Sunday, June 28, 2015
Erich M. Niederlehner, has just completed a free ebook on Bankruptcy and encourages anyone considering filing for bankruptcy or just wants to know more about Bankruptcy to download and read the free ebook. Erich M. Niederlehner, currently has offices in Pensacola, Fort Walton Beach and Panama City and has been practicing Bnkruptcy law for 14 years in the Gulf Coast Panhandle. Go to www.ShouldIFileForBankruptcy.com and download the free "Book on Bankruptcy" by Erich M. Niederlehner today or click on the image above.
Sunday, May 31, 2015
Look at Filing a Chapter 7 Before Thinking about Paying Back Debt
This is an interesting article that was in the Huffington Post, about when you should file for Chapter 7 and how trying to pay back your debt can cost you a lot more than the amount you owe in debt.
http://www.huffingtonpost.com/steve-rhode/why-a-chapter-7-bankruptc_b_7232654.html
http://www.huffingtonpost.com/steve-rhode/why-a-chapter-7-bankruptc_b_7232654.html
Wednesday, June 4, 2014
Can I Keep My Vehicle During Chapter 7 Bankruptcy?
Can I Keep My Vehicle During Chapter 7 Bankruptcy?
One of the most serious questions a client may ask is, “If I file Chapter 7 bankruptcy, can I keep my vehicle?” Like many simple, straight-forward legal questions, there are no simple, straight-forward legal answers. However, while each case is different, the vast majority of bankruptcy debtors keep their vehicles during Chapter 7.
Keeping a vehicle during Chapter 7 bankruptcy starts with a simple accounting: is the fair market value of the vehicle more than the amount owed on the loan? In other words, does the debtor have equity in the vehicle? If there is no equity in the vehicle, the Chapter 7 trustee cannot take and sell it since there is no benefit to the unsecured creditors.
On the other hand, if there is vehicle equity, that equity must be protected otherwise the trustee can take and sell the vehicle to reach the unprotected equity. The vehicle’s equity may be protected by one or more legal exemptions. The total amount of exemptions available to a debtor is determined by state and/or federal law and varies from state to state, and case to case. In some cases the ownership of the vehicle may protect the vehicle’s equity, such as in cases of joint ownership with a non-filing party.
If the vehicle has unprotected, non-exempt equity, the debtor has a few options. First, instead of taking and selling the vehicle, the trustee may accept a cash payment. Generally this cash payment is less than the amount of available equity, because there are actual costs involved in selling the vehicle. Second, the debtor may consider a Chapter 13 bankruptcy. A payment equal to the amount of non-exempt equity must be paid to the debtor’s unsecured creditors during the Chapter 13 plan, but this payment is stretched over 36-60 months. Third, the debtor may choose to allow the trustee to sell the vehicle. Any claimed exemption will be paid to the debtor from the proceeds of the sale. Finally, the debtor may choose to trade or sell the vehicle prior to bankruptcy and use any proceeds for necessary household expenses.
The truth is that it is rather unusual for a debtor to have a vehicle equity issue during Chapter 7 bankruptcy. If you have a vehicle with a great deal of equity, your bankruptcy attorney can discuss your options for keeping your vehicle and protecting your equity.
Flood Waters after Massive Rains in the Florida Panhandle
This video was taken on Highway 98 in Gulf Breeze/Midway Florida the day after massive amount of rain fell within a 24 hour period.
Obscene lack of professionalism! Brevard County Florida Judge Beats Down Assistant Public Defender for Objecting to Waive Right to Speedy Trial
Why were the defendants clapping for the judge when he returned? The judge was trying to intimidate the defendant into waiving his rights to make the Judge's life easier, and just beat down an attorney who was standing up for one of them and who was literally fighting for their rights.
