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

At a high level, to be eligible under chapter 7 you must be able to show that you do not have the means to pay your monthly expenses and debts given your current income.

Any individual with an income below their state’s median for their household size is automatically eligible to file under chapter 7. However, you may still be eligible even if your income falls above the median, you will just need to pass the chapter 7 means test first.

The means test calculates whether can feasibly repay your debts with your disposable income, which is the income you have left after paying for your monthly expenses. If the means test determines that even though your income is above your state’s median, you still cannot feasibly repay your unsecured debts while paying the remainder of your monthly expenses, you will be eligible to file. If, however, the means test determines you can feasibly repay your debts given your income less expenses, you will not be eligible to file under chapter 7.

To determine your eligibility, the means test starts with your total adjusted monthly income. Next, a variety of deductions are made from your income to determine your disposable income.

First, the test deducts national and local IRS standard expenses including food, clothing, out-of-pocket healthcare allowance, and housing. Because these deductions are standardized by the IRS, they won’t reflect the actual dollar amount you’ve spent on these expenses.

Next, your other necessary expenses are deducted. These include taxes, life insurance, childcare, and involuntary deductions from your income like retirement contributions. In addition, you can make deductions for health insurance, disability insurance, and health savings accounts, among other necessities. Finally, deductions are made for any debt payments made on property you own, like home mortgages or car loans.

These expenses are then totaled up and deducted from your adjusted monthly income to calculate your monthly disposable income. The calculation determines whether or not this leftover income is sufficient to repay the unsecured debts for which you seek relief under chapter 7.

The test sets upper and lower disposable income limits to determine eligibility, which are subject to change. Generally, if the test finds that your disposable income is below the established floor, you are eligible to file under chapter 7. If your disposable income is above the established ceiling, you are not eligible for chapter 7, unless you claim special circumstances which justify additional expenses or adjustments and may render you eligible.

If your disposable income falls between the floor and ceiling, there is one additional calculation to determine your eligibility. If the calculation finds that your disposable income is enough to pay for 25% of your unsecured debt, then you are not eligible under chapter 7, again unless you claim special circumstances.

Beyond income-based eligibility, to be eligible for chapter 7 you must also prove that you have sought credit counseling in the 180 days prior to filing, and you also must not have filed for bankruptcy in the prior 180 days.

Ultimately, determining your eligibility to file under chapter 7 can be a complex process, particularly if your income is above your state’s median. The means test is completed via a standardized form, and we can help guide you through its details to ensure the calculations represent the true extent of your income and deductions.

Sources: https://www.uscourts.gov/file/19456/download https://www.uscourts.gov/services-forms/bankruptcy/bankruptcy-basics/chapter-7-bankruptcy-basics www.govinfo.gov/content/pkg/USCODE-2018-title11/pdf/USCODE-2018-title11.pdf

Chapter 7 bankruptcy is often referred to as “liquidation bankruptcy” because it allows individuals to completely discharge some portions of their debt, but only after certain assets have been liquidated. It is both the fastest and most common type of bankruptcy, and often allows debt to be discharged within three to five months of filing. However, before filing, there are some important factors to consider.

First, you should consider your current financial situation to determine eligibility. When filing for Chapter 7 bankruptcy, a variety of financial documents will be disclosed, including schedules of assets, liabilities, income, and expenditures, transcripts of tax returns, and a list of all owned property, among other information. As with any form of bankruptcy, individuals must also undergo credit counseling and provide a record of completion before filing.[1]

In addition, your income must either be below the median income of your state, or you must pass the Chapter 7 means test to be eligible for Chapter 7. The means test calculates whether an individual has enough disposable income, or income left over each month after expenses have been paid, to feasibly repay their debt. If the test determines there is not enough disposable income, you may qualify for Chapter 7 even with an income above your state’s median level.

Once eligibility has been determined, it’s important to consider the nature of the assets you currently own. Because Chapter 7 requires liquidation of certain assets, it is often best suited for those who either do not own lots of assets or otherwise high-value property that they do not wish to sell. Each state is permitted to set its own property exemption laws which determine how much property is exempt and thus protected from being sold to cover an individual’s debt. While exemptions vary by state, each state sets out a dollar limit, above which any property, or assets, may be sold to cover an individual’s debts. In Florida, you can exempt your owned home 100%. Additionally, you can generally keep things like your clothing, furniture, electronics, and your car (by either exempting it or reaffirming the car loan).

