Wage garnishment for unpaid, court-ordered child support is generally limited to 60 percent of your disposable income. If you are additionally responsible for supporting a spouse or child not covered by the order, the limit is 50 percent. For support overdue by 12 weeks or more, an additional five percent may be garnished.

For federal student loans in default, the Department of Education may garnish up to 15 percent of your disposable income. But they cannot garnish more than 30 times the federal minimum wage ($217.50) per week.

If you are subject to more than one wage garnishment, the total garnishment permitted by law is 25 percent of your income.

One additional protection offered: Because complying with wage garnishment creates a certain burden on your employer, they may be inclined to fire you rather than comply. Federal law protects you from this if you have one wage garnishment. However, that protection does not apply if you have more than one garnishment order against you.

As you can tell, the law provides an assortment of protections against excessive garnishment, but these can be quite complicated. If you are having trouble paying your debts, you need the help of an attorney. Contact Osenton Law Office today.

O. Reginald (“Reggie”) Osenton is the Owner and President of Osenton Law Office If you need a Brandon bankruptcy lawyer, attorney, call 813.654.5777 or visit http://www.brandonlawoffice.com.

Fortunately, there are limits to how much of your income may be garnished so that you can hopefully keep paying your basic living expenses. The limits are based in part on “disposable income,” which is income remaining after certain deductions, such as income taxes, Social Security and required contributions to retirement plans.

The maximum garnishment for most creditors is the lesser of

• 25 percent of your disposable income, or
• the amount by which your weekly income exceeds 30 times the federal minimum wage ($7.25), or $217.50

In Florida, if your disposable income is less than $217.50, no wages may be garnished at all.

Florida also has a “head of family” exemption. The head of a family’s wages may only be garnished if they exceed $750, and only if they agree in writing to have their wages garnished. This is a very powerful exemption against wage garnishment, but importantly, it does not automatically apply — it must be claimed in an affidavit filed with the court.

If you are facing wage garnishment, contact Osenton Law Office today.

In a later post, we’ll cover special limits on certain types of wage garnishment.

O. Reginald (“Reggie”) Osenton is the Owner and President of Osenton Law Office If you need a Brandon bankruptcy lawyer, attorney, call 813.654.5777 or visit http://www.brandonlawoffice.com.

That’s what executives at retail giant Sports Authority are hoping they can achieve. Like many businesses focused on brick-and-mortar stores, the chain has struggled in recent years as consumers have shifted toward online shopping. The company has filed for Chapter 11 bankruptcy protection, giving it a period of time to reorganize, during which it will be protected from creditors.

Some people mistakenly think that when a business declares bankruptcy, that means it goes out of business forever. And indeed, about 140 of the chain’s 463 stores will close, including at least two in the greater Tampa Bay area. However, CEO Michael Foss said the move will allow much-needed investments including upgrades to stores and website enhancements, resulting in an improved experience for customers.

In January, Sports Authority missed a $20 million interest payment to creditors.

Many companies have filed bankruptcy and later achieved stability, or even impressive growth. Examples include General Motors, Marvel Entertainment, Six Flags, American Airlines and Kodak.

O. Reginald (“Reggie”) Osenton is the Owner and President of Osenton Law Office If you need a Commercial Bankruptcy attorney in Brandon, Tampa business bankruptcy lawyer, call 813.654.5777 or visit http://www.brandonlawoffice.com.

A Houston man named Paul Aker was involved in a sequence of events that began with defaulting on a student loan and ended with his arrest. In a subsequent interview with a local Fox affiliate, the caption displayed on-screen said that Aker was “arrested by US Marshals for student loan debt.” Print headlines weren’t much better. Viewers could be forgiven for thinking that we had gone back in time to the days of debtors’ prisons.

Fortunately for all of us, law enforcement officers are not, in fact, arresting anyone simply for nonpayment of debts. In 2007, a default judgment was entered against Aker when he failed to respond to a complaint of nonpayment. Five years later, Aker was ordered to appear at a deposition to explain why he was still not making loan payments. The court specifically noted that he would be arrested if he did not appear in court.

When Aker still failed to comply with court orders, a warrant for his arrest was issued, and U.S. Marshals began searching for him. It took nearly four years for them to locate him, at which point they arrested him at his Houston home and took him to court to sort out the matter.

Falling behind on your debts is a serious matter, but not so serious as to lead directly to your arrest. That is, of course, unless you repeatedly fail to respond to court orders. If you have debt problems or are ordered to appear in court, seek the help of an attorney right away.

O. Reginald (“Reggie”) Osenton is the Owner and President of Osenton Law Office If you need a Brandon bankruptcy lawyer, attorney, call 813.654.5777 or visit http://www.brandonlawoffice.com.

One popular racket among scammers involves calling people on the phone, pretending to be from the Internal Revenue Service, and demanding immediate payment of taxes owed. They threaten jail time and often demand payment by a specific method. According to the IRS, at least 5,000 victims were cheated out of some $26 million since 2013 — an average of over $5,000 each.

You should know that the IRS virtually never calls taxpayers, and absolutely never demands immediate payment over the phone. They never demand a specific form of payment. And jail time for unpaid taxes is not common; it is a punishment usually reserved for people willfully avoiding large tax liabilities.

Criminals running more general scams often fraudulently obtain people’s credit reports. That way they can call about a debt you actually owe. Like those posing as IRS agents, these scammers will demand immediate payment via a specific method and threaten jail time or law enforcement involvement. They may be unusually harassing and rude.

Again, no legitimate debt collection agency is going to demand payment “today,” refuse to accept various forms of payment or threaten jail time. Another tell-tale sign is if the caller refuses to give a physical mailing address. If you call back and a live person immediately answers, or if you speak with the same individual each time you call, these are red flags. Real debt collection agencies have phone menus or receptionists and multiple agents, any of whom might work on your case.

Ignoring scare tactics and knowing how scams work can help protect you against scammers. For real problems with real debt, contact Osenton Law Office.

O. Reginald (“Reggie”) Osenton is the Owner and President of Osenton Law Office If you need a Brandon bankruptcy lawyer, attorney, call 813.654.5777 or visit http://www.brandonlawoffice.com.

Those filing Chapter 7 bankruptcy must liquidate any non-exempt assets to pay their creditors. This means that if you have equity in your home, your trustee may sell it to pay down your debts. State and federal guidelines exempt certain amounts of home equity from this process. In Florida, however, there is no limit to how much equity is exempt for most homes. Therefore, while most Americans with a good deal of home equity are well advised to file Chapter 13 instead of Chapter 7, that does not necessarily apply to Floridians.

Other situations make Chapter 13 a better prospect than Chapter 7 regardless of where you live. If you are behind on your mortgage payments and file Chapter 13, your mortgage “arrears” will be incorporated into your court-ordered payment plan, giving you three to five years to catch up on missed payments. You are therefore protected from foreclosure during the Chapter 13 process if you stay current on the loan and your bankruptcy payment plan.

If you have a second mortgage or other “junior lien,” the process of “lien stripping” may permit you to get rid of it. When a lien is stripped, the lender is treated as an unsecured creditor and will usually receive little to no money in your payment plan. Lien stripping is permitted in Chapter 13 bankruptcies, but not Chapter 7.

Chapter 13 bankruptcy is probably a better choice if you have missed mortgage payments, if you want to get rid of a junior lien, or if you have significant non-exempt equity. Otherwise, Chapter 7 may be a simpler and faster way to reduce your debt burden and keep your home.

O. Reginald (“Reggie”) Osenton is the Owner and President of Osenton Law Office If you need a Commercial Bankruptcy attorney in Brandon, Tampa business bankruptcy lawyer, call 813.654.5777 or visit http://www.brandonlawoffice.com.

First, the good news. The Tampa-St. Petersburg metropolitan area has seen a 23 percent decline in home foreclosures in the past year — one of the largest decreases among large U.S. cities.

Now, the bad news. Despite this decline, Tampa’s foreclosure rate is still the highest among the 20 largest metro areas. The rate stands at one in every 527 homes in the bay area, according to RealtyTrac. This applies to all homes in some stage of the foreclosure process.

Another wrinkle in the foreclosure data is that bank repossessions accelerated in most states in August. Repossessions, which conclude the foreclosure process, are on the rise as lenders finally make headway in clearing the huge backlog of foreclosures that piled up in the wake of the housing bust. While this increase is actually a sign of finally putting that turmoil behind us, it will serve as little comfort to those who are losing their homes. In August, bank repossessions in Florida increased 23 percent year-over-year.

If you face an unpayable debt, consult a bankruptcy attorney. Filing bankruptcy will not wipe out your home mortgage, but it will halt the foreclosure process and give you time to make a new plan.

O. Reginald (“Reggie”) Osenton is the Owner and President of Osenton Law Office If you need a Brandon bankruptcy lawyer, attorney, call 813.654.5777 or visit http://www.brandonlawoffice.com.

If you have student loans, you may already be aware that those debts cannot be discharged under Chapter 7 bankruptcy liquidation except in very limited cases. Under Chapter 13 reorganization, however, debtors agree to make monthly payments that are manageable given their particular financial situation. Creditors in these cases can be forced to accept lower payments than they otherwise would not.

The strategy mainly applies when dealing with private student loans. Private loans usually have higher interest rates than federal loans, and private lenders are usually less accommodating to borrowers who want lower monthly payments that fit their budget.

The Post-Gazette interviewed a man whose monthly student loan payments went from nearly $1,000 to just $200 after he filed Chapter 13. There is one catch, however: Chapter 13 payment plans last no longer than five years, after which normal monthly payments will resume on any unpaid student loan debt. A debtor who then still faces unaffordable debt payments may subsequently file again for Chapter 13 protection, but that entails another round of fees and court proceedings.

If you cannot afford your student loan payments, speak with an experienced bankruptcy attorney about your options.

O. Reginald (“Reggie”) Osenton is the Owner and President of Osenton Law Office If you need a Brandon bankruptcy lawyer, attorney, call 813.654.5777 or visit http://www.brandonlawoffice.com.

That is the message from Tampa bankruptcy judge Michael G. Williamson in a recent Florida bankruptcy case, in which Lisa Metzler of Gibsonton declared bankruptcy in 2012. She was delinquent on her mortgage and had no way to pay it or her other debts. She agreed to surrender her home to the lender, Wells Fargo, and allow them to proceed with foreclosure.

Metzler’s incentive to surrender the home came from one of the finer points of bankruptcy law. Debtors filing bankruptcy are entitled to certain “exemptions” — property not subject to liquidation to satisfy creditors’ claims. Normally, this includes $1,000 worth of personal property, such as furniture and jewelry. However, in cases where a home is surrendered, that exemption is increased to $5,000.

Apparently, however, Metzler had no intention of actually surrendering her home. After agreeing to do so in federal bankruptcy court, she hired an attorney to fight the foreclosure in state court. In response, Wells Fargo filed a motion asking Judge Williamson to revoke confirmation of Metzler’s bankruptcy plan. Williamson granted the motion and dismissed the case.

Since then, at least two other bankruptcy judges in Florida (which continues to lead the nation in foreclosures) have built on Williamson’s ruling in similar cases. And last month, Williamson reopened the Metzler case in order to issue an opinion and further clarify the matter.

“At a minimum,” Williamson wrote, “’surrender’ means a debtor cannot take an overt act that impedes a secured creditor from foreclosing its interest in secured property.”

In case it was not already clear, now it most certainly is: In bankruptcy filings, as in all legal matters, you must do what you say you will do.

O. Reginald (“Reggie”) Osenton is the Owner and President of Osenton Law Office If you need a Brandon bankruptcy lawyer, attorney, call 813.654.5777 or visit http://www.brandonlawoffice.com.

Municipal bankruptcies are fairly rare. They have happened at the rate of about one per year since the Great Depression. But in the wake of the U.S. and global recession of recent years, the filing and/or consideration of municipal bankruptcies have become an ever-present part of the news.

Last year, the controversy in Detroit, Michigan dominated headlines for weeks. The city filed for bankruptcy, but the legality of the filing was in question for almost a year. Detroit filed for Chapter 9 bankruptcy on July 18, 2013. The next day, judge Rosemarie Aquilina ruled the filing violated the Michigan Constitution by interfering with pension payments. She ordered Michigan Governor Rick Snyder to withdraw the filing. Snyder appealed the ruling, and the Bankruptcy Court declared a federal stay of state laws to make the bankruptcy legal. After a trial for objections and several deadlines, the Bankruptcy Court ruled the filing legal in December 2013, and the bankruptcy procedure moved forward.

On June 3, the state legislature of Michigan passed a number of bills designed to prevent Detriot from falling into the same state of emergency again.

It was by far the largest bankruptcy filing of any municipality in U.S. history, both in terms of debt and in terms of the population. Detroit’s debt was estimated at $18-$20 billion, towering over the previous record-holder, Jefferson County, Alabama, which declared bankruptcy in 2011 with some $4 billion in debt. And Detroit’s population is about 700,000, or more than twice that of Stockton, California, which went bankrupt in 2012.

One of the main reasons for Detroit’s financial troubles is a steadily declining population and, therefore, tax base. Its peak population was 1.8 million in 1950. Other causes the city named in its bankruptcy filing were pension and health care costs for retired workers, a dismal rate of property tax collection – with nearly half not having paid for 2011 – budget deficits, government corruption and poor record keeping.

Many consider pensions for current retirees to be untouchable in bankruptcies. The question of whether the modification of debt obligations in bankruptcy proceedings trumps state constitutional protections of pensioners’ rights is being tested for the first time in a Chapter 9 case.

President Obama commented that the federal government is “committed to continuing our strong partnership” with Detroit, but he did not indicate any intention to attempt a bailout of the city, even when the bankruptcy was uncertain. Gov. Snyder has said he does not support the idea of a bailout, saying “accountable government” is the answer.

The ability of bankruptcy to allow individuals, businesses, and governments to move on from untenable financial situations is key to keeping our economy flowing smoothly, but when the livelihood of many thousands of pensioners is on the line, the issue becomes much more complicated.

O. Reginald (“Reggie”) Osenton is the Owner and President of Osenton Law Offices, P.A. If you need a Bankruptcy attorney in Brandon, Tampa lawyer, call 813.654.5777 or visit http://www.brandonlawoffice.com.

In 2013, the government released data showing that consumer bankruptcies were down 13 percent in 2012. For the first half of 2013, bankruptcies were also down 13 percent from the same period in 2012. Sam Gerdano, executive director of the American Bankruptcy Institute, said that due to current low interest rates, households were “deleveraging.”

Deleveraging refers to reducing debt such as high-interest-rate credit cards, mortgages and vehicle loans, which can be accomplished by refinancing at a lower interest rate, taking advantage of government programs and avoiding taking on additional debt. Deleveraging is a step that can result in a better financial position for the individual consumer, making it less likely that a person will need to file for bankruptcy. Experts expect the deleveraging trend to continue.

According to Gerdano, the Home Affordable Refinance Program (HARP) has made it possible for many homeowners to refinance their mortgages and has contributed to the decline in bankruptcy filings.

Over time, fluctuations in bankruptcy filings have been caused by changes in the economy and the law. Filings peaked in 2005, with 2 million consumers declaring bankruptcy that year. The following year, Congress passed a reform bill that tightened bankruptcy requirements. Filings dropped to 600,000 in 2006, but then rose each year until 2010, when 1.5 million consumers filed for bankruptcy. Since 2010, filings have dropped steadily each year.

The rise in consumer bankruptcy filings coincided with the economic downturn. Now, although the economy has not been restored to full health, experts say that consumers are taking steps to deal with debt and are avoiding taking on additional debt. The bankruptcy reform of 2005 also contributed to the decline in filings, as it made filing for bankruptcy a less attractive option. 

Although bankruptcy is now more expensive and less forgiving, it is still an important option for consumers experiencing overwhelming debt.

The decline in bankruptcy filings is an important indicator of the overall health of the economy, showing that fewer consumers are in financial distress. And, while economic predictions are famously prone to error, experts say that with a continued decline in unemployment, low interest rates and the help of government programs like HARP, the decline in filings could continue well through 2014.

O. Reginald (“Reggie”) Osenton is the Owner and President of Osenton Law Offices, P.A. If you need a Brandon bankruptcy lawyer, attorney, call 813.654.5777 or visit http://www.brandonlawoffice.com.

One such scam involves someone from the Far East with a thick accent placing a call to a consumer who might be in debt to a credit card company or some other lending institution.  The caller knows the name of the creditor, the amount of the balance, as well as information about the consumer.  All of this could have been accessed from the personal information such as name, address, and social security number which might allow someone to pull a credit report to determine the names of the consumer’s creditors.  The consumer is advised that they have a debt of some amount, perhaps near $10,000 to a particular creditor, but the caller claims to be a lawyer from Washington, D.C., or some other metropolitan area.  The phone number they are calling from will have an area code that matches the city they claim to be calling from.  This is a masking technique that anyone can produce using certain telephone vendors.  Anyone can purchase a Washington, D.C., area code and mask their calls as coming from that number .  In essence, someone from India could be calling you, appearing to be calling from Washington, D.C.  In some instances, the caller claims to be Attorney Michael Shaw from Washington, D.C. from the phone number 202-239-6225.

This “lawyer” will then tell the consumer that they may settle their debt for $900.  They are instructed to purchase a Green Dot money card from Walgreens, CVS, Wal-Mart or perhaps other vendors who sell these Green Dot credit cards.  The consumer is then advised to load money onto that card, and then call the “lawyer” from Washington, D.C., with the pin number of that Green Dot card so that the “lawyer” can access the $900 on the card for purposes of settling the debt.

Once the consumer gives the pin number to the “lawyer,” the scam artist from overseas will withdraw everything off the card.  For instance, if the consumer puts $2,000 on the Green Dot card but only authorizes the “lawyer” to take $900, the scam artist will withdraw the entire $2,000 amount.

The overseas scam artist will then call the consumer back and tell them that the settlement has now been declined, and that the consumer will be receiving a $900 refund in the mail.  A day later, the consumer will be called again by this same individual who will tell the consumer that the settlement has now been “approved” and they need to redo the transaction because the refund check has already been issued.  This time the scammer will tell the consumer that there is an additional $200 document fee, and so they will need to withdraw $1,100.  This process will repeat itself as many times as the consumer will allow it with different stories and excuses for why refunds will be issued and why new charges need to be taken from the Green Dot card.  Needless to say, no refund checks are ever sent, and some consumers have been known to lose over $5,000 by the various transactions conducted through this scheme.  In some instances, the consumer may be threatened by the caller, claiming that they will be turned over to the police with a warrant issued for their arrest for not paying their bills. The more the consumer protests, the more aggressive the threats become. In some instances the caller may call dozens of times everyday, harassing the consumer, without any threat of recourse due to his offshore location.  The best strategy is to screen your calls and do not engage this person at all. His attention will soon go to other potential victims if his calls are not being taken.

There are likely several variations of this scam, and consumers, particularly those in debt whose personal information may have been accessed through Target last month, need to be aware of these types of transactions.  In summary, consumers should be very cautious about engaging in any wire transfers, Green Dot transactions, or credit card transactions where debts are offering to be settled.  In addition, personal checks, money orders, and cashier’s checks can easily be counterfeited, and should not be relied upon by a consumer.  If ever you need to contact a creditor, or have been contacted by a creditor for purposes of settling a debt, the best approach is to get everything in writing with signed settlement documents and agreements prior to sending any funds.  Seeking attorney representation in this instance is always a good idea.

One such scam involves someone from the Far East with a thick accent placing a call to a consumer who might be in debt to a credit card company or some other lending institution.  The caller knows the name of the creditor, the amount of the balance, as well as information about the consumer.  All of this could have been accessed from the personal information such as name, address, and social security number which might allow someone to pull a credit report to determine the names of the consumer’s creditors.  The consumer is advised that they have a debt of some amount, perhaps near $10,000 to a particular creditor, but the caller claims to be a lawyer from Washington, D.C., or some other metropolitan area.  The phone number they are calling from will have an area code that matches the city they claim to be calling from.  This is a masking technique that anyone can produce using certain telephone vendors.  Anyone can purchase a Washington, D.C., area code and mask their calls as coming from that number .  In essence, someone from India could be calling you, appearing to be calling from Washington, D.C.  In some instances, the caller claims to be Attorney Michael Shaw from Washington, D.C. from the phone number 202-239-6225.

This “lawyer” will then tell the consumer that they may settle their debt for $900.  They are instructed to purchase a Green Dot money card from Walgreens, CVS, Wal-Mart or perhaps other vendors who sell these Green Dot credit cards.  The consumer is then advised to load money onto that card, and then call the “lawyer” from Washington, D.C., with the pin number of that Green Dot card so that the “lawyer” can access the $900 on the card for purposes of settling the debt.

Once the consumer gives the pin number to the “lawyer,” the scam artist from overseas will withdraw everything off the card.  For instance, if the consumer puts $2,000 on the Green Dot card but only authorizes the “lawyer” to take $900, the scam artist will withdraw the entire $2,000 amount.

The overseas scam artist will then call the consumer back and tell them that the settlement has now been declined, and that the consumer will be receiving a $900 refund in the mail.  A day later, the consumer will be called again by this same individual who will tell the consumer that the settlement has now been “approved” and they need to redo the transaction because the refund check has already been issued.  This time the scammer will tell the consumer that there is an additional $200 document fee, and so they will need to withdraw $1,100.  This process will repeat itself as many times as the consumer will allow it with different stories and excuses for why refunds will be issued and why new charges need to be taken from the Green Dot card.  Needless to say, no refund checks are ever sent, and some consumers have been known to lose over $5,000 by the various transactions conducted through this scheme.  In some instances, the consumer may be threatened by the caller, claiming that they will be turned over to the police with a warrant issued for their arrest for not paying their bills. The more the consumer protests, the more aggressive the threats become. In some instances the caller may call dozens of times everyday, harassing the consumer, without any threat of recourse due to his offshore location.  The best strategy is to screen your calls and do not engage this person at all. His attention will soon go to other potential victims if his calls are not being taken.

There are likely several variations of this scam, and consumers, particularly those in debt whose personal information may have been accessed through Target last month, need to be aware of these types of transactions.  In summary, consumers should be very cautious about engaging in any wire transfers, Green Dot transactions, or credit card transactions where debts are offering to be settled.  In addition, personal checks, money orders, and cashier’s checks can easily be counterfeited, and should not be relied upon by a consumer.  If ever you need to contact a creditor, or have been contacted by a creditor for purposes of settling a debt, the best approach is to get everything in writing with signed settlement documents and agreements prior to sending any funds.  Seeking attorney representation in this instance is always a good idea.

Bankruptcy in the U.S. is subject to federal law – the U.S. bankruptcy code. The law varies somewhat from state to state, but bankruptcy cases in the U.S. are heard in federal court. That means bankruptcy cases were subject to DOMA. The prohibition of joint bankruptcy filings by same-sex married couples was not ironclad, however.

In fact, determining whether such a couple could file jointly has been a confusing matter for some time. Under the direction of presiding judges, some bankruptcy courts have allowed joint petitions by same-sex married couples. In June, 2011, a California bankruptcy court ruled that DOMA violated the U.S. Constitution’s guarantee of equal protection. In an unusual move, 20 bankruptcy judges signed onto a ruling rejecting the U.S. trustee’s office’s request that the joint bankruptcy petition of two legally-married California men be dismissed. Prior to that, a very small number of judges had called DOMA unconstitutional.

Just three weeks later, the U.S. Department of Justice announced that it would stop opposing joint bankruptcy filings of same-sex married couples.

But that still did not mean that those couples could count on being able to file jointly. Individual bankruptcy judges exercise great discretion in how to handle cases presented to their courts. They need not heed the rulings or opinions of other bankruptcy judges.

Daniel Maltbie and Garry Houston made news recently when they filed for joint bankruptcy. Having married in Vermont in 2003 and subsequently moved to Florida, they anticipated a rejection of their petition by judges sympathetic to DOMA and to Florida’s non-recognition of same-sex marriages. The couple and their attorney had indicated a willingness to appeal the case in the event their filing was dismissed.

