All Categories
-
Celebrity Debtors
-
Bankruptcy Articles
-
Holding onto Your Money Instead of the House: Walking Away from a Florida Home Mortgage
-
Chapter 13 Bankruptcy and Florida Mortgages: Stripping a Second
-
Don't Feel Guilty About Filing for Florida Bankruptcy
-
Women and Bankruptcy: Female Filers are More Common than Many Think
-
Florida Seniors and Bankruptcy: Asking for Help Doesn't Mean Losing Everything
-
-
What type of bankruptcy should I file?
-
If I file bankruptcy, will I lose my house, car and personal household items?
-
Do I have to go to court?
-
If my debts are discharged in bankruptcy, will the co-signers also be protected?
-
Does my spouse have to file with me?
-
Can I sue overly aggressive debt collectors?
-
If I file bankruptcy, will I lose my pension, IRA or 401(k)?
-
Does bankruptcy stop creditors from calling me or filing a lawsuit against me?
-
Can I file for bankruptcy only once?
-
Is bankruptcy right for me?
-
How will bankruptcy effect my credit?
-
Why do I feel so guilty about filing bankruptcy?
-
Do I need an attorney to file bankruptcy?
-
What type of bankruptcy should I file?
-
Does bankruptcy stop creditors from calling me or filing a lawsuit against me?
-
If I file bankruptcy, will I lose my house, car and personal household items?
-
Can I file bankruptcy with my spouse?
-
If I file bankruptcy, will I lose my pension IRA or 401(k)?
-
Will I ever be able to buy a house after filing for bankruptcy?
-
Will I still owe taxes after filing bankruptcy?
-
Who will know about my bankruptcy?
-
Will I be able to rent after I file?
-
Does my spouse have to file with me?
-
Can I lose my job or face other types of discrimination for filing bankruptcy?
-
Are all debts discharged by my bankruptcy?
-
If my debts are discharged in bankruptcy, will the co-signers also be protected?
-
What is the means test?
-
How much will this cost?
-
Won't Bankruptcy Ruin My Credit Forever?
-
Can I File for Bankruptcy Only Once?
-
Bankruptcy Is Only for People Who Cannot Manage Money Properly.
Is bankruptcy right for me?
It's amazing that more people don't file bankruptcy even when they desperately need to. Bankruptcy is a legitimate solution to eliminate all of your debt in a legally recognized and widely 
accepted procedure. We appreciate that it is a tough decision to call a bankruptcy attorney, but we know from experience that you wouldn't be reading this unless you really needed our services. The decision to file bankruptcy is more of a personal one than a legal one. It is important that you do what's right for you and your family. Many of our clients struggle for years trying to pay down credit card debt or medical bills in order to save face or do the right thing. Of course, during this time your creditors become increasingly aggressive, charging additional late fees, penalties and mounting interest while you and your family suffer in order to just make the minimum monthly payments. If you realistically are unable to pay off your debt in the next few years without starving or living on the streets while you do so, then bankruptcy is clearly an appropriate option. It is important that you accept your present circumstances and take action to correct them. Remember, that we can't help you unless you help yourself by giving us an opportunity to review your finances and provide you with viable recommendations.
How will bankruptcy effect my credit?
People frequently ask how the bankruptcy will effect their credit rating. As a practical matter, most people contemplating bankruptcy no longer have credit or have simply maintained their credit rating in good standing by using one credit card to pay off another. This practice of robbing Peter to pay Paul is nothing more than a delay tactic which is doomed for failure. Although bankruptcy is reflected on your credit report, it is still possible to gain renewed confidence from creditors and reestablish your credit.
Once your bankruptcy is completed we will send you information about the P.R. Smith Credit Recovery Program. We will handle all the paperwork to clean up your credit report and help you restore your credit. You can typically obtain credit if you demonstrate a consistent employment record and signs of financial rehabilitation. Most people find that if, after filing bankruptcy, they promptly make the payments they are left with such as car payments, house payments, rent or utility payments, they can reestablish their credit in only two years.
