As we’ve previously covered in our chapter 7 bankruptcy blog series, determining chapter 7 eligibility can be complicated in itself, as can properly balancing the benefits and drawbacks unique to your circumstances. Advice from trusted, experienced legal counsel can help you smoothly navigate these obstacles and ensure you get the relief you deserve as quickly as possible.

Once you have made these crucial pre-filing decisions, Savage Villoch Law can also assist you through the process of filing your Chapter 7 Bankruptcy petition. This petition will be filed in your local bankruptcy court and consists of several Official Bankruptcy Forms which detail information such as your current assets and liabilities, a record of your current income and expenditures, a statement of your financial affairs, and any open contracts or unexpired leases.

As a consumer debtor, you’ll also need to provide the court with a record of recent credit counseling, along with the debt repayment plan develop therein. In addition, the court will need a detailed list of all of your current creditors, and a list of all of the property you own.

The filing fees for a chapter 7 bankruptcy petition include $245 to file the case, a $75 administrative fee, and a $15 surcharge for your assigned case trustee. That brings the total cost of filing to $335, which is generally due to the clerk at the time of filing.

Once your petition is officially filed with the bankruptcy court, a trustee will be assigned to your case. This case trustee will be an impartial third party who administers your case through the process and facilitates the liquidation of any of your nonexempt property and assets. In the event that all of your property is exempt, as is typical of chapter 7 cases, the case trustee will simply file a “no asset” report, and none of your assets will be taken from you and sold to pay your debts.

Within 21 and 40 days of filing, your case trustee will hold a creditor meeting, during which you’ll be put under oath and asked questions regarding your financial standing and property interests. This meeting helps the court determine whether your petition can properly be filed under chapter 7, similar to the chapter 7 means test.

So long as the court finds no “abuse,” and no interested party files an objection to your discharge, a chapter 7 discharge should be granted within 60 to 90 days of your first creditor meeting. Of course, there are many exceptions to receiving relief under Chapter 7, which illustrates why working with trusted legal counsel is so critical from the outset.

Once a chapter 7 discharge is granted, you will be released from any liability for your unsecured debts, and your creditors will no longer be able to attempt to collect those debts, nor bring legal action against you.

Although chapter 7 will only grant relief from unsecured debts, it can be a powerful way to responsibly get your finances back on track. If chapter 7 bankruptcy sounds like a solution for your current situation, please contact us. The attorneys at Savage Villoch Law, PLLC have the experience and expertise to guide you through this process and help you regain your financial footing.

Sources: https://www.uscourts.gov/services-forms/bankruptcy/bankruptcy-basics/chapter-7-bankruptcy-basics

For most of those who are faced with bankruptcy, some find it particularly challenging to make an informed decision about the right attorney to hire. However, even when faced with the dire pressure of a financial crisis, it is important to make a cool and collected decision when choosing a lawyer. Avoid Bankruptcy Mills Some legal practices have become known as “bankruptcy mills,” as they focus on churning and burning as many cases as possible instead of fulfilling the specific needs of individual clients. Although it can be hard to identify this without being a bankruptcy lawyer yourself, reading reviews and interviewing several different lawyers can substantially reduce the possibility of this occurring. A Comfortable Relationship Even if a lawyer is well qualified, it is essential to feel comfortable when engaging with them. If you are nervous with the lawyer to client relationship it may be challenging to fully express the details necessary to defend your case. Specialization in Bankruptcy Law Many lawyers agree to represent any case that comes their way, regardless if it relates to their specialty. Investigate the percentage of cases that a lawyer has represented that are particularly related to bankruptcy law. According to Bankrate.com, “Technically, any attorney can handle a bankruptcy, but in practice, only those who usually handle such cases are worth using. But clients shouldn’t use the length of an attorney’s career as an indicator of their expertise. The better question to ask would be: What percentage of the lawyer’s practice constitutes bankruptcy and how many cases has the lawyer filed?” Take the time to contact us at Savage law if you have any questions about comparing the availability of a bankruptcy lawyer if your area.