Once eligibility and property exemptions are considered, the filing process can begin. As soon as a petition for Chapter 7 is filed, the individual who filed is protected from most collections against them or their property. Each case is then assigned a trustee, who primarily handles the selling of any nonexempt assets or processing a no-asset bankruptcy.

In a typical Chapter 7 case, an individual’s debt will be discharged within 3 to 5 months. However, the debts discharged under Chapter 7 will be only “unsecured” debts, including credit card debt, personal loans, medical bills, and any other debt that is not secured by collateral. Secured debt, like mortgages, student loans, and car loans, will not be discharged under Chapter 7. It is also important to remember that Chapter 7 can negatively impact your credit score for up to 10 years if you don’t work to rehabilitate your credit score.

While a vast majority of Chapter 7 petitions result in a discharge of the individual’s debt, there are quite a few eligibility exceptions and other pre-filing considerations. Guidance from trusted legal counsel can be indispensable in determining your eligibility and whether Chapter 7 is the best step forward for you.

If you are interested in learning more about the Chapter 7 bankruptcy feel free to contact Savage Villoch Law, PLLC.

Sources:

[1] https://www.uscourts.gov/services-forms/bankruptcy/bankruptcy-basics/chapter-7-bankruptcy-basics

[2] https://www.nolo.com/legal-encyclopedia/chapter-7-bankruptcy-means-test-eligibility-29907.html

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.

When it comes to bankruptcy, Chapter 13 is the second most common filing behind Chapter 7, according to a leading bankruptcy lawyer. What is Chapter 13? It lets you sort out your finances while protecting you from creditor harassment and wage garnishment at the same time. Eligibility One eligibility requirement is that you must have enough income to propose a payment plan that the court will approve. Other requirements are:

• You must be an individual and not a business entity
• You cannot have a prior petition dismissed within the last 180 days
• Your unsecured debts must be less than $383,175 and secured debts less than $1,144,525
• Your must keep your income tax filing current
• You must keep up with child support and alimony payments if applicable
• You must file yearly income and expense reports

Filing You case starts once your attorney files a petition with the bankruptcy court and you pay the filing fee. The Trustee The court will appoint a trustee that will make sure you file your income tax return and that your repayment plan follows the law. The Repayment Plan Chapter 13 requires you to pay certain debts in full. They are known as priority debts and include child support and some tax obligations. Your repayment plan will lay out how you will pay each debt and how much you will pay. How Will Your Case End? As soon as you finish your repayment plan, any remaining debts that are eligible for discharge will be forgiven. However, before the judge can sign off on a discharge, you need to prove that you completed an approved budget counseling course and are current on alimony and child support if you are responsible for such payments. The decision to file bankruptcy should not be taken lightly, and because of the complicated nature of the process, you need a team of bankruptcy lawyer on your side. If you would like to learn more about filing for Chapter 13, please contact us today.

According to a Chapter 7 Lawyer in Tampa, in order to file for Chapter 7 bankruptcy, you must first pass the means test. What is the Means Test? It compares your income with the official median income for households in the state of Florida. How Does the Test Work? It is only for those who have consumer debts as opposed to business debts. If the income you currently earn monthly is less than the median income level for a household of a similar size in Florida, you automatically pass the test. If it isn’t, you will move to the next section of the test to figure out if you have enough income left over (known as disposable income) to pay general unsecured creditors. To do this, the means test deducts certain expenses from your current monthly income in order to determine your disposable income. The categories are:

• Housing expenses
• Standard living expenses
• Secured debt payments
• Transportation expenses
• Priority debts
• Other expenses such as child support, alimony, child care, and medical/dental bills

What Happens if You Don’t Pass? If you fail the means test, it’s assumed you don’t properly handle your finances, and you would have to prove you have a special set of circumstances such as a pay cut or a serious medical condition. A Chapter 7 Lawyer in Tampa can help. This means you have to prove to a judge that your expenses are practical and that there is no suitable alternative. To see if you qualify for Chapter 7, please contact us. If you do, as Chapter 7 lawyer in Tampa, we’ll help you through the process from start to finish.

