When you file for Chapter 7 bankruptcy, most of your assets are sold to raise money to repay your debts. Obviously, you would try to keep as many of your properties as possible. There are some properties that can be redeemed and thus kept under Chapter 7 bankruptcy.
You redeem a secured property by paying off the secured portion of a loan. By so doing, you will be able to reduce your monthly debt payments by reducing the outstanding balance and hence keep the property.
Let’s say you want to redeem a vehicle valued at $15,000 which has a loan of $22,000 on it. You would pay the value of your vehicle ($15,000) in cash and get to keep the property. The balance of $7,000 is regarded as an unsecured debt and may be discharged depending on the details of the bankruptcy case.
However, redemption can only be applied to personal properties such as vehicles, household appliances etc that are used by you and your household. All forms of real estate do not fall under the category of personal property so they cannot be redeemed in bankruptcy. For real estate, you have other options to keep them when a mortgage is not fully secured by the value of the property.
Likewise, business property is also not eligible for redemption in Chapter 7 bankruptcy. While a personal vehicle can be redeemed, a car registered under your business name cannot even though you use it as a sole proprietor.
If you wish to redeem your personal property, call us at (813) 200 4133 to schedule an appointment for a free consultation. When you engage us, we will help you file a motion for redemption with the bankruptcy court.
Alternatively, you can look into other ways to keep your property such as reaffirmation. If you redeem your property, you will be discharged of future debt although it will entail some lump sum payment. On the other hand, if you reaffirm your loan, you will be subject to post-bankruptcy loan obligations. We will discuss the viability of keeping your property in light of all the options when you call us at (813) 200 4133.
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Filed under Chapter 7 (Tampa) by on Feb 1st, 2012. Comment. 
How to List an Omitted Creditor in Bankruptcy
When you file for bankruptcy, you have to submit the list of your creditors to the bankruptcy court. This listing contains the names and addresses of all your creditors. This is the list reviewed by the bankruptcy judge and used to pay off your creditors either through liquidation of your assets in Chapter 7 bankruptcy or payment plan in Chapter 13 bankruptcy.
You will have the opportunity to review the list before it is lodged with the bankruptcy court. During this time, if you notice any inaccuracies or any creditor that has been omitted, you should rectify it with your bankruptcy lawyer.
However, if you overlooked a creditor and submitted the list with one or more creditors missing, you can still have the creditor included. But you have to file an amendment. In most cases, when you file for an amendment you will have to complete a new schedule list to show all creditors including the creditor that was omitted. For this, you will incur an amendment fee.
If you have exited bankruptcy and had your debts discharged and discover you have omitted a creditor, you may still have the debt owed to this creditor discharged provided it was incurred before you filed for bankruptcy. If the creditor attempts to collect on the outstanding debt, you may have to reopen your bankruptcy case.
If you are in such a situation, call us at (813) 200 4133 for a free consultation.
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Filed under Chapter 7 (Tampa) by on Jan 27th, 2012. Comment.
One of the main sources of unsecured debts for bankruptcy filers is credit card debt. Since the Bankruptcy Abuse Prevention and Consumer Protection Act (BAPCPA) was passed in 2005, more restrictions have been put in place to making a bankruptcy filing. This is to prevent anyone from simply filing for bankruptcy and getting all their massive debts written off without paying for them. Thus with the enforcement of the BAPCPA in 2005, credit card issuers now have more clout in your bankruptcy. For one thing, credit card issuers can now block your bankruptcy filing.
It is to the best interests of credit card issuers to file a dispute to prevent you from filing bankruptcy so that you are compelled to pay up all your credit card debts. With this new right they have afforded them by the BAPCPA, credit card issuers will find just about any excuse they can think of to block your bankruptcy. So here’s what you can do to stop their actions:
1. Use only one credit card
If you need to make your purchases of necessities like food or gas, try to make them all using only one card. If that is not possible because of credit card limits, try to use as few cards as you can because one of the reasons the bankruptcy court can use to throw out your bankruptcy filing is multiple card usage to jack up your debts. Also make sure you keep your credit card statements and purchase receipts so that you can prove the necessity of your purchases.
2. Get a refund for luxury items purchases
According to the law, you will be scrutinized for your credit card spending for up to 90 days prior to your bankruptcy filing. So if you have made purchases of non-essential luxury items within that time, you may want to consider returning the items to reverse your credit card purchases and reduce your debts.
3. Keep credit card debt to a reasonable limit
Generally the limit at which the credit card issuers dispute your bankruptcy filing is $10,000 of debt. So try as far as possible to keep your credit card debt to under $10,000. Of course, the amount of credit card debt you hold should be as low as possible. And while this is not an absolute figure, it is a good gauge of how much debt is too much in the eyes of credit card issuers. However, take note that credit card issuers can technically file a dispute to your bankruptcy no matter how little or much you owe them.
So take note of these factors when filing for bankruptcy. If you wish to file for bankruptcy, contact us at (813) 200 4133 for a free consultation.
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Filed under Chapter 7 (Tampa) by on Jan 24th, 2012. Comment.
Can tax debt be eliminated through bankruptcy? Most people would tell you, “No”. But that is not entirely true. The good news is that you can eliminate tax debts through bankruptcy, although not all of it. The question is which tax debts can bankruptcy eliminate and which bankruptcy cannot. To be able to distinguish which tax debts can be discharged through bankruptcy, you should consult a bankruptcy lawyer.
