September 16, 2011

Can a Credit Card company take my House?

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Many times the average Florida citizen is unaware that Floridians enjoy unlimited homestead protection (unless the home was bought within the last three years, then it is capped at around $146,000). What does this mean? It means that there only certain creditors who can force the sale of your home. Most creditors are not able to affect a homestead.

For example, if a credit card sues and is looking to collect a debt by affecting the homestead, it should not be allowed per Florida law. In Florida, the mortgage company (who has a lien on the home),anyone who performs work on the home and you do not pay up, IRS, and state and local governments can force the sale of a debtor's home.

Therefore, credit card companies and other creditors are limited the in the state of Floirda on what they can and cannot collect on. If you have questions about this, you should consult with an experienced attorney.

Continue reading "Can a Credit Card company take my House? " »

Posted by David A. Wolf | | Email This Post

Posted In: Asset Protection

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January 4, 2011

Should I agree to a short sale if I have 2 mortgages?

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If a short sale is agreed to by your primary lender (1st mortgage holder), that does not necessarily mean you will be free and clear of personal liability after a short sale, especially if you have a 2nd mortgage.

If the same lender holds both mortgages and agrees to release the debtor from personaly liability, then great. However, most 2nd mortgages are with different lenders and just because your primary lender agreed to a short sale does not mean the 2nd mortgage lender will. In fact, many lenders are trying to recover the 2nd mortgage notes from the debtor in personal actions after a short sale has occurred.

There are ways to avoid personal judgments for deficiencies in house notes. If you do not handle the situation, you could have your wages garnished and/or liens imposed on other property that you own.

Continue reading "Should I agree to a short sale if I have 2 mortgages? " »

Posted by David A. Wolf | | Email This Post

Posted In: Asset Protection

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September 28, 2010

Experts Say Don’t But Americans Are Tapping Retirement Funds to Stay Afloat

golden%20eggs.jpgAlthough just about every personal financial advisor says it’s a bad idea to tap into retirement savings to pay living expenses, many Americans are doing just that, according to data recently released from Fidelity Investments of Boston, one of the world’s largest retirement plan administrators.

According to the Fidelity Investments data, the number of people who took early withdrawals from their retirement accounts during the second quarter of this year jumped 38 percent from the previous quarter. In addition, people taking out loans from 401(k) plans are at the highest level in ten years.

A Fidelity spokesperson said it was clear that current economic conditions are forcing people to take money from retirement savings to pay off debt, but doing so has long-term implications that many are not taking into consideration.

For example, filing bankruptcy may be a better option since it will either discharge debt entirely or restructure the debt so there is more time to pay it off. Filing bankruptcy also leaves retirement funds intact, as they are protected from bankruptcy.

In fact, one financial planner quoted in a Boston Globe story said that taking money from retirement accounts to stave off bankruptcy makes no sense, since it is “robbing Peter to pay Paul.”

Posted by David A. Wolf | | Email This Post

Posted In: Asset Protection

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June 11, 2010

Jacksonville Bankruptcy Attorney Urges Florida Residents to Disclose Everything

A Jacksonville bankruptcy lawyer says it is important for Florida residents to know that they need to make a full disclosure when filing Chapter 7 or Chapter 13 bankruptcy, or risk having their bankruptcy case dismissed and facing fraud charges.

When you file Chapter 7 or Chapter 13 bankruptcy in Florida, you are required to provide a complete list of your assets – property, pensions, IRAs, 401(k)s, investment accounts, annuities, life insurance policies, etc.  You must also include any money or property that may be coming to you, such as an inheritance, tax refund, stock options, trust fund, lawsuit judgment or other sources of income.

You must also list every creditor in your bankruptcy filing, even a relative who has provided you with a loan.   If there is a debt that is currently in dispute, you must list that as well, and clarify that it is in dispute.

Filing bankruptcy was intended to provide U. S. citizens with a legal remedy to personal financial calamity.  Being deliberately untruthful in a bankruptcy filing or trying to hide property or other assets is considered a serious matter; some people have even been sentenced to jail for fraud when intentionally hiding assets from the court.

If you need help navigating the intricacies of filing Florida bankruptcy, contact our Jacksonville, Florida bankruptcy law firm.

Posted by Keith Maynard | | Email This Post | Comments (0)

Posted In: Asset Protection , Chapter 13 Bankruptcy , Chapter 7 Bankruptcy

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May 22, 2010

Jacksonville Bankruptcy Attorney Notes MLB Strategy for Saving Rangers From Bankruptcy

The Sports Business Journal has reported that Major League Baseball may seize the Texas Rangers soon in an effort to stop the team’s creditors from pushing the franchise into bankruptcy:

MLB as soon as this week plans to dramatically alter the course of the standoff between creditors and the owner of the Texas Rangers, multiple sources said last week, a development that could include the league seizing the franchise.