Filing bankruptcy is complicated and confusing to most people, especially when there are several myths about the process. Myth: You can decide which debts to list in your bankruptcy filing. Truth: You must list all debts, even those owed to family and friends. Myth: It’s a good idea to max out your credit cards before filing. Truth: Charging purchases for which you do not intend to pay is illegal. This can be grounds for a denial of your discharge. Myth: Bankruptcy can only be filed once. Truth: Chapter 7 bankruptcy can actually be filed every eight years. Myth: Your employer can fire you because you filed bankruptcy. Truth: In most cases, federal law prohibits employers from discriminating against employees who file bankruptcy. Myth: Your bank account will be closed if you file for bankruptcy. Truth: Accounts are only closed by banks and credit unions if you owe them money at the time of filing. Myth: If you are married, you must file with your spouse. Truth: Spouses are not required to file together and the decision to do so depends on each set of circumstances. Myth: If you’ve been sued, it’s too late to file bankruptcy. Truth: Filing will put a stop to a foreclosure, lawsuit, sheriff sale, and wage attachment. Myth: Everyone will know you filed. Truth: Very few local newspapers print the names of community members who filed for bankruptcy. Generally, the only people who know are your lawyer, creditors, and any friends or family members you choose to tell. If you are having financial difficulties, please contact us. As Chapter 7 lawyers in Tampa, we can determine if filing is right for you.

The decision to file for bankruptcy isn’t easy, but it is one of the best options for getting out of debt. Filing for bankruptcy is complicated and below are reasons you need a Chapter 7 lawyer in Tampa. Deciding on the Right Bankruptcy Filing An experienced lawyer will confirm if Chapter 7 is the right choice for you as opposed to Chapter 13. Avoiding Filing Mistakes The bankruptcy process requires extensive paperwork such as bankruptcy petitions and schedules. If you make a mistake, it will likely be expensive to fix and may even lead to your case being dismissed. If a judge dismisses your case, you may not be able to file for bankruptcy. A lawyer will prepare the paperwork for you, so you know that everything is done correctly. Negotiating with Creditors It’s rare, but sometimes a creditor objects to the filing. This means negotiating with the creditor, which your lawyer will do on your behalf. Ending Creditor Harassment Once you hire a lawyer, the bank and other companies can no longer contact you by telephone. If they continue to call, they are violating the Fair Debt Collection Practices Act. Meeting Preparation You will have to attend a mandatory meeting of creditors. At this time, you’ll have to answer questions under oath. Your lawyer will prepare you ahead of time so you know how to answer the questions. Protection from Bankruptcy Uncertainties A lawyer will know which rights you’re entitled to such as if you can keep your home. To learn more about Chapter 7, please contact us today.

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.

Everyday, people contact attorneys to file Chapter 7 bankruptcy. While there are several reasons for doing so, the top five are:

1. Medical Expenses – According to a study conducted at Harvard University, this is the number one reason for bankruptcy as it makes up 68 percent of the filings. Almost all filers had health insurance, but if someone has a rare or serious condition, it’s still expensive, especially if the co-pay is high.
2. Job Loss – If people don’t have an emergency fund, it creates a bigger financial hardship if they lose their job. Many charge daily living expenses to their credit card and often find they can’t pay the bill when it arrives in the mail.
3. Poor Spending Habits – This makes up about 15 percent of bankruptcy filings, and the reasons include large mortgages, expensive car payments, and credit card bills. When the borrower can no longer meet the monthly minimum payment for each debt, bankruptcy is often the only alternative.
4. Divorce – The ending of a marriage can put financial stress on both parties. Some have to declare bankruptcy because of legal costs, while others declare due to garnishment of wages to pay back alimony or child support.
5. Unexpected Expenses – This usually arises when there is a natural disaster such an earthquake or flood. Many homeowners don’t realize they need separate insurance coverage in order to receive money to pay for damage to their home or to replace belongings. Those who are not properly insured may face financial hardship trying to replace what was lost.

If you need a Chapter 7 attorney in Tampa, contact us. We’ll determine if you’re eligible and help you through the entire process from start to finish.

Although the idea of filing bankruptcy might not be pleasant, there is a good chance that filing bankruptcy is exactly what you should do to get back on track. Dealing with financial issues can be difficult, but hiring a Tampa Chapter 7 lawyer to help you file bankruptcy could be life changing. These are a few signs that it’s time to look into bankruptcy as an option to get your finances on track. 1. You’re Getting Constant Collection Calls Few things can be as unsettling and disruptive as receiving constant collection calls from your creditors. Plus, it can be embarrassing to receive calls when you’re around friends and family, and getting these calls while you’re at work can cause trouble for you at work. Once you file bankruptcy, however, you can help avoid these problems because your creditors will no longer be allowed to contact you via phone. 2. You’re Only Making Minimum Payments It’s nice to be able to make small payments on your bills on the months that you have a lot going on financially. If all you are doing is making minimum payments each and every month, however, you should know that your debt is probably snowballing more and more each day. Bankruptcy could be what you need to help prevent this snowballing. 3. You Can’t Pay All of Your Bills Each Month It’s never good if you aren’t able to pay all of your bills each month. This is a sign that you are overextended and that you will never get things under control. Your best solution could be to file Chapter 7 or another form of bankruptcy. Living in a bad financial situation can make you feel as if you will never get things under control. If any of these three signs apply to you, or if you otherwise think that it’s time to do something else about your finances, contact us today to find out more about filing bankruptcy.

