Miami Bankruptcy Attorney Blog

When my clients come see me, the first thing they ask is what is the timeline if I file for Chapter 7 bankruptcy in Florida.  Below is a rough timeline for individuals who file for Chapter 7 bankruptcy using my firms services.

1.         Schedule an appointment with my office.  This can be done by calling 954.309.5559 or 305.741.5553.  We offer FREE consultations and can meet you in several offices located throughout South Florida.  Our appointment availabilities range from M-F between 8am-7pm, and weekend appointments on a case by case basis.

2.         Prepare documentation and all the questions you may have prior to your initial consultation.  Documentation should include paystubs, tax returns, bank statements, asset information, vehicle information, and or copies of debts.  Write down your current monthly expenses (rent, food, insurance, gas, medicine, cell phones, etc.).   Write down any questions you want to ask during the free consultation.

3.         Come in for your free consultation and sit down with me to review your needs.  If we determine that you are a good candidate for Chapter 7 bankruptcy then we will begin by reviewing your monthly expenses and inputting them into your bankruptcy schedules.  We will also run your credit report and answer all questions you may have.

4.         After leaving the office you will need to review your credit report and your monthly expenses and let me know if there are any changes that need to be made.  If not, wait until I call you to come in and review your bankruptcy petition.

5.         Take the Pre-Filing bankruptcy Course found at www.startfresh.com (use attorney code OS6220).

6.         Come back into my office to review your bankruptcy petition, make any necessary changes, pay for the legal services, and FILE YOUR CASE.  We will file your case right on the spot, give you your case number, as well as the date for the meeting of the creditors.

7.         Once you are a debtor all harassing phone calls will cease and now you will wait for your meeting of the creditors.  If you receive any creditor phone calls, pick up the phone and give them your case number.

8.         Provide my office with any additional documents  that are required for the meeting of the creditors.

9.         A day or so before the meeting of the creditors I will either ask you to come into the office or schedule a phone conversation with you.  During this consultation I will prepare you for the meeting of the creditors.

10.       Attend the first meeting of the creditors and be prepared to spend three to five minutes answering questions regarding your bankruptcy petition, assets, and debts.  Make sure to bring a VALID DRIVERS LICENSE as well as a SOCIAL SECURITY card to the meeting of the creditors or your case will get rescheduled.  Complete your meeting of the creditors and walk away.

11.       Wait, you must now wait for an additional 60 days, hoping that no creditor will file any action in your case (not likely).

12.       Once the 60 day period is over you should be receiving a telephone call from me telling you that you got your bankruptcy discharge and that you should expect it in the mail within a few days.

13.       Your bankruptcy case should automatically close about two weeks after you get your discharge.

14.       Live happily ever after.

If you are thinking of filing for bankruptcy in South Florida and would like to be represented by 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, and Plantation Florida.

When you file for bankruptcy you automatically get appointed a trustee in your case.  You also automatically have a court date scheduled for a meeting of the creditors (341 meeting).  At the meeting of the creditors your appointed trustee will be asking you certain questions about your bankruptcy petition in order to determine whether or not you have committed fraud or have attempted to hide assets prior to your bankruptcy filing.   Prior to your meeting your attorney will have to send the trustees office certain documents (including bank statements, tax returns, inventory lists, investment statements, car titles, etc.) for the trustee to review prior to your hearing.

So what is the purpose of the trustee asking you for your bank statements?  The trustee will look at your bank statements to determine whether or not you have depleted your assets prior to your bankruptcy filing.  Did you withdraw large sums of money over the last year?  Did you transfer monies to your friends or relatives account?  Did you transfer lots of money into your 401k or your IRA?  Did you intentionally state your income as X when really your income was Y based on your bank statements.  Things like these put your bankruptcy in serious jeopardy and will likely lead to adversary proceedings (which are lawsuits within a bankruptcy case).

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 Boca Raton, Fort Lauderdale, Miami, Plantation, and Sunrise Florida.

The filing of a Chapter 13 bankruptcy, in Florida, requires the debtor(s) to create a three to five year repayment plan to pay off a portion of their debts.  You may wonder, why would I want to do a chapter 13 bankruptcy and make monthly payments when I can just file for a chapter 7 bankruptcy and not make any monthly repayments.  Well, there are certain benefits to chapter 13 bankruptcy that are not obtainable in a chapter 7.  Examples of chapter 13 benefits include:

1. Stripping or wiping out a second, third, forth, etc. mortgage or home equity line on your house.
2. Helping the debtor keep their house by allowing them to play catch up on their missed mortgage or vehicle payments.
3. Allowing the debtor to keep all their assets (unexempted).
4. Allowing the debtor to create a repayment plan with backed owed taxes or support obligations.
5. Allowing the debtor to strip down the car loan to the true value of the car and not what the debtor owes.

Furthermore some debtors don’t qualify for Chapter 7 bankruptcy and thus are required to file a Chapter 13.

So if you have decided that a chapter 13 bankruptcy is right for you then you will need to prepare to supply documents, more documents than you have EVER supplied in your life.  A chapter 13 bankruptcy trustee can and will ask you to provide proof of everything and anything.  Here is a great way to get started.

