Its not what you think it is, but a bar date is a good thing for a debtor in bankruptcy. Everyone wants some amount of certainty in their life. The bar date gives debtors the certainty they need during the bankruptcy process. If you file a chapter 13, or a chapter 7 with assets, the court will set a bar date for claims from creditors. This means a creditor must file its proof of claim [...]
Avoidance can be a good thing or a bad thing in the bankruptcy alphabet. Lien avoidance is a good thing when we are talking about your second mortgage. In chapter 13, if your first mortgage amount is more than the value of the home, then you may be able to strip your junior mortgage. Everyone refers to it as a lien strip, or stripping a mortgage, but it is really called lien avoidance under the [...]
In better times, divorce was about splitting the assets. I will give my colleague Bill Balena credit for the following regarding bankruptcy and divorce: Divorce is not about splitting assets anymore, it is about splitting debt. I don't see clients arguing over who gets to keep the house, or the car, because there isn't any equity in either anymore (unlike during the real estate boom) or when incomes were higher and everyone owned their cars outright. [...]
Families in Orlando, Daytona Beach, Ormond Beach, and Palm Coast will find it more difficult to qualify for Chapter 7 bankruptcy on November 1, 2011. The State Median Family Income by Family Size for bankruptcy gets updated from time to time. In the past, for the most part, the numbers would go up. But lately, the numbers have been decreasing. In Florida, they income numbers are as follows: Household of 1 = $41,334 Household of 2 = [...]
The answer for the right time to file bankruptcy is more often now, rather than later. Usually the more common question is should I file bankruptcy with "only" $xx,xxx in credit card debt. That is almost impossible to answer. $5,000 in debt could be a drop in the bucket for some people, but a crushing amount for others. The more important issue may be to time your bankruptcy properly. I have clients who come in [...]
You have mounting credit card and other unsecured debts, but you are on a fixed income of social security or pensions. Surprise! You might not need to file bankruptcy at all! It will take some discipline, some planning, and your willingness to not use traditional sources of credit for future purchases - but it can be done. I consult with potential clients who often have only exempt assets (creditors cannot touch these possessions) and their [...]
If you just found out your landlord is in foreclosure, you probably must continue to pay your rent, or you risk a possible eviction. On the flip side of the coin, if your tenants are not paying rent because you are in foreclosure, then you should demand rent be paid, or evict them if they don't leave the home. Foreclosures are moving slowly in Orlando, Daytona Beach, Ormond Beach, and Palm Coast. They are almost [...]
What is a deed in lieu? Or deed in lieu of foreclosure? It is the process of signing the deed over to your mortgage lender to avoid the completion of a foreclosure on the property. It is a favorite subject right now, but one with lots of misinformation under the umbrella of "what is a strategic default?" It is popular in this mortgage meltdown to search for ways to get out from an underwater mortgage. A [...]
Can you discharge a private student loan in bankruptcy? What can be done about my federal student loans in bankruptcy? As you can imagine, I get asked this question a lot. It is being asked more often since student loan debt now is now higher than total credit card debt, according to the Wall Street Journal. In general, private student loans and federal student loans cannot be discharged in bankruptcy. But I have blogged in [...]
The Fair Debt Collection Practices Act (or FDCPA) requires certain proper behavior for debt collectors and debt buyers. You are not supposed to be harassed over your debt. How many times a day does that bill collector call you? Once, three, five, over ten times a day? Have you stopped answering the phone at all because they won't leave you alone? Debt collector laws most often appear in my practice after the filing of a bankruptcy. [...]