Bankruptcy protection gives debtors a fresh start. But before filing, it is important to know the common mistakes people make during the process. Not Being Truthful The means test is the first step to filing bankruptcy. It consists of several financial questions that will determine if you can pay your creditors. If you don’t mention all of your income or assets, your case could be dismissed. A bankruptcy lawyer can help you make sure everything is presented correctly. Not Listing Pending Lawsuits If you have filed a lawsuit against someone for any reason, you must list it as an asset in your bankruptcy paperwork. Not Mentioning Cars or Car Loans If you have a car for which you are still paying the loan, you have to list it as a liability. If you own the vehicle outright, it gets listed as an asset. Should you fail to do this or you transfer the car to a family member shortly before filing for bankruptcy, you could hurt your case. Running up Your Credit Card Balance This is a bad idea because the creditor will look over the charges upon receiving the bankruptcy notification. If the creditor believes you purposely ran up your balance before filing, he has the legal right to challenge your request to eliminate the balance. Not Mentioning Creditors You have to list all creditors in your bankruptcy filing. If you don’t, it can lead to your case getting dismissed. Transferring Assets Transferring assets for the sole purpose of protecting them from being taken is illegal. There are legal ways you can protect assets that could potentially be at risk. If you would like to learn more about bankruptcy, please contact us. As bankruptcy lawyers, we will determine if filing for Chapter 7 or Chapter 13 is right for you.

The rising cost of healthcare is one of the top three reasons people file for bankruptcy, even if they have health insurance. If you’re struggling to pay your medical bills, continue reading to learn about Chapter 7 and Chapter 13 bankruptcy. Pre-bankruptcy Counseling Federal law mandates that you must attend ninety minutes of approved credit counseling before you’re allowed to file for bankruptcy. The cost differs from provider to provider, but it’s often around $50. What is an Unsecured Debt? Under the bankruptcy code, medical bills are considered unsecured debts due to the fact there is no collateral the creditors can take from you if you don’t pay. There are actually two types of unsecured debt: Priority and Non-priority. You still have to pay priority debts such as child support and taxes after your bankruptcy case is over. For both Chapter 7 and Chapter 13, medical bills are not priority debts and are therefore dischargeable. Chapter 7 As soon as you file for bankruptcy protection, your creditors are prevented from contacting you to demand payment. You’ll be appointed a bankruptcy trustee who will control all of your non-exempt assets to sell or liquidate them. The money will go to your creditors to pay your debt. In most cases, debtors don’t lose much (if any) property. In the event the trustee cannot raise any money, your medical bills will be discharged. Qualifying for Chapter 7 is not automatic. You’ll have to pass a means test to show your income is at or below the median income level in Florida. Chapter 13 If your income is above the median income level, filling for Chapter 13 may be an option for you. You’ll have to give the trustee your monthly disposable income once you’ve paid regular living expenses. This money will be applied toward your debts which will get paid off within three to five years. It’s likely that the trustee will not pay off your medical bills in full since they are unsecured, non-priority debts. Once the creditors for the medical bills are paid the minimum amount they would have received had you filed for Chapter 7, the remaining balances will be discharged once your payment plan comes to an end. To learn more about filing for bankruptcy due to high medical bills, please contact us. We have knowledgeable bankruptcy lawyers who will determine the best option for your situation.

The American dream of home ownership has become a nightmare for thousands of Floridians. But you don’t have to face foreclosure proceedings alone; there are many ways to fight foreclosures and protect your assets. Savage & Villoch, your bankruptcy lawyers in Tampa, can help you plan the best alternatives for this stressful time. Your alternatives depend on a thoughtful examination of your financial situation. Your attorney can guide you in the labyrinth of decisions to be made, such as whether your inability to make mortgage payments is short- or long-term and what relief programs apply to each situation, whether you qualify for a wide array of mortgage modification programs, or whether you should file for Chapter 7 or Chapter 13 bankruptcy protection. We can help demystify the process and let you know what to expect. Most of all, you are not alone in this stressful time. Make sure you learn the specific options in your case. Such problems as “underwater” mortgages–those in which the home’s value has decreased–have their own set of alternatives and relief programs. You may have also heard about the “show me the note” defense, which many people have used to defend against foreclosures by showing the court that the loan was made pursuant to fraudulent practices. It’s a tricky defense, and whether it applies to you will have to be investigated by your attorney. Mortgage modifications are often fought tooth-and-nail by lenders, so it is in your best interests to have a knowledgeable advocate getting you the best modification possible. According to Bankrate, Florida is one of the top-ten foreclosure states in the country, in which one of every 596 housing units has a foreclosure filing, so you are very much not alone. However, even if you’re in good company, the more quickly you take action to protect your assets, the easier fight and better chances you have of a positive outcome. If you are facing foreclosure and would like to examine your options, or if you have other debts that seem to be overwhelming you, don’t hesitate to contact us. We offer free initial phone consultations with our attorneys, the first step in regaining your peace of mind.