Were the league to seize the team under its “best interests of baseball” rule, MLB could sell the club to the group led by Chuck Greenberg and Nolan Ryan without, the league believes, the creditors blocking the deal, these sources said. But were MLB to choose that course — and late last week, the situation was still fluid — financial sources predicted a furious legal response from the creditors that could involve an involuntary bankruptcy petition on behalf of the baseball team.

The coming developments, whether franchise seizure or another course of action MLB could be considering, may bring to a climax a bitter 3 1/2-month process that started with the January agreement between Greenberg and Hicks Sports Group (HSG), which owns the team. Many of the sources said they believe MLB’s only option is franchise seizure if it wants to break the logjam, while others stressed that no firm decision had been made.

HSG put the team up for sale after defaulting on $525 million of debt in March 2009, so the creditors have the right to block the sale — which they have done out of dissatisfaction with the proceeds that would flow to them from the proposed Greenberg purchase.

Despite arduous negotiations between HSG and the creditors, with MLB acting as an intermediary, there is a stalemate. Representatives of MLB and HSG did meet last week, sources said, but no talks occurred with the creditors.

If you need more information on the impact of a bankruptcy filing, contact our Jacksonville, Florida bankruptcy law firm.

Posted by Keith Maynard | | Email This Post | Comments (0)

Posted In: Asset Protection , Chapter 11 Bankruptcy

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May 10, 2010

Supreme Court to Debt Collectors: Ignorance of the Law is no Excuse

Bankruptcy Attorney JacksonvilleOne Jacksonville bankruptcy lawyer says that a recent Supreme Court ruling that the “bona fide error defense” does not protect debt collectors that make mistakes interpreting the legal requirements of the Fair Debt Collection Practices Act may give consumers additional legal recourse against abusive debt collection efforts.

From the Wall Street Journal article on the ruling in Jerman v. Carlisle, McNellie, Rini, Kramer & Ulrich, 08-1200:
The Supreme Court Wednesday made it easier for consumers to sue debt collectors for sending erroneous collection notices.

The high court, in a 7-2 opinion by Justice Sonia Sotomayor, ruled that debt collectors can't shield themselves from such lawsuits by arguing that they made a legal error when sending a collection notice...

At issue were the actions of an Ohio law firm that initiated foreclosure proceedings on behalf of Countrywide Home Loans Inc.

The homeowner, Karen Jerman, disputed that the debt existed. Countrywide later acknowledged that Ms. Jerman had in fact paid the debt, and the law firm withdrew the foreclosure lawsuit.

Ms. Jerman then sued the law firm, arguing that it violated federal debt-collection law by stating in its foreclosure suit that Ms. Jerman's alleged debt would be assumed to be valid unless she contested in writing.

A lower court agreed with Ms. Jerman that the firm violated the federal Fair Debt Collection Practices Act, but ruled that the law firm was shielded from liability because the violation wasn't intentional and was the result of a bona fide legal error.

Justice Sotomayor and the court disagreed, ruling that Congress hadn't explicitly provided a mistake-of-law defense to debt collectors.

If you need to know your legal rights as they pertain to debt collection, contact our Jacksonville, Florida bankruptcy law firm.

Posted by Keith Maynard | | Email This Post | Comments (0)

Posted In: Asset Protection , Common Bankruptcy Concerns

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May 9, 2010

Jacksonville Bankruptcy Attorney Details How Bankruptcy Affects Retirement Plans

bank bankruptcy attorney jacksonvilleFlorida residents who are considering filing Chapter 7 or Chapter 13 bankruptcy may be concerned that a bankruptcy filing will wipe out their retirement plan funds, says one Jacksonville bankruptcy lawyer.

Fortunately, retirement accounts are considered exempt property in a bankruptcy filing.  And, with a few exceptions, the amount of the exemption is unlimited, protecting the entire amount of the retirement account.

Retirement plans that qualify for this exemption include any ERISA-qualified pension plan:

  • 401(k) plans

  • 403(b) plans

  • Roth, SEP and SIMPLE IRAs

  • Profit-sharing plans

  • Keoghs

  • Defined benefit plans

  • Money purchase plans


For traditional and Roth IRAs, there is an exemption limit of $1,095,000 per person; if your plan’s value is more than this, the bankruptcy court can use the excess to repay your creditors.

If you have taken a loan from your retirement account, that debt cannot be discharged in a Chapter 7 bankruptcy.  If you file Chapter 13 bankruptcy, any remaining debt from your retirement account loan can be discharged at the end of the Chapter 13 bankruptcy (usually three to five years).

If you need more information on the impact of a Chapter 7 or Chapter 13 bankruptcy filing, contact our Jacksonville, Florida bankruptcy law firm.

