Should you Reaffirm a Mortgage In Bankruptcy?

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My answer is NO.

Reaffirming a debt means that if you don’t make your future payments the mortgage company can sue you for the balance due after your Chapter 7 is over.   The debt is not discharged if you reaffirmed the debt.

Debtors are required to reaffirm their car loans in bankruptcy in order to keep their vehicles, even if they are current on the vehicle.  Mortgages are a different story however, you can just continue to pay the mortgage and keep the house, without reaffirming the debt.  The mortgage company will not report your mortgage payments, on time or late to the credit bureaus.

If the debtor stops paying the mortgage and has not reaffirmed the debt, the most the mortgage company can do is to take the house back in foreclosure.  The mortgage company will not be able to obtain a personal judgment against you if you have a bankruptcy discharge and did not reaffirm the debt.

This means if later you decided you do not want to keep the home any longer, you can strategically default on your mortgage and just walk away.  This is very valuable.

Why would you consider reaffirming a mortgage then?

If the mortgage company agrees to modify one or more of the mortgage terms so the mortgage is more beneficial to the Debtors you could consider reaffirming.   Possible modifications terms could be a lower interest rate, a lower monthly payment, placing arrears on the back end of the mortgage, or deeming a default current on your credit report.

Reaffirming a mortgage debt requires a complex multi-page agreement which must be approved by the Court.  Unless the Debtor is receiving a  benefit from the mortgage company, most attorneys will not sign off on the agreement and it will require a court hearing.

 

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

Phone: (727) 410-2705;   email: [email protected]

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

How Do I Know If I Can File Chapter 7?

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To file for Chapter 7 bankruptcy, you must qualify under the Chapter 7 means test. The means test first compares your income to the median income in Florida. If your income is lower than Florida’s median income for the size of your household, you can file for Chapter 7 bankruptcy. However, if your income is greater than the median income, other calculations regarding your income and allowable expenses are required to determine whether or not you can file for Chapter 7 bankruptcy.

As of 5/1/2020, the Medium Family  Income is as follows:

State 1 earner Family Size
2 People 3 People 4 People *
Alabama $48,544 $56,918 $68,554 $82,991
Alaska $63,997 $77,589 $102,315 $103,055
Arizona $52,319 $65,713 $71,704 $86,950
Arkansas $43,230 $53,946 $58,258 $74,086
California $60,360 $79,271 $88,235 $101,315
Colorado $61,921 $81,155 $94,193 $107,867
Connecticut $66,689 $88,594 $101,666 $125,714
Delaware $55,578 $72,644 $84,584 $102,625
District of Columbia $63,414 $115,082 $129,777 $140,615
Florida $51,559 $62,736 $68,944 $82,560
Georgia $50,128 $65,007 $73,738 $87,317
Hawaii $65,977 $77,621 $100,620 $114,381
Idaho $52,117 $61,916 $67,422 $77,923
Illinois $54,877 $72,593 $83,759 $103,074
Indiana $48,834 $62,931 $73,537 $87,636
Iowa $51,579 $69,127 $78,930 $95,581
Kansas $51,867 $67,221 $76,999 $88,698
Kentucky $44,594 $56,257 $66,732 $80,115
Louisiana $45,634 $55,410 $63,039 $82,282
Maine $51,453 $64,889 $78,379 $95,614
Maryland $70,789 $90,424 $106,282 $128,272
Massachusetts $67,119 $84,125 $108,130 $134,418
Michigan $53,113 $64,428 $78,217 $93,653
Minnesota $58,050 $77,702 $97,657 $114,326
Mississippi $42,414 $51,904 $58,472 $69,732
Missouri $49,086 $61,519 $73,857 $92,129
Montana $51,074 $64,425 $74,919 $87,293
Nebraska $49,680 $69,294 $78,674 $95,445
Nevada $52,449 $65,756 $74,856 $81,528
New Hampshire $66,585 $80,429 $102,095 $122,523
New Jersey $69,705 $83,739 $106,650 $131,331
New Mexico $45,645 $56,327 $60,617 $67,560
New York $57,137 $72,642 $88,240 $107,550
North Carolina $48,772 $62,050 $69,162 $87,505
North Dakota $53,306 $80,899 $87,824 $99,327
Ohio $51,297 $64,665 $77,642 $93,239
Oklahoma $49,198 $59,495 $66,585 $76,691
Oregon $56,957 $71,838 $80,698 $99,074
Pennsylvania $54,605 $67,540 $83,868 $103,316
Rhode Island $61,706 $75,858 $85,100 $104,833
South Carolina $47,487 $61,529 $66,595 $81,226
South Dakota $47,906 $69,046 $70,326 $83,823
Tennessee $48,219 $60,913 $69,734 $79,701
Texas $50,902 $66,899 $73,948 $86,259
Utah $64,806 $69,006 $82,638 $93,474
Vermont $57,859 $75,602 $81,686 $103,627
Virginia $62,029 $79,412 $91,995 $111,993
Washington $67,511 $80,251 $92,568 $107,481
West Virginia $49,056 $52,028 $64,281 $76,273
Wisconsin $52,730 $68,363 $83,607 $100,098
Wyoming $62,090 $74,286 $78,310 $97,862
* Add $9,000 for each individual in excess of 4.
Commonwealth or U.S. Territory 1 earner Family Size
2 People 3 People 4 People *
Guam $42,770 $51,139 $58,275 $70,520
Northern Mariana Islands $28,722 $28,722 $33,416 $49,148
Puerto Rico $24,701 $24,701 $26,023 $34,108
Virgin Islands $33,935 $40,785 $43,486 $47,642
* Add $9,000 for each individual in excess of 4.