http://youtu.be/BCe8D3TSFGk
Sunday, June 1, 2014
Friday, December 23, 2011
Three Bad Bankruptcy Mistakes Before Filing Bankruptcy
Three Bad Bankruptcy Mistakes Before Filing Bankruptcy
The bankruptcy laws
are confusing and complicated. Fortunately Congress and the US Supreme Court
have given us a guidepost by stating that the bankruptcy laws exist to help
debtors who are poor and honest. The bankruptcy trustee will
investigate your case to determine whether you are both poor and honest. Excess
money or equity in property can be taken to pay creditors, and efforts to hide
money or assets will be punished. With this in mind, here are three bad
mistakes you can make before filing bankruptcy:
Mistake #1: Cashing Retirement Funds
Most retirement funds are fully protected from
creditors and the bankruptcy court. That means if you file bankruptcy, you keep
your retirement money. Congress wants you to have money for your retirement.
Along with the obvious problems associated with
losing your future retirement money, cashing out retirement funds is also huge
mistake because (1) your attorney may no longer be able to protect available
retirement money converted into cash; and (2) in some cases the money you pay
on a loan may be recoverable by the bankruptcy trustee. Money paid to creditors
before bankruptcy does not improve your financial situation or help you recover
from bankruptcy. Always discuss cashing out 401(k) or IRA retirement funds with
your attorney prior to your filing bankruptcy.
Mistake #2: Transferring Property for Less Than Full Value
Anytime an individual transfers property for
less than full value, the transfer seems “suspicious.” This is especially true
when the transfer occurs just before a bankruptcy filing. The bankruptcy
trustee scrutinizes all property transfers before bankruptcy, and if a property
transfer was not a fair and honest exchange, the trustee may avoid the transfer
and get the property back.
One common bankruptcy mistake is transferring
property to a friend or family member in an effort to hide it from the
bankruptcy court. This is a very bad mistake that can result in: (1) losing the
property anyway; (2) denial of your bankruptcy discharge; and/or (3) criminal
prosecution for bankruptcy fraud. If you need to sell or transfer property
before your bankruptcy, contact an experienced attorney and discuss your
options!
Mistake
#4: Paying Off
Loans
When a debtor pays off
a loan before bankruptcy, the trustee becomes very interested in your case.
First, if you paid a large sum of money to one creditor just before filing, the
trustee may ask the creditor to return the money. Second, paying off an unsecured creditor that is otherwise
dischargeable (like a credit card or payday loan) is like throwing your money
away. You need that money to help rebuild your finances.
Finally, paying off
secured property could create too much non-exemptible equity. The bankruptcy
laws allow you to keep property up to a certain amount. The protected amount is
determined by taking the fair market value of the property minus any secured
loans. When you pay off the loans, you increase your equity in the property
which may exceed the amount you are allowed to keep. When that happens the
bankruptcy trustee may ask you for the property or the cash difference between
the equity and the exemption amount. Bottom line: don’t pay off loans before
bankruptcy!
Winning the Lottery May Not Help
Winning the Lottery May Not Help
Who hasn’t fantasized about
winning the lottery when you are cash strapped? It seems that winning the
lottery would solve all of your financial problems.
Not so fast.
A March 2010
study by economists at the University of Kentucky, University of Pittsburgh,
and Vanderbilt University suggests that winning the lottery does not reduce the
likelihood of a future bankruptcy. The study examined data from 35,000 winners
of Florida's Fantasy 5 lottery from 1993 to 2002, and compared this information
with state bankruptcy records. The economists found that more than 1,900
lottery winners filed for bankruptcy relief within five years after winning, a
rate double that of the general population during the study period. "The results show that giving $50,000
to $150,000 to people only postpones bankruptcy," the authors concluded.
Not every lottery winner will act
like Callie Rogers, winner of a $3 million UK lottery in 2003. Callie spent
every dime of her winnings on shopping, cocaine, friends and breast
augmentation, and two years ago she was working as a maid. But then, Callie was
probably not a skilled money manager, like the three co-workers who won a $254 million
Powerball lottery in Connecticut. If you are lucky enough to win a large
lottery, these professionals offer a blueprint
on how to protect your money from yourself.
