A ruling by the bankruptcy court has put holders of Florida’s so-called dirt bonds sold by two Fiddler’s Creek Community Development Districts at the end of the pecking order when payments are made to creditors. The ruling made in August states that most of the debt payments to the bond holders would be made only after payments to other creditors. As such, these tax-exempt bond holders are contesting the court ruling which excludes them from a bankruptcy settlement of Fiddler’s Creek LLC, the bankrupt builder of a 4,000-acre (1,600-hectare) community in Naples, on Florida’s west coast.
Dirt bonds are sold by community development districts set up by property developers to pay for the construction of roads, bridges and utility lines on land for housing projects. 371 districts in Florida issued $7 billion worth of bonds currently outstanding.
Generally, bond holders are paid out of the revenue collected from homeowner and landowner fees. But the housing industry slump has seen many abandoned, half-completed housing projects and house prices dive to by 42% from their peak in 2006. This has caused a bond default of at least 40%, or $2.9 billion, of the $7 billion outstanding, according to data compiled by Bloomberg using disclosures made over the past year. The publisher of Distressed Debt Securities newsletter, Richard Lehmann said, “This is the single biggest default event in the history of the municipal market.” Commenting on the court ruling, Lehmann said, “The bondholders were supposed to be the first people in line (to be paid), and now they’ve been basically made the last.”
Lehmann also noted that the Fiddler’s Creek case is the first in Florida where a development district settled debts with a builder under Chapter 11 bankruptcy procedures over bondholders’ objections. This may set a dangerous precedent where other builders seeking to delay bond payments would file Chapter 11 to do so. As it stands, builders of two other districts in Florida, Cordoba Ranch and Landmark at Doral, have filed for Chapter 11 since the Fiddler’s Creek settlement. These districts have outstanding bonds totaling $81.6 million. Other states such as Nebraska, California and Colorado have districts that also borrow to fund industrial and residential projects.
The two Fiddler’s Creek districts sold bonds worth more than $150 million starting from 1996 to finance the cost of building infrastructure in the project that was to include golf courses, tennis courts, clubhouses and 6000 homes. Less than 1,800 homes have been built so far. As a result, the developer lost about $42 million in expected revenue as buyers refused to close purchases.
In February last year, the developer and 27 other related entities filed for Chapter 11 bankruptcy protection.
If you wish to file for bankruptcy protection, call us at (813) 200 4133 for a free consultation.
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Filed under Chapter 7 (Tampa) by on Sep 29th, 2011. Comment. 
The federal court system assists those who are filling bankruptcy by helping them to get rid of their debt. A business or an individual can file bankruptcy and attempt to get rid of all their debt by going through the federal court system. In order to file this type of bankruptcy you must give up all of your property and sell it to pay off your debt. During a bankruptcy process an individual's assets is liquidated The state of Florida has certain bankruptcy exemptions that keep creditors from being able to take certain types of property. If you are thinking about starting a bankruptcy procedure it is important to know about these laws. Filing bankruptcy is not an easy decision but both federal and Florida state laws provide helpful exemptions.
By studying each exemption bankruptcy candidates can understand exactly what is protected by law. Most people generally wonder where they will take their family after their home is seized. The Florida Homestead Exemption makes sure your home is protected from creditors. Creditors cannot seize your home during bankruptcy procedures because it is protected by Florida state law. However, there are a few stipulations that go along with this exemption.
All property that is located in the city and it exempted cannot be larger than 1/2 acre. If these conditions are met, you, your spouse or even your child can claim the property as a debt during a bankruptcy and it is protected under the Homestead Exemption. This is how people who file bankruptcy are still able to keep their million dollar homes. Regardless of the amount of money you owe or the value of your home you are allowed to keep possession. Your pension or retirement is protected from bankruptcy proceedings in Florida.
