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Discharging Tax Debt in Chapter 7 Bankruptcy

  For individuals who are facing financial difficulties, Chapter 7 bankruptcy is often the best option to remove debt and obtain a second chance at a strong credit score. Chapter 7 is frequently chosen by individuals who have a large amount of debt and little income to pay it off. Unfortunately, there are some types of debts that are not able to be discharged in Chapter 7, including student loans and income taxes. Even though income taxes are often not dischargeable in Chapter 7 bankruptcy,[...]

Bankruptcy and Wage Garnishment

An overwhelming number of individuals live from paycheck to paycheck. If you are one of these people, any disruption in your wages can place you in a dire financial situation. To make matters worse, if you are facing a wage garnishment, it is possible that creditors can take as much as a quarter or more of your wages. Many people discover that wage garnishments to this degree make it difficult to pay the bills. The Value of Automatic Bankruptcy Stays Immediately after filing for bankruptcy, you [...]

Filing Bankruptcy Due to Medical Bills

  The constantly increasing price of medical care in the United States has created a substantial challenge for many families. As a result, statistics suggest that a large number of individual decide to file bankruptcy due to medical bills. Many families discover that bankruptcy can be a particularly helpful thing in these situations. The bankruptcy process is complicated, however, which is why many individuals decide to obtain the assistance of an experienced Florida bankruptcy attorney. Ch[...]

Top Four Chapter 13 Bankruptcy Mistakes

Chapter 13 bankruptcy relief offers filers a unique opportunity to receive protection from debt collection actions while allowing them to repay creditors an amount that the filer can afford. The second most commonly filed bankruptcy chapter, this financial reorganization gives an individual up to five years to pay creditors. A good option for those who own property that they do not wish to surrender, chapter 13 can lead to additional problems if the debtor makes a mistake when filing for relief.[...]

Top Three Benefits of Filing for Bankruptcy Relief

Over the last three decades, approximately one in 10 adults in the United States filed for bankruptcy relief. Even though filers often feel as though filing for bankruptcy is a sign that they have failed to manage their money properly, the reality is that most filers are hardworking individuals who have recently suffered a significant financial setback. Job loss, divorce, and medical issues are the leading reasons cited for bankruptcy filing, with the average filer being an educated full-time wo[...]

Jacksonville Chapter 12 Bankruptcy Lawyer

The American family farmer is at the center of this country’s history and self-image. The independent farmer was the core element of Thomas Jefferson’s vision of democracy. He believed that independence of judgement was a by-product of the self-reliance that farmers exemplified. That vision is still an important part of America’s identity. Just ask any of the artists who performed at Farm Aid 2017. The legal system should be especially responsive to the needs and concerns of America’s fa[...]

"Surrender" Under Bankruptcy

Bankruptcy and foreclosure are in some ways very different.  The former involves primarily federal law, seeks to assist the debtor, and involves all of a debtors assets and liabilities.  Foreclosure in contrast involves primarily state law, seeks to assist the creditor in securing the rights to the collateral property, and involves only the debtors home.  Despite these differences, the two areas of law overlap at points, in part because many debtors filing for bankruptcy have property that i[...]

Bankruptcy Fraud and Reform

Bankruptcy Reforms Criticized by Experts During a panel but on by the American Bankruptcy Institute, the 2005 overhaul of bankruptcy laws was sharply criticized by one of the panelists, an attorney that represents debtors in bankruptcy.  The 2005 overhaul was designed to help decrease abuse of the system by debtors and increase the relief unsecured creditors obtained.  The critique was that after ten years, the laws actually seem to have hurt consumers through the increased cost in filing for [...]

Stripping Liens Down in Florida Bankruptcy Courts

Stripping down in court is typically disfavored and a quick way to get kicked out.  But, as with all things legal, there’s an exception for a different kind of stripping: stripping liens. Stripping Liens Basics Stripping Liens, authorized by 11 U.S.C. § 506, conceptually divides certain claims secured by liens on property into two claims: an unsecured claim and a secured claim.  For example, let’s say Creditor A has loaned a debtor $100,000 and secured that loan with a mortgage on propert[...]

11th Circuit Rules Business Debtor Owes Default Rate Interest

This summer, the 11th Circuit, the court that provides precedent for Florida Bankruptcy cases, came down with an unfavorable ruling for bankruptcy debtors regarding default rate interest in a Chapter 11 bankruptcy case, in re: Sagamore Partners, Ltd.  As with all bankruptcy cases, having an understanding of the background helps:  Key Pre-Bankruptcy History The debtor, Sagamore Patners, Ltd (“Sagamore”), owns a namesake hotel in Miami.  In 2006, Sagamore took out a secured loan for $31.5[...]