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.
Related Blogs
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.
Related Blogs
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.
Related Blogs
Filed under Chapter 7 (Tampa) by on May 15th, 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.
Related Blogs
Filed under Chapter 7 (Tampa) by on May 11th, 2012. Comment.
Credit and Financial Management Courses in Bankruptcy
As a prerequisite for filing for bankruptcy, you have to take up a course that gives you credit counseling. This applies to both Chapter 7 and Chapter 13 bankruptcy. Once you complete this credit counseling class, you would be allowed to file your bankruptcy petition. After filing for bankruptcy, there is another course that you are obligated to take. It is a course on financial management. This is a prerequisite for receiving your discharge through bankruptcy and must be taken within the first 45 days of filing for bankruptcy.
The purpose of the financial management course is threefold:
1. The enlighten you on the benefits of creating short-term and long-term financial goals
2. To guide you on how to draw up a budget
3. To give you practical instructions on how to balance a checkbook and reconcile bank statements
Both these courses are designed to improve your financial knowledge and skills and help you avoid having to file for another bankruptcy in future. There is usually a list of centers approved by the US government you can register with to take up these two courses. Consult your bankruptcy attorney on where and how you can take these two mandatory courses. Failing to take up the course on financial management would likely result in your bankruptcy case being closed.
After you file for bankruptcy, there are often many things to attend to and you may inadvertently forget to attend the financial management course by the 45 day deadline. If that happens, you should check with your bankruptcy attorney or trustee to find out if your case has been closed. If it has not, it is not too late to attend the course. You will be awarded a certificate upon successful completion of the course, which you need to file with the bankruptcy court.
However, if your bankruptcy case has been closed, you should appeal to the judge to reopen the case for the purpose of filing the Financial Management course certificate. Most judges would allow you to do so. But you do need to pay a fee to reopen your case, which is about $200. But this fee would be worth it if you can have your qualified debts discharged through bankruptcy.
If you wish to file for bankruptcy, call us at (813) 200 4133 for a free consultation. Bankruptcy is your right under the law and is a provision for you to have your qualified financial debts discharged, thereby enabling you to have a fresh start financially.
Related Blogs
Filed under Chapter 7 (Tampa) by on May 10th, 2012. Comment.