Following the Supreme Court ruling in June striking down DOMA, Maltbie and Houston and many other couples in similar situations expect their cases to proceed smoothly. The decision affects many federal benefits in addition to joint bankruptcy filings, and it remains to be seen how quickly and completely it will be reflected in the government’s laws and day-to-day practices.

O. Reginald (“Reggie”) Osenton is the Owner and President of Osenton Law Offices, P.A. If you need a Brandon bankruptcy lawyer, attorney, call 813.654.5777 or visit http://www.brandonlawoffice.com.

A bill recently signed by Gov. Rick Scott should bring some much-needed relief to Florida. SB 1852 will distribute $200 million to a number of programs designed to ease Floridians’ housing woes. The funds are part of a $25 billion settlement between 49 states and the nation’s five largest mortgage lenders – JP Morgan Chase, Citigroup, Wells Fargo, Bank of America, and Ally Financial – to settle allegations of improper lending practices. As one of the hardest-hit states in the aftermath of the housing bubble, Florida received just over one third of that, or $8.4 billion.

Most of that money will come in the form of modifications of the terms of existing mortgages and writedowns to their outstanding principle. The Florida government received a distribution of $334 million in April. Of that, $60 million was designated for assistance in paying down mortgages, and $73 million went to the state’s general revenue fund, where it may be spent on non-housing-related programs. The remaining $200 million sat in limbo for some time until Scott’s recent signature on SB 1852.

That legislation directs the funds to several different housing programs. The State Apartment Incentive Loan program will receive $60 million to help pay for rental homes for the elderly and disabled. The State Housing Initiative Program, which funds municipal efforts to help low-income homeowners keep and maintain their homes, will receive $40 million. Foreclosure courts will receive $40 million to help reduce the foreclosure backlog. Habitat for Humanity will receive $20 million. Domestic violence shelters and a program for housing the homeless will each receive $10 million.

This is all good news, but meanwhile, attorneys general in Florida and other states have received troubling allegations that banks are not complying with various aspects of the settlement. New York Attorney General Eric Schneiderman has threatened to sue Wells Fargo and Bank of America over concerns they are dragging their feet on processing valid and proper requests from homeowners for lower mortgage payments. Florida Attorney General Pam Bondi’s office has received 293 complaints of violations of the settlement and say they are investigating every one. Bondi said they are doing everything they can to hold the banks accountable, but stopped short of threatening a lawsuit, indicating that other legal processes must play out first.

O. Reginald (“Reggie”) Osenton is the Owner and President of Osenton Law Offices, P.A. If you need a Bankruptcy attorney in Brandon, Tampa lawyer, call 813.654.5777 or visit http://www.brandonlawoffice.com.

There are two routes to declare personal bankruptcy: Chapter 7 and Chapter 13. Chapter 7 is a liquidation plan that sells your assets to pay creditors and Chapter 13 is a re-payment plan, with money paid to the trustee on a biweekly basis. Those funds are then paid to creditors. Chapter 7 and Chapter 13 cover all debts prior to filing. However, only some types of debt may be filed later.

If you have hired a bankruptcy lawyer, which is something you should seriously consider, they will discuss what debts are and are not covered. Unsecured debts must be included. An unsecured debt is not backed up by collateral. An example would be medical or credit card bills.

On the other hand, a secured debt would be a mortgage on a property, and it will be paid by a bankruptcy plan, but the debt itself is not discharged when the bankruptcy process is concluded. The debtor must continue to pay on the mortgage even after other debts have been discharged.

Even though a debtor may be in bankruptcy proceedings, they may find it necessary to take on more debt or apply for additional loans. This may be done, but it requires permission from the court. An Iowa bankruptcy lawyer will file a motion to incur debt and send it to the trustee. The trustee then makes a recommendation to the court. The debtor needs to wait for permission to incur more debt and would be in trouble if they proceeded without the required permission.

In any instance where a debtor, already in bankruptcy, needs to incur more debt, they must consult with their Iowa bankruptcy lawyer. This is an issue that cannot move forward without the courts affirming that it is clear to move ahead. When discussing the bankruptcy process with an attorney, it is vital that all the debts, both pre and post bankruptcy petition debts, are thoroughly reviewed. You need to make an informed decision, in conjunction with your lawyer, about how to proceed and what incurring extra debt means after filing.

To learn more or contact a bankruptcy attorney, visit http://www.iowachapter7.com/

There are two routes to declare personal bankruptcy: Chapter 7 and Chapter 13. Chapter 7 is a liquidation plan that sells your assets to pay creditors and Chapter 13 is a re-payment plan, with money paid to the trustee on a biweekly basis. Those funds are then paid to creditors. Chapter 7 and Chapter 13 cover all debts prior to filing. However, only some types of debt may be filed later.

If you have hired a bankruptcy lawyer, which is something you should seriously consider, they will discuss what debts are and are not covered. Unsecured debts must be included. An unsecured debt is not backed up by collateral. An example would be medical or credit card bills.

On the other hand, a secured debt would be a mortgage on a property, and it will be paid by a bankruptcy plan, but the debt itself is not discharged when the bankruptcy process is concluded. The debtor must continue to pay on the mortgage even after other debts have been discharged.

Even though a debtor may be in bankruptcy proceedings, they may find it necessary to take on more debt or apply for additional loans. This may be done, but it requires permission from the court. An Iowa bankruptcy lawyer will file a motion to incur debt and send it to the trustee. The trustee then makes a recommendation to the court. The debtor needs to wait for permission to incur more debt and would be in trouble if they proceeded without the required permission.

In any instance where a debtor, already in bankruptcy, needs to incur more debt, they must consult with their Iowa bankruptcy lawyer. This is an issue that cannot move forward without the courts affirming that it is clear to move ahead. When discussing the bankruptcy process with an attorney, it is vital that all the debts, both pre and post bankruptcy petition debts, are thoroughly reviewed. You need to make an informed decision, in conjunction with your lawyer, about how to proceed and what incurring extra debt means after filing.

To learn more or contact a bankruptcy attorney, visit http://www.iowachapter7.com/

Supporters of the legislation, HB 87, said that it will reduce the backlog of pending foreclosures and help the state’s housing industry.

On the last day of the Legislature’s 60-day session, the Senate passed the bill on a 26-13 vote. It recently cleared the House on an 87-26 vote.

Whether Scott will sign the bill is not clear. A spokesperson would only say that the governor’s office is reviewing the bill.

Sen. Jack Latvala, R-Clearwater, said the bill would make banks demonstrate more thoroughly their ownership of a mortgage on which they file foreclosure. It also would enable parties other than mortgage holders, such as condo associations, to ask courts to accelerate foreclosure proceedings.

Sen. Darren Soto, D-Orlando, was a prominent critic of the measure. He said it erodes longstanding property rights and does nothing to protect Floridians from losing their homes to fraud. Latvala countered that the bill has more safeguards for consumers than for banks.

One important provision would reduce the time limit for banks to try to get deficiency judgments against foreclosed homeowners from five years to one year. A deficiency exists when a foreclosed home is sold for less than the original homeowner owed on it.

Soto said that banks are deliberately slowing foreclosures in an attempt to prevent a glut of houses from hitting the market, which could cause another price crash. He said that for this reason, the bill would not produce its intended result.

A group called Jurists Engaged in Title Integrity said that the bill would put more burden on homeowners, limiting their time to demonstrate legal issues with foreclosures brought against them.

Meanwhile, the national housing market appears to be improving. The March figure for repossessed homes in the U.S. fell to a five-year low. The number was down 3 percent from February and down 21 percent from March, 2012, according to foreclosure listing firm RealtyTrac Inc.

Having an experienced bankruptcy attorney on your side during a home foreclosure is vital. This bill, if signed by Gov. Scott, would only increase the importance of this choice. Weaknesses in a lender’s foreclosure case are difficult to spot, and this bill would force defendants to bring these issues to the court’s attention much faster.

O. Reginald (“Reggie”) Osenton is the Owner and President of Osenton Law Offices, P.A. If you need a Bankruptcy attorney in Brandon, Tampa lawyer, call 813.654.5777 or visit http://www.brandonlawoffice.com.

An article by Shan Li says that nearly 44 percent of American households would find themselves in financial ruin if they fell victim to one emergency. That is according to a study by the nonprofit Corporation for Enterprise Development (CFED). Those families could not pay for their basic living expenses for three months if they lost their jobs or became too sick to work. Furthermore, nearly one third of Americans do not have a savings account at all.

In Florida, the rate is even worse than the nationwide average. The CFED measures the “liquid asset poverty rate,” defined as the percentage of households without enough cash or other liquid assets to live at the poverty level for three months if their income stopped. Florida’s rate is 51.9 percent, meaning more than half of Florida families fit this profile. That puts the Sunshine State 35th out of the 50 states.

Experts say stagnating wages, rising prices, and high-interest debt may be to blame for the discouraging figures.

The second article, by Alejandro Lazo, explains one widely-held form of high-interest loan called a payday loan. A payday loan is a small, short-term, unsecured loan that depends on the borrower’s ability to demonstrate that they are employed.

Although the loans are marketed as short-term, a study by the Consumer Financial Protection Bureau (CFPB) shows “high sustained use.” The CFPB found that the average payday loan customer took out 11 loans during a year-long period and paid a total of $574 in interest and fees. And the median number of days that borrowers remained indebted was 155.

The CFPB reports also found no real difference between payday loans and so-called “deposit advances” offered by some large banks.

High-interest debt creates a cycle of poverty that is very difficult to escape. It is important to make every effort to build a cushion of cash reserves so that you can weather a storm without resorting to burdensome debt. If you feel like your debt is keeping you from getting your head above water, it may be time to speak with an experienced bankruptcy attorney.

O. Reginald (“Reggie”) Osenton is the Owner and President of Osenton Law Offices, P.A. If you need a Brandon bankruptcy lawyer, attorney, call 813.654.5777 or visit http://www.brandonlawoffice.com.

These days the main trigger for someone filing for bankruptcy is that they have lost their job. There are other reasons which may lead to bankruptcy, such as health issues, divorce, death, poor business decisions, a bad economy, foreclosure and following bad advice. No matter what the reasons are that lead someone to file, the process for bankruptcy remains much the same for everyone. The differences lie in the circumstances that caused them to file, what Chapter they choose to file under or which one they are qualified to file under.

The common definition of being legally bankrupt is when an individual’s pay check does not cover all of their living expenses, allow them to pay interest on loans, or pay down the principal on loans while working to pay them off in a five-year period. Five years happens to be the maximum time limit a U.S. bankruptcy court allows a person work their way out of bankruptcy protection.

While many people report that they feel declaring bankruptcy is embarrassing and will wreck their credit rating, there are a number of beneficial advantages for a debtor who chooses to take this route. They will get an “automatic stay,” which instantly stops all foreclosures, repossessions, evictions, attachments, garnishments, some types of lawsuits and utility shut-offs.

Filing may save the family home and allow you to reschedule your secured debts. Filing may also extend protection for co-debtors. While many people don’t realize this, you may also keep non-exempt property, consolidate all loans into one plan, extend some obligations (such as student loans or tax bills) and that all or part of your loans may be completely forgiven.

There are exceptions to every rule and no two bankruptcies follow the same path. This is why it is best to consult with a qualified Iowa bankruptcy lawyer about which Chapter to file under and to make sure all relevant papers are filed on time, as required. Each set of circumstances is different for every debtor, and it is those circumstances, income, or lack thereof, that will determine whether Chapter 7 would work or Chapter 13.

Seeking bankruptcy protection is a complex and complicated process, best left in the skilled hands of an Iowa bankruptcy lawyer. They know how to expedite the process where possible, can explain what all the forms mean, ensure things are filed on time and according to court requirements, and can offer advice on the various options open to you.

To learn more or contact a bankruptcy attorney, visit http://www.iowachapter7.com/

These days the main trigger for someone filing for bankruptcy is that they have lost their job. There are other reasons which may lead to bankruptcy, such as health issues, divorce, death, poor business decisions, a bad economy, foreclosure and following bad advice. No matter what the reasons are that lead someone to file, the process for bankruptcy remains much the same for everyone. The differences lie in the circumstances that caused them to file, what Chapter they choose to file under or which one they are qualified to file under.

The common definition of being legally bankrupt is when an individual’s pay check does not cover all of their living expenses, allow them to pay interest on loans, or pay down the principal on loans while working to pay them off in a five-year period. Five years happens to be the maximum time limit a U.S. bankruptcy court allows a person work their way out of bankruptcy protection.

While many people report that they feel declaring bankruptcy is embarrassing and will wreck their credit rating, there are a number of beneficial advantages for a debtor who chooses to take this route. They will get an “automatic stay,” which instantly stops all foreclosures, repossessions, evictions, attachments, garnishments, some types of lawsuits and utility shut-offs.

Filing may save the family home and allow you to reschedule your secured debts. Filing may also extend protection for co-debtors. While many people don’t realize this, you may also keep non-exempt property, consolidate all loans into one plan, extend some obligations (such as student loans or tax bills) and that all or part of your loans may be completely forgiven.

There are exceptions to every rule and no two bankruptcies follow the same path. This is why it is best to consult with a qualified Iowa bankruptcy lawyer about which Chapter to file under and to make sure all relevant papers are filed on time, as required. Each set of circumstances is different for every debtor, and it is those circumstances, income, or lack thereof, that will determine whether Chapter 7 would work or Chapter 13.

Seeking bankruptcy protection is a complex and complicated process, best left in the skilled hands of an Iowa bankruptcy lawyer. They know how to expedite the process where possible, can explain what all the forms mean, ensure things are filed on time and according to court requirements, and can offer advice on the various options open to you.

To learn more or contact a bankruptcy attorney, visit http://www.iowachapter7.com/

While filing bankruptcy under Chapter 7 will give you a fresh start on your financial life, there are some debts that you cannot discharge. Some of those debts include, but may not be limited to:

• Alimony
• Taxes owed the IRS
• Liens
• Student loans
• Back child support
• Car loans
• Mortgages
• Condominium association fees
• Fines/penalties owing to government agencies
• Debts incurred as a result of larceny or embezzlement
• Debts not reported in the bankruptcy filing
• Recent purchases of non-essential items
• Debts owed for luxury goods/services charged within 90 days of seeking bankruptcy protection

If you have chosen to file a Chapter 7 bankruptcy, you are not allowed to keep your assets. However, most of the exemptions allowed under federal and state law happen to be large enough to take care of a secured debt like a car loan. If the value of the item in question, say a car, is higher than the exemption you (the debtor) may need to sell it to pay your debt. These are things that need to be discussed with an Iowa bankruptcy lawyer.

Property taxes may not be discharged by bankruptcy. However, there are some federal taxes that may be, provided they meet certain specific conditions. For example: federal income tax may be discharged, provided it is more than three years old, that you filed the return more than two years before seeking bankruptcy protection and that you did not try to avoid paying on your taxes or filed a fraudulent return. This is a complex area, and to completely understand it, it is best to consult with an Iowa bankruptcy lawyer.

It should also be noted that if you have any debts or fines owing that accrued because of illegal behaviour, you will still be responsible for them when you declare bankruptcy. For example, if you were charged with driving under the influence, if you have a collection of traffic tickets or have court ordered restitution to pay etc.

To learn more or contact a bankruptcy lawyer, visit http://www.iowachapter7.com/

While filing bankruptcy under Chapter 7 will give you a fresh start on your financial life, there are some debts that you cannot discharge. Some of those non-dischargeable debts include, but may not be limited to:

• Alimony
• Taxes owed the IRS
• Liens
• Student loans
• Back child support
• Car loans (unless you surrender the car to the creditor)
• Mortgages (unless you surrender the home to the creditor)
• Fines/penalties owing to government agencies
• Debts incurred as a result of larceny or embezzlement
• Debts not reported in the bankruptcy filing
• Recent purchases of non-essential items
• Debts owed for luxury goods/services charged within 90 days of seeking bankruptcy protection

If you have chosen to file a Chapter 7 bankruptcy, you may not be allowed to keep all your assets. However, most of the exemptions allowed under federal and state law happen to be large enough to cover most of your standard items of personal property. If the value of an item of personal property in question, such as a car, is higher than the allowed state exemption, then you (the debtor) may need to sell it or “buy it back from the bankruptcy estate/trustee” in order to pay down your debt. These are things that need to be discussed with an Iowa bankruptcy lawyer.

Property taxes may not be discharged by bankruptcy. However, there are some federal taxes that may be, provided they meet certain specific conditions. For example: federal income tax may be discharged provided that the return was due to be filed more than three (3) years prior to your bankruptcy, and provided that you filed the return more than two (2) years prior to the bankruptcy, and provided that the tax was assessed at least 240 days prior to the bankruptcy, and provided that you did not avoid paying your taxes or file a fraudulent return. This is a complex area, and to completely understand it, it is best to consult with an Iowa bankruptcy lawyer.

It should also be noted that if you have any debts or fines owing that accrued because of illegal behavior, you will still be responsible for them when you declare bankruptcy. For example, if you were charged with driving under the influence, if you have a collection of traffic tickets or have court ordered restitution to pay etc.

Kevin Ahrenholz is an Iowa bankruptcy lawyer and Iowa bankruptcy attorney. To contact him, visit http://www.iowachapter7.com or call 1.877.888.1766.

More recently, authorities placed the company into receivership under the control of the Division of Rehabilitation and Liquidation at the Florida Department of Financial Services.

Then, on March 28, 2013, Federal agents raided Universal’s St. Petersburg headquarters, ordering hundreds of employees out of the building.

The raid came shortly after the trustee in the company’s bankruptcy case alleged a “pattern of dishonesty or gross mismanagement.” Examples cited included a transfer of $18.3 million to a company controlled by Universal’s founder, Dr. Akshay Desai, and over $2 million is bonuses paid to executives in 2012.

Following Universal’s bankruptcy filing, state insurance regulators had already begun liquidating the company’s assets when the federal raid happened.

Desia founded Universal Health Care in 2005. It quickly grew to be the fourth-largest Medicare HMO in Florida. Companies like Universal combine Medicare payments and membership fees to provide coverage that expands upon that offered by Medicare. It eventually expanded its services to 23 states and boasted 140,000 members.

The first public news indicating the extent of Universal’s troubles came when Georgia’s insurance commissioner requested that it halt sales of new policies there, citing the company’s $22.1 net loss in the first half of 2012.

Over 800 former employees are now without a job. In a recent filing in Universal’s bankruptcy case, the company sought to eliminate employment agreements in place for seven executives. Universal’s motion said it no longer required the executives’ services, five of whom were hired less than one year ago.

Employees said they had not received 60 days’ notice before losing their jobs, as is often required before large numbers of layoffs.

Thousands of Universal customers were also left in the lurch, forced to search for new Medicare plans. Members who did not select their new coverage before the April will have to wait until the first of May for the switch to take effect.

The biggest losers, though, will likely be Universal’s investors, including Desai’s fellow doctors, who contributed capital in the company’s early years. Dr. Zachariah P. Zachariah, who chairs the Florida Board of Medicine, invested some $6 million. Zachariah, who was removed from Universal’s board in 2009, has a lawsuit pending against Desai.

O. Reginald (“Reggie”) Osenton is the Owner and President of Osenton Law Offices, P.A. If you need a Tampa business bankruptcy attorney, bankruptcy lawyer, call 813.654.5777 or visit http://www.brandonlawoffice.com.

The cost of bankruptcy is that some of your assets may be taken or liquidated to pay your creditors. If bankruptcy meant losing everything, it would be nearly impossible to move forward after filing. The bankruptcy code therefore allows certain property exemptions for basic assets and possessions that cannot be used to pay creditors.

The federal bankruptcy code at one time did not define exemptions, and exemptions depended entirely on state law. Currently, federal law defines exemptions, but allows states to opt out and create their own statutes concerning exemptions. Florida is one state that does so. States are also permitted to decide whether debtors may choose between the federal or state bankruptcy scheme. Florida debtors must use Florida’s exemptions, which are quite favorable.

In order to qualify for the use of Florida’s exemptions, you must live in Florida for a minimum of 730 days prior to filing for bankruptcy.

Florida’s exemption for your home, called a homestead exemption, is one of the most generous in the nation. The law puts no limit on the exemption allowed for your home. Prior to the Bankruptcy Abuse and Prevention Act of 2005, wealthier debtors would often buy an expensive home in a state like Florida just prior to filing for bankruptcy, thereby shielding large amounts of otherwise non-exempt cash and other assets from creditors. The Act curbs this practice by requiring debtors to have purchased the home more than 1215 days prior to filing; otherwise, the exemption is limited to $146,450.

Up to $1000 worth of personal property, such as furniture and electronics, may be exempted. Alternatively, an exemption of $4000 for personal property is allowed if the debtor does not take a homestead exemption. A separate exemption of up to $1000 is allowed for a motor vehicle.

For heads of household, up to six months worth of wages deposited in a bank account at up to $750 per week is exempt. The Florida state legislature raised this limit from $500 per week in October, 2010.

Many types of savings are exempt, including: 401(k) and 403(b) plans; IRAs and Roth IRAs; educational savings accounts and Florida Prepaid tuition payments; health savings accounts; and hurricane savings accounts. Limits apply to some of these exemptions, but they are in most cases quite generous.

Life insurance policies are exempt up to their cash surrender value, as are veterans’ benefits and social security benefits.

Pensions, such as those payable under the Florida Retirement System, police and firefighter pensions, and teachers’ retirement benefits, are exempt.

These are merely the most commonly-claimed exemptions. Florida’s bankruptcy statutes contains still more exemptions that apply in special cases. A qualified Florida bankruptcy attorney will be able to assist you in finding and claiming every allowable exemption under the law.

O. Reginald (“Reggie”) Osenton is the Owner and President of Osenton Law Offices, P.A. If you need a Brandon bankruptcy lawyer, Tampa bankruptcy lawyer, or Tampa bankruptcy attorney, call 813.654.5777 or visit Brandonlawoffice.com.

Filing bankruptcy does not stop the IRS from collecting tax refunds before the process is started. What many people do not realize is that if the bankruptcy trustee is the one behind the seizure of a tax refund, the refund will not be forthcoming. It will be used to pay creditors. On the other hand, if the bankruptcy trustee did not seize the tax refund, the seizure can be corrected.

When it comes to bankruptcy, the courts view the IRS as a creditor, just like any other bank, credit institution or company that is owed money. If the IRS moves to seize someone’s tax refund, they must advise the individual of their actions, and include the reason for doing so. For example, if the reason is to pay back taxes, written off in bankruptcy, contact your lawyer, the bankruptcy trustee and the IRS promptly. You will need to provide proof your bankruptcy has been discharged to correct this error and get your tax refund back.

Why call the trustee? They have a great deal of latitude to file motions to seize funds and redirect the money to pay creditors. Letting the trustee know the IRS seized a tax refund may trigger the legal process to have that money returned. Provided the trustee is able to demonstrate the IRS acted illegally to seize the refund in the first place, the motion should result in the money being returned.

There are instances in which you may owe more in taxes than you expected. If you file bankruptcy, the IRS might audit your previous tax returns, to see if you made any extra cash. They could then seize the refund to pay for the extra owing they found in your records. This extra money is usually not written off in bankruptcy, as you did not know the debt existed. Despite the fact this kind of gold mining in a debtor’s past tax records is unsettling and seems underhanded, it is legal.

Bankruptcy trustees may file motions to seize tax refunds to pay creditors and back taxes owed the IRS, in Chapter 7 and Chapter 13 bankruptcy proceedings. In a Chapter 7 filing, the liquidation of assets takes the tax refund and uses it to pay off the maximum amount of the debt. The rest is written off. In a Chapter 13 filing, the taxes are seized to roll them into an individual’s court-approved payment plan.

Kevin Ahrenholz is an Iowa bankruptcy lawyer and Iowa bankruptcy attorney. To contact him, visit http://www.iowachapter7.com or call 1.877.888.1766.
Kevin Ahrenholz is an Iowa bankruptcy lawyer and Iowa bankruptcy attorney. To contact him, visit http://www.iowachapter7.com or call 1.877.888.1766.