In most bankruptcies in the State of Florida, the filer does not have to appear in court. He, or she, only has to attend a “meeting of creditors,” which also includes a “bankruptcy trustee.” Appearing before a judge usually occurs if the filer is challenging a debt and claims he does not owe it, or that he owes only part of it. Although bankruptcy is the best legal means of “eliminating (or ‘discharging’) most, or all, of your debt,” there are certain things bankruptcy can, and cannot, do for you. Bankruptcy is able to: 1) Stop home foreclosure and vehicle repossession, while you “catch up on missed payments” –Bankruptcy can even make creditors return property which they’ve already confiscated. 2) Stop wage garishment and debt collection calls, 3) Prevent, or restore, utility shut-offs, 4) Allow you to “challenge creditors who have committed fraud” by trying to collect more than you owe, or by trying to collect debts that aren’t yours, 5) Allow you to pay creditors the amounts your home and/or vehicles are now worth, and erase these debts. However, bankruptcy cannot: 1) Erase, automatically, home mortgages/leins, or vehicle leins, because these are “secured rights” of creditors–This means creditors “hold” your home or vehicles as collateral for funds they lent you. However, bankruptcy often induces creditors to take your payments for these properties over time. And, in bankruptcy, you might not have to continue to make payments if your property is foreclosed on, or repossessed. 2) Erase certain debts outlined in bankruptcy laws–also called “non-dischargeable debts”–such as “child support, alimony, student loans, court-ordered restitution, criminal fines and some taxes,” 3) Protect the people who’ve cosigned for your debts–In bankruptcy, your cosigners “may have to repay all, or part of, your loans, etc.” 4) Eliminate the debts you accrue after you’ve filed bankruptcy, 5) Wipe out loans you were able to secure by giving creditors “false information.” Furthermore, if you receive “an inheritance, property settlement or life insurance payout” within 180 days of your bankruptcy’s closure, these monies may be forfeited to your creditors. Please, do not wonder if you fully understand the information provided here. Contact us for expert help with all matters related to filing bankruptcy in Florida.

Filing for bankruptcy does not necessarily mean you are an irresponsible person or an untrustworthy consumer. In fact, studies conducted at the National Bureau of Economic Research found that even those well-paid Tampa Bay ball players you love were filing shortly after they retired their jerseys (actually, more than 78% of them). The reason behind this occurrence is what’s known as “financial stress,” and we all go through it. Regardless of whether we make millions or simply survive from paycheck to paycheck, we are all definite candidates for bankruptcy if things go awry. Three Tips to Help You Prepare for a Smooth Bankruptcy Financial stress or not, you need to proceed with caution. Before you even think about getting started, be sure to arm yourself with strong team of professionals. You could be doing irreparable damage to your case and not even know it. A good attorney will always give you detailed instructions on the dos and don’t of filing for Chapter 7 or Chapter 13 bankruptcy. However, there are some basic things everyone should know before moving forward.

• Consider the Effects of Your Decision

It is your responsibility to fully grasp the ramifications of filing for bankruptcy. While each case is different, nobody has a completely clean record after filing, and certain debts will remain attached to your account – namely tax debts and student loans. Any co-signers will still be obligated to pay debts, and your credit rating will look pretty bleak for a while. This may make it difficult to attain lines of credit in the future, and might also result in incredibly high interest rates on any loans you do acquire.

• Avoid the Mayhem of Making Major Purchases

While buying anything during a bankruptcy might sound like nonsense to some, other people are simply unaware of the effects of this bad decision. At no time should you make any major purchases, including cars, homes, or vacations. You aren’t paying your bills in preparation for bankruptcy, but that doesn’t mean you should spend your surplus money on frivolous items. In fact, doing so might get you into trouble with the law because it is actually bankruptcy fraud.

• Know How a Good Bankruptcy Attorney Costs Money and Requires Your Cooperation

You can find cheap legal services anywhere, but you will most likely be disappointed by the result in the end. Remember that the bankruptcy process is a complicated, involving stacks of paperwork, hours fighting red tape, and several court dates. A certified attorney is the only one capable of handling your case. As a result, those professionals will probably charge a bit more than an attorney who is ineffective or incompetent. Keep It Simple Help make your attorney’s job easier; gather all the appropriate documentation before the process begins. Remember that a good bankruptcy lawyer is well worth the money, but they cannot do their job correctly if you are unwilling to provide the information they need in a timely manner. Our attorneys know how to walk you through the process with minimal hiccups. When you are ready to file Chapter 7 or Chapter 13 bankruptcy, contact us. Be sure to ask for the Professor.