1. Bank Statements
   1. Get copies of the last six months worth of bank statements and all canceled checks.
   2. Pay stubs
      1. Six months worth of paystubs in order to determine the debtor’s income.
      2. Tax returns
         1. Two years worth of tax returns
         2. Retirement/Investment Accounts
            1. Copies of the most recent statement for your retirement, IRA, or 401k institution.
            2. Bills (VERY IMPORTANT) The trustee wants proof of your monthly payments therefore obtain copies of the last six months of all of your household bills:
               1. Power bill
               2. Water/Sewer bill
               3. Home phone
               4. Cell phone
               5. Internet
               6. Cable
               7. Alarm
               8. Landscaping
               9. HOA/ Monthly maintenance bills
               10. Car insurance
               11. Life Insurance
               12. Car payment
               13. Secured debt payments (i.e. furniture, or electronics paid for on a store credit card)

Having these documents ready and in hand when you meet your bankruptcy attorney will allow the chapter 13 bankruptcy process to go faster and smoother.  Delaying or failure to provide these documents could have a substantial impact on your case including increases in your monthly payments due to incorrect amounts used.

Remember Chapter 13 bankruptcy is a process that takes time and requires meticulous attention to each bill or expense of the debtor.  Your bankruptcy attorney can only use the numbers based on the documents you provide them, so make sure to provide everything any anything you can, and then expect the bankruptcy trustee to ask you for EVEN MORE documents.

If you are thinking of filing for Chapter 13 bankruptcy in Florida and would like to schedule a free consultation with a bankruptcy lawyer 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.

Now that it is 2011 people tend to get ready to file their taxes in hopes of obtaining a refund.  So it is that time of the year that I hear the same question asked repeatedly by clients, “If I file for bankruptcy will I have to pay taxes or a tax penalty on the debts that have been discharged?”  The answer to that question is NO.  You will not be responsible for any taxes or tax penalties for the debt you will be discharging.

However, if you choose to do debt settlement rather than to file for bankruptcy you will be responsible for the taxes on the debt you save.  Here is an example.  You owe 50k on a credit card and you settle it for 20k (a savings of 30k).  The IRS will consider the 30k savings as ordinary income and you will be responsible for the taxes on the saved amount.

The filing of a bankruptcy can help you enjoy a fresh financial start.  If you would like to schedule a free consultation to determine if bankruptcy is right for you, 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.

When you are a homeowner you become aware of other payments that you must make besides just the mortgage payment.  These payments can include homeowner associations/monthly maintenance charges, property taxes or property insurance.  Sometimes these payments are built into the mortgage payment (through the escrow account), however sometimes these payments must be made individually.  If you own a home and you file for bankruptcy you can select to either keep or surrender your home.  Ideally it is only best to keep your home if you are current and you know that you will be able to continue to make payments on the residence as well as any other payments associated with the home.

If you choose to surrender your home when you file for bankruptcy then you will not be responsible for the balance owed for your mortgage.  If you make separate payments for your property taxes, association fees, or property insurance then you need to list them on your bankruptcy petition and thus you will not be responsible for their debt.

In short if you are filing for bankruptcy in Florida and you surrender your home, you will likely not be responsible for the mortgage debt, the property taxes, the homeowner associations or even the property insurance on the home.

Shmucher Law, PL is a bankruptcy law firm with offices located in Fort Lauderdale, Miami, Plantation, Boca Raton, and Sunrise Florida.  Shmucher Law offers a free bankruptcy consultation and appointments can be made by calling 954.309.5559 or 305.741.5553.

When people lease vehicles in Florida, the lease is typically limited to certain mileage (i.e. 10,000 miles per year).  If the lessee goes over that allowed mileage they are forced to pay a penalty of a few cents (usually 25 cents) per mile that they are over when the lease is up and they need to return the car.  Furthermore a lessee  can be charged for the damages on the car (anything beyond normal wear and tear).

If you are thinking of filing for bankruptcy then you can terminate the lease early by surrendering the car in the bankruptcy itself.   If you are over on your mileage or if there is some damage to the vehicle, then you will NOT be responsible for the difference if you surrender the vehicle in your bankruptcy.

The filing of a bankruptcy is a serious decision and one should consult with a bankruptcy attorney prior to filing.  If you would like to schedule a free consultation with a bankruptcy lawyer then please 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.

On November 1, 2010 the United States Trustees Office revised the median income figures for Florida households.  These new figures will apply to Chapter 7 and Chapter 13 cases filed on or after November 1, 2010.

Below are the numbers for median income in Florida Post November 1, 2010:

1 earner -  $39,393 annually or $3,282 monthly.

2 people – $49,321 annually or $4,110 monthly.

3 people - $53,713 annually or $4,476 monthly.

4 people - $64,084 annually or $5,340 monthly.

5 people – $71,584 annually or $5,965 monthly.

6 people – $79,084 annually or $6,590 monthly.

The numbers above reflect GROSS INCOME or income before taxes and deductions.  If your numbers are higher than the median income then there is still hope that you can qualify for Chapter 7 bankruptcy, however it will involve looking at your expenses in the means test.

If you are thinking of filing Chapter 7, Chapter 13, or Chapter 11 bankruptcy in South Florida (Boca Raton, Fort Lauderdale, Miami, Plantation, Sunrise) then please give Shmucher Law, PL a call at 954.309.5559 or 305.741.5553 in order to schedule a free initial consultation.