HOW WILL YOUR BANKRUPTCY AFFECT YOU PERSONAL

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HOW WILL YOUR BANKRUPTCY AFFECT YOU PERSONAL INJURY CASE?

How will Bankruptcy affect your Personal injury case? This greatly depends on which occurred first, and which chapter of bankruptcy you are in. Is your personal injury case pending and you needed to file bankruptcy? Or were you in bankruptcy when you were injured and your personal injury case arose? Are you worried now about getting the right personal injury lawyer? Well don’t worry, there are plenty that you could pick from. Why not check out someone like this Columbia personal injury attorney to give you a better idea of what to expect.

When did the Injury occur? If it was before you filed bankruptcy it is the property of the estate.

Chapter 7

If your personal injury case is pending and you file Chapter 7, you will lose your claim (Bk §101(5)) entirely, it will become the property of the estate, including your entitlement for payment of future medical expenses. The trustee will settle the claim liquidating damages, for the benefit of your creditors (Bk Code §726) (BK Code §521(a)). The bankruptcy judge will enter an order approving your settlement. The injured party- debtor has no standing to object to this settlement unless they can convince the judge that the claim would have sufficient recovery to pay all creditors in full and a surplus for the debtor. The Debtor bears the burden of proof.

There are some personal injury claims that are exempt from this such as a Worker’s Compensation Claim. Contact our office for more details.

Also, the Debtor needs to be aware that any medical expenses incurred after the filing of the bankruptcy petition are not discharged in the bankruptcy. You will not be released from personal liability. The trustee will pay only a portion of those medical bills as part of the estate’s administration.

It is also extremely important that your personal injury attorney and your bankruptcy attorney be made aware of your filing both for your protection and theirs. If you would like some more guidance on what to do then you should check out a website like www.nehoralaw.com, this might help you have a better understanding of what to do. Insurance companies regularly check bankruptcy filings to see if you disclosed the claim and if it was done so properly. Failure to disclose can result in the insurance defense attorney moving to have your case dismissed on the day of trial, as the trustee is now the proper party plaintiff. If the statute of limitations has run, then the trustee’s only recourse is now to sue you, revoke your discharge and possibly refer you for criminal fraud charges to the F.B.I.!

Property interests or settlements you may be entitled to within 180 days of filing your bankruptcy petition are also subject to administration by the bankruptcy court.

Your personal injury attorney needs to know not only for how they are going to administer your case going forward, but they must be selected by the trustee, and appointed by the court to continue in your case and receive compensation. There are loads of personal injury attorneys that you could get. For example, you could check out someone like this Forth Worth Personal Injury Lawyer, but there are plenty of others that you could pick from.

Chapter 13

If your personal injury case is pending and you file Chapter 13, you again must disclose the personal injury claim. The debtor will be able to choose and retain counsel, pending court approval. The personal injury attorney will represent both the debtor and the bankruptcy estate/ chapter 13 trustee. Once a settlement is agreed to it must be approved by the bankruptcy court, along with the personal injury attorney’s motion for attorney fees and costs. The Court under a separate motion the Court will determine the distribution of the remaining proceeds between the debtor and the bankruptcy estate.

If you are experiencing problems with multiple creditors, and can benefit by filing bankruptcy while awaiting the resolution of your personal injury claim, or would like to discuss any debt issues, contact our office to schedule a free consultation.

Carol A. Lawson, Esq., 28870 U.S. Hwy 19 #300, Hodusa Towers, Clearwater, FL 33761

Phone: (727) 410-2705;   email: calh@gate.net

 Clearwater Bankruptcy Attorney, Clearwater Bankruptcy Lawyer, Clearwater Bankruptcy, Clearwater Estate Planning Attorney,  Pinellas Estate Planning Attorney, Pinellas Probate Attorney #FileLocallyDontOverpay #ClearwaterBankruptcy #ClearwaterBankruptcyAttorney #ClearwaterEstatePlanning #ClearwaterProbate

April-July Special- Chapter 7 at $795

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Clearwater Bankruptcy Attoreny

Chapter 7- $795 excludes filing fee includes personal property appraisal and credit report.