During a bankruptcy filing, most people wish to keep their home and vehicle. In some cases, secured creditors will ask people filing bankruptcy to sign a reaffirmation agreement. In nearly all cases, this is not a good idea for a number of reasons. What is a reaffirmation agreement? Reaffirmation agreements are in effect an agreement that you owe a lender money. One of the things that many bankruptcy filers are unaware of is that when they file bankruptcy, the promissory note portion of the mortgage is part and parcel of the bankruptcy. If you do not sign a reaffirmation agreement, and later have trouble paying your mortgage, the lender cannot hold you accountable for the debt. This also means if your home is sold for less than what you owe, the lender cannot successfully pursue a deficiency judgment. Are there risks in not signing a reaffirmation agreement? Yes, there are, the most common being your mortgage lender refusing to report your payments to the credit bureau. However, this will be mostly an inconvenience to you and your best course of action is to ensure that you are making payments on time after filing bankruptcy. As long as you are making your agreed-upon payments, the lender will not have grounds for foreclosure. It is also important to be aware that the lender may not continue sending you statements on a regular basis, making it even more important to keep up with your payments. If you are facing foreclosure and use Chapter 7 bankruptcy to halt the proceedings, before you agree to sign any documents, talk to a bankruptcy attorney at Savage Law Firm. In most cases, it is not a good idea to sign a reaffirmation agreement as you may be forfeiting some rights if you do so.

I bet that up until this point, you haven’t given much thought to the financial security of celebrities. I also bet that a recent article in the Washington Post reporting on the bankruptcy rates of NFL players may change your mind. According to the research, football players are just as likely to file for bankruptcy as anyone else in their age bracket. What I take from this, is that anyone can find themselves in a bankruptcy situation. Financial security is not static and it may be harder to amend fluctuations on your own than you think. If you find yourself asking whether bankruptcy is right for you or your business, it is best to find an experienced professional to discuss your bankruptcy options.

• Do you want to liquidate your assets and start fresh?
• Would you rather set up a repayment plan that you are comfortable with and maintain ownership of more of your property?
• Are you a corporation or a business entity?

Answering these questions with a professional to determine your bankruptcy eligibility leads you to file under the appropriate bankruptcy chapter for your specific situation or not at all if your experienced professional can find a suitable bankruptcy alternative for your situation. Bankruptcy is a serious decision and should not be taken lightly. If you are considering filing for bankruptcy, do not go it alone and risk making mistakes that could lead to further debt. The internet is full of scammers waiting to prey on your heartache. Weigh your options carefully and please, contact a professional. We are here to help. Contact us to discuss your bankruptcy concerns today.

The decision to file for bankruptcy is a personal one for you and your family. There are many reasons to consider bankruptcy, and here are some of the most common: Getting out of credit card debt: Credit card debt is one of the main reasons why people in America today consider filing for Chapter 7 bankruptcy. You can easily become overwhelmed with credit card debt, especially when you consider the interest, late fees and other penalties, and ever-increasing minimum monthly payments. High credit card balances are one type of debt usually discharged or eliminated by filing a Chapter 7 bankruptcy. In addition, when you file for bankruptcy, the court places a stay of protection on you that stops all debt collection attempts. That includes phone calls, letters, and lawsuits. Stop a foreclosure or vehicle repossession: Many Americans have been impacted by the rise in home foreclosures since 2008 when the country experienced the mortgage crisis. People who fall behind on their mortgage payments and are facing foreclosure often file a Chapter 13 bankruptcy. By doing so, they stop the foreclosure process, find a way to get current on their mortgage, and remain in their homes. Similarly, people who are facing the repossession of their vehicles because they have fallen behind in the payments can file for Chapter 13 bankruptcy. It stops the repossession process and allows time for the person to catch up on past due payments while keeping the vehicle. Stop a garnishment: A creditor may have been granted by a court the ability to take a specific amount of your wages directly from your employer before you get your paycheck. This arrangement is called a garnishment. It may not be possible for you to pay off the debt and thereby end the garnishment. In that instance, filing a Chapter 7 or a Chapter 13 bankruptcy immediately ceases any garnishment on your paycheck. Whether or not any of these reasons are why you are considering bankruptcy as an option, contact us. Discuss your specific situation with one of our expert attorneys to determine how bankruptcy can help you and your financial situation.

