Jason Weaver P.A.
3531 Griffin Rd.
Ft. Lauderdale, FL 33312
(954) 848-4357 / (954) 964-3764 (fax)
jason@jasonweaverpa.com
3531 Griffin Rd.
Ft. Lauderdale, FL 33312
(954) 848-4357 / (954) 964-3764 (fax)
jason@jasonweaverpa.com
Home / About Us / Foreclosure Defense / Bankruptcy / Abusive Collections
Jason Weaver PA 3531 Griffin Road Ft. Lauderdale, FL 33312
(954) 848-4357/ (954) 964-3764 (fax)
jason@jasonweaverpa.com
Jason Weaver PA 3531 Griffin Road Ft. Lauderdale, FL 33312
(954) 848-4357/ (954) 964-3764 (fax)
jason@jasonweaverpa.com
Break free of financial burdens
Start your financial life over with a clean slate.
Avoid possible foreclosure money judgments
Start your financial life over with a clean slate.
Avoid possible foreclosure money judgments
It may sound like a dirty word to you. Maybe you’ve thought that you would never declare bankruptcy, or that bankruptcy was for “other people.” And maybe you’ve even felt like it’s a last-ditch option, or a sign of failure.
Think again.
Life is full of unexpected events. Maybe you lost a job, or incurred unanticipated medical debt, or had to use the credit cards because it was the only way to make ends meet. Whatever the reason, being saddled with high debt isn’t something to be ashamed of…it happens to everyone. And it’s nothing to be ashamed of. In fact, the decision to look into bankruptcy is a decision you should be proud of; it is the decision to be responsible, and to take care of yourself, your finances, your family, and to give yourself a fresh start.
Think again.
Life is full of unexpected events. Maybe you lost a job, or incurred unanticipated medical debt, or had to use the credit cards because it was the only way to make ends meet. Whatever the reason, being saddled with high debt isn’t something to be ashamed of…it happens to everyone. And it’s nothing to be ashamed of. In fact, the decision to look into bankruptcy is a decision you should be proud of; it is the decision to be responsible, and to take care of yourself, your finances, your family, and to give yourself a fresh start.
Despite the commercials promising magical cures to debt relief, the only real legal option to a fresh start is Bankruptcy. For consumers, Bankruptcy generally comes in two varieties--Chapter 7, and Chapter 13. Bankruptcy in a Chapter 7 is the legal discharge (wiping out or eliminating) of your debts, or in a Chapter 13, the re-organization of your debts through a payment plan. In your bankruptcy, a Bankruptcy Trustee will look at your financial picture, and the items that you may own, and assess whether there is anything of value to distribute to creditors. Once this is accomplished, and there is nothing more to disburse, the remainder of your debts will be discharged.
The Bankruptcy trustee will not take all of your assets or your property, only that property which lies outside of certain exemptions. The law allows you to keep property up to a certain dollar figure. Any property below (less than) that dollar figure is exempt (protected), and moneys that are above that dollar figure are not exempt and may be taken by the trustee. If all of your property added together falls under the exemption, then you will lose nothing, and your debts will be discharged.
Obviously, this is a simple explanation. So let’s back up a minute…
WHAT GETS DISCHARGED IN BANKRUPCY?
Generally, any debts other than student loans, criminal restitution payments, domestic support, and certain taxes, will be discharged. This means that things like credit card debts, reposessions, foreclosure deficiency judgments, court judgments of almost any kind, medical debts, personal guaranties, and almost every kind of loan where you may owe money, will be discharged.
Even potential or pending debts get discharged--for example, even though you may not have been foreclosed on, a bankruptcy will prevent a money judgment against you later if you are foreclosed on in the future. Or, if you are currently being sued by a creditor, but no judgment has been entered yet. Or, if you are behind in your rent, but your Landlord has not sued you yet.
You can opt to keep, or reaffirm certain debts. For example, many people opt to reaffirm their car loan, as they wish to keep their car and may be current on payments and able to make payments. Many will reaffirm their residential lease, if they don’t want to be forced to move
WILL THE COURT TAKE ALL MY PROPERTY?
No. The Court will only take property you own with a fair market value of over the exemption limit.
For example, let’s assume that the exemption limit is $1,000. If you own $900 worth of items, nothing that you own will be taken or lost.
