Florida Bankruptcy Lawyer Blog

Is The United States Bankrupt? The Dellutri Law Group Offers A Free Consultation.

Thu, 02 Sep 2010 07:49:51 -0500

Is the United States Bankrupt? Yea probably, but it doesn't seem to know it just yet. We are running deficits every year with no end in sight, and the national debt continues to escalate.

Normal people would have pulled their hair out by now. Normal people would have said enough is enough. Normal people would have changed their spending habits when the money was gone. However, this small cash flow issue does not seem to bother our Government, as they continue to spend, spend, spend. Who was the last person or corporation that spent themselves into prosperity? Go ahead think about it.

It is at this time that I must re-iterate my offer to the United States Government. As a responsible citizen, business owner and bankruptcy attorney, I will gladly provide a free consultation to the United States Government, just like I do to all of my consumer clients. I am extending this offer because I think this Great Country is bleeding cash, and we need to stop the wasting of resources in this Country.

I am willing to sit down with the President, Tim Geithner and anyone else. I will even provide a beer for the president, as he may need it when I tell him that Air Force One will probably be sold at a Bankruptcy Trustee's auction.

At this free consultation we can discuss the Government's debt problems and how a bankruptcy can lead the way to a fresh financial start.

I could go on and on, but I think you get the point.

August Bankruptcy Filings Down 8% From July But Still On Record Pace

Thu, 02 Sep 2010 06:56:41 -0500

Historically, August bankruptcy filings are usually less than July. This July we saw an 8% drop in consumer bankruptcy filings across the nation. This statistic does not mean that we are in a recovery, and please don't assume anything than it is just a number.

Overall, across the United States, consumer bankruptcy filings are still high and are near the 2005 mark. In 2005, Congress overhauled the bankruptcy laws to protect consumers. Yea, thanks guys, after seeing what a job they did on the bankruptcy code, I can't wait to see how the health care system works. I mean you guys run Social Security, Medicare, Fannie Mae, Freddie Mac, the Post Office and most recently took on Wall Street. I'm convinced that we have nothing to fear.

Mark Brunnell Answers Questions About His Bankruptcy

Thu, 02 Sep 2010 06:24:59 -0500

Mark Brunnell is a debtor in a Chapter 11 bankruptcy. I don't mean that in a derogatory way. I mean that he is in the process of using the bankruptcy laws and rules to reorganize his sizeable debts. He made a name for himself as a professional football player. Now, as a sign that no-one is immune from this economy, he is trying to reorganize his debts and move on with his life. Mr. Brunnell is currently trying to make the roster of the New York Jets. Good Luck to him.

As a debtor in bankrutpcy, Mr. Brunnell must answer questions about his assets and liabilities. He must also prepare a chapter 11 plan of reorganization and a disclosure statement which will detail how he intends to deal with his creditors.

The Cost Of Bankruptcy Keeps Increasing

Tue, 31 Aug 2010 07:12:15 -0500

As a consumer bankruptcy attorney, I see first hand how the bankruptcy code and bankruptcy rules play out in the courtroom and creditor's meetings on a daily basis. It seems to me that a great deal of unnecessary costs (administrative and non-administrative) are being placed upon individuals filing for bankruptcy protection.

According to one study from the American Bankruptcy Institute Law Review, the costs of bankruptcy of increased since the bankruptcy law changed in 2005. The article found that consumer debtors filing for Chapter 7 and Chapter 13 protection in the years after 2005’s Bankruptcy Code overhaul (BAPCPA) face costs up to 55% higher than those who filed in 2003 and 2004.

401K Withdrawal or Bankruptcy? Which One Is Better?

Thu, 26 Aug 2010 06:57:02 -0500

As a Consumer and Bankruptcy Attorney, I meet with people everyday to discuss Bankruptcy and other available Consumer remedies. I always tell people not to touch their retirement savings because a 401K and IRA are protected 99.99% of the time when a consumer files for bankruptcy.

Recently, Fidelity released its report on the status of the 401(k) programs that it manages. Some of the highlights, or perhaps better described as lowlights, “(1) participants who borrowed or initiated an application to borrow from their plans reached a 10 year record high and (2) nearly 45% of borrowers who received a hardship withdrawal in the past year took another one this year.”

Bankruptcy And HAMP Part I

Fri, 13 Aug 2010 07:25:40 -0500

As a Bankruptcy Attorney with offices in Fort Myers, Cape Coral, Naples and Port Charlotte, I see people everyday who are in the middle of every type of mortgage modification, involving HAMP and HAFA. So I know that there is quite a bit of misinformation out there concerning a homeowners rights under the HAMP program. Therefore, I am going to follow up with series of blogs to deal with HAMP and the bankruptcy Courts.

Lee County Home Values Down Over 60% Since The Bubble Burst

Thu, 12 Aug 2010 06:36:22 -0500

It has been approximately 5 years since the housing market started to slide in Lee County, Florida. Since then, housing prices in our area have dropped on average of 60%. In some areas of Lee County, the prices have dropped more significantly. Our neighboring counties are doing a little better, but are still in bad shape as well.

According to some estimates, we are only half way through this economic mess. I tend to agree, but I would like to say that the recovery that everyone is hoping for will be much slower than anticipated. People are so ready to get back to the way things used to be, but, for most people, that way of life is over and done with. The days of free-spending and quick access to cash from credit cards and home-equity loans will never be the same.

What does this mean for those of us living in Southwest Florida. Well, things are not going to be easy, but at the same time, opportunities always arise in a down economy, and it is up to us to get back on our feet and put our best foot forward.

When Do I Have To Leave My House?