The fact is some tax debts can be discharged through Chapter 7 bankruptcy while others can be dealt with through Chapter 13 bankruptcy. The taxes that cannot be discharged through a Chapter 7 bankruptcy might be able to be paid off through a Chapter 13 bankruptcy without being penalized with interest payments.
There is a timing factor that determines the dischargeability of your tax debts. Generally, if you have been filing and paying your taxes honestly to the best of your capabilities through the years, then the tax debts that are longer than 3 years prior to the date of filing of bankruptcy can be discharged by the bankruptcy court. But your most recent taxes like you current year’s tax bill is unlikely to be discharged.
But the IRS will go through your old tax returns with very thoroughly. And if they do find any dishonesty or discrepancy in your tax submissions, the bankruptcy court will not allow you to discharge your old tax debts.
How you treat your taxes during your bankruptcy process also plays a role. If you fail to file a tax return or file one late during the course of your bankruptcy, you risk having the court throw out your entire bankruptcy case. So if you do not want to see your bankruptcy case dismissed altogether, you should stay current with your tax filings.
If you are living under a heavy load of debt, whether they be tax debts or other debts, consider bankruptcy as a way out. Call us at (813) 200 4133 for a free consultation.ted through bankruptcy? Most people would tell you, “No”. But that is not entirely true. The good news is that you can eliminate tax debts through bankruptcy, although not all of it. The question is which tax debts can bankruptcy eliminate and which bankruptcy cannot. To be able to distinguish which tax debts can be discharged through bankruptcy, you should consult a bankruptcy lawyer.
The fact is some tax debts can be discharged through Chapter 7 bankruptcy while others can be dealt with through Chapter 13 bankruptcy. The taxes that cannot be discharged through a Chapter 7 bankruptcy might be able to be paid off through a Chapter 13 bankruptcy without being penalized with interest payments.
There is a timing factor that determines the dischargeability of your tax debts. Generally, if you have been filing and paying your taxes honestly to the best of your capabilities through the years, then the tax debts that are longer than 3 years prior to the date of filing of bankruptcy can be discharged by the bankruptcy court. But your most recent taxes like you current year’s tax bill is unlikely to be discharged.
But the IRS will go through your old tax returns with very thoroughly. And if they do find any dishonesty or discrepancy in your tax submissions, the bankruptcy court will not allow you to discharge your old tax debts.
How you treat your taxes during your bankruptcy process also plays a role. If you fail to file a tax return or file one late during the course of your bankruptcy, you risk having the court throw out your entire bankruptcy case. So if you do not want to see your bankruptcy case dismissed altogether, you should stay current with your tax filings.
If you are living under a heavy load of debt, whether they be tax debts or other debts, consider bankruptcy as a way out. Call us at (813) 200 4133 for a free consultation.
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Filed under Chapter 7 (Tampa) by on Jan 23rd, 2012. Comment.
Once you file for bankruptcy, you get automatic stay which means your creditors are to leave you alone. However, at times you will still be harassed by a persistent creditor who either ignores the bankruptcy notice or was not informed of your bankruptcy and keeps phoning you or sending demand letters in the mail. Of course, this is illegal. In such a case, you have to take action and stand up for your rights.
What you should do is keep a record of all their attempts to contact you. Keep on file the letters of demand they send to you and the time and dates of their phone calls. These become evidence of law-breaking that you will use against them. The next thing to do is present all these evidence to your bankruptcy attorney. Your attorney will know what to do and how to bring this matter up to the attention of the bankruptcy court. You can initiate legal proceedings against your creditor(s) and sue them for breaking automatic stay and causing emotional harassment. In most cases, you will be successful as long as you can provide evidence.
Although automatic stay applies the moment you file for bankruptcy, there are certain exceptions. These exceptions come in the case of co-debtors. Some of your debts may be in two names such as a housing loan that is in joint names between you and your spouse. You and your spouse are co-debtors in such a case. All consumer debts (like housing loans) can have co-debtors. When you file for bankruptcy protection, your co-debtor may or may not be protected under automatic stay as well.
The difference comes in the type of bankruptcy you file. If you file for Chapter 7 (i.e. liquidation) bankruptcy, you will be granted automatic stay, but your co-debtor is not. However, if you file for Chapter 13 (reorganization) bankruptcy, then your co-debtor is also afforded protection under automatic stay until you are discharged from bankruptcy.
However, there is one exception to this rule in Chapter 13 bankruptcy and that is in the case of tax debt. Tax debt is not classified as consumer debt. So if you and your spouse are liable for the same tax debt listed in your Chapter 13 bankruptcy, then only you are granted automatic stay and the IRS still has the right to seek payment from your spouse, the co-debtor.
So it is not possible to seek legal redress against the IRS (as you could with harassing creditors) if you have tax debts listed in your Chapter 7 or Chapter 13 bankruptcy.
If you need help with tax debts or bankruptcy, call us at (813) 200 4133 (bankruptcy) or (813) 229 7100 (tax) for a free consultation.
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Filed under Chapter 7 (Tampa) by on Jan 13th, 2012. Comment.