Financial management may seem
like common sense, but Americans have many pressures to spend now and worry
about the consequences in the future. It takes a reasoned approach and
discipline to make a budget and stick to it. To help educate individuals and
combat financial illiteracy, Congress amended the bankruptcy laws to require
debtors to complete a course in financial management before the completion of
the bankruptcy case. The hope is that by providing a bit of education, the
debtor will take a more active interest in managing his or her finances and
avoid future costly mistakes.
If you are battling
insurmountable debt, don’t wish for a magical cure. Take charge of your
finances and educate yourself about your options. Speaking with an experienced
bankruptcy attorney is a solid first step in taking control and building a
better future.
Are Your Family Finances Sustainable?
Are Your Family Finances Sustainable?
Corporate Knights, a Canada-based
sustainability-focused media firm, publishes a unique list every year that
predicts the world's most sustainable large corporations. Started in 2005, the Global 100 Most Sustainable Corporations in
the World is a list of publicly traded companies that, based on research
and analysis, are best equipped to manage the environmental, social and
governance (ESG) risks and opportunities they face. The idea is to look at the
company today and predict the company's future ability to thrive.
Predicting the financial future
of a company is tricky business. Of the original 100 announced in 2005, ten
companies on that list are now inactive. Another good example is Eastman Kodak,
which appeared on the Global 100 list in 2005, 2006, 2007, 2008, and 2009.
Kodak is synonymous with photography, and has a long and proud history. Kodak
practically invented the amateur photography market back in 1888. Kodak is also
responsible for the first digital camera in 1975 and developed cell phone photo
technology. Unfortunately, in recent years Kodak has not changed fast enough to
keep up with the changing marketplace. Kodak's shares once soared to an
all-time high of $95 in 1997 and was a mainstay member of the Dow Jones
industrial average for 74 years. In September 2011 its stock plummeted to close
at $.69 a share.
Eastman Kodak is a lesson of how
quickly the financial outlook of a company can change. Individuals, like companies,
sometimes make bad decisions that can lead to financial trouble. Other times,
circumstances happen that simply cannot be predicted. Fortunately, what looks
bleak today can be better tomorrow. That is a hope that bankruptcy offers to
individuals who are struggling with overwhelming debt. Bankruptcy offers the
individual the "do over" opportunity to discharge or restructure
debts.
Tuesday, November 1, 2011
Help! My Bank Account Is Frozen!
Help! My Bank Account Is Frozen!
Fewer things can throw your world
upside down like having your bank account frozen. A bank garnishment or seizure
is usually the result of a creditor attempting to collect after a court has
issued a judgment against you. The court orders the bank to freeze your account
and turn over its proceeds to the judgment creditor. The order is usually timed
by the creditor's attorney to take effect just before your paycheck is
deposited. Seizing a bank account is generally a creditor's first action
because federal and state laws limit the amount that can be garnished directly from
an employee’s paycheck. These limitations do not apply to cash money in a bank
account.
Once your bank account is frozen,
it is important to act quickly. You are entitled to protect some money from
garnishment, but you must notify the court, the creditor, and the bank that you
are asserting your legal exemption rights. Additionally, if you receive Federal
benefits that are directly deposited into your bank account, the federal law
will protect an amount equal to two months of these benefits. These benefits
include Social Security benefits, Supplemental Security Income benefits,
Veteran’s benefits, Railroad Retirement benefits, and benefits from the Office
of Personnel Management. Federal benefits are exempt from garnishment, and the
law places the burden on the bank to determine if the funds are protected.
Finally, a bankruptcy filing will
immediately stop a garnishment and unfreeze your bank account. A debtor can
often force the garnishing creditor to return money seized just prior to a
bankruptcy filing. The general rule is that involuntary payments that amount to
over $600 seized by a creditor in the 90 days before filing can be recovered.
If you have had your bank account
seized, it is important to speak with an experienced bankruptcy attorney
immediately and discuss your short term and long term options. Quick action is
necessary to unfreeze your account, but it is also important to discuss your
long term plan to avoid garnishments in the future. Your attorney can help you
decide on a sensible plan to eliminate your debt and progress to a better
financial future.
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