Chapter 13 -$1,500 down balance through plan capped at $4,500 plus administrative fees excludes filing fee, includes personal property appraisal and credit report, does not include loan modification ( additional $1800 through plan).

 

Carol A. Lawson, Esq., 28870 U.S. Hwy 19 #300, Hodusa Towers, Clearwater, FL 33761

Phone: (727) 410-2705;   email: calh@gate.net

 Clearwater Bankruptcy Attorney, Clearwater Bankruptcy Lawyer, Clearwater Bankruptcy, Clearwater Estate Planning Attorney,  Pinellas Estate Planning Attorney, Pinellas Probate Attorney #FileLocallyDontOverpay #ClearwaterBankruptcy #ClearwaterBankruptcyAttorney #ClearwaterEstatePlanning #ClearwaterProbate

How to Save $1000
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According to recent research, almost one-half of Americans live paycheck to paycheck  62% of Americans have no emergency funds.  Most  Americans waste 10-15% of their income on non-essential items. Here are some tips to create a small next egg.

1. Pay Attention to Your Spending

Pay attention to your spending. Many of us spend money without really registering what we’re doing. Track all of your spending for at least a month to see where the money is going. Track every dollar. When you swipe your credit card, save the receipt and write down each thing you spent money on. When you pay cash save the receipts. See where your money is going.

2. Set Aside a Small Amount to Start

Most of us need to work up to making long-lasting changes in our lives. You can do this as you move toward saving your$1,000. Break down your goal into bite-sized and manageable chunks. When you feel strapped for cash, it feels impossible to set aside $200 a month for savings. Instead break it down into something easier. Saving $200 a month is the same as setting aside $7.14 per day- no Starbucks and you meet your goal.

3. Make it Automatic

Make your savings automatic. Have a set amount taken out of your checking account each month and transferred to your savings account. There are tools, like Digit.co, that will analyze your patterns and figure out how much you can afford to save on a daily basis and transfer the money for you. Good Luck!

 

Carol A. Lawson, Esq., 28870 U.S. Hwy 19 #300, Hodusa Towers, Clearwater, FL 33761

Phone: (727) 410-2705;   email: calh@gate.net

 Clearwater Bankruptcy Attorney, Clearwater Bankruptcy Lawyer, Clearwater Bankruptcy, Clearwater Estate Planning Attorney,  Pinellas Estate Planning Attorney, Pinellas Probate Attorney #FileLocallyDontOverpay #ClearwaterBankruptcy #ClearwaterBankruptcyAttorney #ClearwaterEstatePlanning #ClearwaterProbate

Chapter 13- MEANS TEST

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Chapter 13 is a section of the Bankruptcy Code which allows individuals who are in financial difficulty to pay their creditors over time, while under the protection of the Bankruptcy Court. The Bankruptcy Court issues an order, preventing creditors from taking any action against you the moment the bankruptcy is filed just as in a Chapter 7.

You are required to pay your “disposable income”, which is defined as income that is not reasonably necessary for the maintenance and support of you or your dependents, during the “applicable commitment period” . What the Court says is your disposable income may differ greatly from what you think is your disposable income.   The Trustee looks   at the IRS code if it is not allowed as a deduction there, you probably can not take it on the DMI. If you want to take additional expenses you need to have all the receipts to prove the expense for at least 6-12 months. You will need to provide these receipts for expenses to the Trustee. For example all those school supplies you have to buy each year- not an allowable expense.

Prior to October 17, 2005 under the bankruptcy code, disposable income was calculated by subtracting reasonable monthly expenses from actual monthly income. This system was changed by the passing of BACPA.  The new law is not consumer debtor friendly.