• What kind of bankruptcy should I file: Chapter 7 or 13, or is my situation more complex than that?
• Will you help me retain or recover my assets, even if they’re stocks?
• How much of my assets will the bankruptcy law allow me to keep and still forgive my debt?

In effect, they must interview the attorney – to ascertain the breadth of his knowledge in current bankruptcy law, and his experience and track record in asset recovery or retention. Be selective and careful, and seek a premier law firm such as Savage, Combs & Villoch, PLLC. The Tampa Bankruptcy attorneys at Savage, Combs & Villoch, PLLC have a wealth of knowledge and experience to bear on a variety of financial situations. Bankruptcy is serious; place your trust in capable, experienced hands – if you live in Florida, New York, or New Jersey, contact us today for help with your bankruptcy.

Divorce is often the catalyst for bankruptcy. After divorce, finances are stretched. There are new budgetary constraints. One partner might lose health insurance or the insurance might become more costly for the ex-spouse. Alimony and child support become additional expenses to pay. Some start having to pay new expenses such as child care, and others will find their expenses increased because no longer are they splitting bills and living expenses with their former partner. A particular trigger for bankruptcy is the former marital home and the mortgage. When a married couple owns a house, typically one spouse keeps possession and the other spouse will agree to make or help out with the mortgage payments. Unless the couple refinances the mortgage, both partners will remain legally responsible for the mortgage debt. The problem arises when, for whatever reason, the mortgage goes unpaid and falls into default. This drags the co-obligor – who doesn’t even live in the home – into a foreclosure lawsuit and starts to severely damage that person’s credit score. One spouse can file for bankruptcy, leaving the other spouse adrift and fully responsible for the mortgage. Similarly, like the mortgage instance above, another trigger for bankruptcy are joint credit cards in both spouses names. Most couples have at least one joint account when they split. If the debt isn’t paid off right away, it will usually end up being the responsibility of one spouse, and if he or she doesn’t pay it, then both credit reports (and by extension credit scores) will suffer. Many of these issues can be avoided or at least mitigated with a skilled family attorney who can help a couple in divorce anticipate new financial challenges and to legally separate one another from joint debt. Sometimes, however, these financial issues cannot be avoided. In those instances, it is important that you contact an experienced bankruptcy lawyer. At Savage, Combs & Villoch, PLLC, you can speak with a Tampa Bankruptcy Attorney who can help you understand these issues associated with divorce and to let you know if bankruptcy or some alternative is right for you. Contact us now at 813-200-0013 and www.savagelaw.us.

The judges of the United States Bankruptcy Court for the Middle District of Florida are considering new rules and proposed amendments to the Local Rules. The proposals are available HERE for public comment beginning on March 9, 2015. The public comment period ends on April 24, 2015. When promulgated by the judges, the amended and new Local Rules will become effective on July 1, 2015. While many proposed changes are stylistic, some of the proposals will affect daily bankruptcy practice. For instance, one proposed amendment reduces the time during which Electronic Filing Users must retain paper copies bearing original signatures from four years to two years. One new rule requires subpoenas before trial to be filed with the Court in addition to being served on each party to the adversary proceeding or contested matter. Another change involves amendments to lists and schedules. The amendment requires that the Notice of Deadline to File Proof of Claim, if any, be served upon newly added creditors in amended Schedules D, E and F.

