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. 
It is not uncommon to get ripped off when making a purchase of certain goods or being overcharged when hiring someone for services. In many industries there are no governing regulations and prices are generally dependent upon market forces. But unlike other industries, the legal industry insofar as bankruptcy is concerned has its fees governed by law.
The bankruptcy judge has the right to determine the fees charged by bankruptcy attorneys to some extent. Section 329 of the bankruptcy code gives the judge this power. In fact, it is legally binding for the bankruptcy attorney to declare his fees to the court. The court then reviews the charges and decides if the fees charged are unreasonable. Being required to do this causes many bankruptcy lawyers not to charge excessively for their services.
But there are no hard and fast figures that determine if a fee charged is excessive. Among the things the bankruptcy judge takes into account in deciding whether fees are reasonable are the complexity of the case, the competence and skill of the lawyer and the amount of work the lawyer did in the case. A long-drawn or complicated Chapter 13 bankruptcy would warrant a higher fee than a straightforward Chapter 7 case. If the attorney solved difficult problems for the client, set out creative strategies or filed correct petitions, the charges can be higher.
If the judge determines that the fees charged are excessive, the onus is on the lawyer to prove otherwise, failing which the lawyer has to lower his fees.
So if you are contemplating filing for bankruptcy but are hesitant to do so because of affordability issues, it’s time to put aside such concerns. Call us at (813) 200 4133 for a free consultation on how bankruptcy can give you a new lease of life financially by eliminating your debts.
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Filed under Chapter 7 (Tampa) by on Jan 30th, 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.
When you file for bankruptcy, it is wise to do your due diligence and hired a bankruptcy lawyer. You should also have your records all straightened out as there is a lot of paperwork that needs to be done and everything you declare has to be substantiated. Then your bankruptcy lawyer will advise you on which type of bankruptcy you should file for, either Chapter 7 or Chapter 13 bankruptcy. But whichever bankruptcy you eventually file for, here are some things you can do to make the most out of your bankruptcy.
When under bankruptcy protection, you do not have the stress of dealing with harassing creditors. Sometimes, this reprieve can be a temptation for you to spend more. When you need to spend on credit, you should consult your bankruptcy lawyer first. This is so that the bankruptcy trustee will not have reason to think you are intentionally raking up your debts just to get it discharged eventually. Your spending habits need to change anyway, so when you are under bankruptcy protection is the best time to start. So to make sure you do not unduly arouse the suspicion of your bankruptcy trustee, always consult your bankruptcy lawyer before making special expenses if they are on credit.
This brings me to the next thing to do which is to change your spending habits. What drove you to declare bankruptcy in the first place? It could have been addictive money-wasting habits like gambling or careless spending ways like living beyond your means or lax monetary habits like living without a budget. Whatever the case(s) may be, you have to identify your faults and eliminate them. Have an accountability partner or a financial advisor to help you live within your means and save some money every month. This will help you not only get out of bankruptcy successfully but also stay solvent for life after bankruptcy.
When you exit bankruptcy, there is almost certainly going to be a stigma attached to you either by yourself or by people around you. Sadly, most people in society still frown upon a bankrupt for one reason or another. So if you find it difficult to cope with the stigma of being a bankrupt, you should hire a bankruptcy counselor. A trained counselor will work with you to overcome these issues and help you gain the necessary mindset to become a financially independent person again.
If you need bankruptcy advice, call us at (813) 200 4133 for a free consultation.
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Filed under Chapter 7 (Tampa) by on Jan 17th, 2012. Comment.
Filing for any type of bankruptcy is a major decision that will have repercussions in your life for many years. That is why it is important not just to hire any lawyer but to hire a competent and qualified bankruptcy lawyer. A competent bankruptcy lawyer can be a great strength and asset to have on your side in your fight to fend off creditors and pay off your debts. A good bankruptcy attorney can not only guide you through the bankruptcy process but also help protect your assets and advise you about what to do with unreasonable and difficult creditors.
When choosing a bankruptcy attorney, you should do a few things starting off with asking friends or family members who have filed for bankruptcy before for advice. Someone who has gone down the road you are taking will not only be able to empathize with you but also recommend a good lawyer to you (or tell you which ones to avoid).
If you do not know anyone who has filed for bankruptcy personally, you can do an online search for a bankruptcy attorney. Get all the preliminary information about a lawyer from his or her website. Go to lawyers’ rating agencies like AVVO (www.avvo.com) and read the independent ratings and comments of the lawyers you think are good bankruptcy lawyers. Also read past clients’ comments on these lawyers. After doing your due diligence online, shortlist all the good lawyers and call the ones you think can potentially represent you and request for a consultation.
You should not limit yourself to choosing an attorney that is only within your city. These days, it is easy to communicate with anyone even from another state. We have had clients from outside Florida who we have successfully represented as bankruptcy attorneys. So from your shortlisted list of lawyers, call each of them for a consultation. If an attorney will not see you or if you have to jump through too many hoops to get a consultation with an attorney, then you should strike that attorney off your list. Most good bankruptcy attorneys will see you once you have made an appointment and most will grant you a free consultation. If not, simply move on to the next bankruptcy lawyer.
When discussing your case with the bankruptcy attorney, be sure you ask about the fees. Then compare fees among lawyers. You do not necessarily have to go for the lowest fee, but it is a valid factor to bear in mind when making your final choice of bankruptcy lawyer.
If you are looking for a bankruptcy attorney to represent you, call us at (813) 200 4133 for a free consultation.
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Filed under Chapter 7 (Tampa) by on Jan 16th, 2012. Comment.