Under the current law, however, this is no longer true. pursuant to the required “means test” the amount of your monthly income is equal to your average monthly income received during the previous six months, and not actual income received at the time of filing. This will include any bonus you received, even if they were only a one time payment.   I know this sounds ludicrous! For example, consider the example of a debtor who, during the six months before filing, enjoyed a high income, but whose income now is much lower. The bankruptcy code, as written, requires the use of the higher, but no longer real, income. A debtor who during the last six months had a comparatively low income but who now earns a high income would not have to use the higher income in calculating disposable income.  Bankruptcy courts have struggled to attempt to reconcile the disposable income as determined by the means test with the amount left after deducting actual expenses from actual income. The court might allow the lower disposable income amount calculated by subtracting actual expenses from actual income, but require interest to be paid to unsecured creditors. The Trustees in the Middle District of Florida- Tampa want 5.25% per month interest paid to unsecured creditors for an over the means debtor who pays 100% plan over 60 months at less then the amount determined by the DMI.

Disposable Income is determined by allowing you to deduct “reasonable” expenses.   Higher income Debtors those above with income above the state median for a household of the same size as yours, are not necessarily the expenses you actually incur.  These expenses are based on national or regional standards determined by the IRS and enforced by the US Trustee Office through the Chapter 13 Trustee, they are irrespective of what you actually spend.

Needless to say, this can require involved and detailed analysis, and determining the amount you will pay in a Chapter 13 plan can be very difficult, time consuming and frustrating for you. This is why you need an attorney to file Chapter 13.  Contact my office to schedule an appointment at (727) 410-2705 or you can use our contact form.

 

 

Carol A. Lawson, Esq., 28870 U.S. Hwy 19 #300, Hodusa Towers, Clearwater, FL 33761

Phone: (727) 410-2705;   email: calh@gate.net

 Clearwater Bankruptcy Attorney, Clearwater Bankruptcy Lawyer, Clearwater Bankruptcy, Clearwater Estate Planning Attorney,  Pinellas Estate Planning Attorney, Pinellas Probate Attorney #FileLocallyDontOverpay #ClearwaterBankruptcy #ClearwaterBankruptcyAttorney #ClearwaterEstatePlanning #ClearwaterProbate

FLORIDA EXEMPTION STATUTES

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One of the most common questions I receive are what exemptions are available to me in Florida under bankruptcy.   I have  included a list of  exemptions under the bankruptcy code below.   Please remember to contact us for your bankruptcy needs .