Filing bankruptcy does not stop the IRS from collecting tax refunds before the process is started. What many people do not realize is that if the bankruptcy trustee is the one behind the seizure of a tax refund, the refund will not be forthcoming. It will be used to pay creditors. On the other hand, if the bankruptcy trustee did not seize the tax refund, the seizure can be corrected.

When it comes to bankruptcy, the courts view the IRS as a creditor, just like any other bank, credit institution, or company that is owed money. If the IRS moves to seize someone’s tax refund, they must advise the individual of their actions, and include the reason for doing so. For example, if the reason is to pay back taxes written off in bankruptcy, contact your lawyer, the bankruptcy trustee and the IRS promptly. You will need to provide proof your bankruptcy has been discharged to correct this error and get your tax refund back.

Why call the trustee? They have a great deal of latitude to file motions to seize funds and redirect the money to pay creditors. Letting the trustee know the IRS seized a tax refund may trigger the legal process to have that money returned. Provided the trustee is able to demonstrate the IRS acted illegally to seize the refund in the first place, the motion should result in the money being returned.

There are instances in which you may owe more in taxes than you expected. If you file bankruptcy, the IRS might audit your previous tax returns, to see if you made any extra cash. They could then seize the refund to pay for the extra owing they found in your records. This extra money is usually not written off in bankruptcy, as you did not know the debt existed. Despite the fact this kind of gold mining in a debtor’s past tax records is unsettling and seems underhanded, it is legal.

In both Chapter 7 and Chapter 13 bankruptcy proceedings, bankruptcy trustees may file motions to seize tax refunds to pay creditors and back taxes owed the IRS. In a Chapter 7 filing, the liquidation of assets takes the tax refund and uses it to pay off the maximum amount of the debt. The rest is written off. In a Chapter 13 filing, the taxes are seized to roll them into an individual’s court-approved payment plan.
Kevin Ahrenholz is an Iowa bankruptcy lawyer and Iowa bankruptcy attorney. To contact him, visit http://www.iowachapter7.com or call 1.877.888.1766.

Universal Health Care Group Inc., based in St. Petersburg, has filed for Chapter 11 protection. Meanwhile, state regulators seek to take over two subsidiaries of the company.

The Florida Office of Insurance Regulation (FOIR) referred Universal Health Care Insurance Co. Inc. and Universal Health Care Inc. to the Division of Rehabilitation and Liquidation at the Department of Financial Services to initiate state receivership.

The company has so far withheld consent for the takeover and will have the opportunity at a court hearing to demonstrate why it should not be required to go into receivership.

Florida began formally investigating Universal in August, 2012, after auditing firm Ernst & Young refused to sign off on some of the company’s 2011 financial statements, alleging their internal controls contained “material weaknesses.”

State investigators now claim to have proof that the company is insolvent. That proof also points to a pattern of improper financial management, according to the state. They allege that United misrepresented its balance sheet and misled state regulators and its creditors.

Florida law provides for an HMO to be a candidate for state receivership if it is the victim of “embezzlement, wrongful sequestration, conversion, diversion or encumbering of its assets; forgery or fraud or other illegal conduct” that threaten its solvency. In an interview with the Tampa Bay Times, FOIR counsel Belinda Miller said that all of those violations apply to Universal.

Jeff Atwater, Chief Financial Officer for Florida, wants to liquidate the company. Insurance Commissioner Kein McCarty is working with federal and state law enforcement to determine whether criminal or civil action is appropriate.

A Tampa Bay Times report said that according to documents filed with the state, the company admitted to being insolvent as of the end of 2012 and required a cash infusion of $30 million in order to continue operations.

At about the same time, officials in Georgia and Ohio reached agreements with Universal under which the company could not sign up new Medicare members.

Miller said that it wanted instead to prove that the company was insolvent.

Universal is pursuing a merger of three of its HMOs in Texas, Florida and Nevada with America’s 1st Choice, owned by Tampa philanthropist Dr. Kiran Patel. Patel has offered $36.5 million for the companies. Universal must now seek the authorization of the bankruptcy court to move forward with the sale, the company said in a statement.

O. Reginald (“Reggie”) Osenton is the Owner and President of Osenton Law Offices, P.A. If you need a Brandon bankruptcy lawyer, Tampa bankruptcy lawyer, or Tampa bankruptcy attorney, call 813.654.5777 or visit Brandonlawoffice.com.

The U.S. Trustee Program (USTP) – part of the Justice Department – began auditing corporate and individual bankruptcies as part of Congress’s 2005 overhaul of the Bankruptcy Code. The USTP in March said it has “indefinitely suspended” the audits. This is not the first time a lack of funds has interfered with the program.

The 2005 law changes authorized the USTP to randomly select for auditing one of every 250 personal bankruptcy cases in each federal judicial district. The amendments also authorized audits of cases showing statistically unusual claims. Under the program, U.S. trustees select the cases, and independent accountants then conduct the audits.

According to a USTP report, the program saw audits of one of every 250 consumer cases per district. But in fiscal years 2008 – 2010, that rate fell to one of every 1,000 cases because of budgetary pressures. A temporary suspension of the program extending from late 2011 to early 2012 pushed those years’ numbers further down to one out of 1,700 cases and one out of 1,450 cases respectively.

Consumer credit industry associations lobbied for the audit program in an attempt to crack down on what its members saw as widespread fraud in bankruptcy filings. The audits review a number of financial documents, such as bank records, paychecks, tax filings and divorce settlements.

Industry groups including the Financial Services Roundtable (FSR), a group of executives at consumer finance firms, have previously asked Congress to increase the program’s funding. In an interview with The Wall Street Journal, Scott Talbot, a vice president at FSR, said the recent suspension concerns him.

“The audits are designed to catch and prevent abuse. The absence of the audits could lead to more instances of abuse of the Bankruptcy Code,” said Talbot.

Another group warned the suspension could negatively impact credit for consumers.

“Funding for bankruptcy fraud prevention is critical because it keeps the cost of credit affordable for everyone,” Karen Klugh of the American Financial Services Association told The Wall Street Journal.

But bankruptcy attorneys may feel differently. Henry Sommer, a bankruptcy attorney and past president of the National Association of Consumer Bankruptcy Attorneys, said the audits add significant time and expense to the bankruptcy process. They are “a real hardship,” he told the Journal.

With or without the threat of audits, an experienced bankruptcy attorney can help the process go smoothly and make sure debtors leave bankruptcy ready for a fresh financial start.

O. Reginald (“Reggie”) Osenton is the Owner and President of Osenton Law Offices, P.A. If you need a Brandon bankruptcy lawyer, attorney, call 813.654.5777 or visit http://www.brandonlawoffice.com.

For those considering filing for personal bankruptcy, and receiving unemployment, you must provide this information to your Iowa bankruptcy lawyer. This includes all pay stubs from the past year and anything that demonstrates ownership and the value of property you own. This information is used to fill out bankruptcy forms, and that includes Form B22A, referred to as the means test. Overall, the Iowa bankruptcy lawyer uses your income, plus unemployment, to perform a means test.

If your income is just above the state median income parameters, you will be told whether you are eligible to file for Chapter 7 bankruptcy, after the means test results are determined. Your means test must include records of any and all income within the past six months, aside from your regular job. The means test process starts by figuring out your current monthly income and what income types are present.

For instance, there are a wide variety of income types that may include:

Salary
Tips
Wages
Bonuses
Commissions
Overtime
Real property income
Retirement income
Business income
Unemployment
Contributions to the household income

Social security benefits are not included in the means test. What happens next is the Iowa bankruptcy lawyer adds up all of your income and divides by six, representing the six months prior to filing for bankruptcy. This provides the lawyer with your current monthly income, which is then multiplied by 12 to show your yearly income. This is compared to the median family income across the state. If the figure is above the state median, the lawyer figures out your disposable income, arrived at by deducting allowable expenses from your monthly income.

The final step is to determine if the presumption of abuse may rear its head should you file for Chapter 7. In short, if your monthly disposable income is under $6,000, there is no presumption of abuse. If it is more than $10,000, abuse is presumed and you would not be eligible to file for Chapter 7 bankruptcy protection.

Each state is different when it comes to the means test, but in general, your income is figured out along those lines, no matter where you live. Always discuss your situation with a skilled bankruptcy lawyer, and avoid the very real possibility that should you attempt to file on your own, you may run afoul of the hundreds of rules and regulations governing bankruptcy.

Kevin Ahrenholz is an Iowa bankruptcy lawyer and Iowa bankruptcy attorney. To contact him, visit http://www.iowachapter7.com or call 1.877.888.1766.

For those considering filing for personal bankruptcy, and receiving unemployment, you must provide this information to your Iowa bankruptcy lawyer. This includes all pay stubs from the past year and anything that demonstrates ownership and the value of property you own. This information is used to fill out bankruptcy forms, and that includes Form B22A, referred to as the “means test.” Overall, the Iowa bankruptcy lawyer uses your income, plus unemployment, to perform a means test.

If your income is just above the state median income parameters, you will be told whether you are eligible to file for Chapter 7 bankruptcy, after the means test results are determined. Your means test must include records of any and all income within the past six months, aside from your regular job. The means test process starts by figuring out your current monthly income and what income types are present.

For instance, there are a wide variety of income types that may include:

Salary
Tips
Wages
Bonuses
Commissions
Overtime
Real property income
Retirement income
Business income
Unemployment
Contributions to the household income

Note: Social security benefits are not included in the means test.

What happens next is the Iowa bankruptcy lawyer adds up all of your income and divides by six, representing your average monthly income for the six months prior to filing for bankruptcy.  This average monthly income figure is then multiplied by 12 to show your yearly income.  This is compared to the median family income across the state for a household of your size.  If the figure is above the state median, you will initially appear to be ineligible for Chapter 7 Bankruptcy, but the lawyer will take additional steps to figure out your disposable income in order to see if you could get back into a Chapter 7 category.  Disposable income figures are calculated by deducting allowable expenses from your monthly income.

The final step is to determine if the presumption of abuse may rear its head should you file for Chapter 7. In short, if your monthly disposable income is under $6,000, there is no presumption of abuse. If it is more than $10,000, abuse is presumed and you would not be eligible to file for Chapter 7 bankruptcy protection.

Each state is different when it comes to the means test, but in general, your income is figured out along those lines no matter where you live. Always discuss your situation with a skilled bankruptcy lawyer, and avoid the very real possibility that should you attempt to file on your own, you may run afoul of the hundreds of rules and regulations governing bankruptcy.

Kevin Ahrenholz is an Iowa bankruptcy lawyer and Iowa bankruptcy attorney. To contact him, visit http://www.iowachapter7.com or call 1.877.888.1766.

The Florida Institute for Neurologic Rehabilitation, Inc. (FINR) recently filed for Chapter 11 protection in federal bankruptcy court in Tampa, along with three affiliated companies. According to court filings, they estimate their liabilities to be between $3 million and $30 million and the number of their creditors to be between 103 and 346. They also estimate their assets to be less than $150,000.

The filing occurred on the same day that Regions Financial Corp. sued FINR, alleging that FINR had defaulted on $31 million in real estate mortgages. Regions Bank claimed in its suit that FINR’s patients’ welfare is in jeopardy due to financial and management problems at the facility in Wauchula, southeast of Tampa.

In August, state authorities ordered FINR to relocate about 50 residents to other facilities. That directive, which the company has been fighting, followed a Bloomberg News story detailing a history of allegations of abuse at the center. According to reports by Florida investigators, FINR staff beat patients and cajoled them into fighting each other.

The creditors listed in FINR’s court filings include attorneys, insurers, medical suppliers, utilities, Hardee County, and a public relations company.

Regions Bank requested in its lawsuit that a court-appointed receiver direct operations at the facility until the collateral on its loans is foreclosed on or sold. It alleges that FINR has not made any payments on its loans since August, has not given payroll tax withholdings to the federal government, and is behind on property taxes and operating expenses. Regions also alleges that after they sent the facility a letter of default in September, Joseph Brennick, owner of FINR, withdrew nearly half a million dollars from the company’s accounts.

Brennick released a statement saying he was “confident” the company could properly care for its resident patients while restructuring financially. He added that media coverage led to “a significant decline in revenue making FINR unable to meet is financial obligations.”

The Florida Agency for Health Care Administration has requested detailed financial disclosures from FINR and told the company it must demonstrate that its assets and revenues are sufficient to maintain operations for two years and prove its ability to rectify its financial situation.

A spokesperson for the agency declined to comment to Bloomberg News on the consequences if FINR were not able to prove financial solvency.

O. Reginald (“Reggie”) Osenton is the Owner and President of Osenton Law Offices, P.A. If you need a Brandon bankruptcy lawyer, Tampa bankruptcy lawyer, or Tampa bankruptcy attorney, call 813.654.5777 or visit Brandonlawoffice.com.

The State of Florida is attempting to recover nearly $20 million from a movie studio that went bankrupt after receiving cash incentives from the government.

According to the Miami Herald, the Department of Economic Opportunity has hired two bankruptcy attorneys to recoup the money granted to Digital Domain Media Group in 2009. The company was founded by director James Cameron and was behind the special effects in the film Titanic.

The incentives helped convince the company to build a new, state-of-the-art studio in Port St. Lucie. But in September 2012, Digital Domain filed for bankruptcy, shuttered the studio, and laid off 300 Florida employees.

The Department of Economic Opportunity, which was created by Gov. Rick Scott, has issued a request for $500,000 to the state legislature to help recover the $20 million granted to Digital Domain.

Monica Russell, a spokesperson for the Department of Economic Opportunity, said, “The department will take any steps possible to seek the return of taxpayer dollars.”

Florida’s lawyers allege that Digital Domain breached its contract with the state by failing to give notice to state officials that it had declared bankruptcy.

Data from the U.S. Courts Statistics Division show that it the average time to complete a bankruptcy case is 16 months. It is unclear at this time whether the state will be able to recover any of the funds.

The bankruptcy raises questions about Florida’s cash incentives to lure businesses to create jobs in the state. Scott has requested the Legislature grant his administration greater leeway in issuing the payouts.

Florida has granted a total of about $4 billion in incentives to businesses, which amounts to nearly 16 percent of the budget, according to data compiled by the New York Times.

Enterprise Florida, a joint state/private organization, screens companies that are candidates for the incentives. They recommended against funding for Digital Domain due to the expected low rate of return on the investment. But officials granted the funds anyway.

Gov. Scott’s office is conducting an investigation into the process by which Digital Domain’s funding was approved.

The bankruptcy code permits creditors to go after assets in Digital Domain’s estate, but Florida is only one of many investors and local governments trying to recoup some of their investments in the company.

Digital Domain sold its assets within two weeks of filing for bankruptcy for just over $30 million. The company’s name appears hundreds of times in Delaware court filings, where it filed for bankruptcy protection.

O. Reginald (“Reggie”) Osenton is the Owner and President of Osenton Law Offices, P.A. If you need a Brandon bankruptcy lawyer, Tampa bankruptcy lawyer, or Tampa bankruptcy attorney, call 813.654.5777 or visit http://www.brandonlawoffice.com/

Many people are not aware of the benefit a mortgage lien strip. If you have taken out a second mortgage on your home to try and keep your head above water, but foreclosure is looming, filing Chapter 13 will halt the process, no matter how far along it is.

Chapter 13 bankruptcy proceedings have a potent tool that allows a debtor to remove the second mortgage. This is beneficial during a housing crisis that may have caused the value of a home to plummet below the amount of the mortgage.

The removal of the second mortgage is referred to as lien stripping, and it is legal in all 50 U.S. states. To qualify for this, the value of the debtor’s house must be lower than the balance of the first/primary mortgage, meaning the second mortgage is not supported by any equity, and turning the second mortgage into an unsecured loan. This process may not be available to everyone, and for this reason, when declaring bankruptcy, it is necessary to discuss the various options that may apply with an Iowa bankruptcy lawyer.

In a Chapter 13 repayment plan, the second mortgage is regarded as an unsecured debt, such as medical bills or credit card bills. Since the bills are paid on a pro-rated basis, in accordance with the court-ordered Chapter 13 repayment plan, the amount to be paid on a second mortgage becomes a mere fraction of what it would have been had the lien stripping option not been applied.

When the Chapter 13 repayment plan has been completed, meaning the debtor has made all court-ordered payments, the second mortgage lien is permanently removed from their property. Before choosing this route, it is wise to know the value of the residential home.

To this end, the home will likely need to be appraised. Additionally, homeowners need to check what their property tax appraised value is, as since the recession hit, property tax appraisals have become higher than the appraised value of the home. Again, this is something that needs to be reviewed with an experienced Iowa bankruptcy lawyer.

Kevin Ahrenholz is an Iowa bankruptcy lawyer and Iowa bankruptcy attorney. To contact him, visit http://www.iowachapter7.com or call 1.877.888.1766.

Many people are not aware of the benefit a mortgage lien strip. If you have taken out a second mortgage on your home to try and keep your head above water, but foreclosure is looming, filing Chapter 13 will halt the process, no matter how far along it is.

Chapter 13 bankruptcy proceedings have a potent tool that allows a debtor to remove the second mortgage. This is beneficial during a housing crisis that may have caused the value of a home to plummet below the amount of the mortgage.

The removal of the second mortgage is referred to as lien stripping, and it is legal in all 50 U.S. states. To qualify for this, the value of the debtor’s house must be lower than the balance of the first/primary mortgage, meaning the second mortgage is not supported by any equity, thus turning the second mortgage into an unsecured loan. This process may not be available to everyone, and for this reason, when declaring bankruptcy, it is necessary to discuss the various options that may apply with an Iowa bankruptcy lawyer.

In a Chapter 13 repayment plan, the second mortgage is regarded as an unsecured debt, like medical bills or credit card bills. Since the bills are paid on a pro-rated basis, in accordance with the court-ordered Chapter 13 repayment plan, the amount to be paid on a second mortgage becomes a mere fraction of what it would have been had the lien stripping option not been applied.

When the Chapter 13 repayment plan has been completed and the debtor has made all court-ordered payments, the second mortgage lien is permanently removed from the debtor’s property. Before choosing this route, it is wise to know the value of the residential home.

To this end, the home will likely need to be appraised. Additionally, homeowners need to check what their property tax appraised value is, because the recession may have caused property tax appraisals to come back higher than the appraised value of the home. Again, this is something that needs to be reviewed with an experienced Iowa bankruptcy lawyer.

Kevin Ahrenholz is an Iowa bankruptcy lawyer and Iowa bankruptcy attorney. To contact him, visit http://www.iowachapter7.com or call 1.877.888.1766.

Many people are not aware of the benefit a mortgage lien strip. If you have taken out a second mortgage on your home to try and keep your head above water, but foreclosure is looming, filing Chapter 13 will halt the process, no matter how far along it is.

Chapter 13 bankruptcy proceedings have a potent tool that allows a debtor to remove the second mortgage. This is beneficial during a housing crisis that may have caused the value of a home to plummet below the amount of the mortgage.

The removal of the second mortgage is referred to as lien stripping, and it is legal in all 50 U.S. states. To qualify for this, the value of the debtor’s house must be lower than the balance of the first/primary mortgage, meaning the second mortgage is not supported by any equity, and turning the second mortgage into an unsecured loan. This process may not be available to everyone, and for this reason, when declaring bankruptcy, it is necessary to discuss the various options that may apply with an Iowa bankruptcy lawyer.

In a Chapter 13 repayment plan, the second mortgage is regarded as an unsecured debt, such as medical bills or credit card bills. Since the bills are paid on a pro-rated basis, in accordance with the court-ordered Chapter 13 repayment plan, the amount to be paid on a second mortgage becomes a mere fraction of what it would have been had the lien stripping option not been applied.

When the Chapter 13 repayment plan has been completed, meaning the debtor has made all court-ordered payments, the second mortgage lien is permanently removed from their property. Before choosing this route, it is wise to know the value of the residential home.

To this end, the home will likely need to be appraised. Additionally, homeowners need to check what their property tax appraised value is, as since the recession hit, property tax appraisals have become higher than the appraised value of the home. Again, this is something that needs to be reviewed with an experienced Iowa bankruptcy lawyer.

Kevin Ahrenholz is an Iowa bankruptcy lawyer and Iowa bankruptcy attorney. To contact him, visit http://www.iowachapter7.com or call 1.877.888.1766.

If you are filing a Chapter 7 bankruptcy, which is by far the most common bankruptcy declared in the U.S., federal income taxes may be discharged only when the taxes in question are more than three years old, were assessed on previous returns at least eight months prior to seeking bankruptcy protection, and you did not file a fraudulent tax return or try to avoid paying taxes. The issue is that if you are seen to have made an effort to pay the taxes, but just did not have enough funds at your disposal, you may be able to discharge your federal taxes.

The courts may consider discharging a tax debt, if the IRS has not already filed a tax lien on your assets. If they have, the lien will then carry over through the bankruptcy, meaning the IRS may still seize your property to collect on your debt. By and large, debtors may find this process more beneficial for them, instead of agreeing to what the IRS refers to as an “offer in compromise.” That would, if the debtor accepts it, mean they must make payments for a long time to come.

Federal tax liens are a tricky area, and you really need to understand how this process may work, by consulting with an Iowa bankruptcy lawyer. For instance, any federal lien filed against property prior to a bankruptcy, should only attach to the equity you have at the time the bankruptcy petition is filed.

Make certain that before you file for bankruptcy protection that you are up-to-date on all of your tax returns and amendments before going to the 341 meeting. The fact is there are a large number of bankruptcy trustees who refuse to have a 341 hearing if you are missing tax returns for the last four years. If information is missing, the trustee will not know if you have non-dischargeable tax liability, which makes a difference in how your case is handled. In other words, be prepared before filing Chapter 7, and do it in partnership with an experienced Iowa bankruptcy lawyer.

Kevin Ahrenholz is an Iowa bankruptcy lawyer and Iowa bankruptcy attorney. To contact him, visit http://www.iowachapter7.com or call 1.877.888.1766.

If you are filing a Chapter 7 bankruptcy, which is by far the most common bankruptcy declared in the U.S., federal income taxes may be discharged only if the taxes in question were due to be filed more than three (3) years ago, and were actually filed more than two (2) years ago, and were assessed on previous returns at least 240 days prior to seeking bankruptcy protection, and you did not file a fraudulent tax return or try to avoid paying taxes. The issue is that if you are seen to have made an effort to pay the taxes, but just did not have enough funds at your disposal, you may be able to discharge your federal taxes.

The courts may consider discharging a tax debt if the IRS has not already filed a tax lien on your assets. If they have, the lien will then carry over through the bankruptcy, meaning the IRS may still seize your property to collect on your debt. By and large, debtors may find this process more beneficial for them, instead of agreeing to what the IRS refers to as an “offer in compromise.” That would, if the debtor accepts it, mean they must make payments for a long time to come.

Federal tax liens are a tricky area, and you really need to understand how this process may work, by consulting with an Iowa bankruptcy lawyer. For instance, any federal lien filed against property prior to a bankruptcy, should only attach to the equity you have at the time the bankruptcy petition is filed.

Make certain before you file for bankruptcy protection that you are up-to-date on all of your tax returns and amendments before going to the 341 meeting. The fact is there are a large number of bankruptcy trustees who refuse to have a 341 hearing if you are missing tax returns for the last four years. If information is missing, the trustee will not know if you have non-dischargeable tax liability, which makes a difference in how your case is handled. In other words, be prepared before filing Chapter 7, and do it in partnership with an experienced Iowa bankruptcy lawyer.

Kevin Ahrenholz is an Iowa bankruptcy lawyer and Iowa bankruptcy attorney. To contact him, visit http://www.iowachapter7.com or call 1.877.888.1766.

If you are filing a Chapter 7 bankruptcy, which is by far the most common bankruptcy declared in the U.S., federal income taxes may be discharged only when the taxes in question are more than three years old, were assessed on previous returns at least eight months prior to seeking bankruptcy protection, and you did not file a fraudulent tax return or try to avoid paying taxes. The issue is that if you are seen to have made an effort to pay the taxes, but just did not have enough funds at your disposal, you may be able to discharge your federal taxes.

