On September 29 2017 President Trump signed the Disaster Tax Relief and Airport and Airway Extension Act of 2017 (HR 3823). Congress had approved the bill the day before.
This Act gives substantial relief to those affected by the recent hurricane disaster including: an exception to the 10-percent early retirement plan withdrawal penalty for qualified hurricane relief distributions.
This Act may provide relief to you. Consult your attorney or tax professional!
Florida Bar Presidents Award Winner!
Several clients have asked me recently whether they can pay off their chapter 13 plan early. Essentially they would like to conclude their bankruptcy prior to the time specified by their confirmed plan. A Debtor in bankruptcy can file a motion to approve the early payoff of their chapter 13 plan, however these motions are not routinely granted. Since being appointed to the Ft. Myers Division, Judge Delano has taken an equitable approach to these motions weighing how long the plan has been confirmed, how many payments the Debtor has made, whether the Debtor’s income could potentially increase and whether the confirmed plan calls for committing tax refunds to the plan. Ask your attorney if your circumstances would allow you to pay your chapter 13 plan off early. Here is a case that deals with this issue: In re: Carreiro 11-17863 (Opinion by Judge Delano).
Held every year, this was one of the first I attended without Judge Paskay as a speaker. Our newly appointed Judge Delano (Middle District of Florida Fort Myers Division) was present along with nearly every Judge from the Middle District of Florida: Judge Jenneman, Judge Hyman, Judge Specie, Judge Glenn, Judge Williamson, Judge May, Judge McEwen, Judge Jackson.
A lot of consumer issues were reviewed. I’ll update my blog to present some of these issues for anyone keeping tabs..
Did you know that you can received a court ordered modification mediation in Bankruptcy?
Many bankruptcy filers are having great success in having their mortgage modified at a bankruptcy court ordered mediation. A financial disclosure is required and the bank is required to appear in good faith and evaluate which modification programs you qualify for. The Mediator oversees the process and makes sure that all parties are doing the best they can to reach a modification.
If you have been having problems modifying your mortgage this is an additional option! Talk to a bankruptcy attorney today to inquire about how you can get a successful mortgage modification mediation!
On occasion I have a Debtor who asks me if filing a bankruptcy will stop thier divorce or support case. When a chapter 7 or 13 bankruptcy case is filed, an automatic stay immediately goes into effect stopping all creditors from proceeding with attempts to collect from the Debtor. This automatic stay does not apply to family law matters and exceptions are carved out under Bankruptcy Code Section 362(b)(2)(A). The code specifically provides that the filing of a bankruptcy does not operate as a stay to civil action proceedings including but not limited to proceedings for the establishment of paternity and establishment or modification of an order for Domestic Support Obligation such as child support. There many other exceptions, if you have questions contact a good bankruptcy attorney.
In January, President Obama signed the American Taxpayer Relief Act which among other things, extended the Mortgage Debt Relief Act that was set to expire at the end of 2012. This was a big relief for many people who received a 1099C as a result of a foreclosure because in most cases it relieved the recipient of the 1099C from the potential tax liability. Talk to your accountant or attorney if you have further question!
As a Naples Bankruptcy Attorney I have dealt with many situations where the property was valued at significantly less than the outstanding mortgages; underwater. In many of those cases the consumer was unable to file a Chapter 13 Bankruptcy as a result of the interpretation of the debt limits rule in our district – this was because often times the mortgage deficiency was added to the other unsecured debts. Many other districts had interpreted the debt limits rule much more liberally allowing many consumers to file a Chapter 13 even if they may have exceeded the debt limits.
As you may remember, Judge Delano recently took the bench in the Fort Myers Bankruptcy Division. After observing her address the debt limits issue and the pending motions to dismiss those cases (where the Debtor exceeded the debt limits), it is apparent that she follows the more liberal and majority interpretation of the debt limits rule. That being said, it appears that for the time being consumer Debtors in the Fort Myers Division will be allowed to present Chapter 13 cases where they may exceed the debt limit. This is not a guarantee that such a Chapter 13 will be confirmed by the Court but it allows consumer Debtors an option that was unavailable for some time. If you have any questions concerning this issue and how it may apply to you please consult your local bankruptcy attorney.
Judge Alexander Paskay passed away on April 27th 2012. I practiced before him for nearly ten years and will definitely miss him – he was the most charismatic judge I have ever practiced before.