TheFloridaBankruptcyLawBlog

Can a Florida Chapter 7 bankruptcy debtor exempt money in his bank account that represents deposited unemployment compensation? A Florida bankruptcy court recently reviewed this issue which had not previously been considered by any Florida court.

Most people filing bankruptcy understand that Chapter 7 bankruptcy will not discharge student loan debt. In fact, the bankruptcy law provides an exception to the general rule of non-dischargeability when the debtor can demonstrate that the student loan causes an undue hardship on his post-bankruptcy recovery.

Prior to his filing Chapter 7 bankruptcy one of my clients was victim of a home break-in and theft. Valuable personal property was stolen. A police report was filed. After filing the petition, the police recovered some property and the thief was ordered to pay restitution to my bankruptcy client.

Several bankruptcy courts in Florida have held that an income tax refund payable to a husband and wife from their joint tax return is considered to be tenants by entireties money which is exempt if one spouse files Chapter 7 bankruptcy. Now, one bankruptcy judge disagreed and reached a different conclusion.

I have been asked more than once whether filing bankruptcy can adversely impact the debtor’s security clearance with a private business or government agency. Most creditor lawyers state that a bankruptcy actually improves security clearance. The typical employer wants to make sure that financial problems do not lead to more serious personal problems affecting employment such as drug use, alcohol, or high interest borrowing. Bankruptcies solve financial problems, relieve stress, and usually improve concentration and performance at work.