The courts may consider discharging a tax debt, if the IRS has not already filed a tax lien on your assets. If they have, the lien will then carry over through the bankruptcy, meaning the IRS may still seize your property to collect on your debt. By and large, debtors may find this process more beneficial for them, instead of agreeing to what the IRS refers to as an “offer in compromise.” That would, if the debtor accepts it, mean they must make payments for a long time to come.

Federal tax liens are a tricky area, and you really need to understand how this process may work, by consulting with an Iowa bankruptcy lawyer. For instance, any federal lien filed against property prior to a bankruptcy, should only attach to the equity you have at the time the bankruptcy petition is filed.

Make certain that before you file for bankruptcy protection that you are up-to-date on all of your tax returns and amendments before going to the 341 meeting. The fact is there are a large number of bankruptcy trustees who refuse to have a 341 hearing if you are missing tax returns for the last four years. If information is missing, the trustee will not know if you have non-dischargeable tax liability, which makes a difference in how your case is handled. In other words, be prepared before filing Chapter 7, and do it in partnership with an experienced Iowa bankruptcy lawyer.

Kevin Ahrenholz is an Iowa bankruptcy lawyer and Iowa bankruptcy attorney. To contact him, visit http://www.iowachapter7.com or call 1.877.888.1766.

Divorcees in some states, however, have learned that even if a marriage does not last forever, alimony sometimes does.

Under permanent alimony, one party to a divorce makes payments to the other until either party dies or until the payee remarries. Many payees therefore elect not to remarry even when in long-term relationships.

In some cases, there are good reasons for alimony to be permanent, as even opponents of the system agree. For example, spouses with disabilities that prevent them from working are often awarded permanent alimony. But in some cases, it may seem very unfair for one person to pay for a failed marriage for life while the other receives a subsidized lifestyle.

Because permanent alimony continues through retirement, some seniors are forced to relinquish a portion of their Social Security income to a former spouse who may also be receiving Social Security plus alimony.

Many states have done away with permanent alimony, or at least reformed it, but Florida is among a group of states where it is still awarded regularly. Others include New Jersey, Vermont, North Carolina, Oregon, Connecticut and West Virginia.

The law was created in a time when women rarely went to college or had lucrative careers, instead focusing primarily on child-rearing and homemaking duties. Permanent alimony was viewed by most as necessary back then. Now, the need for it is far less clear, and opponents of the law are increasing in number.

Many opponents are high-income individuals in relationships with divorcees who are payers of permanent alimony. They often find that if they marry their partners, their income could go to their partners’ former spouses.

One proposed reform would have the duration of alimony limited to half that of the marriage. For example, a marriage that ends in divorce after twenty years would result in alimony payments for no longer than 10 years – presumably enough time to get back in the workforce.

Another unintended consequence of current alimony laws is that it may limit the desire of the payer to achieve greater income and wealth. When a payer expands his or her business or earns a promotion, the payee may take his or her ex-spouse back to court and attempt to have their alimony payments raised.

The work incentive of the payee, of course, may be lessened by permanent alimony as well, according to opponents.

A bill to end permanent alimony is expected to reach a vote in the Florida legislature early this year.

Joshua Law is a Tampa divorce lawyer and Brandon family law attorney with the Osenton Law Offices, P.A. To learn more, visit http://www.brandonlawoffice.com/

For those that don’t know what the acronym HAMP means, it represents a program put together by President Obama, referred to as the “Home Affordable Modification Program.” It had good intentions, and was supposed to be designed to help close to 4 million householders facing bankruptcy and foreclosure. Unfortunately, good intentions are about all the program managed to deliver.

There is quite a bit of speculation over why the HAMP program failed, and most people lay the blame at the doorstep of the complicated qualifications people needed to meet. The target group it was supposed to help could not understand how to access the program.  Further, by offering a mere 10 percent reduction of principal, it was ultimately not worth attempting to use.

It looks like the program won’t have too much of an effect on bankruptcy filings, not that its original intention was to prevent bankruptcies. However, it was intended to help some homeowners keep their homes. While this program may have helped a few, the stark increase in filings over the last few years is dismal.

Foreclosures are virtually the number one reason people seek bankruptcy protection. If you are facing foreclosure but still happen to have a sustainable income, you just might qualify for HAMP. The advantages are tangible for homeowners who are still employed and have a high interest rate. HAMP has the ability to lower an interest rate by up to 2 percent, extend a mortgage term up to 40 years and waive interest charges on a certain portion of the principal. While this sounds good on the surface, the biggest glitch so far, is just being able to qualify for HAMP.

To qualify, you must be behind on your mortgage payments or be facing a risk of defaulting. You should have gotten your mortgage before January 1, 2009 and you must live in the mortgaged property. The principal balance should not be greater than $729,750 for a one-unit house. While this sounds easy enough on first glance, there are some loopholes that can backfire on the homeowner. For instance, if the owner is approved for a modification, they have a three month trial where their usual mortgage payment is made. Once they meet that requirement, the modification is to become permanent.

However, one large loophole in the program is that the lender gets to make the determination if the modification is permanent. Needless to say many homeowners have reported being put off by the bank or denied for a variety of reasons, typically leading to a legal battle; the last thing a stressed homeowner needs.

If you don’t have a sustainable income or enough money to face possible legal difficulties, this program may be a waste of time for you. If you are already in a bad financial situation, an added legal confrontation won’t help matters any. The best advice an Iowa bankruptcy lawyer may give you, with regard to HAMP, is try to avoid it and discuss your situation in detail with the lawyer. Bankruptcy isn’t easy, and the more complex it becomes, the more confusing things are for the person trying to get out from under a crushing debt load.

Kevin Ahrenholz is an Iowa bankruptcy lawyer and Iowa bankruptcy attorney. To contact him, visit http://www.iowachapter7.com or call 1.877.888.1766.

For those that don’t know what the acronym HAMP means, it represents a program put together by President Obama, referred to as the “Home Affordable Modification Program.” It had good intentions, and was supposed to be designed to help close to 4 million householders facing bankruptcy and foreclosure. Unfortunately, good intentions are about all the program did manage to deliver.

There is quite a bit of speculation over why the HAMP program failed, and most people lay the blame at the doorstep of the complicated qualifications people needed to meet. The target group it was supposed to help could not understand how to access the program. Add to that an initial mere 10 percent slashing of the principal, and it amounted to not being worth even trying to use it.

It looks like the program won’t have too much of an effect on bankruptcy filings, not that its original intention was to prevent that. However, it was intended to help some homeowners keep their homes. While this program may have helped a few, the stark increase in filings over the last few years is dismal.

Foreclosures are virtually the number one cause of people seeking bankruptcy protection, and if you are staring foreclosure in the face, but still happen to have a sustainable income, you just might qualify for HAMP. The advantages are tangible for homeowners who are still employed and have a high interest rate. This program has the ability to lower an interest rate by up to 2 percent, extend a mortgage term up to 40 years and waive interest charges on a certain portion of the principal. While this sounds good on the surface, the biggest glitch so far, is being able to qualify for HAMP.

To qualify, you must be behind on your mortgage payments or be facing a risk of defaulting. You should have gotten your mortgage before January 1, 2009 and you must live in the mortgaged property. The principal balance should not be greater than $729,750 for a one-unit house. While this sounds easy enough on first glance, there are some loopholes that can backfire on the homeowner. For instance, if the owner is approved for a modification, they have a three month trial where their usual mortgage payment is made. Once they meet that requirement, the modification is to become permanent.

However, one large loophole in the program is that the lender gets to make the determination if the modification is permanent. Needless to say many homeowners have reported being put off by the bank or denied for a variety of reasons, typically leading to a legal battle; the last thing a stressed homeowner needs.

If you don’t have a sustainable income or enough money to face possible legal difficulties, this program may be a waste of time for you. If you are already in a bad financial situation, an added legal confrontation won’t help matters any. The best advice an Iowa bankruptcy lawyer may give you, with regard to HAMP, is try to avoid it and discuss your situation in detail with the lawyer. Bankruptcy isn’t easy, and the more complex it becomes, the more confusing things are for the person trying to get out from under a crushing debt load.

Kevin Ahrenholz is an Iowa bankruptcy lawyer and Iowa bankruptcy attorney. To contact him, visit http://www.iowachapter7.com or call 1.877.888.1766.

For those that don’t know what the acronym HAMP means, it represents a program put together by President Obama, referred to as the “Home Affordable Modification Program.” It had good intentions, and was supposed to be designed to help close to 4 million householders facing bankruptcy and foreclosure. Unfortunately, good intentions are about all the program did manage to deliver.

There is quite a bit of speculation over why the HAMP program failed, and most people lay the blame at the doorstep of the complicated qualifications people needed to meet. The target group it was supposed to help could not understand how to access the program. Add to that an initial mere 10 percent slashing of the principal, and it amounted to not being worth even trying to use it.

It looks like the program won’t have too much of an effect on bankruptcy filings, not that its original intention was to prevent that. However, it was intended to help some homeowners keep their homes. While this program may have helped a few, the stark increase in filings over the last few years is dismal.

Foreclosures are virtually the number one cause of people seeking bankruptcy protection, and if you are staring foreclosure in the face, but still happen to have a sustainable income, you just might qualify for HAMP. The advantages are tangible for homeowners who are still employed and have a high interest rate. This program has the ability to lower an interest rate by up to 2 percent, extend a mortgage term up to 40 years and waive interest charges on a certain portion of the principal. While this sounds good on the surface, the biggest glitch so far, is being able to qualify for HAMP.

To qualify, you must be behind on your mortgage payments or be facing a risk of defaulting. You should have gotten your mortgage before January 1, 2009 and you must live in the mortgaged property. The principal balance should not be greater than $729,750 for a one-unit house. While this sounds easy enough on first glance, there are some loopholes that can backfire on the homeowner. For instance, if the owner is approved for a modification, they have a three month trial where their usual mortgage payment is made. Once they meet that requirement, the modification is to become permanent.

However, one large loophole in the program is that the lender gets to make the determination if the modification is permanent. Needless to say many homeowners have reported being put off by the bank or denied for a variety of reasons, typically leading to a legal battle; the last thing a stressed homeowner needs.

If you don’t have a sustainable income or enough money to face possible legal difficulties, this program may be a waste of time for you. If you are already in a bad financial situation, an added legal confrontation won’t help matters any. The best advice an Iowa bankruptcy lawyer may give you, with regard to HAMP, is try to avoid it and discuss your situation in detail with the lawyer. Bankruptcy isn’t easy, and the more complex it becomes, the more confusing things are for the person trying to get out from under a crushing debt load.

Kevin Ahrenholz is an Iowa bankruptcy lawyer and Iowa bankruptcy attorney. To contact him, visit http://www.iowachapter7.com or call 1.877.888.1766.

While the bankruptcy itself is quite complex and complicated, there is no doubt about what an automatic stay means when bankruptcy protection is sought. Once you have filed, all of the creditors that you listed are told you have filed for bankruptcy via first class mail. This doesn’t mean the calls stop the day you file, as typically, it takes about seven-to-ten days before the phone calls will end completely.

If you do get calls from creditors, just give them the name and phone number of your Iowa bankruptcy lawyer. You may also want to provide creditors with your case number and ask that this information is noted on your file. If, for some reason or other, you are still getting phone calls and letters in the mail, call your lawyer and give him the creditor’s information. At this point, the attorney will send the creditor a “cease and desist” letter, which typically stops harassing creditors cold in their tracks.

It’s not unusual for creditors to still keep calling and sending mail, even at this point. If they do, they are in direct violation of your automatic stay and you need to contact your Iowa bankruptcy lawyer with a detailed log of all calls and letters. Your lawyer can then file stay violations against creditors who overstepped their bounds.

Filing for bankruptcy is not easy and the less stress you have to deal with, the better. You have a difficult journey ahead of you and many decisions to make about how to overcome your desperate financial situation. Some people feel enormous guilt over declaring bankruptcy, others feel it is their right and may have done it a time or two.

Declaring bankruptcy is not a shameful decision. It is often fueled by desperate necessity, by honest people who got into a financial bind and didn’t realize until it was too late, how deep they were in the hole. The most common sense approach to declaring bankruptcy is to speak to an experienced Iowa bankruptcy lawyer and find out what Chapter may apply in your situation. Chapter 7 is not for everyone. Chapter 13 isn’t for everyone either. It depends on the circumstances of your case.

Just because your friend or neighbor may have declared bankruptcy does not mean their case was the same as yours. No two cases are alike in detail. However, they are alike in process going through bankruptcy court. This is not something that an individual should try without the help of a skilled bankruptcy lawyer. There is too much at stake.

Kevin Ahrenholz is an Iowa bankruptcy lawyer and Iowa bankruptcy attorney. To contact him, visit http://www.iowachapter7.com or call 1.877.888.1766.

While the bankruptcy itself is quite complex and complicated, there is no doubt about what an automatic stay means when bankruptcy protection is sought. Once you have filed, all of the creditors that you listed are told you have filed for bankruptcy via first class mail. This doesn’t mean the calls stop the day you file, as typically, it takes about seven-to-ten days before the phone calls will end completely.

If you do get calls from creditors, just give them the name and phone number of your Iowa bankruptcy lawyer. You may also want to provide creditors with your case number and ask that this information is noted on your file. If, for some reason or other, you are still getting phone calls and letters in the mail, call your lawyer and give him the creditor’s information. At this point, the attorney will send the creditor a “cease and desist” letter, which typically stops harassing creditors cold in their tracks.

It’s not unusual for creditors to still keep calling and sending mail, even at this point. If they do, they are in direct violation of your automatic stay and you need to contact your Iowa bankruptcy lawyer with a detailed log of all calls and letters. Your lawyer can then file stay violations against creditors who overstepped their bounds.

Filing for bankruptcy is not easy and the less stress you have to deal with, the better. You have a difficult journey ahead of you and many decisions to make about how to overcome your desperate financial situation. Some people feel enormous guilt over declaring bankruptcy, others feel it is their right and may have done it a time or two.

Declaring bankruptcy is not a shameful decision. It is often fueled by desperate necessity, by honest people who got into a financial bind and didn’t realize how dire their circumstances were until it was too late. The most common sense approach to declaring bankruptcy is to speak to an experienced Iowa bankruptcy lawyer and find out what Chapter may apply in your situation. Chapter 7 is not for everyone. Chapter 13 isn’t for everyone, either. It depends on the circumstances of your case.

Just because your friend or neighbor may have declared bankruptcy does not mean their case was the same as yours. No two cases are alike in detail. However, they are alike in the way they are processed by the bankruptcy court. This is not something that an individual should try without the help of a skilled bankruptcy lawyer. There is too much at stake.

Kevin Ahrenholz is an Iowa bankruptcy lawyer and Iowa bankruptcy attorney. To contact him, visit http://www.iowachapter7.com or call 1.877.888.1766.

While the bankruptcy itself is quite complex and complicated, there is no doubt about what an automatic stay means when bankruptcy protection is sought. Once you have filed, all of the creditors that you listed are told you have filed for bankruptcy via first class mail. This doesn’t mean the calls stop the day you file, as typically, it takes about seven-to-ten days before the phone calls will end completely.

If you do get calls from creditors, just give them the name and phone number of your Iowa bankruptcy lawyer. You may also want to provide creditors with your case number and ask that this information is noted on your file. If, for some reason or other, you are still getting phone calls and letters in the mail, call your lawyer and give him the creditor’s information. At this point, the attorney will send the creditor a “cease and desist” letter, which typically stops harassing creditors cold in their tracks.

It’s not unusual for creditors to still keep calling and sending mail, even at this point. If they do, they are in direct violation of your automatic stay and you need to contact your Iowa bankruptcy lawyer with a detailed log of all calls and letters. Your lawyer can then file stay violations against creditors who overstepped their bounds.

Filing for bankruptcy is not easy and the less stress you have to deal with, the better. You have a difficult journey ahead of you and many decisions to make about how to overcome your desperate financial situation. Some people feel enormous guilt over declaring bankruptcy, others feel it is their right and may have done it a time or two.

Declaring bankruptcy is not a shameful decision. It is often fueled by desperate necessity, by honest people who got into a financial bind and didn’t realize until it was too late, how deep they were in the hole. The most common sense approach to declaring bankruptcy is to speak to an experienced Iowa bankruptcy lawyer and find out what Chapter may apply in your situation. Chapter 7 is not for everyone. Chapter 13 isn’t for everyone either. It depends on the circumstances of your case.

Just because your friend or neighbor may have declared bankruptcy does not mean their case was the same as yours. No two cases are alike in detail. However, they are alike in process going through bankruptcy court. This is not something that an individual should try without the help of a skilled bankruptcy lawyer. There is too much at stake.

Kevin Ahrenholz is an Iowa bankruptcy lawyer and Iowa bankruptcy attorney. To contact him, visit http://www.iowachapter7.com or call 1.877.888.1766.

One of the ways to stop a default judgment is to file bankruptcy. Filing bankruptcy effectively stops any and almost all legal action, thanks to the “automatic stay.” Even if a creditor has started to enforce their judgment against you via garnishment or bank levy, once you file bankruptcy the “automatic stay” goes into effect and the creditor is legally required to “stay” (cease and desist) all collection efforts against you.  This automatic stay also means that your creditors are not allowed to contact you in any way about your outstanding debt and/or judgment.

The automatic stay remains in effect the entire four to five months that your bankruptcy case is pending, unless a secured creditor (mortgage or car loan) files a motion to have the stay lifted, in which case the court may or may not allow the creditor to resume pursuit of collection in order to protect or repossess the security (house or car) for which payments are delinquent.  When your bankruptcy case is done, you will receive a formal debt discharge decree from the bankruptcy court and the court will close your case.  The discharge decree makes the automatic stay permanent, and there forward your creditors are prohibited from taking action against you personally to collect the debt that you previously owed. In most jurisdictions, the debtor or his/her attorney must also file paperwork in the district court case in order to vacate the default judgment, even if the bankruptcy discharge acts as protection from its enforcement.

Another thing you should understand is that the protection you receive from the automatic stay only remains in place as long as your bankruptcy case is progressing successfully toward discharge. If your bankruptcy case ends up being dismissed, you will lose any protection you had, and thus, the creditors will start the collections process once again. This is something that you need to discuss with a skilled an Iowa bankruptcy lawyer, as it is far too complex a process to attempt on your own.

If you are declaring bankruptcy, it only makes sense to do it according to all the rules and regulations. Failing to do so could leave you back at square one, struggling to get out from under your bills and various judgments. Bankruptcy is not an easy process, but if it is done with the help of an experienced Iowa bankruptcy lawyer, the process can go relatively smoothly.

Kevin Ahrenholz is an Iowa bankruptcy lawyer and Iowa bankruptcy attorney. To contact him, visit http://www.iowachapter7.com or call 1.877.888.1766.

There are quite a few options for debtors looking to reduce or get rid of their debt load. For instance, there is debt consolidation, debt settlement and Chapter 13 bankruptcy protection. If the debtor chooses debt consolidation, they take out a loan that covers all of their debts, and then repay them with one single payment each month.

Debt settlement is an arrangement where the debtor agrees with the lender to pay a portion of their debt back. The down side to this scenario is that they typically need to find the money to make a lump sum payment to creditors. This is difficult if the debtor is short on funds.  Also, in many cases any debt forgiven can cause income tax problems for the debtor.

A debtor may also choose to file a Chapter 13 bankruptcy, in which they draft a three- to five-year repayment plan that repays their creditors some portion of their debts. While these options may work for some people, they may not for everyone. All of them have one thing in common though: a consistent income. For those that do not have a consistent income, the unemployed or underemployed, this is a problem, which is why it is a good idea to discuss bankruptcy with a qualified Brandon bankruptcy lawyer.

Those so deeply in debt that they have no other options may, wish to consider filing a Chapter 7 bankruptcy. By and large, Chapter 7 is the one people most commonly file in the U.S. today. It eliminates a large number of unsecured debts like payday loans, personal loans, credit card debt and medical bills. Chapter 7 does have many advantages, such as the automatic stay, and the fact they are protected by the U.S. Bankruptcy Code — two benefits that remain in place during the whole process of filing for bankruptcy from start to finish.

The bottom line is that bankruptcy, and which Chapter to file under, is usually a personal choice, based on a debtor’s financial circumstances. No two cases are ever alike, and comparing what the neighbor did with what your situation is like is pointless. Talk to an experienced Brandon bankruptcy lawyer. Find out what options are available in your situation. They are intimately familiar with the process and what rules and regulations you need to follow to successfully file for bankruptcy.

O. Reginald (“Reggie”) Osenton is the Owner and President of Osenton Law Offices, P.A. If you need a Brandon bankruptcy lawyer, Tampa bankruptcy lawyer, or Tampa bankruptcy attorney, call 813.654.5777 or visit Brandonlawoffice.com.

When it comes to reaffirming debts, this typically refers to secured debts, such as a mortgage or car loan, not the usual debts of unsecured credit cards or medical bills. Because each person’s debt situation is different, they should consult with a Brandon bankruptcy lawyer to determine if filing for bankruptcy protection is what they need to do in light of their present financial circumstances.

The general rule of thumb in declaring bankruptcy is people should let go of their house if it is clear they cannot afford it. However, if their debts have been wiped out in a Chapter 7 bankruptcy discharge, they may be able to afford a house. It used to be that loan security was to be found in the object – a car or house. These days, lenders seek a debt reaffirmation agreement with a debtor filing for bankruptcy protection. In fact, some bankruptcy trustees demand these reaffirmations be submitted to the bankruptcy court.

Deciding what to keep and what to let go for a Chapter 7 bankruptcy is difficult, and it is for this reason that a debtor would be best advised to consult an experienced Brandon bankruptcy lawyer about their options.  There is a different answer for every bankruptcy case; even more so in today’s shaky economy.

Facing a decision to let go of a home is traumatic, but in some instances, needs to be done. Prior to making that decision though, most bankruptcy attorneys suggest to their clients that they try and foresee the near future, in terms of the value of their property. At the moment, real estate is still on the decline, but does the market indicate a revival around the corner? Decisions like this are difficult to make based on a guesstimate of the housing market.

If the market looks like it will be depressed for some time to come, the best decision may be to let the house go in the Chapter 7 bankruptcy process, but this needs to be discussed with a competent Brandon bankruptcy attorney.

Another item that most bankruptcy attorneys speak to their clients about is buying a vehicle — one that is affordable, particularly if they are deep in debt with their current financing. What happens if they are in a bind financially, and they cannot afford their vehicle any longer, is that the lender usually repossesses it, at their expense. If the bankruptcy has already been discharged, the lender may also choose to pursue legal action to recover damages.

O. Reginald (“Reggie”) Osenton is the Owner and President of Osenton Law Offices, P.A. If you need a Brandon bankruptcy lawyer, Tampa bankruptcy lawyer, or Tampa bankruptcy attorney, call 813.654.5777 or visit Brandonlawoffice.com.

When it comes to reaffirming debts, this typically refers to secured debts, such as a mortgage or car loan, not the usual debts of unsecured credit cards or medical bills. Because each person’s debt situation is different, they should consult with a Brandon bankruptcy lawyer to determine if filing for bankruptcy protection is what they need to do in light of their present financial circumstances.

The general rule of thumb in declaring bankruptcy is people should let go of their house if it is clear they cannot afford it. However, if their debts have been wiped out in a Chapter 7 bankruptcy discharge, they may be able to afford a house. It used to be that loan security was to be found in the object – a car or house. These days, lenders seek a debt reaffirmation agreement with a debtor filing for bankruptcy protection. In fact, some bankruptcy trustees demand these reaffirmations be submitted to the bankruptcy court.

Deciding what to keep and what to let go for a Chapter 7 bankruptcy is difficult, and it is for this reason that a debtor would be best advised to consult an experienced Brandon bankruptcy lawyer about their options.  There is a different answer for every bankruptcy case; even more so in today’s shaky economy.

