Are Household Goods and Furniture Exempt in Bankruptcy?

To a certain extent, yes. Household goods and furniture can be exempt from bankruptcy liquidations. Florida bankruptcy exemptions can be quite generous depending on your eligibility and how you file. This page gives a brief overview of bankruptcy exemption laws in the state.

However, it is important to remember that the law governing bankruptcy can be complicated. To make sure you remain compliant and do not miss out on any exemption benefits, it is best to have your case reviewed by an experienced bankruptcy attorney. Contact Loan Lawyers today to schedule your free, no-obligation consultation. Read on to learn more.

What is the “Wildcard” Exemption?

You can exempt personal property up to $1,000 in value when you file for bankruptcy. If you do not qualify for Florida’s generous homestead exemption enshrined in its state constitution and statutes, this number increases to $4,000 as an individual filer. The number doubles to $8,000 for joint filers.

These are sometimes known as “wildcard exemptions” because they allow bankruptcy filers to select the types of property they want to exempt. In other words, you are not limited to specific household items and other assets.

Other Bankruptcy Exemptions in Florida

Again, Florida law is particularly generous when it comes to bankruptcy exemptions. For example, under Fla. Stat. Ann. § 222.18, you could exempt disability income benefits. Under Fla. Stat. Ann. § 222.21, you could also exempt pension money and certain tax-exempt funds or accounts. Further, under Fla. Stat. Ann. § 222.22, you can exempt qualified tuition programs, medical savings accounts, Coverdell education savings accounts, and hurricane savings accounts

These are just some of the exemptions available in Florida. An experienced bankruptcy attorney can review your case and make sure no others you may be eligible for are overlooked.

Who Qualifies for Florida’s Bankruptcy Exemptions?

Florida bankruptcy rules require that you reside in the state for 730 days (i.e., two years) before filing your petition with a bankruptcy court. If you have not lived in the state for the required period, the exemptions from the previous state where you resided apply. If you did not live in one state during the two years before filing, the exemptions available in the state where you lived for most of the 180 days before the two years prior to filing would apply instead.

Further, under the homestead exemption, you can exempt an unlimited amount of equity in your home or other eligible property. However, the property must not exceed 160 acres unless it is in a municipal, in which case it must not exceed half an acre. Finally, you must also have owned the property for at least 1,215 days to be eligible for the homestead exemption when filing for bankruptcy.

Consult With Our Experienced Bankruptcy Attorneys Today

Loan Lawyers provide legal representation you can depend on when dealing with creditors and facing foreclosure. Our bankruptcy law firm can explore tailored solutions for each client’s unique needs and implement them to achieve the most favorable outcome on their behalf.

If you want to learn more about personal property exemptions in a Florida bankruptcy, contact us today to schedule your free, no-obligation consultation with one of our experienced attorneys. We are here to help.

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What Are the Most Common Reasons for Filing a Chapter 7 Bankruptcy?

Bankruptcy is a legal process that allows a person or business to have their debts discharged when they no longer have the financial means to pay them. Filing for bankruptcy is possible under Chapters 7, 9, 11, 12, 13, and 15 of the Bankruptcy Code. This page explores the top reasons individuals file for bankruptcy under Chapter 7.

If you need help to understand your rights and options under the Bankruptcy Code, contact Loan Lawyers to schedule your free, confidential consultation today. Read on to learn more.

Why File for Chapter 7 Bankruptcy?

If you are considering filing for bankruptcy, you are not alone. Each year, hundreds of thousands of individuals and businesses file for bankruptcy throughout the United States. Chapter 7 bankruptcy allows you to sell off (“liquidate”) your non-exempt assets and use the proceeds to pay off as much of your debt as possible. At the end of the process, the presiding court will discharge any remaining eligible debts, meaning that you no longer need to pay them.

Individuals and businesses file for Chapter 7 bankruptcy instead of pursuing other forms of debt resolution when they fall so far behind on payments that they can no longer keep up with their financial obligations. Chapter 7 allows them to reset their finances from zero after all other options are exhausted. This course of action represents a last resort for individuals struggling to pay off debt.

