However, did you know that part of Dodd-Frank requires banks to submit a financial doomsday plan outlining how they will dissolve in the event of a catastrophic collapse?

Essentially, they are “living wills” that show what and how assets would be liquidated in a bankruptcy. The big catch is, these plans cannot rely on taxpayer bailouts. Banks must submit practical, realistic plans that leave no room for optimism.

So who’s checking this financial doomsday plan?

Banks must submit their “wills” to The Federal Reserve and the Federal Deposit Insurance Corporation for their review and approval. These are rigid reviews that show no leniency towards a bank. And its not just a an informal thing that banks submit as a symbolic gesture. These plans play a significant role in a bank’s continued operational existence. Dodd-Frank allows regulators to take extensive measures to make sure that a bank’s dissolution plan is credible.

Which banks were required to submit a financial doomsday plan this year?

Most of the nations top big banks were required to submit plans, including:

• Bank of America
• Bank of New York Mellon
• Citigroup
• Goldman Sachs
• JP Morgan
• Morgan Stanley
• State Street Corp
• Wells Fargo

American Insurance Group and Prudential Financial were given one-year extensions to submit a workable plan.

Investor Resources

You can read each bank’s financial doomsday plan on the Fed’s website. For more legal and financial news, check out our blog. Contact our investment-loss recovery attorneys if you believe you have been the victim of stock fraud or broker misconduct.

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.

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 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.

What happens to investors’ investments when companies go bankrupt? Well, it depends on the bankruptcy chapter filed, whether Chapter 11 reorganization or Chapter 7 liquidation. Investment recovery may be an option. In Chapter 11, a company attempts to get rid of its debt in order to continue operating, even trading publicly during the proceedings, and turn the company around to profitability; whereas in a Chapter 7, the company goes out of business and attempts to sell assets to repay debts to creditors and investors. Secured creditors, those with collateral backing their loans or investments, are given priority repayment status. In other words, they get paid back before unsecured creditors such as credit cards. Bondholders usually recover their principal investment with interest but stockholders, as owners of a piece of the company, may or may not recover their investments. Often after filing for Chapter 11, a publicly traded company’s stock value drops significantly after being delisted from major stock exchanges. Owners of common stock in private corporations lose their investment completely after shares cancellation. Although stockholders and bondholders can sometimes exchange old shares for new ones in the reorganized company for lesser value or fewer shares. As such, it is important to identify new stocks from old stocks in re-emerging companies in order to make smart investment decisions. Certainly no dividends get paid during bankruptcy. The advantage to an investor in a Chapter 11 is participation in restructuring. Several committees, including a committee representing investors and creditors, oversee the reorganization plan that generally requires approval by all the committees before the bankruptcy judge confirms the company’s reorganization plan to get out of bankruptcy. In committee, investors get to negotiate which debts get paid and which relieved under the plan. Most stockholders confirm a reorganization plan only through committee appointed to represent all investor interests; individual investors usually do not vote unless notified of possible eligibility to vote, in which case that voter receives a voting ballot, summary of the plan and disclosure statement about the company and its plan. In Chapter 7, the corporation goes out of business and an independent trustee sells all company assets, which proceeds pay administrative and legal fees and then creditors, if anything is left over. Secured creditors get their collateral back and get paid like any other unsecured creditor if the collateral is insufficient to cover the debt, meaning they get paid with whatever is left after payment of administrative, legal and other expenses of administering the bankruptcy. For the most part, both stockholders and bondholders lose their investments above the value of any collateral returned, though not always. An experienced Chapter 7 attorney in Tampa is able to evaluate the investment recovery possibility in part or in whole from a Chapter 7 bankruptcy; contact us.

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!

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.

Filing for Chapter 7 bankruptcy is a difficult decision for anyone, and usually a scary one. Too often, people make rash decisions in an effort to get as much as they can in their case. Word to the wise: before you make any decisions regarding your finances prior to filing, it’s imperative that you consult with a competent Tampa Chapter 7 lawyer. That said, here are 3 things you don’t want to do before you file: Don’t try to hide your assets: hiding assets, say by selling a relative a house or a car at far less than market value, is a definite “no-no”, and in some circumstances can even be a crime. Even selling off assets at fair market value can create enough suspicion that it damages your case. If you have any questions about property you want to sell, consult with your attorney before taking any action. Don’t pay relative or friend debts: this one is a little tricky, but you should avoid suddenly paying debts you owe to relatives or friends until after you file for Chapter 37. This one can actually create legal problems for the friend or relative to whom you owe money. Be sure to discuss the situation with your relative or friend and, of course, with your lawyer. Don’t incur new debt: it’s tempting to think that this is a time to incur new debt which you hope will be forgiven in your bankruptcy case. Avoid this one at all costs as doing so can actually be viewed as committing fraud. Don’t get new credit cards and begin putting charges on them or get new cards in an effort to secure a lower rate of interest. It’s true that filing for Chapter 7 can be a frightening and confusing time, but these are precisely the times when you need the help of a competent professional to ensure you don’t make any mistakes you can’t erase. If you have questions or need additional information, contact us today.

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.

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!

For the honest but unfortunate debtor, bankruptcy will discharge your unsecured debts and give you the fresh start that you need to rebuild your life and strengthen your financial well being. But then there are certain debts that are simply inescapable, even in bankruptcy. One inescapable debt is a debt arising from injuring or killing someone while driving, boating, or flying intoxicated. Section 523(9) of the United States Bankruptcy Code states that a person cannot discharge debts “for death or personal injury caused by the debtor’s operation of a motor vehicle, vessel, or aircraft if such operation was unlawful because the debtor was intoxicated from using alcohol, a drug, or another substance.” Before this section, there existed an unconscionable loophole where drunk drivers could evade financial responsibility for the injuries that they caused. By creating this exception to discharge, Congress had three objectives: (1) to deter drunk driving; (2) to ensure that those who cause injuries by drunk driving did not escape civil liability through bankruptcy laws; and (3) to protect victims of drunk driving. Importantly, both compensatory and punitive damages are nondischargeable. A state conviction or even a blood alcohol test are not necessary (although those usually naturally follow). Rather Judgments are nondischargeable upon a mere showing that the debtor was driving while intoxicated without showing that the intoxication was the principal or sole cause of the accident. Contreras v. Dale (In re Dale), 199 B.R. 1014, 1022 (Bankr. S.D. Fla. 1995) (citing State Farm Mut. Auto. Ins. Co. v. Kupinsky, 133 Bankr. 993 (S.D. Ill. 1991)). In short, if there wasn’t enough reasons to avoid intoxicated driving, bankruptcy will not protect you if you injure someone while driving, boating, or flying intoxicated. There is no requirement that intoxication be the principal or sole cause of the accident. So long as you were intoxicated during the accident, the debt arising from that act is nondischargeable. If you or someone you know has any legal questions, including about bankruptcy, please contact Alfred Villoch, at Savage, Combs & Villoch, PLLC. The website is www.savagelaw.us, and the telephone number is 813-200-0013.