Financial setbacks are among the most difficult challenges people face. If you are considering bankruptcy, you may be struggling with anxiety, confusion, guilt, and even depression. However, with competent legal guidance, the bankruptcy process can go smoothly, and you can regain financial security. Unfortunately, misconceptions about bankruptcy run rampant, and they may be increasing your confusion and anxiety. The first step to getting your life back on track is getting the facts. Three of the Most Common Myths About Bankruptcy: 1. Myth #1: Filing for Bankruptcy Means You Have “Failed” This is definitely not true. If you are considering bankruptcy, you’re making a difficult choice so you and your family can recover from financial trouble. This decision is probably your last resort. Bankruptcy exists to give people facing financial hardships a “fresh start.” It should not be construed as a failure or evidence that you are irresponsible. Furthermore, many unavoidable circumstances, such as illness, long-term unemployment, or divorce, cause bankruptcy. If you find yourself in this situation, you are not alone. U.S. News and World Report found that:

• In April, 2012 more than 5.2 million Americans had been unemployed for six months or longer. (Bureau of Labor Statistics)
• In 2011 20% of American families had faced problems paying medical bills in the past year. (Centers for Disease Control and Prevention)

Many honest, hardworking people file for bankruptcy — for myriad reasons — and it no longer carries the stigma it once did. 2. Myth #2: When You File for Bankruptcy, You Will Lose Everything This is also untrue. Every state has exemptions to protect certain assets — such as your house, car, and family heirlooms — from creditors. We often see “no asset” cases in which the debtor keeps everything he owns. To determine what property you’ll be able to keep, consult a qualified attorney about laws in your state. 2. Myth #3: Bankruptcy Will Permanently Ruin Your Credit In the long run, bankruptcy is likely to do less harm to your credit than continuing to struggle with unresolved debts. If you have reached that point, you probably have low credit ratings due to debts and unpaid bills. Bankruptcy gives you the chance to eliminate old debt so you can start rebuilding your credit. When you file for bankruptcy, it can stay on your credit report for up to ten years. However, after a few years, many lenders give it less weight. Many people who have filed for bankruptcy go on to achieve high credit scores and own homes. To discuss your particular situation, seek the advice of a highly qualified, seasoned attorney in your area. Here in Tampa, Florida, if you need a skilled chapter 7 lawyer, Savage, Combs, & Villoch is here to help. Please contact us to explore your options.

With the new laws that are in effect, it’s very confusing to file a Chapter 7 bankruptcy. You need an attorney to help you. Qualifying for a Chapter 7 is not easy anymore. The new restraints make it difficult and many have to file a Chapter 13 and repay their debts. However, a bankruptcy attorney can help you decide which chapter you qualify for. Before you file your petition, the attorney needs to know all the transactions of the past 60 days. The court wants to know about any cash loans or any expensive items that you’ve purchased. They consider residency requirements, and you must attend credit counseling. It’s a lot to take in and it’s overwhelming to the average person. That’s why it’s so important to have a bankruptcy attorney handling the matter. A Chapter 7 attorney in Florida can help you complete the “means test” and see if you qualify for this chapter. When you met the qualifications, the attorney files the petition, and the court appoints a trustee. You don’t lose everything; the court allows you some as exempt. The court sells non-exempt property. Debts like student loans, tax bills and any bill accumulated through fraudulent means are not discharged through bankruptcy. Many feel that they don’t need a bankruptcy attorney to handle their case. The petition has many schedules and is confusing to fill out. Any errors in the forms can give the court cause to dismiss your petition. Because it costs money to file a case, it’s best to have a professional handling it. At Savage Law, we are well versed in all areas of bankruptcy. We can help you file your Chapter 7 and get the debt relief you need!

You may have heard that taxes are not discharged in bankruptcy. Tax debt, as “priority” debt, gets paid first before other creditors in bankruptcy. However, the Bankruptcy Code includes exceptions depending on the type and timing of the tax, and the bankruptcy chapter filed.Before knowing which taxes qualify for discharge, however, you must first understand which do not qualify under bankruptcy law. There are 7 types of taxes you cannot avoid paying:

• Taxes on a past due return not filed within three years (plus extensions) before filing bankruptcy.
• Taxes assessed within 240 days before filing bankruptcy.
• Assessable taxes not yet assessed.
• Taxes on a late tax return filed within two years of bankruptcy.
• Taxes on a fraudulent tax return or tax evasion.
• Tax returns filed by the IRS for a taxpayer.
• Customs duties for goods entering the country over a year.

