TheFloridaBankruptcyLawBlog

Discharging Student Loans: Blindness and Permanent Disability Not Undue Hardship

04/12/11

From time to time I receive inquiries from people seeking to discharge a student loan in Chapter 7 bankruptcy. Student loans can only be discharged for “undue hardship.” Undue hardship in this context means things are really, really bad.

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Can Debtors File Joint Bankruptcy Petition If One Spouse Is In Prison?

04/08/11

A woman called me to ask whether she and her husband could file bankruptcy while her husband was in prison. The woman is concerned about her husband’s inability to attend the trustee meeting. She said her husband could not initiate phone calls, and that the state will not transport him to a bankruptcy meeting or hearing. This woman said another bankruptcy attorney previously told her that she and her husband could not file bankruptcy until her husband was released permanently or on parole.

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Chapter 13 Debtor Opposition To Late Filed Unsecured Claim

04/04/11

Chapter 13 bankruptcy cases have claim deadlines by which date the debtor’s creditors are supposed to file claims in order to be included in the roster of creditors entitled to distributions of money out of the Chapter 13 plan. I represent a debtor who prior to filing owed money to a law firm which represented him in a pre-bankruptcy legal matter. Three months after the Chapter 13 claim deadline the law firm filed an unsecured claim.

The first question is whether or not the debtor cares if an unsecured creditor files a late claim.

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Chapter 7 Bankruptcy Trustee May Challenge Increased Unsecured Debt Within Six Months Prior To Filing

03/28/11

Bankruptcy trustees seem to be getting tougher on debtors who incur significant credit card debts and large secured debt obligations prior to filing Chapter 7 bankruptcy. I am seeing challenges asserted against significant credit card charges within six months prior to filing bankruptcy. That does not mean that you cannot use a credit card for six months before you file. It means that large charges or a substantial increase in credit within the prior six months could draw scrutiny.

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How To Title Car Purchased For Use By Your Minor Child: Protecting Car In Bankruptcy

03/25/11

Here is an interesting bankruptcy case which demonstrates the pitfalls in titling a car in the name of anyone other than the principal driver.

A grandfather wanted to buy a car for his grandchild. He purchased a car for all cash and put the title in the name of his son. The son put none of his own money toward the purchase, and the son did not drive the car or pay for its upkeep. The son let his child, the grandchild, use the car exclusively. Then, the son filed Chapter 7.

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Reasonable Attorneys Fees For Chapter 7 Is Subject Of Bankruptcy Court Order

03/22/11

I have rarely discussed bankruptcy attorneys fees in this blog even though I know that fees are an important consideration for readers who are considering filing bankruptcy. I do not want this blog to be interpreted as an advertisement for my own fees in relation to those charged by other attorneys. However,  I recently read two general discussions about bankruptcy attorneys fees which should be very helpful to prospective bankruptcy debtors, and therefore, warrant discussion.

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Chapter 13 Bankruptcy Mortgage Mediation Seems To Be Working Well

03/18/11

Mortgage mediation in Chapter 13 bankruptcy is turning out to be more effective than mediation ordered in state court foreclosure cases. This, according to a report presented at a local attorneys’ meeting. Mortgage lenders express greater willingness to modify first  mortgages of debtors in Chapter 13 bankruptcy compared to other debtors already facing foreclosure in state court.

The explanations given are common sense.

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