Remember that:
(1) It is the value of your property that counts after liens, so if, for example, your car is worth $4,000 but you still owe the bank $4,001 on it, the car has $0 value, and does not count against the $1,000.
(2) The value of your property is generally what you could get for your items if sold on the open market today. So if you paid $10,000 for your living room furniture, but it would only sell for $500 on Craigs List or Ebay today, it’s only worth $500. For most people, their personal items are worth much less on the open market than they paid for those items originally.
The Court can take property that is yours but you don’t have yet, such as anticipated inheritances, tax refunds, security deposits you may expect to receive in the near future, or upcoming personal injury settlements. It is important to see an attorney to discuss timing your bankruptcy properly to make sure you get the maximum use of any pending or upcoming assets.
WILL THE COURT TAKE MY INCOME?
No, although any money you may have sitting in the bank does count against your exemption.
But the Bankruptcy Court does not take your regular income nor garnish your wages. Although your income must be below a certain level for you to discharge your debts, your regular recurring income is safe from the Bankruptcy court, before and after the Bankruptcy. At worse, a high income may prevent you from filing a Chapter 7 Bankruptcy, but your regular income will never be taken or garnished by the Bankruptcy court.
WHAT HAPPENS AFTER THE BANKRUPTCY?
After the Bankruptcy in a Chapter 7 case, you are finished. No creditors who were included in the Bankruptcy can bother you, harass you, or make any attempt to collect from you again. Any debt that you previously owed, or may have potentially owed is completely wiped out. You are free to earn whatever income that you can.
No. The Court will only take property you own with a fair market value of over the exemption limit.
For example, let’s assume that the exemption limit is $1,000. If you own $900 worth of items, nothing that you own will be taken or lost.
Remember that:
(1) It is the value of your property that counts after liens, so if, for example, your car is worth $4,000 but you still owe the bank $4,001 on it, the car has $0 value, and does not count against the $1,000.
(2) The value of your property is generally what you could get for your items if sold on the open market today. So if you paid $10,000 for your living room furniture, but it would only sell for $500 on Craigs List or Ebay today, it’s only worth $500. For most people, their personal items are worth much less on the open market than they paid for those items originally.
The Court can take property that is yours but you don’t have yet, such as anticipated inheritances, tax refunds, security deposits you may expect to receive in the near future, or upcoming personal injury settlements. It is important to see an attorney to discuss timing your bankruptcy properly to make sure you get the maximum use of any pending or upcoming assets.
WILL THE COURT TAKE MY INCOME?
No, although any money you may have sitting in the bank does count against your exemption.
But the Bankruptcy Court does not take your regular income nor garnish your wages. Although your income must be below a certain level for you to discharge your debts, your regular recurring income is safe from the Bankruptcy court, before and after the Bankruptcy. At worse, a high income may prevent you from filing a Chapter 7 Bankruptcy, but your regular income will never be taken or garnished by the Bankruptcy court.
WHAT HAPPENS AFTER THE BANKRUPTCY?
After the Bankruptcy in a Chapter 7 case, you are finished. No creditors who were included in the Bankruptcy can bother you, harass you, or make any attempt to collect from you again. Any debt that you previously owed, or may have potentially owed is completely wiped out. You are free to earn whatever income that you can.
BANKRUPTCY AND CREDIT
If your credit is already poor, then Bankruptcy may help your credit, in the long term. Many lenders will see you as less of a risk, given that you just filed for Bankruoptcy, and couldn't do so again for eight years. Further, Bankruptcy will lower your debt to income ratio. Many creditors may even extend credit to you that you could not have obtained before filing, although at much higher interest rates.
Ultimately, if you are 20 years from paying off your debts, your credit may be poor for 20 years. With a Bankruptcy, your credit may be the same or slightly better, for 4-7 years. Bankruptcy puts most people on a "faster track" to improved credit.
WILL BANKRUPTCY SAVE YOUR HOME?
Bankruptcy won't save your home by itself--but it could provide you time to modify your home loan, or provide you additional time in your home. In some cases, a Chapter 13 Bankruptcy may allow you to retain your home. Come see us to talk about how a Bankruptcy can be worked into your overall plan for your home.
Bankruptcy won't save your home by itself--but it could provide you time to modify your home loan, or provide you additional time in your home. In some cases, a Chapter 13 Bankruptcy may allow you to retain your home. Come see us to talk about how a Bankruptcy can be worked into your overall plan for your home.
Understanding Bankruptcy....