Facing a decision to let go of a home is traumatic, but in some instances, needs to be done. Prior to making that decision though, most bankruptcy attorneys suggest to their clients that they try and foresee the near future, in terms of the value of their property. At the moment, real estate is still on the decline, but does the market indicate a revival around the corner? Decisions like this are difficult to make based on a guesstimate of the housing market.

If the market looks like it will be depressed for some time to come, the best decision may be to let the house go in the Chapter 7 bankruptcy process, but this needs to be discussed with a competent Brandon bankruptcy attorney.

Another item that most bankruptcy attorneys speak to their clients about is buying a vehicle — one that is affordable, particularly if they are deep in debt with their current financing. What happens if they are in a bind financially, and they cannot afford their vehicle any longer, is that the lender usually repossesses it, at their expense. If the bankruptcy has already been discharged, the lender may also choose to pursue legal action to recover damages.

O. Reginald (“Reggie”) Osenton is the Owner and President of Osenton Law Offices, P.A. If you need a Brandon bankruptcy lawyer, Tampa bankruptcy lawyer, or Tampa bankruptcy attorney, call 813.654.5777 or visit Brandonlawoffice.com.

One of the ways to stop a default judgment is to file bankruptcy. The judgment is a court order demanding the debtor surrender money or property to the creditor; if you have such a judgment against you, it means you failed to pay off a type of loan or a credit card. When the creditor goes to court to get a default judgment, it means the court has ruled against the debtor for not appearing in court.

If you want to put a halt to a default judgment, temporarily, you can file bankruptcy. This stops any and almost all legal action, thanks to the automatic stay. Even if a creditor has started to enforce their judgment against you, they must, by law, cease and desist until your bankruptcy is handled. This automatic stay also means they are not allowed to call you about the outstanding debt and/or judgment.

It is important to note that a formal discharge of your bankruptcy acts to formalize the reprieve the automatic stay granted. Even though the discharge and a default judgment are court orders, the bankruptcy supersedes a default judgment, putting a halt to all forms of collections, including wage garnishment. Typically, in most jurisdictions, the debtor needs to file paperwork to vacate the default judgment, even if the bankruptcy discharge acts as protection from its enforcement.

Another thing you should understand is that the protection you receive from the automatic stay against a default judgment only remains in place as long as your bankruptcy case. If your case ends up being dismissed, you lose any protection you had, and thus, the creditors will start the collections process once again. This is something that you need to discuss with a skilled an Iowa bankruptcy lawyer, as it is far too complex a process to attempt on your own.

If you are declaring bankruptcy, it only makes sense to do it according to all the rules and regulations. Failing to do so could leave you back at square one, struggling to get out from under your bills and various judgments. Bankruptcy is not an easy process, but if it is done in conjunction with an experienced Iowa bankruptcy lawyer, the process can go relatively smoothly.

Kevin Ahrenholz is an Iowa bankruptcy lawyer and Iowa bankruptcy attorney. To contact him, visit http://www.iowachapter7.com or call 1.877.888.1766.

Declaring bankruptcy is a stressful thing to do: with so many details, documents, rules, regulations and various meetings, it can be a nightmare to manage everything going on. The most upsetting part of bankruptcy for most is the threat of foreclosure.

Generally speaking, foreclosure is when a lender takes action to repossess someone’s property — property they have a mortgage against, resulting from money lent to the debtor. In the case of a mortgage, the home is considered to be the collateral. Thus, if an individual stops making payments on their mortgage, the financial institution holding the paper on that property has the right to take the property back on default.

The foreclosure process does vary slightly from state to state; if you live in Iowa, you will want to discuss the steps with an experienced Iowa bankruptcy lawyer. In general, the overall process is the same, and that is once a debtor has not paid for 90 days, a notice of default is filed with the county to initiate foreclosure. There is a grace period of sorts in this process, where the debtor does have the right to make their mortgage current by catching up on all the payments, or at the very least, working out a plan with the lender.

If neither of these two options is viable, the financial institution will put the home up for auction, which typically takes place on the county courthouse steps. The highest bidder takes the home, and the bidding process is carefully monitored by a bank trustee, whose goal it is to cover their mortgage, or at least limit their loss. If this is not possible, the bank trustee bids until they secure the home back, with plans to fix it and put it back on the market.

Bankruptcy can be a very confusing process, and even though it is possible for a debtor to file their own bankruptcy papers, it is not advisable to do so. If something is not done properly, according to the law, the debtor takes a real chance that they could have their petition dismissed, or they could be charged with fraud. There are far too many ins-and-out for a debtor to take the chance on doing the wrong thing. For this reason, consulting with an Iowa bankruptcy lawyer is highly recommended.

Kevin Ahrenholz is an Iowa bankruptcy lawyer and Iowa bankruptcy attorney. To contact him, visit http://www.iowachapter7.com or call 1.877.888.1766.

Declaring bankruptcy is a stressful thing to do — with so many details, documents, rules, regulations and various meetings, it can be a nightmare to manage everything. The most upsetting part of bankruptcy for most is the threat of foreclosure.

Generally speaking, foreclosure occurs when a lender takes action to repossess someone’s property — property they have a mortgage against, resulting from money lent to the debtor. In the case of a mortgage, the home is considered to be the collateral. Thus, if an individual stops making payments on their mortgage, the financial institution holding the paper on that property has the right to take the property back on default.

The foreclosure process varies slightly from state to state.  If you live in Iowa, you will want to discuss the foreclosure process with an experienced Iowa bankruptcy lawyer. In general, the overall process is the same, and that is once a debtor has not paid for 90 days, a notice of default is filed with the county to initiate foreclosure. There is a grace period of sorts in this process, where the debtor has the right to bring their mortgage current by catching up on all the payments, or at the very least, working out a plan with the lender.

If neither of these two options is viable, the financial institution will put the home up for auction, which typically takes place on the county courthouse steps. The highest bidder takes the home, and the bidding process is carefully monitored by a bank trustee. The bank trustee’s goal is to cover their mortgage, or at least limit their loss. If this is not possible, the bank trustee bids until they secure the home back, with plans to fix it and put it back on the market.

Bankruptcy can be a very confusing process, and even though it is possible for a debtor to file their own bankruptcy papers, it is not advisable to do so. If something is done improperly, according to the law, the debtor takes a real chance that they could have their petition dismissed, or they could be charged with fraud. There are far too many ins-and-out for a debtor to take the chance on doing the wrong thing. For this reason, consulting with an Iowa bankruptcy lawyer is highly recommended.

Kevin Ahrenholz is an Iowa bankruptcy lawyer and Iowa bankruptcy attorney. To contact him, visit http://www.iowachapter7.com or call 1.877.888.1766.

Imagine facing foreclosure, losing what you worked so hard to secure. That is a 10 on a scale of 1 to 10, with 10 being the maximum stressor. It hits hard at the foundation of everything we identify with, work to attain, take pride in and call our haven. While losing your boat may not bother you quite as much, losing your home is a completely difference scenario.

There are a variety of reports available online which clearly indicate that foreclosures have more than just economic repercussions. In fact, economic difficulties tend to go hand-in-hand with health problems. Debt and foreclosure can bring on health issues. The reverse could also be true, that health difficulties bring on foreclosure, with the added drawback that if someone goes into foreclosure while ill, their symptoms will likely get worse.

The core finding of many of the recent surveys of those about to go into foreclosure, were in foreclosure, were about to file bankruptcy or had started the process, showed that the people felt their physical and mental health had deteriorated over the last two years. Their levels of deprivation, anxiety and depression were exceedingly high.

How do you pay bills if you have no money and no hope of getting any? In many cases, if you wish to save your home or salvage your present financial status as best you can, seeking bankruptcy protection with the assistance of a qualified Iowa bankruptcy attorney, will put an automatic stay on most debt collection procedures.

The foreclosure crisis is an epidemic in the US today, and according to the National Bankruptcy Research Center, filings in Chapter 7 and 13 are on the increase, despite a glimmer of hope for the nation’s economy. The increase in Chapter 7 filings is of interest largely because in 2005, a means test was introduced to direct people to Chapter 13 filings instead. Chapter 13 would mean they would still need to repay a portion of their debt.  However, with the economy being what it is, the means test is getting a good workout.

Bankruptcy is not an option  one certain class or social strata of people. It can hit everyone and anyone, even those with higher incomes and education. It could be just around the corner for you. If you are facing bankruptcy, and have no other option, filing will halt all collections activity.  This may help your medical situation as well, although it’s not a recommended cure for stress.  The automatic stay may help you get your life together and go forward. Don’t attempt to do this without the assistance of a qualified and experienced Iowa bankruptcy attorney.

Kevin Ahrenholz is an Iowa bankruptcy lawyer and Iowa bankruptcy attorney. To contact him, visit http://www.iowachapter7.com or call 1.877.888.1766.

Imagine facing foreclosure, losing what you worked so hard to attain. That is a 10 on a scale of 1 to 10, with 10 being the maximum stressor. It hits hard at the foundation of everything we identify with, work to attain, take pride in and call our haven. While losing your boat may not bother you quite as much, losing your home is a completely difference scenario.

There are a variety of reports available online which clearly indicate that foreclosures have more than just economic repercussions. In fact, economic difficulties tend to go hand-in-hand with health problems. Debt and foreclosure can bring on health issues. The reverse could also be true, that health difficulties bring on foreclosure, with the added drawback that if someone goes into foreclosure while ill, their symptoms will likely get worse.

The core finding of many of the recent surveys of those about to go into foreclosure, were in foreclosure, were about to file bankruptcy or had started the process, showed that the people felt their physical and mental health had deteriorated over the last two years. Their levels of deprivation, anxiety and depression were exceedingly high.

How do you pay bills if you have no money and no hope of getting any? In many cases, if you wish to save your home or salvage your present financial status as best you can, seeking bankruptcy protection with the assistance of a qualified Iowa bankruptcy attorney, will put an automatic stay on most debt collection procedures.

The foreclosure crisis is epidemic in the US today, and according to the National Bankruptcy Research Center, filings in Chapter 7 and 13 are on the upswing, despite a glimmer of hope for the nation’s economy. The increase in Chapter 7 filings is of interest, largely because in 2005, a means test was introduced to direct people to Chapter 13 filings instead. Chapter 13 would mean they would still need to repay a portion of their debt. However, with the economy being what it is, the means test is getting a good workout.

Bankruptcy doesn’t just affect a certain class or social strata of people. It hits everyone and anyone, even those with higher incomes and education. It could be just around the corner for you. If you are facing bankruptcy, and have no other option, filing will halt all collections activity. This may help your medical situation as well, although it’s not a recommended cure for stress. However, the automatic stay may help you get your life together and go forward. Don’t attempt to do this without the assistance of a seasoned Iowa bankruptcy attorney.

Kevin Ahrenholz is an Iowa bankruptcy lawyer and Iowa bankruptcy attorney. To contact him, visit http://www.iowachapter7.com or call 1.877.888.1766.

Even though the economy is beginning to show some signs of recovery, there are still many people in debt over their heads. This will likely still be the case for the better part of this year and into the next. In 2010 alone, there were close to 1.2 million bank repossessions, leaving many without their homes. The more foreclosures, the more bankruptcies, as these two things go hand in hand; filing for bankruptcy is just about the only thing a debtor can do to save their home, or buy some time to manage their situation.

The minute you file for bankruptcy protection, the court orders all collection actions to stop immediately. This is referred to as an “automatic stay,” and is applicable to all kinds of bankruptcy filings. The stay simply means that it puts a halt to just about all lawsuits (though there are some exceptions), utility shut-offs, evictions, foreclosures, attachments, repossessions and other forms of debt collection harassment.

When you file bankruptcy, all of your creditors, including the mortgage company, have to go through a bankruptcy court trustee. This means you don’t deal with them until your case is dismissed or discharged. If you are still in default at the time your bankruptcy is discharged or dismissed, the lender will still go through foreclosure to repossess your property. However, there is generally a very long period of time between when you file and when the mortgage company takes possession of your house.

This period is one in which you can negotiate your mortgage, depending on what kind of bankruptcy you filed and what state you live in. One thing you could try is offering the mortgage holders a deed-in-lieu of foreclosure. If they choose to accept it, they can’t collect any short-fall between the actual value of the house and what you owed on it. This may or may not work, depending on what state you live in. Always check with a qualified Iowa bankruptcy attorney to find out what options you have at your disposal.

It’s no secret that bankruptcy laws and foreclosures are very complex and complicated, therefore something you do not want to tackle on your own. Hiring a competent and experienced Iowa bankruptcy attorney is a smart move on your part to help you understand what you are facing and how it will affect you now and in the future.

The bottom line? There is no “easy” way out of debt, not when you are in over your head. It happens. That’s life and sometimes, life gets out of hand. This is why you will need a skilled bankruptcy attorney helping you through the maze of laws, rules, regulations and piles of paper.

Kevin Ahrenholz is an Iowa bankruptcy lawyer and Iowa bankruptcy attorney. To contact him, visit http://www.iowachapter7.com or call 1.877.888.1766.

Even though the economy is beginning to show some signs of recovery, there are still many people in over their heads in debt. This will likely still be the case for the better part of this year and into the next. In 2010 alone, there were close to 1.2 million bank repossessions, leaving many without their homes. The more foreclosures, the more bankruptcies, as these two things go hand in hand; filing for bankruptcy is just about the only thing a debtor can do to save their house, or buy some time to deal with their situation.

The minute you file for bankruptcy protection, the court orders all collection actions to stop immediately. This is referred to as an “automatic stay,” and is applicable to all kinds of bankruptcy filings. The stay simply means that it puts a halt to just about all lawsuits (though there are some exceptions), utility shut-offs, evictions, foreclosures, attachments, repos and other forms of debt collection harassment.

When you file bankruptcy, all of your creditors, including the mortgage company, have to go through a bankruptcy court trustee. This means you don’t deal with them until your case is dismissed or discharged. If you are still in default on discharge or dismissal, the lender will still go through foreclosure to repossess your property. However, there is generally a very long period of time between when you file and when the mortgage company takes possession of your house.

This period is one in which you can negotiate your mortgage, depending on what kind of bankruptcy you filled and what state you live in. One thing you could try is offering the mortgage holders a deed-in-lieu of foreclosure. If they choose to accept it, they can’t collect any short-fall between the actual value of the house and what you owed on it. This may or may not work, depending on what state you live in. Always check with a qualified Iowa bankruptcy attorney to find out what options you have at your disposal.

It’s no secret that bankruptcy laws and foreclosures are very complex and complicated; something you do not want to tackle on your own. Hiring a competent and experienced Iowa bankruptcy attorney is a smart move on your part to help you understand what you are facing and how it will affect you now and in the future.

The bottom line? There is no “easy” way out of debt, not when you are in over your head. It happens. That’s life and sometimes, life gets out of hand. This is why you will need a skilled bankruptcy attorney helping you through the maze of laws, rules, regulations and piles of paper.

Kevin Ahrenholz is an Iowa bankruptcy lawyer and Iowa bankruptcy attorney. To contact him, visit http://www.iowachapter7.com or call 1.877.888.1766.

When the economy began to decline and unemployment was on the rise, those who lost their jobs faced difficult financial choices. Many people used their credit cards to pay for bills and other expenses and racked up significant debt. Many of those people are still unemployed. These individuals are candidates for Chapter 7 bankruptcy.

Some people find themselves in a position to file Chapter 7 bankruptcy more than once.  Iowa bankruptcy lawyer Kevin Ahrenholz explained that a debtor’s prior bankruptcy may create a problem in attempting to file again, depending on the filing date of the debtor’s prior bankruptcy.

While there is no limit to the number of times someone can file Chapter 7 bankruptcy, there are limits on whether an individual can receive a bankruptcy discharge from their case. Changes made to the bankruptcy code in 2005 mean that debtors are required to wait eight years before they can receive another debt discharge in a subsequent Chapter 7 bankruptcy. It is important to note that the relevant date is the date that the debtor’s prior bankruptcy petition was filed. For instance, if an individual filed Chapter 7 bankruptcy on October 1, 2006, they cannot file Chapter 7 bankruptcy again until for eight years, until October 1, 2014. The debtors who filed in 2008, when the economy started to decline, do not yet have the opportunity to file Chapter 7 bankruptcy and receive a debt discharge. However, they may be able to file a Chapter 13 bankruptcy.

A Chapter 13 bankruptcy is a court-supervised debt repayment plan, during which debtors receive protection from creditors, and make monthly payments to a trustee for a period of three-to-five years. Upon the successful completion of the plan, they receive a discharge of any remaining unsecured debt. If the Chapter 13 debtor becomes eligible to file a Chapter 7 bankruptcy while their Chapter 13 case is pending, they may convert the case from a Chapter 13 to a Chapter 7, when the eight-year waiting period has passed..

Each debtor’s debt relief options depend upon a variety of factors and circumstances. Speak to a qualified Iowa bankruptcy attorney to find out what those options and considerations are, as well as how and when to take advantage of them.

Most debtors have a long list of questions when they make an appointment with a bankruptcy lawyer. Filing for bankruptcy is a complicated process, and people are concerned about how the decision will affect them and their credit rating. Making the right call to a qualified Iowa bankruptcy attorney will put many debtors’ fears to rest, says Iowa bankruptcy attorney Kevin Ahrenholz.

Most debtors who have made the decision to seek bankruptcy protection are aware of the enormous impact it will have in their lives, and know that in order to file without errors, they need the help of an experienced bankruptcy attorney. When making that first appointment to discuss filing with a bankruptcy lawyer, questions to ask may include whether or not filing is feasible, how important is a credit report, how to rebuild credit later, and whether declaring bankruptcy will eliminate all outstanding bills.

Not everyone is eligible to file Chapter 7 bankruptcy, Ahrenholz explained. Some debtors may need to file Chapter 13, and others may need to take care of their debt in another manner. Each case, each person and each debt profile is different and is approached that way by an experienced bankruptcy attorney. The only way to know with certainty whether bankruptcy is the best debt relief plan, and what Chapter of bankruptcy to consider filing, is to speak with a qualified bankruptcy lawyer.

Many people also think that when they declare bankruptcy that all of their debts will be erased. In some instances, this does happen. In others, some debt remains. This is another reason why it is vitally important to speak to a competent bankruptcy attorney who will help to determine whether debts are dischargeable. There are instances where some of the debt is ineligible for discharge; non-dischargeable debt includes, but is not limited to, student loans, child support, and back taxes. Criminal fines are also not dischargeable.

If a debtor’s creditors are mainly for student loans, back taxes, and/or child support, then filing for bankruptcy may not be the best debt relief plan, and there may be alternatives to pursue. In order to make an informed decision, schedule a frank discussion with a qualified bankruptcy attorney.

While there are some enterprising individuals who may be able to handle filing a Chapter 7 bankruptcy on their own, there are far too many important legal elements and considerations that may inadvertently be overlooked. Every bankruptcy filing must adhere to a multitude of precise rules and regulations, and every debtor must meet stringent requirements and produce specific documents and information.

In the pre-filing stage, some cases require careful analysis and strategic planning to address seemingly-innocuous circumstances.  In the post-filing stage, while the case is pending, some cases must undergo additional strategic planning and negotiation.  It is extremely risky for a debtor to attempt to navigate filing and addressing these issues on their own.  One mistake may well cause the case to be dismissed.

If you are planning to file Chapter 7 bankruptcy and want to ensure that you are meeting all requirements, hire a competent Iowa bankruptcy lawyer to reduce the risk of making a mistake, and to rest assured that you have chosen the most prudent method of dealing with your financial situation.  Your bankruptcy lawyer will not advise you to seek bankruptcy protection if there is another way for you to manage your financial issues.

When you first meet with a bankruptcy lawyer, you can expect to have an honest discussion about your finances. If you have questions, this is the time to ask them. Ask about the bankruptcy process, how to file, what you need to provide in terms of documentation, and what to expect once your petition has been filed with the court. Declaring bankruptcy is a decision with long-term ramifications, and your Iowa bankruptcy lawyer will explain how bankruptcy affects you and how to later rebuild your credit.

One of the main reasons Americans file Chapter 7 bankruptcy is to get their mortgage back on track. They are overwhelmed by all their debt and may be in danger of losing their home. They do not know how to prioritize their mortgage payment without frustrating other creditors attempting to collect on credit cards, medical bills, and loans. Before long, they find that they are facing pending lawsuits, or judgments have been entered, and garnishments are depleting paychecks. They quickly become unable to make utility payments, buy groceries, and put gasoline in their vehicles. Perhaps they are unemployed and have no employment prospects in sight. They fall behind and cannot catch up their payments, despite how hard they may be trying. These are the kinds of situations that typically drive people to speak to a bankruptcy lawyer.

There is no shame in filing for bankruptcy. It is called “debt relief” for a reason. Just make certain that bankruptcy is the best debt relief plan for you, and make sure it is done correctly by hiring competent counsel.

Kevin Ahrenholz is an Iowa bankruptcy lawyer and Iowa bankruptcy attorney. To contact him, visit http://www.iowachapter7.com or call 1.877.888.1766.

Public Access to Court Electronic Records, also referred to as PACER, provides a debtor access to the information needed to keep track of the post-filing status of his or her case. Though debtors may get information directly from your bankruptcy lawyer or via a court-appointed trustee, some debtors find it frustrating to wait for the information, as lawyers and trustees may not be able to respond immediately. With PACER, you simply need to go online to check your bankruptcy status quickly and easily.  Just visit the site at: http://www.pacer.gov/ and register for a login ID. This system offers access to bankruptcy courts across the U.S., provided you have a valid password and ID. It is easy to register: enter your name, home address, phone number, the name of your nearest living relative, and your date of birth. You will then need to authenticate your registration. To do so, use a valid credit card to finish the registration process and you will receive an assigned password. While it may seem odd to ask for a valid credit card number if the debtor has credit card debt, many individuals do still have valid cards they may use for registration purposes.

Once you have successfully registered, the password is emailed to you, or, if you did not provide an email address it will be sent to you by regular mail. PACER will bill you to view pages. The rate may vary, but typically is about ten cents per page, with a viewing limit of 30 pages. If you are searching for court transcripts, you do not have to pay the 30-page fee limit. Also, parties to a case and their lawyers may get one free copy of all e-filed documents.

Once you have your login and password, you may search the complete list of U.S. bankruptcy courts to determine which one is handling your case. Typically, the courts are separated into districts: In Iowa, select from either the Northern or Southern District. Cases filed in the eastern half of Iowa will be predominantly Northern District cases.  Cases filed in the Des Moines area and west are likely to be Southern District cases.

In order to locate information specifically about your bankruptcy case, you will need to enter your birth date, name and Social Security number. Once this information is verified by the system, all information relating to your case will be made available to you, including the current status of the bankruptcy petition.

Kevin Ahrenholz is an Iowa bankruptcy lawyer and Iowa bankruptcy attorney. To contact him, visit http://www.iowachapter7.com or call 1.877.888.1766.

There are only two pieces of information needed, should you choose to report bankruptcy fraud: where the person filed, and the individual’s full name and address. Include a brief note about the situation, with as much information as you have available, and send it to the U.S. Trustee Program at: Executive Office for U.S. Trustees Criminal Enforcement Unit 20 Massachusetts Avenue, NW Suite 8000 Washington, DC 20530. If, by chance, you have their case number, they would appreciate knowing that, as well. You may be able to find that information online, as all bankruptcy case files are readily accessible to the public.

In the correspondence sent to the Trustee Program, outline what kind of fraud the person allegedly committed, whether that is hiding an asset, illegally transferred it or lied about owning it. Put it in your own words. No one expects you to be familiar with legal terminology. Just be as specific as possible about the incident you are reporting, and how you came to know the details of what supposedly happened. If you want to include your contact information, you may. You may also call the police or the national U.S. Trustee’s office. Your other option would be to call your local state field office or bankruptcy court; numbers for those locations are readily available on the U.S. Trustee Program’s website. Once you have given the information to the authorities, you will not hear back from them on the status of any investigation that may or may not be underway.