No. An employer is strictly prohibited from terminating your employment or discriminating against you in any way solely because you filed bankruptcy. Section 525 of the Bankruptcy Code is entitled “Protection against discriminatory treatment.” Subsection (b) specifically states that no private employer may terminate the employment of, or discriminate with respect to employment against, an individual who filed bankruptcy simply because he or she filed bankruptcy. Similarly, if your employment requires a license or permit, for example, a doctor, nurse, lawyer, or financial adviser, the governmental unit that issues such license or permit cannot deny, revoke, suspend, or refuse to renew such license or permit simply because you filed bankruptcy. 11 U.S.C. § 525(a). By way of further example, a state medical licensing board cannot revoke a doctor’s license to practice medicine simple because the doctor filed bankruptcy. That said, the bankruptcy code does not prohibit an employer for terminating employment or a governmental unit from taking action on a license or permit for reasons other than bankruptcy, for example, tardiness, failing to perform job duties, absences, crimes, etc. Additionally, Section 525 protects people who filed bankruptcy with their current employment, but does not necessarily protect bankrupt debtors with future employment or job seeking. An overwhelming majority of bankruptcy courts have concluded that Section 525(b) provides no protection to those who filed bankruptcy against hiring discrimination by private employers. In Rea v. Federal Investors, 627 F.3d 937 (3rd Cir. 2010), a job applicant sued a prospective private employer and alleged that the employer violated Section 525 when it refused to hire the job applicant because he previously filed bankruptcy. The employer moved to dismiss the lawsuit. The Court agreed with the employer to dismiss the lawsuit and held that Section 525(b) did not create a cause of action against private employers who engaged in discriminatory hiring on the basis of bankruptcy. Specifically, Congress omitted language in Section 525(b) prohibiting a private employer from denying prospective employment to a person that had been bankrupt. In short, federal law prohibits a current employer, whether governmental or private, from terminating employment or discriminating against an employee solely because that employee filed bankruptcy. If you have any questions about bankruptcy and debt relief or are concerned about your current employer and filing bankruptcy, please contact Alfred Villoch, III, Esquire, with Savage, Combs, & Villoch, PLLC. The telephone number is 813-200-0013, and web address is www.savagelaw.us. We look forward to hearing from you today!

On November 12, 2014, the New York Times published an article entitled “Debts canceled by bankruptcy still mar consumer credit scores.” In the article, the author, Jessica Silver-Greenberg, explains that “Tens of thousands of Americans who went through bankruptcy are still haunted by debts long after — sometimes as long as a decade after — federal judges have extinguished the bills in court.” This article was also featured in the Tampa Bay Times on Friday, November 21, 2014. Lawyers with the United States Trustee Program, a group charged with overseeing federal bankruptcy cases, are investigating certain banks, such as JPMorgan Chase, Bank of America, Citigroup and Synchrony Financial (f/k/a GE Capital Retail Finance), because these banks are suspected of violating bankruptcy law and ignoring the discharge injunction. Section 524 of the bankruptcy code provides a “discharge injunction” where creditors are no longer allowed to pursue debts canceled or discharged in the bankruptcy case. The banks allegedly ignore the discharge injunction when they know (or should have known) the debt was canceled but still seek to collect the debt, whether by continuing to report it on the person’s credit report, sending letters, or making telephone calls about the canceled debt. Often times, these are not clerical errors, but debt-collection tactics. In some cases, the banks purportedly refuse to correct the “mistakes,” insisting that the canceled debt be paid. An example cited in the article was The Vogts, a couple in Denver, who paid JPMorgan $2,582 on a debt that was discharged in bankruptcy because they needed a clean credit report to get a mortgage. In Florida, can you sue a creditor when that creditor attempts to collect a debt that you had previously discharged in bankruptcy? The answer is yes. Although there is no private right of action under the bankruptcy code for violation of the discharge injunction, the courts have recognized that a person could sue a creditor for pursuit of a debt canceled in bankruptcy under both the Fair Debt Collections Practices Act, 15 U.S.C. §§ 1692 et seq. (“FDCPA“) and the Florida Consumer Collection Practices Act, Fla. Stat. §§ 559.55 et seq.(“FCCPA“). See Bacelli v. MFB, Inc., 729 F. Supp. 2d 1328 (M.D. Fla. 2010). In the Bacelli case, the debtor filed chapter 7 bankruptcy in 2008. In her bankruptcy schedules, the debtor listed that she owed $459.15 to St. Joseph’s Hospital in Tampa, Florida. An initial bankruptcy notice was mailed to St. Joseph’s Hospital and, later, a notice of the debtor’s discharge was mailed. Nevertheless, the hospital sent two collection letters and hired a debt collector after the discharge. Ms. Bacelli, the debtor, ultimately sued St. Joseph’s Hospital and its debt collector for violations of the FDCPA and its Florida law counter part, the FCCPA. As reported in Bacelli, “[t]he FDCPA provides a civil cause of action against any debt collector who fails to comply with its requirements. Edwards v. Niagara Credit Solutions, Inc., 584 F.3d 1350, 1352 (11th Cir. 2009) (citing 15 U.S.C. § 1692k(a)). The FDCPA prohibits debt collectors from using any false representation as to the “legal status of any debt.” 15 U.S.C. § 1692e(2)(A). A demand for immediate payment while a debtor is in bankruptcy (or after the debt’s discharge) is “false” in the sense that it asserts that money is due, although, because of the automatic stay (11 U.S.C. § 362) or the discharge injunction (11 U.S.C. § 524), it is not.” Randolph v. IMBS, Inc., 368 F.3d 726, 728 (7th Cir. 2004) (dicta); see also Ross v. RJM Acquisitions Funding LLC, 480 F.3d 493, 495 (7th Cir. 2007) (“Dunning people for their discharged debts” is prohibited by 15 U.S.C. § 1692e(2)(A)); cf. Turner v. J.V.D.B. & Assocs., Inc., 330 F.3d 991, 995 (7th Cir. 2003)(“Turner I”) (reversing summary judgment in favor of debt collector on claim under 15 U.S.C. § 1692e(2)(A) in part because a reasonable jury could conclude debt collector’s collection letter implied that the discharged debt was still payable). The FDCPA also prohibits debt collectors from using “unfair or unconscionable” debt collection methods, 15 U.S.C. § 1692f, and (with exceptions not relevant here) from communicating with a consumer in connection with the collection of a consumer debt “if the debt collector knows the consumer is represented by an attorney with respect to such debt and has knowledge of, or can readily ascertain, such attorney’s name and address . . . .” 15 U.S.C. § 1692c(a)(2).” Accordingly, Ms. Bacelli was allowed to sue St. Joseph’s Hospital and its debt collector for the alleged transgressions of the discharge injunction. In short, a Floridian is entitled to sue a creditor under the FDCPA and FCCPA if that creditor continues to report or pursue a debt after the debt has been discharged or canceled by the bankruptcy court. This cause of action might provide relief to the “Tens of thousands of Americans who went through bankruptcy are still haunted by debts long after — sometimes as long as a decade after — federal judges have extinguished the bills in court,” as reported in the New York Times. If you (or you know somebody who) has been pursued by a creditor after the debt has been discharged in bankruptcy, please contact Savage, Combs & Villoch, PLLC, for a free consultation and to speak about your rights under bankruptcy law, the FDCPA, and the FCCPA. Our number is 813-200-0013 or please visit www.savagelaw.us today!