According to bankruptcy laws creditors cannot seize your retirement, disability or any other government assistance income that you receive. Most people feel a little more comfortable after they realize that their pensions they have worked so hard for cannot be liquidated by creditors. If you receive workers compensation, alimony, child support or unemployment and have to file bankruptcy these funds will not be included in the proceedings. Creditors cannot touch these types of accounts where you have put aside money for your children's college. Accounts where you have put aside money for your child are not involved in bankruptcy proceedings. Money that you input into a Medical Savings Account is secure during bankruptcy. Anyone who is filing bankruptcy in Florida should understand their options.
A bankruptcy lawyer or even an online website can provide you with vital information before you get started. The exemptions are designed to help Florida residents so each and every resident of the state is eligible to take full advantage of them. Tampa Bankruptcy Attorney, Darrin T. Mish has been helping debtors with debt problems for over a decade. At the Tampa Bay Bankruptcy Center we really care! To get more information on your bankruptcy options visit his website at: http://tampabankruptcy.pro.
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Filed under Uncategorized by on Aug 26th, 2011. Comment.
Bankruptcy is the term replied when individuals or businesses get rid of all their debt with the help of the federal court system. Your property is sold in order to pay off your debts. This is called a liquidation of assets. The state of Florida has certain bankruptcy exemptions that keep creditors from being able to take certain types of property. Anyone who is contemplating filing for bankruptcy should be aware of these exemption laws. Individuals can benefit from helpful federal and Florida state bankruptcy exemptions.
Each exemption has specific rules and clearly tells you what is protected from bankruptcy. One of the biggest concerns for anyone who files bankruptcy is what happens to my family and me after they seize my home. The Florida Homestead Exemption makes sure your home is protected from creditors. According to Florida law, your home is protected during bankruptcy procedures and therefore cannot be seized. This law does have a few stipulations.
The size of any property located in the city cannot be more than 1/2 acre. Once the conditions are met you can automatically claim your home under the Homestead Exemption and make sure it is protected during bankruptcy. This is the reason why people still get a chance to keep their million dollar homes even after filing bankruptcy. It does not matter how much money you owe or how much your home is worth it is safe. When individuals go through bankruptcy proceedings in Florida their pension is protected.
Company retirement accounts, disability checks and any other government income are all protected from creditors. Individuals can rest a little easier knowing that their hard earned pension is not in danger. Payments such as child support, workers compensation and alimony are also exempted from bankruptcy and cannot be used as payment to creditors. Parents should keep in mind that if they have a Prepaid College Fund it will not be affected when they file bankruptcy. Special funds such as this that have been set aside for your children's college cannot be seized by your creditors. In addition any money that you have put into a Medical Savings Account is safe and secure under the Florida exemption laws. If you are filing bankruptcy in Florida you should be aware of your options.
For those who are trying to get started they may want to seek help from a lawyer or research an online bankruptcy website. If you are a resident of Florida, the exemption laws are designed to help you so it is important that you take advantage of those that you are eligible for. Tampa Bankruptcy Attorney, Darrin T. Mish has been helping debtors with debt problems for over a decade. At the Tampa Bay Bankruptcy Center we really care! To get more information on your bankruptcy options visit his website at: http://tampabankruptcy.pro.
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Filed under Uncategorized by on Aug 26th, 2011. Comment.
The federal court system assists those who are filling bankruptcy by helping them to get rid of their debt. A business or an individual can file bankruptcy and attempt to get rid of all their debt by going through the federal court system. In order to file this type of bankruptcy you must give up all of your property and sell it to pay off your debt. This process is called a liquidation of assets. However, in Florida there are some exemptions in the bankruptcy process which prevent debtors from being able to seize certain items. Anyone who is contemplating filing for bankruptcy should be aware of these exemption laws. Individuals can benefit from helpful federal and Florida state bankruptcy exemptions.
Each exemption has specific rules and clearly tells you what is protected from bankruptcy. One of the main concerns when people file bankruptcy is what happens to my family and me after creditors take my home. The Florida Homestead Exemption makes sure your home is protected from creditors. Creditors cannot seize your home during bankruptcy procedures because it is protected by Florida state law. However, there are a few stipulations that go along with this exemption.
