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. 
The cost of medical care in terms of both treatment and medication has pushed many people into bankruptcy. About 60% of those who file for bankruptcy protection do so because of insurmountable medical expenses debt. If you are struggling with medical debt, there are some things you can do besides file for bankruptcy.
The first thing you should try is negotiate with your doctor’s hospital or clinic administration. Explain your situation and ask for a discount or negotiate a payment plan. Some hospitals or clinics may grant you your request.
You would most likely have made a claim against your medical insurance policy to pay for your medical bills. You should examine all relevant documents to see if there are any overbilling errors and other mistakes that could have inflated your costs. If your insurer is denying liability due to some technical error, ask help from the hospital or clinic. Obtain an official letter from them confirming the need for you to get medical treatment and present it to your insurance company.
Finally, look into the possibility that there is a non-profit organization or charity group that can help. Often there are such organizations specially set up to fund those with certain serious illnesses like Multiple Sclerosis, Lupus, Down’s Syndrome, Autism etc.
If you have tried all these ways to raise funds and yet you fall short, then you should consider filing Deal for bankruptcy protection. Chapter 7 bankruptcy can discharge medical debt while Chapter 13 bankruptcy consolidates your debts (including medical bills) into a payment plan where you pay off your debts over 3 to 5 years.
If you wish to discuss bankruptcy as an option for overcoming medical and other forms of debt, call us at (813) 200 4133 for a free consultation.
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Filed under Chapter 7 (Tampa) by on May 18th, 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 are a married couple thinking of filing a bankruptcy petition, there are some considerations you should bear in mind before doing so. You may opt either to file a petition jointly as a couple or separately as individuals. If that is the case, which is more advantageous? It usually depends on how your debts are structured.
If most of your debts are in joint names, it makes more sense to file a joint petition for bankruptcy protection. But if your debts are incurred separately, filing individually would make more sense, since your creditors would have accounts with your separately.
Another consideration you should think about is the type of bankruptcy to file under. If you file for a separate Chapter 7 bankruptcy, the filing may not protect your spouse from being contacted by creditors. Chapter 7 bankruptcy brings along an automatic stay on creditors that prevents them from contacting you for payment but it may not protect your non-filing spouse from creditor actions. On the other hand, filing for Chapter 13 bankruptcy may entail co-debtor protection while the petition is ongoing.
There are many types of debts that may be in joint names such as credit card debts. These debts can be cleared through a joint bankruptcy filing. A joint filing may also save you money since you will only be charged for one filing.
If you and your spouse are headed for a divorce, you may want to consider filing bankruptcy separately. This would help make things easier when it comes to distribution of assets and debts later. A bankruptcy filing may carry different implications depending on which state you reside in. If you file in a community property state, it is possible for bankruptcy laws to protect the non-filing spouse.
If you wish to discuss your financial situation and explore the possibility of bankruptcy as a way to wipe your slate clean of all your debts, call us at (813) 200 4133 for a free consultation.
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Filed under Chapter 7 (Tampa) by on May 15th, 2012. Comment.
If you are under bankruptcy protection or considering filing a bankruptcy petition, you may be wondering how long the whole process would take. Well, the answer to that largely depends on which chapter of bankruptcy you file for. In addition, it usually also depend on the amount of debt you hold. Let’s look at the two applicable types of bankruptcy for individuals – Chapter 7 and Chapter 13.
Chapter 7 bankruptcy is known as liquidation bankruptcy because you have to liquidate certain assets to pay off your debts. Chapter 7 bankruptcy normally takes between 4 to 6 months before all your qualified debts can be discharged if there are no objections filed by any of your creditors. The types of debts that are dischargeable under Chapter 7 are usually unsecured debts such as credit card debts or medical bills. If you have little or no source of income and few assets, it is advisable for you to file for Chapter 7 bankruptcy.
Under Chapter 7, you provide a list of all assets and debts to the bankruptcy court. A bankruptcy trustee (who is appointed by the bankruptcy court to administer your bankruptcy) will review your list of assets and liabilities. Then you bankruptcy trustee calls for a meeting with creditors. If everything goes smoothly, the whole process is normally over within 6 months.
Chapter 13 bankruptcy is also called the workers’ bankruptcy and it is basically a consolidation of your debts by the bankruptcy court. The court assigns you a bankruptcy trustee who draws up a payment plan to clear your debts within 3 to 5 years. Once the bankruptcy court approves of the plan, you start repaying your debts. The advantage of a Chapter 13 is that you do not have to liquidate any of your assets.
To comply with the payment plan, you would normally have to be employed or have a steady source of income. Don’t worry about whether you can fulfill your obligation to pay because the repayment amount would be set by the bankruptcy court in accordance with your level of income. In fact, it is not uncommon for the amount of payment on some of your debts (such as your car loan installments) to be reduced by the court.
Your bankruptcy trustee will also call for a meeting with creditors and then monitor your repayments during the period of your bankruptcy. As long as you keep up with your payments, things will go smoothly and you should exit bankruptcy after your debts have been paid up according to your repayment schedule.
Chapter 13 bankruptcy has helped many people pay off outstanding debt, retain personal property and discharge qualifying debt at the end of the payment period.
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Filed under Chapter 7 (Tampa) by on May 14th, 2012. Comment.
