If you file for bankruptcy protection, will the bankruptcy trustee take your child’s bank account to repay your creditors? The answer to this question depends on how the bank account was set up. If the bank account was set up properly, the bankruptcy trustee does not have any right to seize the account.
If you have a designated bank account you have started for the benefit of your child the onus is for you to prove this to the bankruptcy court. If you can show that this bank account is for your child exclusively, then according to the Uniform Gift to Minors Act this account is your gift to your child and does not form part of your bankruptcy estate. Proving exclusiveness would generally mean showing that the bank account is in your child’s name or in joint names with yourself.
However, if you have a bank account in your name but use the money therein for expenses related to your child then you may have a problem proving to the court that the account is for the exclusive benefit of your child.
So if you have not set up your child’s bank account properly, you may want to do so just in case you have to file for bankruptcy in future.
If you want to consider filing for bankruptcy, call us at (813) 200 4133 for a free consultation. Bankruptcy presents an opportunity to you to wipe your slate clean of all debts and start anew.
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Filed under Chapter 7 (Tampa) by on May 21st, 2012. Comment. 
If you receive an inheritance, what does the bankruptcy law say about it? More specifically, if you are given an inheritance after you file for bankruptcy what happens to it? The bankruptcy code has different ways of treating your inheritance depending on which chapter of bankruptcy you file under.
If you file for Chapter 7 bankruptcy, what happens to the inheritance depends on when the person who gave it to you passed away. If the death of the testator occurred within 180 days prior to your bankruptcy filing, the inheritance you received will form part of your bankruptcy estate and will have to be handed over to the bankruptcy trustee who will use it to pay your creditors. If the testator passed away more than 180 days before you filed for Chapter 7 bankruptcy, then the inheritance is yours to keep.
Note that the 180 days is counted from the date of death of the person who gave you the inheritance, not the date you received the inheritance. For example, if your distant relative gave you $1 million in his will, and you received it only 1 year after he died, the money will become part of the assets in your bankruptcy if the death occurred within 180 days prior to your bankruptcy filing.
On the other hand, if you file for Chapter 13 bankruptcy, the 180 day limit does not apply. As long as your bankruptcy is still ongoing, the inheritance will form part of your bankruptcy estate and will be used to calculate how much you should repay your creditors. So in the example above, regardless of when you received the inheritance, as long as your debts in bankruptcy have not been discharged, your inheritance is taken into account to calculate your repayment amount.
If you wish to file for bankruptcy to overcome your debt problems, call us at (813) 200 4133 for a free consultation.
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Filed under Chapter 7 (Tampa) by on May 21st, 2012. Comment.
Medical costs continue to skyrocket. The costs are made higher if you have to go for follow-up treatment or consume ongoing medication. And if your case involves major surgery, it can cost six figures. All this is enough to put a major strain in anyone’s budget. When you are faced with insurmountable and escalating medical bills, one option is to file for bankruptcy.
But given the nature of medical conditions that often require ongoing treatment and costs, it is important you file for bankruptcy at the correct time. This is because bankruptcy can only discharge debts that have already been incurred, not those that are yet to be incurred. The last thing you would want is to incur hefty medical bills after you exit bankruptcy. You will not be allowed to file for bankruptcy protection until several years have passed. Thus all debts incurred after your bankruptcy is over are yours to bear.
So the first thing to do is explore all other options of settling your medical bills. You may appeal for a discount or negotiate for a payment plan from your medical professionals. Alternatively, you can join certain non-profit groups where you may be able to get cheaper rates for treatment. You can also look into getting your medicines from certain pharmaceutical companies where you can buy them at lower prices. Lastly, you can turn to family or friends to help you cover your medical costs.
Only after all these options have been exhausted should you take the step of filing for bankruptcy. As mentioned above, this is to avoid incurring high medical bills post-bankruptcy.
If you are facing high medical costs and wish to file for bankruptcy, call us at (813) 200 4133 for a free consultation.
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Filed under Chapter 7 (Tampa) by on May 17th, 2012. Comment.
If you wish to file for bankruptcy, there are two options for you as an individual. Both have their pros and cons and which is better suited for you depends on your circumstances. The two options are Chapter 7 and Chapter 13 bankruptcy.
In essence, Chapter 7 bankruptcy allows you to discharge certain debts that qualify even if you do not repay them. To the debtor, this is great but to the creditor, this sounds like a cop-out. Actually, it is not because there are stringent conditions to be met before this can be applied to any situation. In Chapter 7 bankruptcy, you non-exempt assets will be liquidated to pay off your debts. So this means you lose some of your assets. But don’t worry about losing the roof over your head. Generally, your principal residence is one of the exempted assets that will not be liquidated. Only after all your non-exempt assets have been liquidated will any further outstanding debt be considered for discharge. For more information about which assets are exempted and which are not, consult a bankruptcy attorney.