All property that is located in the city and it exempted cannot be larger than 1/2 acre. Once the conditions are met you can automatically claim your home under the Homestead Exemption and make sure it is protected during bankruptcy. Even after filing bankruptcy individuals can hold on to their expensive real estate. It does not matter how much money you owe or how much your home is worth it is safe. It is very refreshing to know that when you file bankruptcy in Florida your pension is protected.
For those people who receive a disability check or contribute to a retirement account their funds are protected from seizure. Individuals can rest a little easier knowing that their hard earned pension is not in danger. Creditors do not have access to your workers compensation, alimony or child support during bankruptcy proceedings. Parents can also rest easy knowing that if they have any Prepaid College Funds they are also except from bankruptcy. Accounts where you have put aside money for your child are not involved in bankruptcy proceedings. Money that you input into a Medical Savings Account is secure during bankruptcy. Anyone who is filing bankruptcy in Florida should understand their options.
A bankruptcy lawyer or even an online website are great places to get started when trying to find out more about bankruptcy. If you are a resident of Florida, the exemption laws are designed to help you so it is important that you take advantage of those that you are eligible for. Tampa Bankruptcy Attorney, Darrin T. Mish has been helping debtors with debt problems for over a decade. At the Tampa Bay Bankruptcy Center we really care! To get more information on your bankruptcy options visit his website at: http://tampabankruptcy.pro.
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Filed under Uncategorized by on Aug 26th, 2011. Comment.
Bankruptcy, which can affect and individuals or a business, occurs when someone gets rid of all their debt by going through the federal court system. During this process individuals give up all of their property and it is sold in order to pay off all of their debts. During a bankruptcy process an individual's assets is liquidated In the state of Florida there are several bankruptcy exemptions which keep debtors from seizing certain items. These laws are very important for anyone who is thinking about filing bankruptcy. Individuals can benefit from helpful federal and Florida state bankruptcy exemptions.
Each exemption has specific rules and clearly tells you what is protected from bankruptcy. One of the biggest concerns for anyone who files bankruptcy is what happens to my family and me after they seize my home. The Florida Homestead Exemption makes sure your home is protected from creditors. Creditors cannot seize your home during bankruptcy procedures because it is protected by Florida state law. However, you should know that a few important stipulations do exist.
All property that is located in the city and it exempted cannot be larger than 1/2 acre. Once the conditions are met you can automatically claim your home under the Homestead Exemption and make sure it is protected during bankruptcy. This is the reason why people still get a chance to keep their million dollar homes even after filing bankruptcy. Regardless of how much money your home is worth you get a chance to keep it. You should also know that when you file bankruptcy in Florida your pension is protected.
Any company retirement accounts, IRA's, disability checks or other government income or assistance cannot be seized by creditors. People can breathe a little easier knowing that the pension they worked so hard for will not be swooped up by creditors. Creditors do not have access to your workers compensation, alimony or child support during bankruptcy proceedings. If you file bankruptcy according to Florida exemptions laws, creditors cannot confiscate your Prepaid College Fund. Creditors cannot touch these types of accounts where you have put aside money for your children's college. In addition any money that you have put into a Medical Savings Account is safe and secure under the Florida exemption laws. Anyone who is filing bankruptcy in Florida should understand their options.
A trained bankruptcy lawyer or even an informational website can provide you with helpful information to get you started. The exemptions are designed to help Florida residents so each and every resident of the state is eligible to take full advantage of them. Tampa Bankruptcy Attorney, Darrin T. Mish has been helping debtors with debt problems for over a decade. At the Tampa Bay Bankruptcy Center we really care! To get more information on your bankruptcy options visit his website at: http://tampabankruptcy.pro.
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Filed under Uncategorized by on Aug 26th, 2011. Comment.