Kevin Ahrenholz is an Iowa bankruptcy lawyer and Iowa bankruptcy attorney. To contact him, visit http://www.iowachapter7.com or call 1.877.888.1766.

A debtor’s credit rating can be hit with as much as a 100-point deduction. However, the credit rating does not need to stay at the same low level for the ten years that the bankruptcy will be on record. There are a number of ways to regain points, even after bankruptcy. It just takes time, patience and some effort. As incredible as it may sound, a debtor may even start to rebuild their credit rating the day after it has been discharged. A good Iowa bankruptcy lawyer may advise their client of this during their consultations.

The first thing a debtor needs to do is to get a copy of their credit report and carefully go over it. Credit reporting agencies do not always have accurate information. Even though a bankruptcy lowers your credit rating, you may find out that there are other inaccurate or expired pieces of information you may be able to have removed, and when removed will increase your score. If you do find things that don’t add up, you should dispute them. To do so, check each credit reporting agencies website for details on how to file a dispute.

Even immediately after getting discharged from your bankruptcy, you may apply for a new credit card. While most of your credit cards may have been included in your bankruptcy process, you are likely to still qualify for either a secured or unsecured credit card. The rates are higher and the limit will be lower than before, but a new card is a good place to begin building our rating back up. Stick with one or two cards, manage your purchases carefully, and don’t overspend. You want to prove that you are a responsible creditor. If you have any questions, speak to an experienced Iowa bankruptcy lawyer.

Remember to keep your credit card balance low. This is because your credit score keeps track of the amount of debt you are carrying, your payments and the amount of credit available to you. It is a smart move to try to keep your debt load at about ten percent of your total available credit. Let’s say your available credit is $15,000. You would want to keep your purchases around $1,500, and pay it off promptly each month. Paying in full on time is an effective tactic to increase your credit score. Make a solid effort to pay all of your bills in full. Keep track of when your payments are due and pay them on time or even ahead of time. This looks good in your credit report and over time, your score will improve. This tactic will also take some time to show up in your credit score, so keep consistently paying your bills.

Kevin Ahrenholz is an Iowa bankruptcy lawyer and Iowa bankruptcy attorney. To contact him, visit http://www.iowachapter7.com or call 1.877.888.1766.

When a debtor is filing for bankruptcy protection, they must fill out numerous documents that tell the court the names of all the creditors involved in their case, what real and personal property they own, who their unsecured and secured creditors are and how much they are owed. The list must be complete, but occasionally it does happen that a creditor is left off the list. Should that happen, it is best to consult with your Iowa bankruptcy lawyer to find out what to do about not filing a complete list of creditors.

If the debtor is filing Chapter 7, they are required to submit Schedules A through J with the bankruptcy court. Schedule A is to list the debtor’s real property. Schedule B is to list all personal property the debtor owns. Schedule C lists exempt property, and in Schedules D through F, debtors must list all of their creditors. Should the debtor have executory contracts and/or unexpired leases, they are listed on Schedule G.

If you have any co-debtors, their names and other relevant information must be listed in Schedule F and your expenses and income laid out on Schedules H and J. As you can see, with all the lists, rules and various requirements for filing for bankruptcy protection, there is the possibility of forgetting a creditor. If your case is being handled by a competent Iowa bankruptcy lawyer, he will help you fill out your list and ask that you search your memory for forgotten debts.

Creditor information for Schedules D through F must include the account number used for a debtor, the creditor’s name and mailing address. Then on Schedule D, the debtor needs to list security interests, garnishments, judgment liens, mortgages, deeds of trust and statutory liens. Unsecured priority creditors should be listed on Schedule E and non-priority unsecured creditors on Schedule F. The bankruptcy trustee uses this information to ensure all creditors are recognized and paid.

Once the Chapter 7 bankruptcy has been filed, it is up to the trustee to sell the debtor’s property and pay off the creditors. If the debtor did forget to list one of their creditors, they will not get paid. However, the most important thing to note is that if the debtor forgot a creditor and they are discharged from their debts, the debt to the forgotten creditor is still owed.

Kevin Ahrenholz is an Iowa bankruptcy lawyer and Iowa bankruptcy attorney. To contact him, visit http://www.iowachapter7.com or call 1.877.888.1766.

Receiving an inheritance before, during or after a bankruptcy may end up giving the debtor some difficulties. How that inheritance is treated when the debtor files a Chapter 7 bankruptcy will depend on when the bankruptcy was filed and when the person who bequeathed the money died. There have been instances where receiving an inheritance resulted in a discharged debtor having to repay the debts because their inheritance would allow them to pay everything off.

If you receive an inheritance before your bankruptcy case is discharged, by law you must declare it as a part of your bankruptcy estate. This means having your Iowa bankruptcy lawyer file revised paperwork for your bankruptcy. Ultimately, the amount of money you receive is taken into account when it comes time to figure out Chapter 7 eligibility and whether or not the funds may be used to pay creditors.

It does not matter whether or not you have received the money or property. The information must still be included in your filing. A pending inheritance still counts in calculations for bankruptcy eligibility. If the person bequeathing the money or property is still alive, you do not need to list the possible inheritance.

If you receive an inheritance within a window of 180 days after filing for bankruptcy protection, that bequest becomes a part of your bankruptcy. This is usually referred to as the 180-day rule, and it acts as a way to stop people from filing Chapter 7 to avoid paying creditors with their bequest. If the inheritance is not disclosed and the bankruptcy trustee becomes aware of it, you may be forced to hand it over and have your bankruptcy discharge revoked.

If your inheritance does not arrive during the bankruptcy process and you receive it more than 180 days after your petition was filed, there is no obligation to report it to the trustee or change your Chapter 7 filed documents. Additionally, some courts have determined that an inheritance that takes the form of certain trusts is not covered by the 180-day rule.

When in doubt about how an inheritance may affect filing for bankruptcy, contact an experienced Iowa bankruptcy lawyer and find out what rules and regulations apply to your situation.

Kevin Ahrenholz is an Iowa bankruptcy lawyer and Iowa bankruptcy attorney. To contact him, visit http://www.iowachapter7.com or call 1.877.888.1766.

The United States already leads the world in divorce rates, with approximately 50 percent of marriages ending in divorce. Now baby boomers are divorcing at a much greater rate, accounting for one out of every four divorces in 2009, the last year for which data is available. That represents a 15 percent increase since 1990. Florida is particularly affected by the increase, as many people retire to the state.

Researchers have found that people who have already been divorced once are 2.5 times more likely to be divorced again than people in first-time marriages.

The reasons for the increase in divorce among older couples are not entirely clear, but researchers have speculated that they include greater social acceptance of divorce and greater financial independence among women.

Any divorce is difficult, but seniors have particular life circumstances that affect them differently than younger couples. For one thing, older people are often planning carefully for retirement and expecting to rely on two sets of assets and income. This type of planning often involves a balance of retirees’ own assets, including a 401(k), combined with Social Security benefits and health care savings from Medicare. When those resources are split instead of combined, and either or both spouses has reached the end of a working career, serious financial hardship can result.

Divorce can be one of the most trying emotional experiences, and it is important to be sure that both parties take a clear-headed approach to financial planning, including creating a budget that takes into account reduced funds. Of course, each party should have the counsel of an experienced family law attorney to be sure that assets are divided fairly.

When people have been married for a longer period, there are often more assets to divide in a divorce. This may include savings, real estate, stocks and other investments.

In the state of Florida, property in a divorce is assigned according to “equitable distribution,” which calls for assets to be divided proportionally. A divorce settlement can include alimony, which may be more appropriate in some cases than a lump sum payment.

In addition to the financial aspects, a qualified family law attorney can assist in the preparation and review of new legal documents such as wills, insurance policies and healthcare directives.

O. Reginald (“Reggie”) Osenton is the Owner and President of Osenton Law Offices, P.A. If you need a Brandon divorce lawyer, Tampa divorce lawyer, or Tampa divorce attorney, call 813.654.5777 or visit Brandonlawoffice.com.

The United States Constitution gives Congress the power to create laws regarding bankruptcy, a concept received from English law. Article I of the Constitution provides that Congress may make “uniform laws on the subject of Bankruptcies,” and the body first made use of the power in 1800, passing a law that applied only to traders and was strictly an involuntary procedure. It was repealed three years later.

American concepts of bankruptcy law were incorporated into the 1833 Roberts Treaty with Siam, but voluntary bankruptcy in the United States did not develop until 1841. Bankruptcy law developed further in the 19th century, leading to the passage of the Bankruptcy Act of 1898, which is the basis of modern bankruptcy law.

The Bankruptcy Act of 1898 is also known as the Nelson Act, after Senator Knute Nelson of Minnesota, who was instrumental in enacting it. The Nelson Act provided the first lasting legislation that allowed companies to protect themselves from creditors.

In 1938, the Chandler Act superseded the Nelson Act, providing greater access to the voluntary system and improving the position of debtors. Under the Chandler Act, the Securities and Exchange Commission became the body responsible for administrating bankruptcy law.

In 1978, major changes were made by the establishment of the Bankruptcy Code, also known as the Bankruptcy Reform Acto of 1978. Several changes were made to the law, the most important of which was establishing bankruptcy courts. The new courts were essentially free-standing, though under the auspices of federal district courts. This raised Constitutional questions of judicial authority in the 1982 case of Northern Pipeline Co. v. Marathon Pipe Line Co., which were not resolved until Congress acted again in 1984.

Further reforms were enacted in 1986, making changes in the law as it applies to family farmers, and in 1994, altering provisions of bankruptcy law that apply to the mortgage banking industry.

The most recent development in bankruptcy law is the 2005 Bankruptcy Abuse Prevention and Consumer Protection Act. The new law tightened restrictions on Chapter 7 filings by consumers, though some may use Chapter 13 instead. The law was thought by many to be a victory for the banking and credit card industry, which lobbied heavily for the changes.

Today, after centuries of reform, bankruptcy law still provides significant protections for debtors.

O. Reginald (“Reggie”) Osenton is the Owner and President of Osenton Law Offices, P.A. If you need a Brandon bankruptcy lawyer, Tampa bankruptcy lawyer, or Tampa bankruptcy attorney, call 813.654.5777 or visit Brandonlawoffice.com.

You just found out that your spouse has filed for a divorce and you are in a panic. Perhaps at some point you made the decision to actually stop paying on your debts, because you just could not, and getting the petition for divorce was the last straw.

You think that it might be time to file bankruptcy, as you do not have the money to pay support. You also need to file some kind of response to the divorce action. Before you make any kind of decision relating to your divorce and/or filing for bankruptcy, consult with an experienced Iowa bankruptcy lawyer. If you make the wrong move now, you could find yourself with legal difficulties.

What considerations are there with respect to divorce and bankruptcy? Before the Bankruptcy Act was enacted in 2004, there was a way to discharge debts that came about as a result of divorce. Since lawmakers considered this to be a loophole, amendments were made to the Act to close it, which means you may no longer discharge any financial obligations that are the result of a divorce, including spousal and child support.

The only option for you to consider is whether your financial situation makes you eligible to file for bankruptcy protection. Whether or not you are facing a divorce is not relevant to the issue of filing bankruptcy. However, it is imperative that you discuss your situation with a qualified Iowa bankruptcy lawyer to make sure you know all of your options should you decide to move forward and file for Chapter 7 or Chapter 13 bankruptcy.

Filing for bankruptcy is stressful enough without also facing divorce at the same time. This is when you need to services of a skilled Iowa bankruptcy lawyer to help you get through the maze of rules, regulations, credit counseling and paperwork. If you attempt to file on your own without legal counsel, you may waste time and money and risk having your bankruptcy petition dismissed. Hiring a knowledgeable bankruptcy attorney is the best investment you will ever make.

Kevin Ahrenholz is an Iowa bankruptcy lawyer and Iowa bankruptcy attorney. To contact him, visit http://www.iowachapter7.com or call 1.877.888.1766.

When the bankruptcy process is concluded, the debtor is released from a variety of debts. In discharging them, it means they do not have any liability for that debt anymore. On discharge, which happens when the court determines the debtor has fulfilled all of their obligations in filing for bankruptcy protection, the debtor gets a copy of his discharge records in the mail. These records must be kept. This is information that your Iowa bankruptcy lawyer will cover during the early stages of your bankruptcy filing.

Keeping original bankruptcy discharge papers is routine for some people and for others, filing is not something they do on a regular basis. If the bankruptcy discharge papers cannot be found, the debtor may get another copy in one of two ways: getting in touch with the court where the bankruptcy petition was first filed or going online and to use the Federal Courts PACER system. They may also wish to touch base with their Iowa bankruptcy lawyer, in case there is an extra copy on their file.

If you want to do this in person, get in touch with the clerk of the bankruptcy court where you filed and where your bankruptcy was discharged. If you are not certain which court you need to contact, the information for all bankruptcy courts in the U.S. is available online. You need to pay a fee for the clerk to search and certify your papers and have them sent to you in the mail, or pick them up in person.

The PACER system allows individuals to create a free user account, prior to searching for a bankruptcy discharge. If the information is in the database, you then indicate how you are paying the per page fee for the information to download to your computer. If you are not debtor listed in the document you want, you are still able to obtain a copy of any public record bankruptcy papers by speaking to the bankruptcy court clerk when you filed your bankruptcy papers.

Kevin Ahrenholz is an Iowa bankruptcy lawyer and Iowa bankruptcy attorney. To contact him, visit http://www.iowachapter7.com or call 1.877.888.1766.

If you are going to credit counseling, as a result of filing for bankruptcy protection, you need to choose an independent individual; one that will be working for you, and has no affiliations with banks or other lending institutions. You might wonder how you would do that; how would you compare them?

The first thing you need to check into is who is responsible for paying them. Do they work for you? Do they work for the bank where you have a loan? Do they work for a credit card company? The answers to these questions are important, for main reason that you want someone that is 100 percent your advocate, not working on behalf of the people that loaned you money.

Good, independent choices for credit counseling may run the gamut from an attorney that specializes in that area to an accountant with extensive experience in dealing with bankruptcies. It could also be an individual who may work for a credit reporting company, or a business that assists in helping people work out their financial issues. If at any time you are uncertain as to how to find a credit counselor that is not affiliated with a lending institution, ask your Iowa bankruptcy lawyer for suggestions.

If you discover that the person or company you want to deal with has ties to a lending institution, bank, credit union or credit card company, you can expect they are not working in your favor. They may look like they offer good service and advice, and in fact may do a good job of it, but their real reason for helping you is to get as much money back from you as possible. They may even be free, which is tempting when you have very little money to go around.

Opt for the independent credit counselors, whose only job is to help you deal with the difficult situation you find yourself in.  At any point during the process of filing for bankruptcy protection, it is smart to keep asking questions about what is happening, what is next, what documents are required and what to expect when things are said and done. Your Iowa bankruptcy attorney will guide you, step-by-step through the maze of rules and regulations. You just have to ask for help.

Kevin Ahrenholz is an Iowa bankruptcy lawyer and Iowa bankruptcy attorney. To contact him, visit http://www.iowachapter7.com or call 1.877.888.1766.

A personal credit score is the way that creditors figure out whether they want to loan money to an individual. A credit score will affect whether a person gets a car loan or a student loan and it can affect rental agreements and even job applications. A bankruptcy can remain on a credit score for 10 years.

A variety of agencies will want to see the credit score before making a decision about a person – especially with regards to a financial transaction.

Since bankruptcy is inevitably going to have an effect on the credit score, there are a few things that can be done to improve it and move the number back up quickly.

• Review the score. Individuals can review their credit score for free once a year. It is important to look over all of the things that may have popped up on a credit score annually. Mistakes can happen and it those mistakes could hurt the score even if they are not true. It also is important to keep an eye out for fraud. IF someone sues a social security number illegally, it can emerge on a credit score and damage the rating.

• Be diligent about bills. Paying bills on time every time is the simplest and most efficient way to build better credit.

• Apply for new credit. Most people get rid of all of their credit cards when they file for bankruptcy. After the bankruptcy has been discharged, it is smart to apply for another credit card to be used sparingly and always paid off. This will help begin to build positive credit again.

• Avoid scams. Since there are hundreds of thousands of people filing bankruptcy and beginning to try and repair their credit, there are agencies preying on the vulnerable. It is important to investigate thoroughly any agency that offers to help repair credit. Many are expensive and there is nothing they can offer that cannot be accomplished with diligent, mindful attention to personal finances.

Filing for bankruptcy will have a negative effect on a person’s credit rating, but the credit score can be rebuilt with patience and hard work.

O. Reginald (“Reggie”) Osenton is the Owner and President of Osenton Law Offices, P.A. If you need a Brandon bankruptcy lawyer, Tampa bankruptcy lawyer, or Tampa bankruptcy attorney, call 813.654.5777 or visit Brandonlawoffice.com.

A married couple that has one or more child may choose to end their relationship, but both parties generally want to continue their role as a parent to their child or children. As each party tries to have more involvement with the child’s life, custody battles are born.

In recent years, the divorce courts have seen an increase in another custody dispute, custody of the family pet. As the two spouses go their separate ways, they may not agree on who gets the dog, or where the cat sleeps. The spouse that always fed the dog may argue against the one that always walked it, in an effort to prove who is the better “pet parent”.

In situations where all parties want to maintain a relationship with the family pet, they should consider what is best for the animal. A large, hyper, dog may not be a good fit for the new small apartment where one of the spouses has moved. Additionally, the spouse that works long hours may be subjecting the cat to long hours of solitude, perhaps too much even for a cat.

The couple has a variety of options that are very similar to the solutions presented to parents in child custody disputes. It’s all about what’s best for the pet, and how to give more pet owners as much involvement as possible.

Joint custody of a pet is a popular choice, as it gives both parties the ability to have the pet in their home for agreed upon amounts of time. This allows the pet to be an active part of both lives. Sole custody with visitation, would allow one person to have the animal reside with them permanently, while the former spouse retains the option of visiting. This agreement is not always limited to visiting the animal within the home, usually the animal can be taken to a park, beach, or walk on a regular basis.

While no pet is safe from a custody battle, the American Academy of Matrimonial Lawyers reported that 90% of pet custody disputes involved dogs. They also have reported a 25% increase in pet custody disputes in recent years.

Couple should consider the age and health of a pet, before establishing any sort of custody arrangement. An older dog may not be able to easily travel from one home to another, or go out to parks, or long walks, for visitation.

During a divorce and custody battle, have an experienced divorce attorney to walk you through the process and help avoid costly mistakes. The future of your family is being negotiated, and the results can affect every member of the family.

O. Reginald (“Reggie”) Osenton is the Owner and President of Osenton Law Offices, P.A. If you need a Brandon bankruptcy lawyer, Tampa bankruptcy lawyer, or Tampa bankruptcy attorney, call 813.654.5777 or visit Brandonlawoffice.com

A significant number of U.S. bankruptcies are related to medical expenses, and most are due to unforeseen circumstances. A tragedy in the family, loss of work, and unforeseen home repairs that weren’t covered by a family’s insurance provider, are a few examples.

When an honest debtor is looking at their bills and seeing a negative difference between what they have and what they owe, they may feel embarrassed about filing bankruptcy. It is true, credit will have to be rebuilt after a discharge, but the cost of blemished credit is often far less than servicing debt.

Median credit card debt is $3,000 in the U.S. (We will cover average credit card debt in a moment.) If that debt is carried on a card that already has a high interest rate of 18%, that credit card will have a minimum monthly payment of $75/month. If a card holder pays $75/month consistently they will have that balance paid off in 62 months. The bank will take in $1,615.87 making the effective interest rate 53% of the loan’s value.

However, many people are not able to continue with a fixed payment and adjust their paid amount with the minimum payment. The minimum payment of course gets lower as the balance is paid down.

Under the same scenario where a card has a $3,000.00 balance and 18% interest rate, a borrower paying only the variable minimum payment will pay off that balance in 18.5 years. They will make 222 payments and pay $3,923.08 in interest. That is an effective interest rate of 130% of the loan’s value.

When things get tight, that is when families need access to as much of their income as possible. Filing bankruptcy could eliminate all unsecured debt and free up monthly income. Once the bankruptcy is complete and the family is back on their feet, they can begin servicing their own savings account rather than credit card debt.

While credit card debt is on the raise, personal savings is not.

The average family has $3,800.00 in savings whereas the average U.S. family has $15,956.00 in credit card debt. Eliminating credit card balances now can help shift the balance back to a family’s safety net and away from servicing debt.

O. Reginald (“Reggie”) Osenton is the Owner and President of Osenton Law Offices, P.A. If you need a Brandon bankruptcy lawyer, Tampa bankruptcy lawyer, or Tampa bankruptcy attorney, call 813.654.5777 or visit Brandonlawoffice.com.

As student loan debt reaches record highs, many students are getting buried by their loan payments before making it into the job market. Tuition and the exploding growth of private for-profit schools has led to many students graduating with a $25,000 or greater debt to carry.

Most government-backed loans are exempt from being discharged in a bankruptcy. This is true with government-guaranteed student loans, and the Struggling Students Act will not change the current laws related to federal student aid. However, the proposed legislation would allow individuals to discharge student loan debt from non-government and for-profit lenders.

The ability to discharge student loan debt is nothing new. In fact, the inability to discharge for-profit education debt is only seven years old. In 2005, the Bankruptcy Abuse Prevention and Consumer Protection Act was passed and signed into law. Upon closer examination, the law did more to protect banks and lenders than consumers.

It was with the Bankruptcy Abuse Prevention and Consumer Protection Act that borrowers lost the right to include their for-profit student loan debt in a chapter 7 bankruptcy. Three years after that legislation was passed, the employment rate and recession put a strain on many people,e which was only magnified by having to carry excessive student loan debt, even after a successful bankruptcy.

The bill does not try to simplify or expedite the bankruptcy process, but rather allow for-profit student loans to be discharged in a personal bankruptcy, as they were prior to 2005.

For the bill to become a law, it would have to be ratified between the U.S. House and Senate. The bill is still being debated in the Senate, and has not yet been put to a vote. Should the Senate pass the bill, it will go to the U.S. House of Representatives and if passed, be sent to President Obama’s desk to sign.

Neither President Barack Obama, nor Republican Presidential Candidate, Mitt Romney endorsed the bill. Until a reversal of the 2005 restriction on for-profit student loan debt is successfully enacted, individuals will be unable to discharge the burden of their student loan.

O. Reginald (“Reggie”) Osenton is the Owner and President of Osenton Law Offices, P.A. If you need a Brandon bankruptcy lawyer, Tampa bankruptcy lawyer, or Tampa bankruptcy attorney, call 813.654.5777 or visit Brandonlawoffice.com.

Filing for bankruptcy is an overwhelming decision. Actually sitting down with a skilled Iowa bankruptcy lawyer and reviewing your situation often causes anxiety. It is a big step and the whole process can be overwhelming, which is why it is a smart move to hire a qualified Iowa bankruptcy lawyer to help you get through the maze of rules and regulations.

Some people may be scared to admit to what they have in assets, because they do not know for sure what to declare. Others deliberately lie about their assets, property and spending habits. In both cases, not fully revealing all of your assets and complete financial situation may result in the court dismissing your bankruptcy petition. You may face penalties, fines and possible jail time. If you are facing bankruptcy, make certain you fully understand what constitutes bankruptcy fraud.

What many people do not realize is that it is possible to commit bankruptcy fraud before they file for bankruptcy protection, or even before they may be aware they may need to file. Sales or gifts of property or money during the two-year period before filing a bankruptcy are examined in minute detail by the bankruptcy court. The reason for this time frame is that, in most instances, bankruptcy means seizing and selling the debtor’s assets.

Some debtors then try to keep their property by transferring it to a family member or best friend. If property or other assets have been transferred during the two-year period, and the court deems the transfer was not for a legitimate and fair reason, they may find you liable for fraud. This is not the only way to commit fraud. In fact, another common method is providing false information to the court by leaving assets off the schedule of assets, or claiming exemptions that are not applicable. In both of these situations, the debtor is intentionally making a false statement to the court in the hopes they can get away with something. The court does not take bankruptcy fraud lightly.

