Recently, I have had consultations with people who are not eligible for chapter 7 or chapter 13 bankruptcy. If you make more than the state median and have debts that exceed the jurisdictional limits for chapter 13 you may not be eligible to file a chapter 7 or chapter 13 bankruptcy. Where does this leave you? There are many options. One option is to file an individual Chapter 11 case. I do not file any Chapter 11 cases. If you feel you may not be eligible to file a chapter 7 or chapter 13 case be sure to consult with an attorney first before investing your time and money!
Author Archives: naplesbankruptcy
Your bankruptcy budget when you have no car or house payment?
Ransom v. FIA Card Services, N.A.
Back in January the Supreme Court decided a case entitled Ransom v. FIA Card Services. This case impacts all bankruptcy cases pending and those to be filed in the future. To summarize its impact – most bankruptcy filers are not allowed to deduct the IRS allowance for housing or automobile when they are not making the payment. This means if you are staying in a house and you are not making the payment you may not be allowed to deduct the IRS housing allowance in your budget. This also means that if you drive a car that is paid in full you may not be allowed to deduct the IRS Automobile allowance in your budget.
Fired for filing a Bankruptcy?
After talking to a concerned client whose employer has found about about thier bankruptcy filing I thought it would be helpful to make a post here for future reference. My client was concerned that they were going to be fired for the filing bankruptcy. I searched my memory and could not recall any previous clients reporting that they had been fired as a result of filing bankruptcy. This is probably because the law prohibits firing an employee solely for filing a bankruptcy. (See 11 U.S.C. 525(b)). If you think your employment has been terminated as a result of filing bankruptcy be sure to consult with an attorney!
Tax Liability as a result of a 1099-C?
It is tax season again and I feel like everyone is asking me about tax liability concerning a 1099-C that they received. A 1099-C is issued by a lender as a result of a cancelled debt and is often issued as a result of a mortgage foreclosure. The Mortgage Debt Relief Act was enacted in 2007 and generally allows taxpayers to exclude from income the amount of debt discharged as a result of foreclosure. To see if this provision applies to you talk to your accountant or lawyer. There is also information on the IRS website which you may read and find informative.
Can you get back garnished money?
There have been a lot of clients with wage garnishments lately so I thought it would be helpful to make a post concerning how bankruptcy can help when you have a garnishment. If you are being garnished you can stop the garnishment by filing a bankruptcy. In many cases, even after your wages have been garnished you may be able to get the garnished money back! The earlier you see an attorney when you have been garnished increases the opportunity for getting the garnished funds back. If you are being garnished or have any questions talk to an attorney today!
Filing bankruptcy when you own a business?
Many people have called with questions concerning filing a bankruptcy while at the same time keeping a business. The common misconception is that if you file a bankruptcy you must close the business. In most of the cases that I have seen the person filing bankruptcy keeps the business assets and continues to operate the business. If you are a business owner where the majority of you income is being used to service unsecured debt it filing a bankruptcy can help – sometimes it can save a business by making it profitable again!
2010 Annual Judge Paskay Dinner
I attended the inaugural Judge Paskay Dinner this past Thursday along with my fiancee and the members of my firm. Most, if not all of the Bankruptcy Bar members attended and it was great to see everyone outside of the courtroom. Judge Paskay will no longer be appearing in Ft. Myers after serving as the standing Bankruptcy Judge for the Middle District of Florida Ft. Myers division for more than thirty years. The night was filled with sentimental speeches and you could sense the end of era arriving. Having practiced in front of Judge Paskay for more than 8 years, I know he will be sorely missed.
Tenant rights after foreclosure?
I was recently asked by a client, “what will happen to them if the house they are renting is foreclosed upon?”. There has been so much new legislation lately and I was not certain of the answer so I asked the local foreclosure law expert, Marc Shapiro, Esq., and he pointed out that a new federal law entitled, Protecting Tenants at Foreclosure Act of 2009 now protects tenants who are leasing a foreclosed home. This law provides that a lease may survive a foreclosure – meaning that tenants may stay at least until the end of the lease, and that month-to-month tenants would be entitled to 90 days notice before having to move out. Of course, there are exceptions so consult with an attorney for help!
New Bankruptcy Filings for 2010 in Fort Myers/Naples
Its August already! I like to review the Middle District of Florida Bankruptcy Court statistics half way through the year in order to understand the complexion of our geographic area. There are more than eleven thousand pending cases before Judge Paskay as of June 2010. Needless to say he is a very busy Judge! Many of these cases are from previous years – you can gauge this for yourself by reviewing the statistics at www.flmb.uscourts.gov
Stripping a Second Mortgage can save a Home!
Often times when I consult with people I am trying to create a plan that saves thier home. In our area (Naples, FL) homes are often upside down – the owners owe more than the house is worth. One way of saving a home in this situation is to strip the second mortgage so that it is discharged along with the other unsecured debts. Doing this can sometimes make it prudent to keep a home that I would normally recommend be surrendered in a bankruptcy.