Florida and Bankruptcy

HOZ,
I have experience as a bk paralegal. Bk 7 might look easy on its face but if you make a mistake your bk could be dismissed.

If you have "simple" questions....post them. I cannot give legal advice but if the questions refer to the schedules or filling out the documents I might be able to help.

It would help if you would indicate what part of FL you live in...Tallahassee, Tampa, Jacksonville, Miami. Each area has a bk court and each court has its quirks. Bk is a Federal action but each state has different exemptions.

Ask away.

clc

 

In addition to whatever advice CLC might be able to offer you, you may also want to read and research on www.chat-cards.com - the bankruptcy forum. CLC is right - there are so many ways to trip yourself up if you file pro se. Good luck to you - I hope everything turns out well!

Poochie

 

I was reading a brochure on bankruptcy and it made a good point. You need to consider whether this is the right time to file.

Scenarios might include that you are judgment proof right now (no job, no assets) so what's the worst thing that could happen if you stopped paying everything? Personally, I'd think you'd want to make sure that the financial bleeding has stopped before filing. I haven't a clue what your circumstances are, but wanted to throw out some ideas.

Now, let's say that someone DOES have an on-going income. Then if you stopped paying EVERYTHING (except rent/mortgage, utilities and possibly car) then you might find you quickly DO have $$ to pay a lawyer to file the BK.

Just thoughts from someone who's been there done that.

 

I've been reading the board Poochie posted, and my impression is that the Florida middle district is really tough right now. I personally wouldn't go it without an attorney. There are middle disctict peeps posting over there that could give you good advice, I'm sure.

http://chat-cards.com/wwwboard/bankruptcy/messages.html

 

HOZ,
Florida is one of 2 states that have a homestead exemption. This means even if your home is valued at a trillion dollars..it would be exempt which means the bk court trustee can't touch it. (that's why O.J. and Scott Sullivan of Worldcom are safe from bk with their million+ homes). Texas is the other homestead exemption state which protects people like Ken Lay, Skilling and Fastow of Enron.

Your cars only have an exemption of $1,000 and that includes both cars. Plus the exemptions on wages aren't a lot. In a chapter 7 all unallowed exemptions have to be considered therefore anything over and above the exemptions the trustee will require you to pay to the bk court.

As for creditors there is a line they have to stand in...first is all secured creditors (anything that is promised payment with collateral i.e. appliances, furniture, car loans) and then lastly comes unsecured debt like credit card debt. IRS debt, criminal fines, alimony, child support and student loans are not dischargeable (there are some exceptions to taxes which can be complicated and also exceptions to student loans which are "undue hardship" which means you have to be on welfare and practically dead).

The middle district of Florida isn't any busier or tougher than the rest of the bk courts. BK courts are Federal courts so Federal laws applies. This makes finding case laws fairly easy because any decision in the country will be applicable to you in Florida. It is only the state exemptions that are different. Some states let you choose between the Federal and state exemptions. Florida does not allow you to choose between the Federal exemptions and the state exemptions. But why would one want to when their homes are protected? As you can imagine due to the economy all bk courts are busy.

The reason one poster recommended waiting awhile after you stop paying your creditors is that you want to make sure EVERY creditor is listed on the creditor's matrix. If you forget some you can always file an amended schedule but it has to be before discharge and it will cost you $20 for each amendment.

I have done a lot of bk filings and they might look easy on their face but if you are not well read or educated in the bk laws and miss any of the correct procedures your case CAN get dismissed. A dismissed bk is the worst thing you can get as a negative tradeline. It is hard to get off yur credit reports. Before I get flamed remember I said "hard" but not impossible.

Also remember that the bk court will look at any expenditures you make 90 days before the filing including charges on your CCs. So if you paid off your cars, credit card balances or Aunt Millie the trustee will then add those amounts to your account. Also if you make any fraudelent transfers in anticipation of bk like signing your car over to Mom that would qualify as a fraudelent transfer.

The only way I would do a pro se filing (meaning a do-it-yourself with a Nolo kit) is if I had read the entire laws on bk 7s and understood all of them. This is the reason bk attys charge between $1,200-$1,500 a case.

I am not advocating against a pro se I am just warning you "caveat emptor." Nolo makes a lot of money on their do-it-yourself legal actions but I have seen in their kits a lot of mistakes. It might be more beneficial if you can't afford an atty to look for paralegal services in your area. They cannot give legal advice but they can help out in making sure your documents are in order.

Another example of bk district quirks is some want the creditor matrix typed or saved on media different than others. The schedules required will all be the same though. Plus you have to file all schedules even if they don't apply to your financial situation. For example if the schedule requires the listing of stocks and bonds and you own no stocks or bonds you put N/A on the schedule and submit it. The schedules, A-F, should all be included and put in order with your cover sheet which is the "voluntary petition". Usually you need to make 3 copies but I always do 4 and your copy should be stamped by the bk clerk with the date and time of filing. Once you file the entire petition you will get a notice for a 341A meeting of the creditors. You MUST attend this meeting...death might be the only excuse not to. Practically no creditors show up for these meetings (Sears being the rare exceptions and then only on a secured debt as they like reaffirmations...that is a whole different post). Also do a google search on "bk courts in FL" and go to the middle district's site and read all info pertaining to a bk 7.

My last piece of advice is to do your homework. Organize your bills and the balances due before you file. Calculate using the "blue book, edmunds or kelley" the value of your cars. Put a value on all personal property you own..they will include clothes, jewelry, furniture, books...etc. The bk trustee will not visit your home to investigate your personal property but if you own two late model cars, a home valued at 100Gs or more and your combined incomes are high then he will get a pretty good idea what your personal property should be. Do not make obvious claims on your financial disclosure that are false as the same rule applies. If you make an outlandish disclosure like $4,000/month for clothes the bk trustee will challenge. I have even personally seen challenges to private school tuition for people's children.

These are just some of the highlights to illustrate to you that doing a pro se is more complicated than Nolo or any other do-it-yourself kit would explain. Plus those books do not address the quirks of each district. If you make any serious errors and end up in bk court an atty will charge more than $1,500 to get you out of trouble. So heed my advice.

HTH,

clc