I was visited by a Canadian bankruptcy trustee vacationing in Florida who wanted to learn more about our bankruptcy system. Canada has the equivalent of Chapter 7 and Chapter 13 bankruptcy statutes.The main difference between their system and our own is their exemptions. Exemptions differ by Province. In Ontario, for example, the Debtor gets no homestead exemption.
A debtor owes money to his parents, and his parents long ago recorded a mortgage on the debtor’s real property. The debtor was behind in the note payments to the parents. The debtor is concerned about that paying his loan to his parents would be an improper preferential payment in a Chapter 7 bankruptcy proceeding.
Many of my Chapter 7 bankruptcy clients whom I represent in Orlando bankruptcy court reside outside the Orlando area. Some live near Jacksonville; others live close to Tampa. What choice do debtors have regarding their bankruptcy court?
Debtors living in homes with upside down mortgages can strip their second mortgages off their homestead in a Chapter 13 bankruptcy when their home is worth less than the first mortgage balance. What if the debtor does not have a second mortgage but owes his HOA dues and assessments incurred prior to bankruptcy, and the HOA has recorded a lien to secure repayment.
A caller this week was interested in filing bankruptcy but is concerned about preserving a valuable homestead owned free and clear. The caller stated that he had signed a contract to sell the house for about $500,000. He is concerned about protecting the house and sales proceeds in a Chapter 7 bankruptcy.
To qualify for filing Chapter 7 bankruptcy the debtor’s household income must be below the applicable median income, or the family expenses must offset income to the extent that the debtor passes the means test. Bankruptcy debtors do not have to pass the means test if their debts are primarily non-consumer debts.
Student loan debt is a substantial problem in our economy as many people have been unable to find employment after incurring large student loan liability. It is very difficult to discharge student loans in Florida Chapter 7 bankruptcy. Most of my clients assume they cannot wipe out student loan debt.
In July, 2011, just after the her murder trial, I wrote a blog post suggesting that Casey Anthony should file Chapter 7 bankruptcy. As many of you have read in the news, Ms. Anthony has at last filed for bankruptcy protection.
I have received emails and phone calls from many of my recent Chapter 7 bankruptcy clients about their personal liability for homeowner association (“HOA”) dues. These former bankruptcy debtors are being told by their HOA that they owe past-due dues or that they have HOA liens on their property.
From time to time callers ask me bankruptcy questions when they have already hired an attorney to file their bankruptcy petition in the Orlando Division. When I suggest that they direct their question to their own attorney whom they have paid fees they usually respond that their own bankruptcy attorney either will not return their calls or has given them poor advice. What can a debtor do when he is dissatisfied with his bankruptcy attorney?
