legal advice to their clients.  That means they are not allowed to tell you what assets you can keep (exempt), which bankruptcy is right for you (either chapter 7 or chapter 13), or even tell you if you qualify to file for bankruptcy at all.  If you retain the services of a bankruptcy lawyer then he or she will be able to answer all your questions, help you protect your assets, as well as time your bankruptcy perfectly to make sure you don’t have to pay anything in a chapter 7 or make sure you qualify for the bankruptcy you need.
• Upon the filing of a bankruptcy, the debtor is required to attend a 341 meeting of the creditors.   During the meeting of the creditors the bankruptcy trustee will ask the debtor about their bankruptcy petition.  Also creditors will be allowed to ask the debtor similar questions.  The bankruptcy preparer is not allowed to attend the 341 meeting with the debtor, nor are they allowed to explain to the debtor on how to answer questions likely to be asked at a 341 meeting.  If you hire a bankruptcy lawyer then that lawyer will attend the 341 with you.  They will prepare you for the 341 meeting, including providing you with example questions and answers that you will be asked
• A debtor may be sued within a bankruptcy by a creditor.  If a debtor is sued then they cannot be represented by a bankruptcy preparer.
• A bankruptcy preparer has no knowledge of the local bankruptcy trustees and the documents they require.  Upon the filing of the bankruptcy the trustee will ask the debtor to supply certain documents by a certain date.  Each trustee requests different documents and provides different methods to produce the documents.  The failure to produce the documents will either delay or dismiss your case.  Using a bankruptcy attorney will ensure that those documents are provided in a timely manner so as not to hinder or delay the bankruptcy case.

Don’t make the costly mistake of using a bankruptcy preparer, instead use a bankruptcy attorney who will guide you the whole way through your bankruptcy case.  If you would like to schedule a free consultation with a bankruptcy attorney then please contact Shmucher Law, PL at 954.309.5559 or 305.741.5553.  We offer free bankruptcy consultations in Boca Raton, Fort Lauderdale, Miami, Plantation, and Sunrise Florida.

All my clients seem to get nervous prior to their meeting of the creditors because it will be there one and only time they will ever have to go to “court.”  Luckily for my clients the 341 meeting of the creditors isn’t a true court hearing, rather it is a hearing with a bankruptcy trustee.  All parties sit at a conference table and the debtor will be asked approximately five minutes of questions.  The debtor should have no problem answering any of the questions and if they do, they could always provide paperwork at a later time to answer the question.   Here are the most common questions that a bankruptcy trustee will ask a debtor if they filed for bankruptcy in Miami or Fort Lauderdale?

1. Do you remember reviewing and signing your bankruptcy petition and schedules?
2. Is the information in your schedules true and correct?
3. Did you list all your assets and your debts?
4. Questions about real estate
   1. Have you ever owned any real estate in the past five years?
   2. When did you purchase the real estate?
   3. Have you refinanced the property in the last two years?
   4. Have you rented out the property in the last two years?
   5. What are your intentions with the property? (surrender/keep)
   6. Are you current on your payments
      -     If not, how many months are you behind?

1. Questions about vehicles.
   1. Do you still own the vehicle?
   2. Are you current on payments?
   3. Do you still have insurance on your vehicle?
   4. Questions about assets.
      1. Have you given away or transferred any assets in the past two years?
      2. Miscellaneous questions
         1. Can you sue anyone? (personal injury)
         2. Are you the beneficiary of any will or trust?

Remember that you are answering all of these questions under oath and lying under oath could have severe consequences in your bankruptcy case and/or could include a jail sentence.  If you would like a free consultation with a bankruptcy lawyer feel free to contact Shmucher Law, PL at 305.741.5553 or 954.309.5559.

My clients often tell me that they are scared to go before a judge.    The good news is that most consumer/debtor’s who file for bankruptcy in Florida will likely never have to go before or see a judge at all.

Chapter 7 – If you file a Chapter 7 bankruptcy in South Florida you will be asked questions by a Bankruptcy Trustee in a 341 meeting of the creditors.  This meeting is fairly casual and usually only takes a few minutes.    A debtor will almost never see a judge unless there is a dispute or a motion has been filed that requires the debtor to appear and testify.

Chapter 13 – If you file a Chapter 13 bankruptcy in South Florida you, again, will be asked questions by a Bankruptcy Trustee in a 341 meeting of the creditors.   If the chapter 13 is done correctly then the debtor will likely not ever have to appear before a judge.