Another method debtor’s have used to attempt bankruptcy fraud is to give a creditor a false statement. An example would be taking out a personal loan and stating your income was $60,000 a year. The bank would give you a loan based on that stated income, which is false. When you file for bankruptcy, the bank will ask the court to not declare the loan as discharged in the bankruptcy. If the credit institution is able to prove your statement of income was a lie and that your statement convinced them to loan your money, you will not be able to discharge that debt. In other words, you will still need to repay the loan after the bankruptcy has been processed.

Kevin Ahrenholz is an Iowa bankruptcy lawyer and Iowa bankruptcy attorney. To contact him, visit http://www.iowachapter7.com or call 1.877.888.1766.

People often withhold information when they file for bankruptcy. It may be due to the fact they are not sure about what they need to include in their filing, or they are keeping the information to themselves on purpose. Withholding information constitutes a fraudulent bankruptcy under the rules of the Bankruptcy Act of 2005, which means it is considered to be a federal offense. Additionally, the statute of limitations for bankruptcy fraud cases depends on what kind of concealment was involved.

When a debtor files for bankruptcy, they are responsible to provide all relevant information about their financial status, assets and spending habits. This type of information is used by the court to figure out your eligibility for bankruptcy, and once this material is filed, you get an immediate stay to halt all collection activities.

The most common types of bankruptcy fraud attempted are trying to conceal property or income. The debtor does not include information that is required by omitting income sources and/or jobs and does not list property in the petition. Property could include vehicles, homes, or jewelry. Other types of fraud that debtors have been known to try are receiving property from someone who is planning to file for bankruptcy relief and then not mentioning it during their bankruptcy hearing.

Officially, the statute of limitation for a fraudulent bankruptcy is five years. In other words, it is the median, but it is best to keep in mind that it does not go into effect until the bankruptcy case is discharged or denied. An example of this would be an individual filing for Chapter 13, with a five-year plan to repay all or a portion of their debts. If the bankruptcy was fraudulent, the federal court then has five years after the discharge, the end of the payment plan, to begin prosecuting the debtor. Put another way, the federal government had a total of ten years to build a bankruptcy fraud case against the debtor.

You should also be aware that after a discharge is granted, the bankruptcy court can move to revoke it. They would do that based on the determination that the discharge was approved as the result of the debtor hiding pertinent financial information from the scrutiny of the court. The creditor’s lawyer has one year to petition the court to revoke the discharge before a separate statute of limitations kicks in. As you can see, this is a very complex process.
If the debtor is found guilty of bankruptcy fraud before the statute of limitations expires, this is a felony offense, with a fine of up to $250,000 and five years in jail. On top of this possible consequence, other creditors have the option to take legal action once they are made aware the bankruptcy discharge was revoked or the case denied.

Kevin Ahrenholz is an Iowa bankruptcy lawyer and Iowa bankruptcy attorney. To contact him, visit http://www.iowachapter7.com or call 1.877.888.1766.

Sometimes, children want pieces of a collection, but many times they do not or they want pieces that have significantly different values.

Putting children in charge of selling an art collection that they did not collect and do not know much about can create problems for the estate. The children parsing a valuable art collection could be forced to spend time and money understanding the value of a collection that the collector should have documented and settled long before passing it along.

A conversation with an estate’s beneficiaries needs to be open and honest. Children and grandchildren who are not in a similar financial place as their parents may fear that inheriting a $2 million art collection will affect the amount of cash they inherit.

An important first step is to determine whether the beneficiaries want the collection at all. If the pieces are large or require extra insurance, they may be more of a burden on children or grandchildren. If each of the beneficiaries wants a smaller, less valuable piece, then the rest can be donated or sold upon the owner’s death. All of this can be arranged beforehand so that the beneficiaries understand what will happen and will be less likely to squabble over the details. They also will not be saddled with the financial responsibility of determining the value of the pieces and finding a company to auction them off.

Children also may be naturally drawn to art with drastically different values. Managing the difference is something that should happen early in the estate planning process.

It is almost always a bad idea to allow children to try and “share” a piece of art. Whether it is a valuable musical instrument or a statue or a painting, sharing valuables usually ends with strained relationships.

Collections that should stay together can be tricky to handle if there are multiple beneficiaries to consider. If it makes sense to keep the collection intact, then selling it intact may be the best option unless there is a beneficiary who wants to keep it and the rest of the estate can be balanced to make up for it.

Putting the art in a trust can be considered just like people do with real estate as long as everyone stars on the right side of the IRS.

Art can be a beautiful thing to pass from generation to generation. It can be a more contentious piece of the estate because there are values combines with emotions. People will get every bit as emotional about artwork that they will about a piece of property or a vintage automobile.

O. Reginald (“Reggie”) Osenton is the Owner and President of Osenton Law Offices, P.A. If you need a Brandon estate planning lawyer, call 813.654.5777 or visit Brandonlawoffice.com.

It used to be that filing for a Chapter 7 bankruptcy was a very long process and considered to be expensive. The main reason it was expensive was the amount of running around the debtor had to do, making hundreds of photocopies of various documents and ensuring they were mailed to every creditor you owed money. For some, that was a long list and postage added to their expenses. While much of this running around still needs to be done, depending on the circumstances of the case, thanks to technology, debtors may file from home using their personal computer.

It should be understood that a Chapter 7 bankruptcy, also referred to as a liquidation bankruptcy, banishes most debts. For the exceptions, you would need to speak with an experienced Iowa bankruptcy lawyer. That out of the way, and knowing you are eligible to file, you may now electronically sign and file a Chapter 7 bankruptcy petition.

Following that, the process from start to eventual finish, is the same. Once the debtor had filed, all the applicant’s assets become the property of the bankruptcy estate, and a trustee is assigned to administer that estate and sell nonexempt property to pay unsecured creditors.

Many debtors wishing to file electronically ask the about the requirement that bankruptcy documents must be signed, and whether or not by filing via the Internet would be committing perjury. While the law does specifically state that each debtor must sign their petition, those filing electronically are assigned a login and unique password that becomes their signature. Your Iowa bankruptcy lawyer will also instruct you that if you efile, your documents need to have /s/ on them, followed by your typed name.

In the United States, efiling is done under the auspices of a program called the Case Management/Electronic Case Filing system. This system is under the purview of the federal judiciary, and using this system allows a debtor to submit just about every item they need relevant to their case 24/7.

Many debtors are concerned about the lack of privacy when it comes to filing a Chapter 7 bankruptcy, as once they do file it becomes a matter of public record. Anyone may access the online, signed forms through a system called the Public Access to Court Electronic Records (PACER). This is largely used as a search program, and debtors cannot file their bankruptcy documents this way. For more information on what this may mean to you, speak to a seasoned Iowa bankruptcy lawyer.

Kevin Ahrenholz is an Iowa bankruptcy lawyer and Iowa bankruptcy attorney. To contact him, visit http://www.iowachapter7.com or call 1.877.888.1766.

Schedule 1 is a form required by the bankruptcy court, and it is otherwise referred to as Current Income of Individual Debtor. If you are a veteran, and are filing for bankruptcy protection under Chapter 13 or Chapter 7, then this form must be included. If you have a spouse, there is a place for them to be added on the form. While these forms may seem complex, if they are discussed with a qualified Iowa bankruptcy lawyer, most of the questions would be clearly answered.

As with many rules and regulations, there are some exemptions to this rule. In this instance, there are certain items that are considered to be exempt from liquidation under a Chapter 7 bankruptcy. Those exemptions include alimony, child support, Social Security, unemployment and veteran’s benefits. Even though the veteran’s benefits are exempt, they are still used to calculate a debtor’s financial situation.

For example, if a veteran is getting regular wages, those need to be listed in Schedule I as the gross amount along with any overtime. Any payroll deductions must be taken off wages for the net take home pay. For items 7 to 13, if the veteran debtor has other forms of income, these must be listed. Section 11 would be the area in which to include veteran’s benefits, on the line that asks for ‘Other Monthly Income.’

If a veteran is in a situation where Veteran’s Affairs is only paying them benefits temporarily for a disability, such as an illness that they will recover from, they need to know when the payments end within the year. Then, they would fill in line 17 on Schedule 1 outlining the reasons the benefit is temporary. Again, theses forms can be filled out with the help of an Iowa bankruptcy lawyer.

While filling out all the forms may seem unnecessary, they are required in order to match them up with the means test that all debtors must go through to determine their eligibility for filing bankruptcy under Chapter 7 or Chapter 13. There is always the possibility that an applicant does not qualify, and this is something that can be figured out with the assistance of a skilled Iowa bankruptcy lawyer. For those that do not qualify for Chapter 13, they may instead, be eligible for Chapter 7. It all depends on the means test and the corollary information filed to initiate the process of seeking bankruptcy protection.

Although Schedule I is used for both Chapter 7 and Chapter 13, the Chapter 13 forms will demonstrate to the trustee how much money is being earned in the household. This, when paired with Schedule J listing debtor’s expenses, will show if there is enough income to pay back some of the debt or not.

Kevin Ahrenholz is an Iowa bankruptcy lawyer and Iowa bankruptcy attorney. To contact him, visit http://www.iowachapter7.com or call 1.877.888.1766.

Those days have passed. Many people planning their estates today keep track of more accounts digitally than they do with paper. This means people planning their estates must provide passwords and a thorough list of all digital assets.

Passwords can be tricky. Most professional estate planners do not want to be responsible for the passwords of the living. If someone hacked into a client’s account, there would be no way to prove where the hacker got the information. Some estate planning attorneys suggest keeping a list of digital accounts and the passwords to those accounts in a home safe or a safe deposit box. If the passwords change, then it is imperative to change the notes stored in the safe.

The range of information stored digitally will continue to grow. From professional photographs and manuscripts to domain names and other online documents, people have a great number of assets stored electronically now. Managing that information is important so that value and wealth is not lost.

An estate planner needs a comprehensive list of assets and liabilities stored digitally because he or she will need to know what potential value and liability exists and where it is. A fiduciary will need the correct power of attorney to administer the estate and find the passwords to access the digital information.

Estate planners look at passwords as keys. For example, they do not need the keys to a client’s car in order to execute a will, but they need to know where the keys are kept.

Many times, survivors are unaware of the assets and liabilities stored in the computer of the deceased. Trade secrets or other sensitive information could be left on a computer and donated. If that computer is compromised, then the estate could be liable for the information left on the computer. Likewise, a survivor might not know about domain names registered by the deceased that would be instantly valuable to a buyer.

People putting together an estate plan must disclose the estimated value of the information they have stored digitally. Estate planners may not know what to look for if the client does not outline all of the assets. This will help the fiduciary manage the estate accurately.

It is important to hire an attorney with estate planning experience. Today’s tech-savvy clients should look for estate planning attorneys who understand the challenges to planning in a digital world.

O. Reginald (“Reggie”) Osenton is the Owner and President of Osenton Law Offices, P.A. If you need a Brandon bankruptcy lawyer, Tampa bankruptcy lawyer, or Tampa bankruptcy attorney, call 813.654.5777 or visit Brandonlawoffice.com.

In dumping the program, Florida Supreme Court Justice Charles Canady wrote, “The Court has reviewed the reports on the program and determined it cannot justify continuation of the program.”

A statewide report produced in January 2011 showed barely six percent of homeowners engaged in the mediation program were able to resolve their mortgage problems, according to the Palm Beach Post. The state study revealed that mediators were able to contact borrowers referred to them by the courts less than half of the time. Among those contacted, barely a third bothered to come in for a session.

There are 20 Circuit Courts in the state. Only seven of those courts were included in the report. Some had not been using the program long enough to have results that could be studied.

Mediation experts told the Palm Beach Post that many borrowers may have ignored the solicitation from court mediators because they already had a deal worked out with their lender. Other borrowers may not have replied because they were simply overwhelmed with letters and phone calls or they left town.

The mediation was paid for by the banks at $750 per case, but the borrower had to take foreclosure counseling and divulge all of their financial information. That proved to be a stumbling block for the program because many borrowers did not want the bank to know that much about their finances, according to the story in the Palm Beach Post.

Possible settlements through mediation included short sale, deed-in-lieu of foreclosure or, in a best-case scenario, a loan modification. By most accounts, the program failed to provide financial relief to homeowners and it struggled to move logjammed foreclosure cases through the system.

The chief justice’s order included a reiteration that the court’s job is “prompt and efficient administration of justice.” To that end, the order included language that said Circuit Court judges must “…adopt or employ any measures permitted by statute or court rule to manage pending and new residential mortgage foreclosure cases, including referral of cases to mediation on a case-by-case basis.”

The fate of the short-lived program had been known for months. According to the Miami Herald, a task force of judges recommended ending the program in October because of its poor success rate.

O. Reginald (“Reggie”) Osenton is the Owner and President of Osenton Law Offices, P.A. If you need a Brandon bankruptcy lawyer, Tampa bankruptcy lawyer, or Tampa bankruptcy attorney, call 813.654.5777 or visit Brandonlawoffice.com.

This is a good question, and the answer is that it would depend on what kind of bankruptcy is filed. There are two commonly filed bankruptcies, Chapter 7 and Chapter 13. A Chapter 7 bankruptcy is usually the quickest and easiest form of bankruptcy. A Chapter 13, also called the wage earners plan, lets a debtor with a regular paycheck create a repayment plan to get rid of part of or all of their debts during a three to five year period.

In the case of a Chapter 7 bankruptcy, if medical care was provided before the debtor filed, those debts are considered to be a part of the bankruptcy process. In that case, they would be discharged. On the other hand, if the medical care was rendered after a Chapter 7 bankruptcy is filed, that debt is not a part of the proceeding. This means the debtor would have to pay the bill on their own.

No one can predict when they are going to be hurt and need to go to the hospital or need on-going medical care. Unexpected bills happen to everyone from time to time. This means you need to move forward with caution when filing. After you have filed a Chapter 7, you must wait eight years before filing another Chapter 7. If you are unable to or do not want to pay medical creditors, they have the option to pursue filing a lawsuit against you. If they are successful, they may be able to foreclose on your property, attach liens, garnish wages or seize assets.

In a Chapter 13 bankruptcy, your disposal income is a part of the process of bankruptcy, and it is used to make monthly payments in accordance with the repayment plan you submitted to the courts. In other words, it is an ongoing plan, and that means you may amend the schedule as you move forward to include medical debts. They are prioritized and added in to the order of payments. Any unpaid, unsecured debt, such as medical bills may be discharged.

Even though it is possible to add medical debt repayment to a Chapter 13, there are other consequences. The biggest one is the added expense you face to try and meet your debt repayment plan. If you are unable to pay, or miss payments, the plan may be dismissed. This would put you right back where you started from in the first place.

There are exceptions to be considered in either instance, and it is wise to contact a qualified Iowa bankruptcy lawyer and find out what options are open to you in your particular case.

Kevin Ahrenholz is an Iowa bankruptcy lawyer and Iowa bankruptcy attorney. To contact him, visit http://www.iowachapter7.com or call 1.877.888.1766.

There are a number of debt reduction companies in the marketplace that say they can negotiate you a lower interest rate, cut what you owe by at least 50 percent and not affect your credit rating. It does sound good. However, these agencies often do not deliver what they promise, and there is a difference between bankruptcy and debt reduction.

For those individuals who owe more than they can pay, finding help through a debt reduction company or declaring bankruptcy are two of the leading options available to them. However, it is wise to know the differences before you proceed. Bankruptcy is a legal option that lets debtors either eliminate all or most of their debts via filing a Chapter 7 or Chapter 13 bankruptcy. Typically Chapter 7 clears all debts. Chapter 13 is a renegotiated debt with a more affordable payment.

Each state has different bankruptcy laws, and so it is wise to speak with an Iowa bankruptcy lawyer to understand what your options are in Iowa. During that discussion, you will find out if bankruptcy will help you with your particular circumstances. While declaring bankruptcy does provide financial relief, there are consequences. The biggest one is the reduction of your credit score that remains on your record for up to ten years.

If you are considering debt reduction, also referred to as consolidation, with a company that says it can help you, you will discover they help by combining all your payments into one payment a month, usually lower than what you currently pay. This sounds good. However, most of these types of companies do not have a debtor’s best interests at heart. Their main goal seems to be scaring the debtor into using their services by telling them how bad their credit report will be, which is a given, even if you declare bankruptcy. This is not news.

Most of these companies are able to come up with a lower monthly total, because it is spread out over a much longer period of time. This means you will pay quite a lot more to retire your debt. While this option might suit you, and you may not mind paying back more over a longer period of time, it is wise to consider both bankruptcy and debt reduction before making any final decisions. If you are not certain which route to take, consider speaking with a qualified Iowa bankruptcy lawyer.

Kevin Ahrenholz is an Iowa bankruptcy lawyer and Iowa bankruptcy attorney. To contact him, visit http://www.iowachapter7.com or call 1.877.888.1766.

Bankruptcy discharge papers may not look that important, but they are official, and tell the debtor they have finished the process of discharging their debts. For a debtor that has gone through many months of filing papers, creating repayment plans, discussing their situation with a skilled Iowa bankruptcy lawyer, attending credit counseling and coping with the stress, seeing these papers in the mail is a welcome relief. The papers signal the beginning of a new financial chapter for the debtor.

Many debtors wonder why the discharge papers are so important. They are important because they legally release the debtor from paying most of their debts. There are some debts that are not discharged in a bankruptcy, and this is a discussion to have with an Iowa bankruptcy lawyer at the beginning of the process prior to filing.

The discharge papers also ban creditors from attempting to collect on any of the successfully discharged debts. There have been cases where a creditor has attempted to do that, without success, as they are in violation of the law. With these discharge papers, the debtor can be reassured they will no longer get phone calls, letters or have to worry about garnishment. Once the bankruptcy discharge papers arrive, the debt is history. A debtor can expect, though that the record of the bankruptcy will appear on their credit report for a number of years.

Many people are not certain how long it takes after a person files a Chapter 7 bankruptcy before they get their discharge papers. In most instances, the length of time is roughly four months. There may be circumstances that delay the papers being sent, which is an issue that also needs to be discussed with an experienced Iowa bankruptcy attorney. It is better to have as much information as possible about the process of filing bankruptcy, rather than find out about a delay later.

On discharge, it is a good idea to make copies of the official notice. These may be required if you are attempting to correct any mistakes/omissions on your credit report. It also serves as proof to creditors that your debt has been discharged and that they must cease trying to collect on it. If you lose your original copy, you may obtain one from the court. Often the lawyer hired to file your bankruptcy may retain a copy on his files too.

Kevin Ahrenholz is an Iowa bankruptcy lawyer and Iowa bankruptcy attorney. To contact him, visit http://www.iowachapter7.com or call 1.877.888.1766.

For those facing the possibility of bankruptcy, it may help to know that there are six types that may be considered. The common types are Chapter 7, Chapter 11 and Chapter 13. The others are Chapter 12, Chapter 9 and Chapter 15. The last three types of bankruptcy are rarely filed.

Chapter 7 often involves liquidation, and businesses or individuals may file for this type of bankruptcy. To do so, the debtor needs to meet a means test to determine if they are eligible to file. Under a Chapter 7 filing, there is a court-appointed trustee/administrator that takes possession of non-exempt assets, and liquidates them. The proceeds of the liquidation sale are used to pay creditors.

A discharge under Chapter 7 typically happens within a few months after the initial petition is filed. There are a high percentage of Chapter 7 bankruptcies where all assets are secured and/or exempt. If that is the case, the file is closed, which means that no property was sold and therefore, there was no money to give to creditors. This is a situation that needs to be discussed with a competent Iowa bankruptcy lawyer.

For people that have a regular income, or for those who do not qualify for Chapter 7, Chapter 13 may be a good option. In this type of bankruptcy, the debtor creates a plan to repay their debts, typically over a three to five year time span. The plan must be approved by the Court. With a Chapter 13 bankruptcy filing, the individual often retains their assets and makes payments under the proposed plan to the trustee. The trustee pays the creditors.

While the debtor is paying off their debt under a Chapter 13 bankruptcy, they are protected from any creditor actions, garnishments and/or lawsuits. In order to have a Chapter 13 bankruptcy discharged, all payments under the plan must be made.

A Chapter 11 bankruptcy is considered to be a reorganization, and is often used by businesses that wish to stay in operation as they are paying creditors under the auspices of a court-approved reorganization plan. Once the plan has been approved by the court, the debtor begins to repay a portion of their debts, while discharging others.

With an approved plan in place, the debtor may revamp/reorganize their business and take action to terminate contracts or other leases and begin to recover assets. In doing so, they should become more profitable and be able to stay in business.

Chapter 12 bankruptcies deal with debt relief for family fishermen and farmers who have a regular income. In many respects, Chapter 12 is similar to a Chapter 13 bankruptcy. During the course of a Chapter 12 bankruptcy, the business person continues to run their operation, and makes payments according to a court-approved repayment plan that usually spans a three to five year period. Again, a bankruptcy trustee takes the money and disburses it to creditors.

Chapter 9 is similar in nature to Chapter 11. However, the debtor is typically a municipality. For example, school districts, villages, counties, towns and cities may file under this Chapter.
Chapter 15 is the newest type of bankruptcy, and was added to the Bankruptcy Code after the enactment of the Bankruptcy Abuse Prevention and Consumer Protection Act (2005). Chapter 15 deals with cross-border bankruptcy, which means debtors and/or their property, are subject to U.S. laws and the laws or one or more foreign countries.

If you are not certain what type of bankruptcy you qualify for, discuss this with an experienced Iowa bankruptcy lawyer. It is their job to stay on top of the latest changes in bankruptcy law.

Kevin Ahrenholz is an Iowa bankruptcy lawyer and Iowa bankruptcy attorney. To contact him, visit http://www.iowachapter7.com or call 1.877.888.1766.

In a nutshell, Chapter 13 bankruptcy payments are figured out in such a way as to allow normal family and household expenses. While it might sound fairly straightforward it is not always that way, which is why it is best to work with an Iowa bankruptcy lawyer.

Chapter 13 repayments are not just based on a math calculation. Instead, they are based on what is a reasonable assumption of what you are able to pay back to your creditors and still keep up with your normal household and family expenses.

Your Chapter 13 repayment plan is typically submitted with your petition to the U.S. Bankruptcy Court, and it is put together by you and your Iowa bankruptcy lawyer. By and large, it is drafted with an eye on various factors such as your income and the existing means test in your state. The means test is the figure that measures your income against the average income for your state.

Assets you have in your possession are also a part of the calculations. Once the lawyer has worked with you to figure out what you own, he is able to determine which assets are exempt and which are not. Put another way, bankruptcy law says unsecured creditors get at least as much as they would if your non-exempt assets were sold.

To roughly calculate what you would be paying, you use your monthly net earnings as a starting point, which is your after tax income, less deductions for things like pensions or health insurance. These are balanced against your living expenses (mortgage, rent, car payments, insurance, utilities, clothing, food) and other costs associated with daily living.

What many people do not realize is that credit card payments, and other unsecured debts are not rolled into the calculation largely because they get paid, in part or fully, once the bankruptcy repayment plan is in place. Late fees and interest on overdue accounts is often waived in Chapter 13 plans. However, in order to find out what you will and will not be paying, the details need to be worked out with an experienced Iowa bankruptcy lawyer.

Kevin Ahrenholz is an Iowa bankruptcy lawyer and Iowa bankruptcy attorney. To contact him, visit http://www.iowachapter7.com or call 1.877.888.1766.

This is one of the major reasons why, when filing for bankruptcy, it makes sense to consult with an experienced Iowa bankruptcy lawyer. They know what they are doing and have been doing it for years. They do not miss deadlines, forget to file all the requisite papers or leave documents out of a filing because they are not sure what the court needs. Their job is to get it right for their clients.

There are do-it-yourself (DIY) kits that give a debtor an idea of the documents and procedures they need to go through to file. However, as with any DIY kit, there are always the issues no one can be prepared for, because every bankruptcy is different. The only thing they all have in common is the fact that the debtor went bankrupt. How they got there, what chapter they filed under and what they need to do to complete their bankruptcy varies on a case by case basis.

