Florida Bankruptcy Lawyer Blog

Should I Be Ashamed to File for Bankruptcy Protection?

Mon, 23 Apr 2012 17:07:04 -0500

No, you should not be ashamed to file for bankruptcy protection. I had the pleasure of meeting with a client the other day who had retained our firm to assist in his bankruptcy. After chatting for a bit, the man confessed that he was very uncomfortable filing bankruptcy. When I asked him why, he replied, “I’m a man of my word. I’ve always paid my debts. It doesn’t feel right that I can walk away from my obligations. But at this point I don’t have a choice. It’s shameful.”
This sentiment is a common one in my experience. Nobody that comes to us for debt relief assistance wants to file for bankruptcy. The people we see in our office every day are not trying to get “off the hook” – more often than not, they’re merely victims of the economic downtown that have no other options. They want to pay off their debts in full, not just because they want that monkey off their back, but also because they’re honorable and fair-minded people. But the biggest reason that people don’t want to file bankruptcy is because they view it as shameful. At some point in our country’s history, a stigma became associated with filing for bankruptcy that has irreversibly tarnished the institution in the minds of many Americans. Many good, honorable, hard-working people who have become buried in debt for whatever reason are extremely hesitant to even consider the possibility of filing for bankruptcy because of this so-called stigma.

After Bankruptcy Are You Eligible For a Consumer Debt?

Fri, 06 Apr 2012 16:30:12 -0500

Mr. Dellutri explains that yes, you are eligible because as a creditor they know you can't file a Ch. 7 again until eight years down the road.

Finally the Court is Putting Some Teeth into Automatic Stay Violations

Mon, 30 Jan 2012 08:27:23 -0500

Lately the Middle District of Florida Bankruptcy Court for Fort Myers Division has been putting some teeth into Automatic Stay violation. The Automatic Stay, among other things, protects debtors in bankruptcy from continued collection actions. If creditors willfully violate the Automatic Stay, the court is authorized to compensate debtors for any actual damages and sanction the creditor to prevent future violations.

Despite the protections afforded by the Automatic Stay, creditors routinely violate it. Sometimes, the matter is cleared up with a cease and desist letter while other violations are only halted by seeking relief from the court.

Thinking Of Filing For Bankruptcy In Florida

Fri, 23 Dec 2011 11:57:52 -0500

If you are thinking of filing a Chapter 7 bankruptcy or a Chapter 13 bankruptcy in Florida, you may want to watch these videos for some insight into the process and procedure of consumer bankruptcy in florida.

What are the Different Types of Bankruptcies a Consumer can file?

Will I lose my home if I file for Bankruptcy?

Do I have to file with my spouse?

Attorney Carmen Dellutri of the Dellutri Law Group discusses these issues and more on the Consumer Protection Program.

DOMESTIC SUPPORT OBLIGATIONS IN CHAPTER 13 BANKRUPTCY

Thu, 08 Dec 2011 13:06:40 -0500

While bankruptcy is an excellent way to eliminate debts and start fresh, some debts cannot be discharged. Domestic support obligations, such as alimony or child support, are debts that cannot be discharged.

Domestic support obligations are also treated differently than other debts in a couple of other ways.

How Is My Chapter 13 Bankruptcy Payment Calculated?

Tue, 06 Dec 2011 11:49:22 -0500

One of the most frequently asked questions that I get asked by the firms Chapter 13 clients is: How does my payment get calculated? Trust me, there is no great mystery behind this, and many attorneys will struggle with this question, but the answer is rather simple. In most cases, bankruptcy payments to unsecured creditors are based on three tests, whichever is higher, or 100% to the unsecured creditors:

Turning the Tables

Mon, 05 Dec 2011 15:30:57 -0500

Every now and then I read a story about a bank error and, by fighting back, the consumer turns the table and ends up on top. The story I read recently in the Naples Daily News was about a Florida couple who purchased a home from a foreclosure sale but later the home they purchased was again being foreclosed against – though there was no basis for the foreclosure.

36-month or 60-month – In the M.D. Fla., you are required to stay for at least one.

Mon, 05 Dec 2011 14:40:29 -0500

Chapter 13 debtors in the Middle District of Florida, Fort Myers Division were dealt a hard blow by the court recently. The issue relates to early completion of a Chapter 13 plan once confirmed. To give a little foundation information, Chapter 13 requires a debtors to pay what they can afford to pay for a period of 3 to 5 years (5 years is mandatory of above median income families). In the past, once a plan was confirmed, if a debtor was able to pay the balance early from a source of funds not attachable by the bankruptcy such as family help or from an exempt asset like a retirement account, they could get out of bankruptcy early.