All taxes that do not fall under any of the above categories may qualify for discharge in bankruptcy. A debtor may avoid paying taxes on the following:

• Federal income taxes if older than three years from when taxes assessed (240 days).
• Employment withholding taxes but only the employer’s contribution if otherwise qualified for discharge.
• Past due property taxes over a year.
• Excise taxes (estate, gift tax, sales, or fuel) on an un-filed return three years past due or on events occurring over three years before bankruptcy.
• Employment taxes on an un-filed return three years past due before bankruptcy but not on earned wages.
• IRS Tax liens for unpaid taxes.

The rules for discharging taxes in a Chapter 13 plan for debt payment over time differ from a Chapter 7. In Chapter 13 bankruptcy, some taxes and penalties on late filed tax returns and fraudulent tax returns may qualify for discharge. Bankruptcy Rules on tax debt relief are especially complicated. Therefore, consultation with a Tampa chapter 7 lawyer for your bankruptcy is crucial; contact us before you consider your bankruptcy options.

• disability, workers’ compensation and unemployment benefits,
• Social Security and Veterans’ benefits,
• a vehicle worth up to $1,000,
• “health aids,” such as wheelchairs, portable commodes, etc.
• alimony and child support needed by you, or by dependents, to pay basic living expenses,
• life-insurance “cash surrender value,”
• pre-paid funeral contract deposit,
• police/fire/state employees’/state trooper pensions,
• personal property worth up to $1,000,
• all of your weekly wages (for household heads) up to $500–either paid, or still due you–and existing in your bank accounts for up to 6 months.

Tools–or equipment–you’ve used to ply your “trade,” however, are not exempt. A Tampa Chapter 7 lawyer can fully explain this rule. Florida’s “non-dischargeable debts”–or debts you will have to repay regardless of filing Chapter 7–include:

• alimony and child support
• debts accrued through the criminal act of “fraud,”
• income taxes you’ve owed the last 3 years (plus all other “back” taxes),
• debts for personal injuries–and deaths–you caused by driving drunk,
• court fines (i.e., for traffic tickets), and restitution for criminal acts,

Your Tampa Chapter 7 lawyers will apprise you of other non-dischargeable debts, and how you can repay them. If you don’t want your trustee to sell your home, furniture and vehicles (secured with loans) during the Chapter 7 process, you can sign a “Reaffirmation Agreement,” which means you must keep paying on these loans. If you do “reaffirm” these obligations, however, the Court will not permit you to “wipe them out” for 8 more years. And, before you “reaffirm,” you must make these debts “current” by catching up on payments. In order to “reaffirm” some debts and liquidate others, consult your Tampa Chapter 7 lawyers. You may have 60 days from the time you sign a Reaffirmation Agreement to “set it aside (stop it).” Contact us for Tampa, Florida, expert representation in your Chapter 7 filing.

While he once had a 10-bedroom mansion on Palm Island and a 2007 Bugatti Veyron worth $1.6 million, hip hop producer and musician Scott Storch is no longer the big spender he used to be. Storch filed for Chapter 7 bankruptcy in June 2015 and cited his current personal assets at $3,600. Storch filed for protection under Chapter 7 in Florida, and this is not his first brush with financial trouble as the man filed for Chapter 13 bankruptcy in 2009 while going to rehab in the same year. At the time, he spent an estimated $30 million in three years. While Storch worked with famous artists like Beyonce and Snoop Dog, his spending habits and cocaine addiction have reportedly left him $4.4 million in debt. As this story shows, even those who are rich and successful can have problems that lead to debts. Anyone might find themselves facing repossessions or threats from creditors while not knowing how to act. A Chapter 7 attorney in Tampa can advise you about your options when considering filing for bankruptcy. With Chapter 7, you may be able to find relief from unsecured debts like:

• Credit Card Bills
• Medical Bills
• Past Due Utility Bills
• Lease Agreements
• Repossession Deficiency Balances

The debts that can be discharged vary and sometimes depend on the circumstances involved, so an attorney would be best suited to helping you find out how much debt could be cleared through bankruptcy. Whether bankruptcy is best for you or there is another option, contact us so that we can assist you when you want to find a solution to your debt.