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

Phone: (727) 410-2705;   email: [email protected]

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

 

Chapter 7 Debts

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The most common debts that are dischargeable in Chapter 7 bankruptcy include:

  • Credit card debt
  • Repossession deficiencies on vehicle loans
  • Medical bills
  • Personal loans
  • Judgments
  • Auto accident claims
  • Negligence claims
  • Business debts
  • Leases
  • Guaranties
  • Tax penalties over three years old
  • Income taxes that are not priority taxes

Under the United States Bankruptcy Code, Congress has determined that certain types of debt are not dischargeable in Chapter 7 bankruptcy for public policy reasons, which means you must still repay these debts after bankruptcy. The following debts are usually not dischargeable:

  • Child support and spousal support (alimony) obligations
  • Government-backed student loans
  • Debts incurred by fraud or intentional wrongdoing
  • Criminal fines and restitution

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

Phone: (727) 410-2705;   email: [email protected]

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

Time Limits Between Bankruptcy Filings

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Many people are now wondering since I previously filed Chapter 7, can I file bankruptcy again?   Yes of course, there is no lifetime limit on filing.  There are however limits between filings.  Chapter 7 bankruptcies must have eight years between the filing date and the new Chapter 7  filing date.  If you previously filed Chapter 7 and are now thinking of filing Chapter 13,  you should wait four years in order to receive a discharge in Chapter 13.

  • If you file Chapter 13 within four years of filing Chapter 7, you cannot discharge your debts after you complete the three- to five-year Chapter 13 plan. You can still file Chapter 13 to keep creditors from suing you, garnishing your paychecks, or levying your bank account.  You may want to file another Chapter 7 bankruptcy when you have passed the eight-year mark.
  • If you file Chapter 13 four years after filing Chapter 7, you can have a very low monthly Chapter 13 payment plan and receive a full discharge of all remaining balances after you complete the three- to five-year plan.

There are some circumstances where you may want to file a Chapter 13 right after receiving your discharge in Chapter 7,  even though you will not be eligible for a discharge in Chapter 13.   These are called Chapter 20 cases. This would be done to save your home for example, since there is not a way to do this under Chapter 7 if you are behind on payments.

Remember 2-4-6-8! 

Two Years – Two years between a prior Chapter 13 bankruptcy case and a new Chapter 13 Case.
Four Years – Four years between a prior Chapter 7 bankruptcy case and a new Chapter 13 case.
Six Years – Six years between a prior Chapter 13 bankruptcy case and a new Chapter 13 case.
Eight Years – Eight years between a prior Chapter 7 bankruptcy case and a new Chapter 7 case.

In some cases you can file a new Chapter 13 before your previous Chapter 13 is discharged. It also is possible to convert your case to Chapter 7 if your financial situation has drastically changed.   Give us a  call to discuss your particular case at (727) 410-2705.

 

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

Phone: (727) 410-2705;   email: [email protected]

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

 

 

COVID-19 Office Social Distancing Changes

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Our firm remains intact by both office and remote technology and is ready and able to assist anyone needing our services by phone and Zoom or Google Duo video call.   We are also executing, witnessing, and notarizing documents in the office, and receiving our paying clients in the office.  Masks are required, and will be provided to you if you do not have one.  We also provide gloves, hand sanitizer and disinfect the conference room between each client with Clorox wipes.  All safety procedures such as gloves, masks, hand sanitizer and Clorox bleach disinfect sanitizing are being taken for your safety.

We can receive documents through email, fax or in-person drop off upon arrangement with Carol or you may drop them off at the office with the receptionist.     

Payments can be made over various electronic methods, through the mail or in-person by arrangement. Call (727) 410-2705.

 

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

Phone: (727) 410-2705;   email: [email protected]

 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 Disaster Relief Unemployment and Federal Disaster Relief Unemployment

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Florida is still a nightmare as far as trying to get unemployment if you are self-employed or a gig worker. Forget  about getting any help from the unemployment office or speaking to a live human,

The most common unemployment issue right now is people still pending and waiting to get paid, and missing FPUC (Federal-$600), along with needing to backdate claims to receive past money owed to them.   The DEO is fully aware of this.