Posted by Keith Maynard | | Email This Post | Comments (0)

Posted In: Asset Protection , Chapter 13 Bankruptcy , Chapter 7 Bankruptcy , Common Bankruptcy Concerns

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April 23, 2010

Asset Protection in Florida: What is Homestead Protection?

Bankruptcy Attorney JacksonvilleProbably one of the biggest worries that Florida homeowners have these days is the potential to lose their home to creditors.  However, Florida law exempts homestead property from creditor judgments and goes into effect the first day you occupy the property.

There are some qualifications:  you must be a permanent resident of Florida and the homestead property must be your primary residence.  This applies not only to houses but also to condominiums, mobile and modular homes.

If you purchase a property as a retirement home to be occupied in the future, the homestead exemption will not go into effect until you occupy that property as your primary residence.

There is no monetary limit on homestead protection, so a multi-million dollar residence is afforded the same protection as a $100,000 home under Florida law.

There are exceptions to Florida homestead protection.  Homestead property is not protected against mortgages, tax liens, homeowner assessments or mechanics liens associated with improvements or repairs made to the property.

Homestead protection may also not apply in bankruptcy cases but there are exceptions and qualifications.  You should consult with a Florida bankruptcy attorney to learn if homestead protection will apply to your particular case.

For more information on Florida homestead protection and bankruptcy laws, contact our Jacksonville, Florida bankruptcy law firm.

Posted by Keith Maynard | | Email This Post | Comments (0)

Posted In: Asset Protection

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April 21, 2010

Jacksonville Bankruptcy Attorney Explains Protections Available for Active Military Members

Thanks to the 2003 Servicemembers Relief Act (SCRA), those serving our country on active military duty – including the National Guard – are entitled to a number of protections, including protection from foreclosure and repossession.

The SCRA covers all active duty members of the U.S. military, including the National Guard, as well as the commissioned corps of the NOAA (National Oceanic and Atmospheric Administration) and the Public Health Service.

Because military pay is often lower than that of service members’ normal income, Congress enacted the SCRA so those serving active military duty would not suffer undue financial hardships.  Protections include:

Foreclosure – lenders cannot foreclose on homes of active service members during or up to three months following their period of service.

Repossession – a lender cannot repossess a vehicle or any other possession without a court order, as long as the installment contract was made before active duty began.

Tenancy – renters or tenants with existing leases may be relieved of those obligations if the rental agreement or lease was made prior to active duty assignment.  This applies to both residential and commercial agreements.

Eviction – SCRA provides a stay of up to three months for members of the military on active duty and their spouses, children or other dependents who are in danger of being evicted for nonpayment of rent.

The SCRA offers other protections as well.  For more information, contact our Jacksonville, Florida bankruptcy law firm.

Posted by Keith Maynard | | Email This Post | Comments (0)

Posted In: Asset Protection , Common Bankruptcy Concerns , Foreclosure Law

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April 4, 2010

Jacksonville Bankruptcy Attorney Outlines 5 Most Common Types of Bankruptcy

Even with all the Jacksonville, Florida bankruptcy filings in recent years, many individuals are still unclear about the different types of bankruptcy options available.  One Jacksonville bankruptcy attorney recently outlined the five most common types of bankruptcy for Florida residents and businesses:

Chapter 7: Also known as “straight bankruptcy” or “liquidation,” Chapter 7 bankruptcy allows individuals or businesses to surrender non-exempt assets to discharge their debts.  To qualify, you must pass a “means test” – or your income must also be less than the median income in Florida, depending on the number of people and wage earners in your household.

Chapter 9: Chapter 9 bankruptcy allows for municipalities to reorganize debt, and operates the same as Chapter 11 bankruptcy.

Chapter 11: Frequently referred to as “reorganization,” Chapter 11 bankruptcy is available to individuals but because it is more complicated and expensive, it is mostly used by businesses to restructure debt while retaining certain assets.

Chapter 12: Chapter 12 bankruptcy allows family farmers and fishermen to reorganize their debt, and operates very much like Chapter 13 bankruptcy.

Chapter 13: Also known as “reorganization,” Chapter 13 bankruptcy is most often used by individuals who do not pass the “means test” for Chapter 7 bankruptcy.  It allows individuals to restructure their debt, usually paying off a percentage or all of their debt over three to five years.

If you are considering filing bankruptcy in Florida, contact our Jacksonville, Florida bankruptcy law firm.

Posted by Keith Maynard | | Email This Post | Comments (0)

Posted In: Asset Protection , Chapter 11 Bankruptcy , Chapter 12 Bankruptcy , Chapter 13 Bankruptcy , Chapter 7 Bankruptcy , Chapter 9 Bankruptcy

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