Why do I feel so guilty about filing bankruptcy?
Many people express their reluctance to file bankruptcy because they feel guilty or want to do the right thing. These feelings are normal, but should be put into context. Credit card companies are currently reporting record profits. You are nothing more than a file number to the credit companies and an opportunity to make money. In most instances, you have most likely already paid back the principal amount of the debt which was borrowed. Although the credit card companies are no longer going to make more money on you, they certainly are not going to take a loss. In addition, credit card companies' policies to charge you exorbitant interest, penalties and late fees once you miss a payment or two demonstrate their lack of compassion and fairness. Your struggles represent an opportunity for them to take advantage of your situation and gouge you for more money.
The most important thing to remember is that you have to do what is right for you and your family. If you cannot realistically pay back your debts within a couple of years, then you have a choice to make. You can live the rest of your life in poverty while you and your family suffer with no end in sight or, you can take control of your own financial destiny, take advantage of a legitimate solution to eliminate your debts and live a debt-free life after you file for bankruptcy. The choice should be easy.
Do I need an attorney to file bankruptcy?
"A man who represents himself has a fool for a client" - Mark Twain.
Since Congress radically overhauled the Bankruptcy Laws which became effective October 17, 2005, the filing of a bankruptcy case has become much more complex of a legal process. Many paralegal companies advertise bankruptcies at a discount. Paralegals are, by law, prohibited from rendering any legal advice. Consequently, paralegals can only provide you 
with forms for you to fill out and are nothing more than glorified typing services. While they presumably provide valid documents, there is no substitute for professional advise and sound legal counsel. A bankruptcy is a complex legal process that will affect your financial status for many years to come. Only an experienced bankruptcy attorney can provide you with competent advice to help you navigate the many intricacies of the bankruptcy process, eliminate the majority of the debt and let you keep as much property as possible. In addition, unlike licensed attorneys, paralegals cannot represent you in court. The few hundred dollars that you save by not hiring competent counsel is small compared to the amount of debt for which you will continue to be held responsible if the bankruptcy is not prepared correctly.
What type of bankruptcy should I file?
There are basically two types of bankruptcy for individuals and families: Chap. 7 (straight bankruptcy) and Chapter 13 (debt consolidation). Each type of has unique advantages. We can help you choose which chapter serves your needs the best.
Does bankruptcy stop creditors from calling me or filing a lawsuit against me?
Once a bankruptcy is filed, creditors are immediately prohibited from pursuing any collection activities, including harassing telephone calls, wage garnishments, and filing or continuing lawsuits to collect their debts. In fact, if creditors continue to make collection efforts after you file bankruptcy, you may be able to sue them for violating your rights.
If I file bankruptcy, will I lose my house, car and personal household items?
In general, Florida law provides protections for your home, car and basic personal household items such as furniture, electronics, clothing, etc. Consequently, in most instances, you are entitled to keep these possessions even after you file bankruptcy.
Can I file bankruptcy with my spouse?
There may be advantages or disadvantages to a joint filing with your husband or wife. In most cases, if both of you are jointly liable for the debt, then we will recommend you file together. Our firm does not charge any additional fee for filing jointly.
If I file bankruptcy, will I lose my pension IRA or 401(k)?
No, Federal and Florida law allows you to keep your pension, IRA or 401(k).
Will I ever be able to buy a house after filing for bankruptcy?
Generally you can qualify for a government backed mortgage at a standard rate just two years after your bankruptcy is complete.
Will I still owe taxes after filing bankruptcy?
Under certain circumstances, bankruptcy can eliminate certain federal and state tax obligations. It is possible to discharge some tax obligations depending on a number of factors including the type of taxes owed, the age of the tax obligation, and whether you filed your tax returns. Only an experienced bankruptcy attorney can evaluate whether your taxes can be eliminated by a bankruptcy.
Who will know about my bankruptcy?