Common Reasons People File for Chapter 7 Bankruptcy

Multiple factors can come together and leave someone in a precarious enough financial situation that they need to file for bankruptcy. No matter your situation, our legal team is ready to listen to your story and help you explore options. Some of the most common reasons why people file for Chapter 7 bankruptcy include:

• Loss of Income – In general, individuals may fall into debt experiencing a significant reduction in income due to the loss of a job, pay cut, or reduction in work hours.
• Unaffordable Mortgages – The largest source of debt for many individuals and families are loans taken out to purchase a home, known as mortgages. Falling behind on mortgage payments can ultimately lead you down a path toward bankruptcy.
• Credit card debt – People can find themselves with unmanageable debt after racking up significant credit card balances. Bankruptcy can provide a solution when they can no longer afford to make at least minimum payments for an extended period.
• Medical expenses – People who suffer serious injuries or become severely ill may incur significant debt to pay for medical expenses not covered by insurance, including co-pays, co-insurance, deductibles, and non-covered services.
• Divorce or separation – Separating from a significant other in a breakup or divorce can have a serious negative impact on your finances. For example, the need to maintain two separate households is a common source of financial strain after separating from a significant other.

These are just a few of the most common reasons you may find yourself considering Chapter 7 bankruptcy. No matter the circumstances, Loan Lawyers is here to help you evaluate your legal rights and options going forward.

Need Help Filing for Chapter 7 Bankruptcy? Contact Loan Lawyers Today

If you can no longer pay your debts and feel like you have exhausted your options, Chapter 7 bankruptcy may be the best option for you. Contact Loan Lawyers today for a free, confidential consultation to discuss your eligibility. Our legal team can evaluate your situation and work with you to find the best path toward financial health.

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How Are Utility Bills Treated in Bankruptcy?

If you’re struggling with unmanageable debts, you might consider filing for bankruptcy. But you may also have questions about the practical effects – particularly when it comes to bankruptcy and utility bills.

So what happens to the utility bill debt you owe? And can utility bills be included in Chapter 7 or Chapter 13 bankruptcies? The answers to those questions depend on several factors, including what chapter you file under.

What Happens to Past-Due Utility Bills in Bankruptcy?

Past-due utility bills are unsecured debts – debts you owe that aren’t tied to collateral. There are no physical items for your creditor to take possession of if you don’t pay these debts. Unsecured debts are the opposite of secured debts, such as mortgages and auto loans backed by collateral like homes and vehicles. If you fail to pay your loans for secured debts, your lender can take away the collateral – for example, by foreclosing on your house or repossessing your car.

Unsecured debts can be discharged under both Chapter 7 and Chapter 13 bankruptcy. However, each chapter’s process – and what that means for the filer – varies considerably.

How Are Utility Bills Treated in Chapter 7?

In a Chapter 7 bankruptcy, your non-exempt possessions are liquidated to pay off your unsecured debts. Creditors of secured debt can also take back the collateral in your possession. Any debt left over – including your utility debt – is discharged, meaning you no longer have to pay it.

However, you must pay your new monthly bills throughout the process to retain service. The utility company can also require you to provide “adequate assurance of payment,” such as prepayment for service or cash deposits.

How Are Utility Bills Treated in Chapter 13?

When you file for Chapter 13 bankruptcy, you create a three- to a five-year repayment plan to pay back some or all of your debts – including unsecured debts like past-due utility bills. During your repayment plan, you must make regular payments to a bankruptcy trustee. The trustee then distributes the money to your creditors, including utility companies. You might not need to repay 100 percent of your past-due utility bills or other unsecured debts during Chapter 13. However, these debts will not be fully discharged unless you complete your court-approved repayment plan.

As with Chapter 7, you will need to pay your current utility bills throughout the bankruptcy process to keep your service.

Can You Still Get Services from Utility Companies that You Owe?

In most cases, you can still receive services from utility companies even if you owe them money – if you can pay your monthly bills after filing for bankruptcy. The utility company is required to treat you as though you are a new customer. They also can’t try to collect past debts while you are in bankruptcy.

Contact an Experienced Bankruptcy Lawyer in Fort Lauderdale Today

Are you interested in making a fresh financial start through bankruptcy? If so, the Fort Lauderdale bankruptcy lawyers at Loan Lawyers are ready to provide the support and guidance you need. Contact us now to discuss the specifics of your situation in a free case review.

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Consumer vs. Non-Consumer Debt

Loan Lawyers, LLC is licensed to practice law in the state of Florida. If you have a legal matter that you would like to discuss and you are NOT located in Florida, please contact your state’s Bar Association to get the information of a lawyer that can assist you in your home state. Thank you.

Debts can be classified as either consumer or non-consumer, which can have an important impact on which bankruptcy chapters are available to you. But what differentiates the two, and what does it mean for you?

What Is Consumer Debt?

