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.

Bankruptcy

happens to people from all walks of life, and deciding to file is often a difficult decision. If this is something you are considering, read on to learn about filing for Chapter 7. What is Chapter 7? This is also called “straight” or “liquidation” bankruptcy and means that the trustee will cancel most if not all of your debts. During this time, the trustee may sell some of your property to repay your creditors. Eligibility As long as you have not received a bankruptcy discharge in the last six to eight years and your income is at or below the median income for a household of your size in the state you live, Chapter 7 could be an option for you. The Forms

• In order to file, you will need to fill out a petition and other forms that your attorney will file with the court. You will be asked to describe,:
• All monthly expenses
• All debts
• Any property you sold during the last two years
• Any property that you believe the law lets you keep despite the bankruptcy process. This is known as exempt property, and usually you can keep some home equity, and items such as furnishings, clothing, and car.

The Trustee The court will appoint a trustee that will be responsible for making sure your creditors are paid to the fullest extent. The Meeting Within two weeks of filing, you and all of your named creditors will be given notice of a creditors meeting. The trustee is in charge of the meeting, and once you are sworn in, you may be required to answer questions regarding your filing. Your Property After the meeting, the trustee may decide you have non-exempt property. If this happens, you could have to turn over the property or give the trustee the property’s value in cash. Discharge After the bankruptcy process is complete, the court will discharge your debts except:

• Those that automatically survive bankruptcy such as child support or student loans
• Any debts that are ruled non-dischargeable due to creditor objection

This is just some of what is involved when filing for Chapter 7 bankruptcy. If you would like to learn more, contact us. Our knowledgeable attorneys will help determine if it is right for you.