The only parties that receive notice of the bankruptcy are your creditors, the bankruptcy court, Department of Revenue and the Internal Revenue Service. Your employer will not be notified of the bankruptcy unless your employer is also a creditor. The bankruptcy is public record so anyone who wants to find out could determine that you have filed if they specifically search for your name. Generally, however, only you, your creditors and the Internal Revenue Service will know about the bankruptcy.
Will I be able to rent after I file?
If you are presently renting a home or apartment, usually your landlord will allow you to renew your lease without running an updated credit report and will not have any knowledge that you have ever filed bankruptcy. If you are seeking a new lease, there may be some slight difficulties that can be easily overcome. We have found that landlords will rent to you if you can demonstrate the ability to pay a sufficient deposit and a stable work history.
Does my spouse have to file with me?
If your spouse is not a co-debtor on your loans then he or she may not have to file with you. In this case, creditors cannot pursue the non-filing spouse for your debts that have been discharged in bankruptcy and the bankruptcy should not be reflected on your spouse's credit report.
Can I lose my job or face other types of discrimination for filing bankruptcy?
No. There are specific laws that forbid discrimination against people who have declared bankruptcy. For example, you may not be denied a job, denied or evicted from public housing, or denied a driver's license just because you filed for bankruptcy.
Are all debts discharged by my bankruptcy?
Certain debts cannot be discharged through a Chapter 7 bankruptcy. These include some taxes, alimony, child support, student loans and some marital property settlements. Other non-dischargeable debts may result from fraud, willful or malicious injury, certain fines or penalties, and claims incurred while driving under the influence of alcohol or drugs. Also note that although your debt may be discharged, anyone who has co-signed a loan with you will remain responsible even after your bankruptcy.
If my debts are discharged in bankruptcy, will the co-signers also be protected?
If you file a Chapter 7 and have co-signors on any of the debts, the creditors can continue collection actions against the co-signor. The only way to prevent this would be for you or your co-signor to continue making the payments. In other words, although you are no longer responsible for the debt, you may voluntarily decide to continue to make payments in order to protect the person who co-signed for you.
What is the means test?
The means test is just a fancy way of describing a budget analysis. In other words, we do an in depth analysis of your budget which includes your actually income and certain expenses as allowed by the bankruptcy court. Certain income such as wages, pension and 1099 income is included in the analysis, while other income such as social security and child support payments are not. Also, certain actual expenses are included, such as your mortgage and car payments, but other expenses are limited by standardized amounts established by the federal government. In other words, we can only deduct standardized amounts for food, transportation, educational expenses, etc even though these deductions may be less than what you actually spend.
The means test is a complicated legal analysis and only a competent, experienced bankruptcy attorney should provide you with advice on how to calculate the means test. Failure to properly prepare the means test may result in your being disqualified from chapter 7.
Won't Bankruptcy Ruin My Credit Forever?
No. Contrary to popular belief, bankruptcy gives you the unique opportunity to rebuild your credit by releasing you from burdensome, unmanageable debts. While a bankruptcy discharge will remain on your credit report for seven to ten years, there are several steps to rebuilding your credit once the bankruptcy is complete, such as:
- Paying monthly bills on time and in full
- Actively monitoring your credit score
- Making responsible financial choices
In most cases you can expect to re-establish your credit in two years or less. Once you receive your discharge, we will send you a package of information to assist you to rebuild your good credit.
Can I File for Bankruptcy Only Once?
Although there are limitations on how frequently you can file bankruptcy, you may seek debt relief through bankruptcy as many times as you need.
Federal guidelines dictate that you may receive a discharge through Chapter 7 once every eight years and a discharge through Chapter 13 every two years, with additional regulations regarding the required number of years between any combination of the two (filing Chapter 7 and then filing Chapter 13, or vice versa).
Bankruptcy Is Only for People Who Cannot Manage Money Properly.
Bankruptcy is a means for good people who are going through difficult situations to obtain the debt relief they need. Many people file because they have lost jobs, suffered a pay cut, gone through a tough divorce or experienced a serious medical illness or injury. It is important to remember that your credit will not improve on its own. Those who actively engage in re-establishing their credit can regain confidence in themselves and with creditors.