If you are thinking of filing for bankruptcy protection and have not engaged a bankruptcy attorney (or have engaged one but wish to change), call us at (813) 200 4133 for a free consultation.
Besides having to lose some of your assets, the other disadvantage of Chapter 7 bankruptcy is that you have to pass a means test in order to be eligible to make a petition. The means test is the average amount of income a household earns in your state. If you income is lower than the average income in your state, then you are eligible to make a Chapter 7 petition in your state. So if you are unemployed, you should seriously consider filing for Chapter 7 bankruptcy because you will pass the means test. If you do not pass the test, you will have to file for Chapter 13 bankruptcy instead.
On the other hand, the advantages of Chapter 13 are also many. Chapter 13 bankruptcy allows you to clear all your debts through a payment plan over 3 to 5 years. And the best thing about this is that none of your assets need to be liquidated, so you do not lose any of them.
Chapter 13 bankruptcy can help you cure missed mortgage payments, obtain modifications to your loan and remove any liens against second and third mortgages. All this can be done during the payment plan period set during the Chapter 13 filing. Also, you may be able to lower the amount of repayment you make on your vehicle payments under a Chapter 13 bankruptcy. If you have a qualifying vehicle, the principal loan amount along with the interest rate can be reduced. Furthermore, there are certain debts that are not dischargeable under Chapter 7 but are under Chapter 13 bankruptcy.
The final advantage I’d like to bring up for Chapter 13 bankruptcy is that you can file a Chapter 13 bankruptcy more often than you can for Chapter 7. Under both types of bankruptcy, there will be an automatic stay that comes into effect the moment your make your petition. This means your creditors are barred by the law from contacting you or harassing you for payment.
However, the clear disadvantage of Chapter 13 bankruptcy is that to be eligible, you have to have a steady source of income i.e. you have to be employed.
So in brief, if you are unemployed and do not mind losing some of your assets, you should file for Chapter 7 but if you are employed and wish to keep your assets, you should opt for Chapter 13 instead. Both have their advantages as listed above.
If you wish to discuss bankruptcy for your situation, call us at (813) 200 4133 for a free consultation.
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Filed under Chapter 7 (Tampa) by on May 11th, 2012. Comment.
Suppose you have filed for Chapter 13 bankruptcy but some change in circumstances (usually having to do with your finances) take place that make it difficult for you to continue with Chapter 13 bankruptcy. What do you do then?
Chapter 13 bankruptcy means you need to follow a payment plan to repay all your debts over a 3 to 5 year period of time. But if you lose your job, take a pay cut or have to reduce your work hours, you might not be able to keep to your payment plan. If such developments take place you may have no choice but convert your Chapter 13 bankruptcy to a Chapter 7 one.
Consult your bankruptcy trustee or bankruptcy attorney and discuss what to do. Converting from Chapter 13 to Chapter 7 is possible but it depends on whether you qualify. To qualify for Chapter 7 bankruptcy, you have to pass a means test which gives an idea of what disposable income you have left after taking care of pertinent expenses. To find out how much disposable income you have after essential expenses, an evaluation of your annual income is done to see if it exceeds the mean income level per household in your state. If you exceed it, then you may not qualify for Chapter 7 bankruptcy.
So if the circumstance precipitating your intended change from Chapter 13 to Chapter 7 is a loss of your job leaving you without income, then you should qualify for Chapter 7. But if you still hold a job but your income has reduced, then you need to see if you pass the means test based on your reduced income.
If you pass the means test and qualify to convert from Chapter 13 to Chapter 7 bankruptcy, you have to file a motion to convert your Chapter 13 case to Chapter 7. You do so by filing a notice of conversion with the bankruptcy court. Most motions to convert from Chapter 13 to Chapter 7 bankruptcy are not challenged by the bankruptcy court if all relevant information is presented and all necessary paperwork is done.
It is rather common to have changes in your financial situation. If this happens to you, you should consider converting your bankruptcy case as it may allow you to get certain debts discharged (meaning you do not have to pay them off).
If you wish to wish to file for bankruptcy protection or convert your bankruptcy case after filing your petition, call us at (813) 200 4133 for a free consultation.
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Filed under Chapter 7 (Tampa) by on May 8th, 2012. Comment.