If you miss car payments, the company that loaned you the money to purchase the car can likely take back your car in what is called “repossession.” The right to take back your car for nonpayment usually comes from the terms of the signed loan paperwork when you buy your car. Usually, a few missed payments and the loan company will start calling you and sending you warning letters. Warning calls and letters will ultimately lead to repossession. Once the loan company repossesses, it can then sell your car at an auction and apply that money to pay down the amount that you still owe. This can also happen with car title loans (e.g., where you receive a loan and agree to give the loan company your car title as security and part of your promise to pay back the loan. This is called a security interest). In situations where the car is part of your promise to pay back a loan, the answer is “yes”: you could lose your car if you don’t make your car payments. Bankruptcy can immediately stop this process. If you haven’t paid other bills, like a credit card or a payday loan, you could still lose your car, but the situation is a bit different and the company must take a few extra steps. For example, the company must first sue you to get a judgment in court. With a judgment in hand, the company can then apply to the court to have the sheriff take your car and sell it. This process is similar to repossession and is called a writ of attachment. The company would then use the money from the sale of your car as payment down on the amount that you owe. Bankruptcy can immediately stop this process too. It is also important to note that Florida offers a $1,000 car exemption. Unfortunately, this exemption is still very low and hasn’t changed in years. It means, if your car is worth less than $1,000, which very few cars are, you get to keep the car and its exempt from attachment. Another scenario where the exemption applies is if your car has less than $1,000 in equity. This often happens when you owe more than the car is worth. If a sheriff takes your car under a writ of attachment, you can apply to the court for recognition of your exemption and request the return of your vehicle if it falls squarely within the exemption. Florida also has a generic, personal property exemption of $4,000, and in certain instances, you can combine the $1,000 car exemption with the $4,000 personal property exemption to claim a total exemption of $5,000 for your car. As you can see, it can be very stressful when you’re unable to pay your bills on time. Depending on your situation, bankruptcy can help you stop the taking of your car and provide you with the relief necessary for a fresh start. For immediate help and more details, call Savage, Combs & Villoch, PLLC, at 813-200-0013.