Debt incurred for personal or household purposes is considered consumer debt. Consumer debt includes forms of borrowing used to buy goods or services for personal use.

Consumer debt is often unsecured, meaning it’s not backed by collateral. This makes it easier for consumers to obtain credit. But it also means that the lender has fewer options for collecting the debt if the borrower defaults.

What Is Non-Consumer Debt?

On the other hand, debt incurred for business or investment purposes is non-consumer. This can include loans or lines of credit used to finance a business, purchase commercial real estate, or invest in stocks, bonds, or other financial instruments.

Non-consumer debt is typically secured by collateral, such as a business asset or real estate – giving the lender more options for collecting the debt if the borrower defaults.

When Does the Type of Debt Matter in a Bankruptcy Case?

One of the main reasons that the distinction between consumer and non-consumer debts matters involves the Chapter 7 bankruptcy means test. Consumer debts apply to the means test, while non-consumer debts do not. Failing this means test allows a court to dismiss a Chapter 7 filing and convert it to a Chapter 11 or Chapter 13 filing. The presumption is that the debtor has enough income to repay some or all of their debts. If more than half of their debts are non-consumer, the debtor does not have to pass the means test to file Chapter 7.

While the distinctions between consumer and non-consumer debts play less of an active role in a Chapter 13 bankruptcy, they still have an impact. Filing for Chapter 13 places an automatic stay on consumer debts, meaning it stops most collection actions. This stay protects not just the filer but also any codebtors. However, codebtors do not receive the protections of an automatic stay on non-consumer debt.

Common Examples of Consumer and Non-Consumer Debt

Common types of consumer debt include:

• Credit card debt
• Personal loans
• Auto loans
• Mortgages

Alternately, non-consumer debts include:

• Business loans
• Commercial real estate loans
• Investment loans
• Equipment Financing
• Lines of credit for business purposes

Contact a Debt Law Firm in Florida for Help

With over 100 years of combined legal experience helping consumers, Loan Lawyers is a trusted resource for anyone struggling with debt. We’ve helped more than 8,000 Floridians get out of debt, and we can put this track record to work on your behalf. We understand that every debt case is unique and requires a personalized approach – one that we’re ready and willing to offer you during this difficult time.

Let us help you regain financial stability and restore your peace of mind. Contact Loan Lawyers today and take the first step toward a brighter financial future.

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5 Little-Known Tips To Use Bankruptcy And Stop Eviction In Florida – A Guide For Renters!

Florida Tenants Facing Eviction Can Use This Sneaky Bankruptcy Trick to Stay In Their Homes!

Loan Lawyers, LLC is licensed to practice law in the state of Florida. If you have a legal matter that you would like to discuss and you are NOT located in Florida, please contact your state’s Bar Association to get the information of a lawyer that can assist you in your home state. Thank you.

The COVID-19 pandemic has been difficult on all Floridians. Hundreds of thousands of people lost their jobs and businesses closed at an alarming rate. People also lost their homes, as they could not pay their rent and were in fear of eviction.

At the time, Governor DeSantis placed a moratorium on evictions and foreclosures, so people would not fear losing their home when there were shelter in place orders in effect. Unfortunately, those moratoriums are long over and they are not expected to go into effect again.

With so many people still struggling, there are still many Florida residents in fear of losing their homes. To prevent this from happening, it is natural to wonder if bankruptcy could help you avoid eviction or stop foreclosure. Like with so many other legal questions, the answer is that it depends. If you want to avoid eviction and think bankruptcy may be an option, you should speak to a Florida bankruptcy lawyer as soon as possible.

Bankruptcy Will Provide an Automatic Stay

As soon as you file for either a Chapter 7 or Chapter 13 bankruptcy, the court will issue an automatic stay in your case. An automatic stay prevents creditors and debt collectors from contacting you trying to collect on the debt you owe. As its name suggests, the automatic stay happens right away, which means as soon as you file, all contact will stop. Unfortunately, while the automatic stay will prevent creditors from contacting you, it does not always work the same for landlords that are trying to collect on the rent, or even evict you.

Automatic stays do not last forever and in the case of landlords, the time period may be very short. Landlords do have the right to ask the bankruptcy judge to lift the automatic stay on rent immediately, and many courts will grant these requests. If this happens, the landlord can start the eviction process all over again, and you may be evicted from your home.

Even when an automatic stay is lifted, it takes time for it to happen. You can use this time to find another place to live if you feel as though the eviction will go through. If you think you will be able to make any payments for past due rent, you can also use that time to collect it and give yourself the best chance of staying in your home.