Wed, 04 Aug 2010 20:30:44 -0500

As a Bankruptcy and Foreclosure Defense Lawyer, I meet quite a few people everyday. Some of the most common questions I hear from clients who are surrendering their homes through a bankruptcy proceeding is, “How do I know when I have to move out? Can they just show up at my door one day and tell me to leave? How much notice will I have?”. The confusion is completely understandable, but I hope to clear things up for you here.

Should I Sign A Reaffirmation Agreement Part II

Mon, 26 Jul 2010 09:32:56 -0500

In Part 1 of this article, I discussed the reasons you should NOT reaffirm a mortgage loan. The decision of whether or not to reaffirm a vehicle loan is more complex. While it is very rarely ever in anyone’s best interest to reaffirm a mortgage loan, it often may be in a Chapter 7 debtor’s best interest to reaffirm a vehicle loan. The main reason for this is that there is a pretty significant chance that your lender has the legal right to repossess your vehicle if you don’t sign a reaffirmation agreement – even if you keep current on all of your payments! If your loan documents specify that filing bankruptcy is itself an event of default (you will need to have an attorney review the documents in order to confirm this), then if you don’t sign a reaffirmation agreement, you are risking losing your vehicle. Now, most people rely heavily on their vehicles for their livelihood: to get them to and from work, to get their kids to and from school, grocery shopping, etc. Not many people are willing to risk losing their vehicle, however small or large that risk may be. So, most Chapter 7 debtors do end up signing a reaffirmation agreement when requested by their lender, and most attorneys will likely support that decision, as long as it does not appear to impose an undue hardship on the debtor to make the monthly loan payments..

The New Debtor's Prisons: How Debt Can Result In Jail

Wed, 21 Jul 2010 11:06:02 -0500

I wrote a blog last year entitled “New Check Fraud from Cash Advance Scam.” The basics of the scam are: A debt collector will identify themselves as an investigator investigating the debtors for check fraud arising from a payday loan. The collectors threaten jail unless the debt is paid. In the blog, I wrote that the statements are false as there are no criminal charges for simply not paying debt; debtor’s prison was abolished in the United States in the 19th century. Well, while that is all true, there is a sad trend that debt has a key to the jail’s back door.

Should I Sign A Reaffirmation Agreement On My Mortgage After Filing For Chapter 7?

Wed, 21 Jul 2010 07:39:12 -0500

After filing a Chapter 7 bankruptcy, you or your attorney may receive what’s called a “reaffirmation agreement” from your mortgage lender, likely accompanied by a letter trying to convince you that you should sign it. What that letter is not going to tell you is the most important piece of information – why signing is NOT in your best interest. That is what I am going to explain to you here.

A reaffirmation agreement is basically a brand new legal contract that revives your personal liability on the mortgage note – a liability that will otherwise be wiped out when you receive your discharge in your bankruptcy case. What this means to you is that if sometime down the road, say, 2 or 5 or 10 years from now, you come upon hard times again and can no longer afford to make your mortgage payments, your lender would not only be able to foreclose and take your home, but the mortgage company can also file a lawsuit against you for the deficiency from the foreclosure sale (ie, the difference between what you owe on the mortgage loan and the amount the property sold for at the foreclosure sale). For example, if you owe $200,000 on your mortgage loan, and your home is worth only $150,000 at the time of the foreclosure sale, then if you sign a reaffirmation agreement now, you could legally owe your lender $50,000 even though you no longer own your home. That is a HUGE risk to take for very little reward.

Don't Withdraw That Paycheck And Don't Commingle Your Funds

Wed, 07 Jul 2010 08:52:19 -0500

As a bankruptcy attorney in Southwest Florida, many times I see clients who think it is best to withdraw all their money from their bank accounts before filing. This is an incorrect assumption for a couple reasons: (1) any amounts held in cash must be disclosed; and (2) exemptions may apply to protect those funds while in the bank account.

Consumer Bankruptcies Filings Up 14%

Tue, 06 Jul 2010 07:44:36 -0500

Consumer bankruptcy filings are up approximately 14% since the same time last year. The causes of the filings are obviously the recession, unemployment and the housing crisis (the Big Three). In South West Florida, we know the big three all too well. It is expected that over 1.6 million people will file for bankruptcy protection this year.

I have mixed emotions on this issue. First, I think more people should consider the bankruptcy option. I can say this because I understand the bankruptcy process and the benefits it offers. Likewise, I have an open-mind to bankruptcy. I see many people who say that bankruptcy is the worst thing a person can do, and unfortunately, that is not true. Bankruptcy is usually not the worst option.

Are We Heading Into a Double Dip Recession?

Tue, 29 Jun 2010 16:39:08 -0500

Are we in Southwest Florida heading into a "Double Dip Recession" ? If you are an avid reader of this blog, and I know there are many of you because of the feedback I receive, you know that I believe we are no where close to the end of this recession/depression. I honestly do not believe that we are being given all of the information that we need to have a proper debate on the economy.

Maybe our elected officials are sparing us more bad news??? I don' t know. But, on the other hand, when you call the U.S. a democracy, and the definition of the words means: Rule By The People. I begin to get concerned when the people are mis-informed and ill-informed.

Can I Save Money During Bankruptcy?

Tue, 29 Jun 2010 07:55:03 -0500

As a consumer bankruptcy attorney, I am often asked: Can I save any money during my bankruptcy? Well, if you filed a Chapter 7 case, this really isn't an issue. If you filed a Chapter 13 plan of reorganization, you will probably be in the bankruptcy for three to five years. The simple answer is: No, you aren’t supposed to save money; however, that is not realistic. In a chapter 13 bankruptcy, a debtor must pay to the bankruptcy trustee all of his disposable income for 3 to 5 years. Continued reasonable 401K contributions are considered an acceptable expense, but most other forms of saving money is prohibited.