Reasons that you will have to go before a judge – If you fail to cooperate with the bankruptcy trustee, by failing to provide documentation or any other type of information then a visit with a bankruptcy judge will be very likely.

If you are thinking about filing a Chapter 7, 11, or 13 bankruptcy in South Florida and would like to schedule a free consultation with Shmucher Law, PL and bankruptcy lawyer Ofer Shmucher then please give our office a call at 954.309.5559 or 305.741.5553.

If you have decided it is time to see a bankruptcy attorney and you have already scheduled your first appointment, then you will need to gather some documents to bring to your consultation.  The following is a list of documents that you should bring:

1. Your paystubs – You should try to find the last six months of paystubs from your employer and bring them to the consultation.  The paystubs are used to determine your qualification for different types of bankruptcies.  If you are self-employed then you will need to provide how much money you have distributed to yourself over the same period of time.
2. Your bank statements – You should try to bring the last six months of your bank statement(s) to your initial consultation.  This applies for any type of bank or investment account that you have.  The monies and types of accounts will help determine whether or not the assets are partially, entirely, or not exempt from the bankruptcy court.  Also reviewing the bank documents will help determine whether or not the debtor has to worry about any fraudulent transfer or preferences.
3. Your Tax returns – In order to file for bankruptcy we require the last two years of tax returns you have filed.  Some trustees will require the debtor to provide upwards of five (5) years of tax returns.
4. Vehicle information – Providing copies of your registration, title, and proof of insurance is again helpful to determine whether or not the vehicle you own is exempt partially, entirely, or not at all.
5. Debts – typically most debts can be obtained through a credit report, however debts from small medical offices, payday loans, or other small entities may not show up on a credit report.  You don’t need to bring in a list of all your credit card debt.
6. Assets – Providing a list of any other assets you own would be extremely helpful and used to determine which bankruptcy chapter is right for you.  Assets can include anything from household goods, stocks, boats, paintings, or jewelry.

The non-exhaustive list above provides the debtor a head start for their initial consultation.  The documents will be very helpful for any attorney to easily determine the right path for the debtor.  If you would like to schedule a free consultation with Shmucher Law, PL in any of our Florida office locations then please give us a call at 954.309.5559 or 305.741.5553.

There are many commercials on TV today paid for by debt settlement companies offering to settle all of your debts and keep you out of bankruptcy.  These commercials sound too good to be true and often times they are.  They are promising to settle or consolidate all your debts for you, and only require you to make one easy payment a month.  Here is what these companies are not telling you:

1. The fees they charge you are steep.  Debt settlement companies usually have you provide them a monthly fee to “work on your file” and a portion of that monthly fee will put into an escrow account to use to negotiate with your creditors.  A recent client of mine was paying $700 a month to a debt settlement company and only $350 was put into his escrow account the rest was the debt settlement companies monthly fee.
2. Not all of your creditors will settle with the debt settlement companies.  The debt settlement company can’t force any creditor to take their offer (especially when they are offering pennies on the dollar).
3. Debt settlement companies ask you to STOP paying all of your debts, and by doing so the chance of you being sued will be more likely.  Once you are sued and a judgment is obtained against you the creditor can freeze your bank account, wage garnish you, or even take and sell some of your assets.  However if you file for bankruptcy you will be able to eliminate your debts as well as prevent any type of lawsuits to be filed against you.
4. There will be tax implications!!!  Debt settlement companies tend to forget to tell you that any amount that the creditor chooses to forgive in the settlement will be taxed as ordinary income by the IRS.   Here is an example, say you owed $25,000 on a visa card and your debt settlement company negotiates a settlement for $10,000.  At the end of the year the credit card company will send you a 1099 form for the amount of $15,000 and you will be responsible for paying the taxes of the $15,000 at the end of the year.  However if you filed for bankruptcy, any debt that gets discharged will not be subject to taxation.
5. You will need to have money to use a debt settlement company.  The commercials tell you these debt settlement companies can settle your debt for pennies on the dollar, but what they don’t tell you is that you need to have the money ready to go and make one lump payment.

Bankruptcy can usually offer better results and provide an economically better solution than a debt settlement company.  If you would like to find out more about bankruptcy and would like to schedule an appointment with Shmucher Law, PL at one of our five office locations (Boca Raton, Fort Lauderdale, Miami, Plantation or Sunrise) then give us at call at 954.309.5559.