If you filed a Chapter 7 bankruptcy, there is a chance your landlord may even simply wait until the bankruptcy case is over to evict you, which could take three to four months. Once the case is final though, your landlord will likely have the right to evict you from the premises if there is still unpaid rent.

It is important to note that an automatic stay will not stop an eviction if your landlord has already obtained a final judgment for eviction against you before you filed bankruptcy. Automatic stays only apply to the debt you had on the date you filed bankruptcy.

Bankruptcy Can Eliminate Unpaid Debt

Filing Chapter 7 bankruptcy can delay an eviction, but it will not necessarily stop one. However, after you are evicted, a Chapter 7 bankruptcy can eliminate any unpaid rent debt you still owe. Clearly, you also will not have to pay rent for the current premises going forward, as you will no longer have a lease agreement. It is for these reasons that many people consider bankruptcy when trying to avoid eviction. If you were paying too much rent, bankruptcy can help you walk away from it and get a fresh start.

Eliminating rental arrears can also make it easier for you to find a new place to live. You may need the first and last month’s rent, as well as a security deposit and the other fees associated with moving. Bankruptcy will also allow you to discharge other types of debt you may be carrying, such as credit card debt, personal loans, and unsecured medical debt. Getting rid of these debts can also free up some money that can help with finding a new place to live.

While there are many benefits that come with filing bankruptcy to avoid eviction, there are certain consequences you should know about, too. For example, any type of bankruptcy will appear on your credit report, and future landlords will likely look at this to determine if they want to rent to you. To avoid this, some people try to find a new place to live before they file for bankruptcy.

Chapter 13 Bankruptcy Can Help You Avoid Eviction

Although a Chapter 7 bankruptcy may not help you avoid eviction, a Chapter 13 bankruptcy can. When filing Chapter 13, you are not asking the court to discharge your debt, but you are asking them to reorganize it into a repayment plan. Your rent, including what you owe and what you will owe in the future, can be part of this repayment plan, allowing you to stay in the premises.

The repayment plan is also drafted using your income and your current expenses, so the payments are affordable for you. It is crucial that you make any and all payments according to the repayment plan. If you do not, your landlord can complain to the bankruptcy trustee and your case may be dismissed. In that case, your landlord could continue to pursue an eviction and you likely would not be able to file bankruptcy again to stop it.

Call Our Bankruptcy Lawyer in Florida Today

Bankruptcy may be able to stop an eviction, but the process is a long and difficult one. There are also many benefits and some drawbacks to filing, so it is important to speak to a South Florida bankruptcy lawyer that can advise on the specifics of your case. At Loan Lawyers, we have helped thousands of borrowers successfully pursue bankruptcy, and we want to put that experience to work for you. Call us today at (954) 523-4357 or contact us online to schedule a free consultation.

Why Choosing the Right Bankruptcy Lawyer Could Change Your Life

 

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How to Prepare for Your 341 Meeting After Filing for Bankruptcy

Loan Lawyers, LLC is licensed to practice law in the state of Florida. If you have a legal matter that you would like to discuss and you are NOT located in Florida, please contact your state’s Bar Association to get the information of a lawyer that can assist you in your home state. Thank you.

Within 20 to 40 days after you file for bankruptcy in Florida, the court will mail you and your creditors a notice for your 341 meeting of creditors. The court’s notice will include the meeting’s date, time, and location.

This meeting is a required part of the bankruptcy process. You should know what to expect, how to prepare, and how our bankruptcy attorneys at Loan Lawyers can help you.

What Is the 341 Meeting for Bankruptcy in Florida?

A 341 meeting is required by the Florida bankruptcy law section 341, which is why it is referred to by that name. It’s also often called a creditors meeting. Its purpose is for you to answer questions under oath about the financial information in your bankruptcy petition package, such as lists of creditors, schedules of assets, liabilities, income, expenditures, and a statement of your financial affairs.

You, your attorney, and a Chapter 7 trustee attend the 341 meeting. The trustee is a “private, impartial individual paid to administer and oversee your case on behalf of the U.S. Trustee’s Office.” The creditors are not required to attend, and it’s common for them not to do so. This meeting is not a court hearing, so a judge does not attend.

What to Expect at a 341 Meeting of Creditors

You can expect a creditors meeting to occur within 20 to 40 days after filing your bankruptcy petition. You are required to attend this meeting.