Another issue is people are seeing the PUA link (State Disaster) where they should be seeing the PEUC because their state UC has been exhausted.

What do all these letters mean you ask?  Here’s a breakdown.  PUA is for self-employed and 1099s who would otherwise receive no state benefits.  Instead of automatically converting the regular application to this like DEO first said they would for self-employed, you have to wait till the monetary determination decides to deny you and determine ineligibility for regular unemployment benefits.  Once they do this in the list of areas on the left side halfway down a link will appear to apply for the PUA. Fill it out. It will put in the date of the determination, not the date you started applying for unemployment.   You will receive somewhere between $125-$275  a week. Commencing 6/1/2020 you will need to login every week and submit 5 jobs you applied for or information about your career source contact.

FPUC is the Federal disaster relief program this is the $600 everyone is talking about. There doesn’t seem to be a link for most people to apply.  Also it will use the date of the PUA which is likely wrong.  So you need to fill out UC Modification Form – https://claimdate.myflorida.com/login

Representative Ann V. Eskamani ( [email protected]  ) has been hard at work posting information on Facebook regarding DEO and Unemployment Compensation.   She seems to be the only government official who cares.  Contact her staff regarding your issues at [email protected] .   You can find the escalation letter at https://forms.gle/F4NHDxuu9ADqk8847

You might also find some useful information at  http://www.floridajobs.org/docs 

Good Luck!!!!

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

Phone: (727) 410-2705;   email: [email protected]

 Clearwater Bankruptcy Attorney, Clearwater Bankruptcy Lawyer, Clearwater Bankruptcy, Clearwater Estate Planning Attorney,  Pinellas Estate Planning Attorney, Pinellas Probate Attorney #FileLocallyDontOverpay #ClearwaterBankruptcy #ClearwaterBankruptcyAttorney#ClearwaterEstatePlanningAttorney                           #Pinellas ProbateAttorney

Corona Virus Procedures

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The threat of Coronavirus to the older population and those with compromised immune systems or pre-existing conditions makes it extremely important to ensure that your Estate Planning affairs are in order and up to date. You should normally review your documents every 3-5 years.

Here is what we are doing as a firm to make sure you can get your questions answered and your documents done in the safest way possible:

1. We are keeping our office as sanitized as possible for those of you who make it into our office. The conference room is wiped down with Clorox wipes after every client, WHO approved had sanitizer spray is available ( 99% alcohol, 3% peroxide, distilled water, aloe vera, tea tree oil, vitamin E oil, and lavender oil) for use in our conference room.

2. We are waiving our Estate Planning consultation fee until June 1st, 2020 to remove any obstacles to you being able to get your affairs in order.

3. Phone or Facetime meetings are available by appointment if you do not feel comfortable coming to the office or are quarantined. If you are sick or symptomatic please stay home. We can arrange to send a notary to you or for virtual execution if necessary.

We are here to help you please call us at (727) 410-2705 to schedule a consultation.

 

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

Phone: (727) 410-2705;   email: [email protected]

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

Difference Between a Chapter 7 and a Chapter 13

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Difference Between a Chapter 7 and a Chapter 13 Bankruptcy

Chapter 7 is a liquidation bankruptcy, it has two primary functions: reviewing your assets to see if you have non-exempt assets that can be turned into cash the trustee can liquidate to pay back some of your debts, while attempting to eliminate your remaining debts. Creditors will receive notice of the automatic stay upon your filing, which means they must stop contacting you about unpaid bills and seize any legal actions.   Unsecured debts, like medical bills and credit card balances, can usually be wiped out in Chapter 7 bankruptcy.  You must pass a means test in order to qualify for this bankruptcy.

Chapter 13 is a reorganization bankruptcy,  your attorney creates a detailed plan for you to pay back creditors while prioritizing your debts and forcing lower payoff amounts.  Unsecured debts like credit cards and medical bill receive cents on the dollar and they the balances are discharged. In Chapter 13, you will pay only disposable income, or the amount above your living expenses, toward unsecured debts for a period of three to five years. It also gives you a chance to catch up on secured debts like mortgages or car loans and work on regaining your good standing with creditors. You must have regular income to qualify.

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

Phone: (727) 410-2705;   email: [email protected]

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

Pinellas County Teachers and Staff

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Pinellas County Schools

Teachers and staff did you know that if you participate in the MetLife Legal Plan through Hyatt Legal – you can receive – a free trust, will, quitclaim deed, living will, healthcare surrogate, and DPOA before the end of the year.

If you use my office – Carol Lawson PA- #727-410-2705, not only are after school appointments available, but you will receive a Dementia Directive for free.

Hyatt will also pay the Attorney fees ( no costs) for a Bankruptcy. Our office participates in this area handling Chapter 7s only.

To get started go online to your Hyatt legal plan, obtain a case number and then call me to schedule a free appointment today.

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

Phone: (727) 410-2705;   email: [email protected]

 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 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: [email protected]

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