How Long does the Automatic Stay in Chapter 13 Bankruptcy Last?

Tue, 13 Sep 2011 10:51:29 -0500

One major benefit of filing Chapter 13 bankruptcy is the automatic stay. When you file for bankruptcy, all of your creditors are obligated to stop any action against you or your property. Most people file Chapter 13 to stop a repossession or foreclosure, so this is a powerful piece of the relief available to you.

The automatic stay prohibits creditors from beginning or continuing lawsuits, possessions, foreclosures, placing levies or garnishments against your paycheck. Subject to some limitations for repeat filers, this can give you the breathing room you need to begin to get your financial affairs in order.

Debt Collectors

Fri, 12 Aug 2011 15:07:13 -0500

Many consumers have questions on what to do if a debt collector is trying to collect a debt from them and then taking the claim to the next level of reporting it on their credit report. Many ask the question should I contact the debt collector or the original creditor? Mr. Dellutri advises that they should contact both to try to figure out if they even owe the old debt.

Are Inherited IRA's Exempt In The Middle District Of Florida?

Fri, 03 Jun 2011 09:30:57 -0500

For an individual considering bankruptcy, the question often arises, “[C]an I keep the money I inherited in an IRA from Grandpa Joe when he passed away?” There is no easy answer to this question, as United States Bankruptcy Courts for the Middle District of Florida have shown.

The answer, as it so often is under the law, is “it depends.” The May 2011 issue of the American Bankruptcy Institute Journal featured an article on Inherited IRAs titled Inherited IRAs: Exemption Issues under the Code.

How Can I Protect My Bank Accounts When Filing For Bankruptcy?

Mon, 23 May 2011 15:30:59 -0500

As we all know, when an individual files a bankruptcy case, they are required to disclose all of their assets, and the total value of those assets is the starting point for determining how much (if any) they must pay to their creditors in the case. So, of course, in my work as a consumer bankruptcy attorney in Southwest Florida, I get a lot of questions about how to protect one’s assets before filing a bankruptcy case. Specifically, one of the most common things that people want to know about is protecting their bank accounts. When it comes to bank accounts, it is mainly about organization. There are several specific exemptions, or protections, that can be applied to bank accounts to shield them from the reach of the bankruptcy trustee so that you can keep that money available to support your family after the case is filed. These exemptions are based on the source of the money that was deposited into the bank account, the most popular ones being wages and social security. The key to protecting the specific types of deposits that are specifically exempt in bankruptcy is to keep those deposits separate from the rest of your non-exempt money and to spend those protected monies after all other types of money that you have. That way, there is no question as to the source of the money that is in your bank account on the date that you file for bankruptcy protection.

When Lending Money For A Family Member Or Friend To Purchase A Vehicle, Treat It As A Business Transaction.

Thu, 19 May 2011 15:40:32 -0500

One of the situations that I see all to often as a Bankruptcy attorney in Southwest Florida, is where a family member or friend has lent money to someone to purchase a vehicle but has failed to protect this loan with a properly perfected lien and security agreement. When lending money to a friend or family member no one wants to ask for a security interest because it makes it seem like you doesn’t think the person will pay the money back or that you are watching over their shoulder as “big brother.”

However, asking for a security interest when loaning money to a friend or family member actually serves to protect not only you the lender, but also protects the family member that is borrowing the money as well, especially if they are forced to file bankruptcy or have a judgment against them from a lawsuit.

Secured Credit Cards - Which Is The Best One For Me?

Tue, 10 May 2011 09:24:53 -0500

Secured Credit Cards can be a very helpful tool when attempting to re-establish your credit after bankruptcy. They can also be useful for younger individuals seeking to establish credit for the first time. Hopefully, this video will help you navigate the maze of secured credit cards.

What Happens if I Miss A Payment During My Chapter 13 Bankruptcy

Mon, 02 May 2011 07:26:53 -0500

One of the biggest problems in a Chapter 13 bankruptcy is failure to make plan payments. As we all know, individuals in Chapter 13 bankruptcy are required to make monthly payments for 36 to 60 months, unless all creditors are paid in full prior to that time. For any number of reasons, an individual may have something happen in their lives which will cause them to miss a payment to the Trustee's office. When this happens, it is important to speak with your attorney's office. Otherwise, the Court will dismiss your bankruptcy case if payments are not made. Therefore, it is very important to keep good track of your payments.