FLORIDA EXEMPTION STATUTES

Description LAW Max Individual Amount Max Joint Amount
Alimony Child Support FSA § 222.201, U.S.C.§  522(d)(10)(D) UNLIMITED
Annuity Contract Proceeds FSA § 222.14 UNLIMITED
Any Personal Property – No Benefit from Homestead Exemption FSA § 222.25(4) $4,000.00 $8,000.00
Benefits – Public Employee Optional Retirement Program FSA § 121.4501 UNLIMITED
Benefits Exempt From Taxes And Execution FSA §112.359 UNLIMITED
Benefits Payable Under The System FSA §121.091 UNLIMITED
Church Benefit Plans And Church Benefit Board FSA § 624.4031 UNLIMITED
Community College Optional Retirement Program FSA § 1012.875 UNLIMITED
Coverdell Education Savings Account FSA § 222.22 UNLIMITED
Crime Victims§ Compensation -100% FSA §960.14 UNLIMITED
Disability Insurance Benefits-100% FSA § 222.18 UNLIMITED
Disposable Earnings-Head of Family Earning<=$500/Week-100% FSA § 222.11(2)(a) UNLIMITED – 6months
Disposable Earnings-Head of Family Earning>$500/Week FSA § 222.11(2)(b) UNLIMITED 6 months
Disposable Earnings-Non-Head of Family 30x Minimum Wage FSA § 222.11(2)(c ) UNLIMITED 6 months
Florida Retirement System Preservation Of Benefits Plan FSA §121.1001 UNLIMITED
Fraternal Benefit Society Benefits FSA § 632.619 UNLIMITED
Gov. Employees Deferred Comp. Benefits FSA § 112.215 UNLIMITED
Health Aids – Prescribed FSA § 222.25(2) UNLIMITED
Health Insurance – Retired Public Employees FSA § 112.363(9) UNLIMITED
Homestead Fla. Const., Art. 10, §4(a)(1), FSA §§ 222.01, 222.02 UNLIMITED
Hurricane Savings Account FSA § 222.22 UNLIMITED
Life Insurance – Cash Surrender Value FSA § 222.14 UNLIMITED
Life Insurance Proceeds FSA § 222.13 UNLIMITED
Materials Furnished to Improve Real Property FSA § 713.17 UNLIMITED
Mobile Or Modular Home FSA § 222.05 UNLIMITED
Moneys Paid In To Or Out Of Medical Savings Account FSA § 222.22 UNLIMITED
Motor Vehicle (One) FSA § 222.25(1) $1,000.00 $2,000.00
Motor Vehicle Financial Responsibility Deposits FSA § 324.161 UNLIMITED
Optional Retirement Program For The State University System FSA §121.35 UNLIMITED
Partner’s interest in Partnership Property FSA §620.153, 620.8307 UNLIMITED
Partnership Interest FSA §620.8504 UNLIMITED
Payment For Injuries/Death (Hazardous Occupations) FSA § 769.05 UNLIMITED
Pension Money Of U.S. Pensioner FSA § 222.21(1) UNLIMITED
Personal Property Art. 10 § 4(a)(2), FSA § 222.061 $1,000.00 $2,000.00
Preneed Funeral Contract Consumer Protection Trust Fund FSA §497.456 UNLIMITED
Property Listed In 11 USC 522(d)(10) FSA § 222.201 UNLIMITED
Qualified Tuition Programs FSA § 222.22 UNLIMITED
Retiree Health Insurance Subsidy FSA §185.50 UNLIMITED
Retiree Health Insurance Subsidy FSA §185.50 UNLIMITED
Retirement Benefits – Firemen-100% FSA § 175.241 UNLIMITED
Retirement Benefits – Police-100% FSA § 185.25 UNLIMITED
Retirement Benefits – Public Employee-10 FSA § 121.131, 121.055 (6)(e)2 UNLIMITED
Retirement Benefits – State & City Empl. FSA § 122.15 UNLIMITED
Retirement Benefits – Teachers-100% FSA § 238.15 UNLIMITED
Retirement, Profit-Sharing Benefits FSA § 222.21(2) UNLIMITED
Senior Management Service Class FSA §121.055 UNLIMITED
Social Security, Public Assistance Benefits FSA § 222.201, U.S.C.§  522(d)()(10)(A) UNLIMITED
Tax refunds or Credits FSA § 222.25(3) UNLIMITED
Unemployment Compensation Benefits FSA § 443.051(2) UNLIMITED
Veteran’s Benefits FSA § 744.626 UNLIMITED
Wages, Travel Expenses, Unemployment Compensation Payments FSA § 222.16 UNLIMITED
Workmen’s Compensation Benefits FSA § 440.22 UNLIMITED

 

Carol A. Lawson, Esq., 28870 U.S. Hwy 19 #300, Hodusa Towers, Clearwater, FL 33761

Phone: (727) 410-2705;   email: calh@gate.net

 Clearwater Bankruptcy Attorney, Clearwater Bankruptcy Lawyer, Clearwater Bankruptcy, Clearwater Estate Planning Attorney,  Pinellas Estate Planning Attorney, Pinellas Probate Attorney #FileLocallyDontOverpay #ClearwaterBankruptcy #ClearwaterBankruptcyAttorney #ClearwaterEstatePlanning #ClearwaterProbate