The trustee will conduct the meeting, administer an oath to you, verify your identity, and ask standard questions and other optional questions to evaluate the information in your petition. A record of the meeting will be taken. A typical 341 meeting lasts about 15 minutes.

How to Prepare for a 341 Meeting After Filing Bankruptcy

Before the 341 meeting, you must submit several other required forms and statements – each with its own strict filing deadline. It is acceptable to file these documents with your bankruptcy petition. If you have not already done so, you need to file:

• Certificate of Credit Counseling Course – You must have completed this course within 180 days before filing your bankruptcy petition. If not filed with your bankruptcy petition, it needs to be filed within 14 days after filing your petition. 
• Copy of your most recent tax return – You must provide the trustee with this at least seven days before your meeting date. 
• Statement of Intention – If filing for Chapter 7, the deadline to submit your Statement of Intention is 30 days after filing your petition or on or before the date of your meeting –  whichever comes first. 

You should prepare to bring photo identification and a document showing your social security number. Also, plan to dress professionally.

Contact Loan Lawyers to Help You Prepare for Your 341 Meeting

If you are looking for a fresh financial start, let the bankruptcy attorneys at Loan Lawyers guide you through the bankruptcy process. We’ve helped over 8,000 clients in Florida get out of debt and move on with their lives. To learn more about how we can help you, contact us today for a free consultation.

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Can I Negotiate a Wage Garnishment?

Disclaimer: Loan Lawyers, LLC is licensed to practice law in the state of Florida. If you have a legal matter that you would like to discuss and you are NOT located in Florida, please contact your state’s Bar Association to get the information of a lawyer that can assist you in your home state. Thank you.

A wage garnishment is a court order obtained by a creditor to seize a portion of a debtor’s paycheck, bank account, or other assets to meet a debt obligation. If you are already struggling to pay your debts, the effects of wage garnishment can be especially hard on your finances. However, you may be able to negotiate the terms of wage garnishment or avoid it altogether. The team at Loan Lawyers is here to explain the options for negotiating, contesting, vacating, or ending a wage garnishment.

Is It Possible to Negotiate a Wage Garnishment in Florida?

It is sometimes possible to negotiate a wage garnishment directly with the creditor. Most creditors want to recoup as much of their debt as possible and may be willing to work out a deal. Build your argument before approaching the creditor. Collect evidence showing how detrimental the wage garnishment is to your financial stability or how you qualify for an exemption. In either case, the creditor may agree to a solution that doesn’t involve a garnishment, such as an adjustment payment plan or a settlement for a lump sum.

How to Get Rid of Wage Garnishment Completely

The court clerk must notify you when a creditor files a court order seeking to garnish your wages. You have the right to file an exemption within 20 days of receiving notice. If you file a claim of exemption, the creditor has 14 business days to file a response to your claim with the court. If the creditor doesn’t respond in time, the court can cancel the garnishment.

Some exemptions and other strategies that may allow you to contest or stop a wage garnishment include the following:

• Head of household exemption – Under Florida law, you may legally stop a wage garnishment if you qualify as a head of household. A head of household pays at least 50 percent of the living expenses for a child or other dependent.
• Exempted income – Certain types of income are exempt from wage garnishments, such as retirement benefits, veteran’s benefits, disability benefits, workers’ compensation, alimony, and child support.
• Federal protections – Under federal law, wage garnishments cannot exceed 25 percent of your disposable earnings or the amount of your weekly income over 30 times the federal minimum wage, whichever is less.
• Pay off the debt – This may not be an option for everyone. But if you can come up with the money to pay off the debt, you will eliminate the creditor’s need for wage garnishment. For example, you could ask family or friends for money, consolidate the debt with another loan, or sell an asset.
• Bankruptcy – If you do not qualify for any exemptions and cannot possibly pay back the debt or make ends meet while having your wages garnished, you should consider filing for bankruptcy. While bankruptcy comes with drawbacks, it would stop any wage garnishments. Depending on the type of bankruptcy you file, you may be able to structure a repayment plan, liquidate some assets, or discharge some debts.

RELATED: Wage Garnishment FAQs

Do You Need a Debt Lawyer to Investigate Your Wage Garnishment?

To best understand your legal options for dealing with wage garnishment, consult a knowledgeable debt settlement attorney at Loan Lawyers today. Our foreclosure defense, debt defense, and bankruptcy law firm has helped many Florida clients find a way through or out of wage garnishment. Contact us today for a free consultation.

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