It is cheaper to file without a lawyer, but if you make a mistake, it will wind up being even more expensive. It is well worth the money to hire a professional that knows what they are doing because in the long run, they will save you time, money and grief.

Typically, the most common filing is under Chapter 7 and the fee charged to file a Chapter 7 bankruptcy is roughly $299. That may vary from state to state, so ask your lawyer or check the court website if this is something you want to know. The fee for filing a Chapter 13 is usually around about $274, but again, this may vary.

Overall, the fees a lawyer charges a debtor for the correct and timely filing of their particular bankruptcy petition, may range anywhere from $1,000 to $2,500 plus court fees. This is money well spent to get it right the first time and get it done so you can get on with your life.

Basically, if you want to be safe, get it done right, file under the appropriate Chapter and get clear of your debts without running into problems, then hire a skilled and experienced Iowa bankruptcy lawyer. It is the only smart thing to do when faced with the daunting process of filing bankruptcy.

Kevin Ahrenholz is an Iowa bankruptcy lawyer and Iowa bankruptcy attorney. To contact him, visit http://www.iowachapter7.com or call 1.877.888.1766.

Filing for bankruptcy is a tough decision for anyone to make, even it if appears to be the only thing left to do. Admitting that we are in over our heads financially is one of the most embarrassing and depressing issues anyone could face. They feel that somehow they failed in life. That is not true. Bankruptcy happens to anyone, and you only have to read the stories on the Internet to know that even celebrities declare bankruptcy.

Perhaps a Chapter 7 filing would suit your situation, but you are not sure. Make an appointment to meet with a Waterloo bankruptcy attorney and go over your financial situation. Typically, the first meeting is free and you will get good, solid advice. From there, you can hire the lawyer and move forward through the maze of the bankruptcy system.

Here is a quick overview of what will happen once you hire a bankruptcy lawyer:
– For a Chapter 7, the lawyer files your petition and statement of financial affairs with the courts
– The papers outline your total debt, your income, expenses and what property you own
– Once the papers are filed, you are granted an automatic stay that stops collections activity
– A trustee is assigned to the case and will identify and sell your assets, paying the proceeds to creditors
– Priority creditors are paid first
– When the process is complete, in about four to six months, the debt is discharged
– Discharged debts may include unsecured personal loans, credit card debt and medical bills

Note: Chapter 7 bankruptcy may not stop all collections if a bankruptcy judge determines there is cause
Declaring bankruptcy is fairly straightforward, but is complex, which is why you need the services of an experienced bankruptcy attorney. This has been the case since the inception of the Bankruptcy Abuse Prevention and Consumer Act in 2005. It made filing harder, and now requires that you pass an income test. In a nutshell, the income test figures out if your salary is below other residents that live in Iowa.

If your income is below the median line, it is likely you may file for Chapter 7 bankruptcy. If your income is above that same line, there is more means testing. Generally speaking, the additional means testing involves subtracting certain expenses from your income such as mortgage payments, car loans, tuition, and taxes. Once that is done, if you have $100 a month to pay for 60 months towards your debt, you may not qualify for Chapter 7. You may still pay up to 25 percent in debt repayments though.

Kevin Ahrenholz is an Iowa bankruptcy lawyer and Iowa bankruptcy attorney. To contact him, visit http://www.iowachapter7.com or call 1.877.888.1766.

Let’s face it, the economy is still rocky, but we still have to pay the bills. No one else will pay them for us, although that would be great if they did. These days there are a lot of Americans living from paycheck to paycheck and using credit cards to fill in the gaps when they do not have cash.

That kind of behavior, while totally understandable, will land them in financial hot water. The cycle of only paying the minimum on the cards continues, but so do the purchases, and one day the bill is staggering enough to make the person realize there is no way they can keep living like that.

Do you have high credit card debt, creditors calling you and unpaid medical bills and just not enough cash to pay any of it in full? Are you being harassed by creditors, receiving letters in the mail, or getting a notice of garnishment at work? If you are, it is time to talk to a qualified and experienced Cedar Rapids bankruptcy lawyer.

Filing Chapter 7 will stop the creditors cold and discharge certain types of unsecured debt. Chapter 13 may stop a foreclosure and allow you to set up a repayment plan. Those are just the highlights of what filing for bankruptcy protection may offer you. Typically, which chapter you elect to file under has to do with your circumstances when you file. No two cases are alike and your Iowa bankruptcy lawyer can walk you through the steps you need to confront to start a new financial life.

At one time, you could just file for bankruptcy and be done with it. But now tougher laws have made the process more difficult in order to prevent people from defrauding the system. Generally speaking, the Chapter 7 bankruptcy route is the least expensive and quickest way to file, and ideal for those with a limited income and not much to protect in the way of assets. You may file under this Chapter if you are:
– An individual
– A married couple
– A partnership
– A corporation

In a Chapter 7 proceeding, the court-appointed trustee identifies non-exempt assets and liquidates them to pay your creditors. There are some exceptions to this rule, such as there is the ability to keep secured property if you can negotiate a repayment plan with creditors. Make it a point to ask your Cedar Rapids bankruptcy attorney how this chapter may affect your situation.

If you do not meet the requirements to file Chapter 7, there is always Chapter 13 as an option. This chapter lets you:
– Keep your assets
– Keep your home
– Keep your possessions
– Stop creditors from calling

Lets you pay back a portion or all of your debts based on a restructured debt repayment plan over a three to five year period.

In a Chapter 13 proceeding, trustees are assigned to oversee the collection of your debt repayments and are also responsible for distributing those payments to the creditors.
– You need to be aware that not all of your debts can be discharged under either chapter. To find out what you cannot discharge, have this conversation with an Iowa bankruptcy lawyer. The highlights of what you cannot discharge are:
– Spousal and child support
– Debts as a result of fraud/embezzlement
– Debts owed on tax advantage retirement plans
– Debts not included in your debt repayment plan
– Certain taxes
– Debts for maliciously causing injury to another individual or property
– Personal debts for any damage caused if DUI

Kevin Ahrenholz is an Iowa bankruptcy lawyer and Iowa bankruptcy attorney. To contact him, visit http://www.iowachapter7.com or call 1.877.888.1766.

In actual fact, the proper term for taking money out of your paycheck is wage deduction procedure. It probably does not matter what it is really called because when you are getting money taken out of your pay, it hurts. You just want to know if it stops when you file for bankruptcy.

A creditor cannot automatically garnish your wages unless and until they have a) a judgment awarded against the debtor and b) have filed a Wage Deduction Affidavit in court outlining that you owe them money. That affidavit has to certify they sent you a wage deduction notice letting you know they will be garnishing your wage for the debt owed.

When the affidavit is filed by the creditor, it is filed with a set of written questions that are sent to the employer as well. These are sent to allow the creditor to figure out how much money the employer owes the debtor and to determine the right amount of money to be deducted.

Once the employer gets the questions, they must file them with the court and ensure a copy of their answers go to the debtor and creditor. When that is complete, the court issues a summons to the employer for a court date finalizing how much and when your wages will be garnished.

This is really a painful process for many and something to avoid. If you want to know more about it, call an experienced Iowa bankruptcy lawyer and start asking questions about this and other bankruptcy processes. It is an eye-opener, but it is better to be aware of the consequences of your actions than not.

Here is where things get sticky. There is another kind of garnishment that most people do not know about. It is called the non-wage garnishment, and in that process, creditors may take some types of bank accounts or receivables to collect on the debt owed them. You may hear this referred to as a levy in some places. This information comes as a nasty surprise to people when they discover a creditor has been into their bank account(s).

Again, creditors cannot just institute a non-wage garnishment without following a process similar to the wage deduction procedure. But once the process is started, you have to know they are serious about collecting on their debt. And something else to know is that in a number of states, if a creditor does make a move on a bank account, the bank must freeze assets up to twice the amount of the judgment. That means your money is frozen until your case is sorted out.

So back to the question about how filing for bankruptcy can stop garnishments. The instant you file, the automatic stay kicks in and halts certain lawsuits, foreclosures, evictions, collections harassment and garnishments. For further information, speak to a qualified Iowa bankruptcy lawyer. 

Kevin Ahrenholz is an Iowa bankruptcy lawyer and Iowa bankruptcy attorney. To contact him, visit http://www.iowachapter7.com or call 1.877.888.1766.

If you want to make sure the bankruptcy process goes smoothly, and that you do not somehow accidentally get discharged because you made a mistake that could cause you to be charged with fraud, use an experienced Iowa bankruptcy lawyer. It is worth it as the lawyer will help you get through the filing without any glitches. After the bankruptcy, you will get to have a fresh start with your finances.

If you think you can do it on your own, or have someone else do it for you, you should know that there are nine prohibited activities according to section 152 of the U.S. Attorney’s Manual. Those prohibited activities are:

– Concealing property the debtor owns
– Making false accounts or oaths
– Making false declarations, verifications, statements and certifications is under the penalty of perjury
– Making false claims against the debtor’s estate
– Fraudulently receiving property from a debtor
– Extortion and bribery
– Concealing or transferring property
– Destroying or hiding documents detailing the affairs or property of the debtor
– Withholding documents from bankruptcy case administrators

In other words, you might want to think twice about trying to file bankruptcy on your own unless you have an in-depth grasp of all the rules, regulations and pitfalls of attempting to do it yourself. If you make a mistake and get charged with fraud, it does not all end with your simple, yet heartfelt plea that you messed up by accident.

Maybe you did, but when you have at least three different government departments and who knows who else on your case, the innocent mistake often ends up looking like planned fraud. Often the Department of Justice, the U.S. Bankruptcy Court system and the IRS jump into cases where they think there has been fraud. You really do not want the IRS investigating you. To put it bluntly, there is a whole lot at stake for you when you choose to file for bankruptcy, so ensure you do it the legal and above-board way by using an Iowa bankruptcy lawyer.

Filing your bankruptcy through the system and with legal counsel will prevent the probability of being prosecuted for bankruptcy fraud. If you think filing for bankruptcy is difficult, being prosecuted for bankruptcy fraud is 10 times your worst nightmare. Bankruptcy is tough enough for people without living in fear that they messed up when filing and that the government may come after them. By using an experienced Iowa bankruptcy lawyer, you will know you are on the right side of the law.

If you still think it is worth trying to file on your own and bend the rules, you might want to read some case studies about people who chose to try and fleece the bankruptcy system and got caught. You can read those current, 2011 cases at: http://www.irs.gov/compliance/enforcement/article/0,,id=228083,00.html

Kevin Ahrenholz is an Iowa bankruptcy lawyer and Iowa bankruptcy attorney. To contact him, visit http://www.iowachapter7.com or call 1.877.888.1766.

You have to expect certain consequences when you declare bankruptcy, and one of them is a less than stellar credit rating. But, this is no longer the kiss of death that it once was. Nowadays, it is what it is and it happens to everyone, including stars, politicians and even tycoons.

While most of us are not tycoons, we can indeed come back from the crash and burn feeling caused by bankruptcy. It just takes time, perseverance and a plan that you stick to; a plan your Iowa bankruptcy lawyer can help you draft. It is very common for debtors to wonder if they will ever get out of the black hole of debt. Yes, you can and with good planning you can re-establish your credit once again. Bankruptcy is really no longer a death sentence.

Be aware that there are federal laws in place that dictate how long your bankruptcy stays on your credit file, and that it is the same for all states. In other words, your credit report will show a bankruptcy on your record for 10 years. That may sound like a dismal scenario, but consider this – if you buckle down and deliberately make a plan with the help of your Iowa bankruptcy lawyer and pay your bills on time for at least 18 months, you can rebuild your credit rating once again. It takes hard work, but the end results are renewed credit.

Getting even a part-time job will also help your credit score. The goal is to get steady work as soon as you can after declaring bankruptcy and start rebuilding your credit history. You will need to ask for your free credit report from the three main credit bureaus in the U.S. and check to ensure it is accurate. If not, get the mistakes corrected.

Another step to take is to ditch any extra credit cards you may have and just keep one or two. This sends the clear signal that you are going to be more cautious in your spending habits. If you cannot get a regular credit card, then apply for a secure credit card. All these things will help to rebuild your credit rating.

There are a number of other things you can do, and they include getting secured loans, making regular deposits to a savings account, and establishing a rainy day fund. It is hard work, but you did not go bankrupt overnight, so it will take some time to build up your credit rating once again.

Kevin Ahrenholz is an Iowa bankruptcy lawyer and Iowa bankruptcy attorney. To contact him, visit http://www.iowachapter7.com or call 1.877.888.1766.

It is virtually inevitable that your credit rating will be affected by filing for bankruptcy protection. But, you have to do what you need to do to face the overwhelming pile of unpaid debts that have driven you to the brink of bankruptcy. You cannot take the stress any longer. Bankruptcy will alleviate that stress and give you a fresh financial start. Just remember, there is more to bankruptcy than just paperwork, and for this reason you need to discuss your situation with an Iowa bankruptcy lawyer.

The biggest benefit people get from filing for bankruptcy is the automatic stay. This prohibits creditors from calling you and sending you letters. Understand, though, that some debts are discharged completely and some are put on hold temporarily. What type of bankruptcy you file also decides what you may pay back or not.

The first thing you will find out when you make an appointment with an Iowa bankruptcy lawyer is that your home will not be placed into foreclosure. Generally speaking, real and personal possessions are exempt from a bankruptcy. There are some exceptions, and you would need to speak to your lawyer about what they are.

Filing for bankruptcy protection does, in theory, halt all creditor harassment. But, not all creditors limit themselves to phone calls. This is when you discover there is a very fine line between being reminded you owe money and being harassed. Abuse calls at home and work are common and you only need to report them to your Iowa bankruptcy lawyer in order to get them to stop. Once your bankruptcy is filed, these annoying, harassing reminders are illegal.

Did you have property repossessed before you declared bankruptcy? You will be able to get repossessed property back so long as the creditor did not sell or auction it off. If you missed past payments, they can be rolled into a Chapter 13 plan. There are other things you need to know and the smartest move on your part is to deal with a competent Iowa bankruptcy lawyer who will guide you through the maze of declaring bankruptcy.

Kevin Ahrenholz is an Iowa bankruptcy lawyer and Iowa bankruptcy attorney. To contact him, visit http://www.iowachapter7.com or call 1.877.888.1766.

“It’s understandable, given our divorce rates, why people may want to retire together without having to be married to do it,” said Betty Liu, co-author of Age Smart. “And, as you get older, the focus may not be so much on marriage, as it’s about companionship and having the right partner with you.”

Older people who decide to live with their partner still need to be mindful of their estate plans and what legacy they want to leave to their companion and any children. Oftentimes, these older couples have significant assets such as a house, 401k plans, retirement plans, and particular health concerns.

“But what can be exciting and romantic for an older couple can be nerve-racking for families that have hopes pinned to an inheritance or simply expectations about how money will be handled by a surviving parent,” Smart Money reported.  

A qualified estate planning attorney will help their client create a cohabitation agreement that is fair to each partner and is enforceable by the courts. A cohabitation agreement in tandem with proper estate planning will outline financial, health, and property decisions. These documents will clearly define who gets the house, monies, and who will make healthcare decisions in the event the individual is incapacitated. A trust, will, and power of attorney documents can also safeguard your partner’s financial livelihood and give authority to a chosen person to make key decisions in the event that you are unable to do so.

“If you plan with your head instead of your heart, the hardest issues can be mitigated or completely avoided, and you two can just enjoy the good life in your golden years,” said Liu. “It’s a great thing to have more options when you retire and not be boxed in to what traditionally is seen as retirement.”

Without these protections, your significant other could be kicked out of the home you are sharing and not have access to any monies. Attorneys are aware of the pitfalls and hear incidents of how the partner could no longer afford the home or got into a big dispute with the partner’s adult children when no plan was in place. It is also critical to analyze assets, life insurance beneficiaries, and make plans for transferring them to minimize estate taxes.

Every couple has its unique dynamics and financial considerations, so no matter your circumstances expert legal counsel will help with all the documents so that your wishes are planned and defined carefully. In Florida, the Brandon estate planning attorneys and Brandon family law attorneys at Osenton Law Offices help couples achieve their goals and have access to the latest resources to ensure a couple’s legacy. Their expertise and top-notch superior client service makes them one of the Tampa Bay’s best law firms.

For more information:
http://www.brandonlawoffice.com
Osenton Law Offices, P.A.
500 Lithia Pinecrest Road
Brandon, Florida 33511
Phone: 813-654-5777
Fax: 866-941-5609

O. Reginald (“Reggie”) Osenton is the Owner and President of Osenton Law Offices, P.A. If you need a Brandon bankruptcy lawyer, Tampa bankruptcy lawyer, or Tampa bankruptcy attorney, call 813.654.5777 or visit Brandonlawoffice.com.

Do not think that bankruptcy laws only exist to protect the debtor. They do, but they were also designed to protect the creditor. It is a two-way street and you need to remember that should you find yourself needing to declare bankruptcy. There is no doubt that it is a tough personal decision and the urge to lie to make things seem worse than they are might motivate some filers. Big mistake. Things like that always get discovered later.

Many people do not realize that bankruptcy is a legal proceeding, and as such it is under the wing of the U.S. Constitution and its bankruptcy laws. Those laws were written to protect creditors and debtors, and to allow an honest person or business a way to work out of a bad financial situation and to start all over again with no debts encumbering them. Why be honest when telling a little white lie might make you look better when you file? It’s called fraud, and it is illegal and subject to criminal prosecution. This is just what you do not need on top of your bankruptcy.

Some debtors lie because they are ashamed of the financial mess they find themselves in and feel people will think they are lazy or immoral. These days, declaring bankruptcy is something many people have been forced to do because of the poor economy. There is no shame in that. People can find themselves facing bankruptcy because of an unexpected divorce, a foreclosure, medical bills that are overwhelming, or health issues. In other words, life happens and part of life these days is the reality of bankruptcy as it is a tool to help you get out of a bad financial mess. It is just a fact of life and happily, there really is life after bankruptcy.

Keep in mind that you have two options when you have to or are forced to declare bankruptcy – Chapter 7 and Chapter 13. In its simplest form, Chapter 7 is the liquidation of your assets and is usually the fastest way to go bankrupt. In fact, Chapter 7 is typically called the no-asset route to bankruptcy largely because many Chapter 7 filers do not have any non-exempt property for a trustee to sell.

For Chapter 13, the wage earner’s plan, the debtor gets to create their own repayment plan based on their regular income. It usually is repaid over three to five years but no longer. There are some rules about state median incomes, and these need to be checked with a competent Iowa bankruptcy lawyer.

Kevin Ahrenholz is an Iowa bankruptcy lawyer and Iowa bankruptcy attorney. To contact him, visit http://www.iowachapter7.com or call 1.877.888.1766.

Creditors have to have some guaranteed protection to ensure if someone goes bankrupt on them, that they have recourse to collect some or all of their outstanding money. Things got easier for creditors after 2005, when the Bankruptcy Abuse Prevention and Consumer Protection Act (BAPCPA) changed how courts handle repossession of secured assets.

Just recently, the Kansas Supreme Court upheld that law in Hall vs. Ford Credit Motor Credit Company Inc. No. 103370. In a nutshell, their finding indicated that a debtor “must” reaffirm their vehicle if they want to keep it, even if they were keeping current on all of their car payments.

Things didn’t used to be that way. At one time, when a debtor filed a Chapter 7 bankruptcy and owned a vehicle that was used to secure a loan, the bankruptcy code offered that debtor three options: give up the vehicle; redeem it by paying the loan; or, reaffirm the debt and stay liable to the creditor after the bankruptcy discharge.

And then, there was a fourth option – thanks to case precedent – that said that a debtor who was current on a secured debt at the time of filing a bankruptcy could keep the property without redeeming or reaffirming the debt. Now, the BAPCPA makes things crystal clear. There are consequences for not redeeming or reaffirming when the debtor is current on payments. Ending the automatic stay or removing the collateral from property now comes into play, and the creditor’s remedies are provided by state law.

Now, more about the story of Hall vs. Ford Credit Motor Credit Company Inc. No. 103370. Mr. Hall was from Kansas and had financed a Ford with a loan in 2006. He always kept his loan current, but filed for Chapter 7 in 2007, approximately nine months after buying the car. Hall’s bankruptcy tore away any liability he had for his car and he would not reaffirm.

After the automatic stay was lifted and he was discharged, Ford Credit initiated the repo process to reclaim the vehicle even though Hall was current on his loan. He chose to sue Ford Credit, so he could keep the car on the grounds that he was currently up-to-date on payments and “not” in default. Ford wasn’t happy with that turn of events and challenged his claim, indicating they were under the impression he wasn’t going to be paying for his vehicle or live up to any other clause in the original contract. Ford won in the lower courts and the plaintiff carried on to the Supreme Court of Kansas.
In essence, the court indicated that they affirmed the lower court’s decision, but issued a warning that they disagreed that the debtor’s Chapter 7 established that the prospect of getting money, performance or realization of the vehicle (collateral) was significantly impaired. They further stated that circumstances which existed when debtors filed for bankruptcy may indicate they “would” continue to perform under the installment contract. In other words, don’t judge a debtor by his bankruptcy.

In plain English, this decision indicated that Ford Credit had proved its initial case that it had evidence of a compelling nature that they had received significant impairment of the prospects of payment. Hall lost his battle, and Ford’s interpretation of Hall going bankrupt prevailed, meaning he’d likely not pay Ford what he owed them was acceptable, but not in “every” case.

Kevin Ahrenholz is an Iowa bankruptcy lawyer and Iowa bankruptcy attorney. To contact him, visit http://www.iowachapter7.com or call 1.877.888.1766.

Even if you make money hand over fist, or made money with ease at one time, this isn’t to say that sometimes things happen and finances just get out of control. It happens; to everyone. Consider the story of a man who boasted that he was the world’s top, numero uno real estate agent. At one time, he supposedly had over $2.5 billion in sales over a six-year period. He declared bankruptcy. He was knee deep in the boom times of real estate and had everything a person could possibly want, and then the balloon popped.

The real estate mogul found himself over $50 million in debt and tried selling some of his assets, but only garnered roughly $2.4 million. It wasn’t much, but it was a start, and he thought maybe he could still make ends meet, until his wife filed for divorce. That was the end of his rope. The scenario happens to millions of Americans every day; the millions trying to get from point A to point B and survive.

Bankruptcy can and does happen to anyone. No one is immune when the conditions are right for financial collapse. Circumstances in a person’s life tend to dictate how things will go financially, and if someone is struggling with paying their bills and they lose their job, get ill and need extensive, expensive medical care or their spouse files for divorce, things can tank just about over night. It’s no one’s fault that these things happened; they just did, because that is life.

Another nugget of truth to take from this story is that the real estate market is still shaky, and there are hundreds of thousands of foreclosures making their way through the system, even as you read this article. What does the future look like? Who knows. What will happen, will happen. Those stuck in the middle of the morass can only ride it out and see what happens when the dust settles.

In 2010, foreclosures hit the 1.05 million mark. Twenty six percent of all the homes sold last year were foreclosures, and things are looking about the same for 2011. What’s scary is that nearly 2.9 million homeowners got foreclosure notices in 2010. There may be more in hot water this year, judging from the present state of the economy.

The fact is that the economy is bad and in tough times, things get rough. Riding it out is even tougher and many people may need to contemplate bankruptcy to see light at the end of the tunnel. For help figuring out what your options are, call an experience Iowa bankruptcy lawyer. Your finances could fall flat anytime, no matter who you are, what kind of education you have, whether or not you are making lots of money, or very little. Bankruptcy is the grand leveler of all who dare to stand in its way.

Kevin Ahrenholz is an Iowa bankruptcy lawyer and Iowa bankruptcy attorney. To contact him, visit http://www.iowachapter7.com or call 1.877.888.1766.

If you are in a bit of a pickle and are carrying an overwhelming debt load, high medical bills, serious credit card debt and are getting dunning phone calls from bill collectors, it is time to call a bankruptcy lawyer for help. Federal bankruptcy laws are actually geared to help you out when you’re facing bankruptcy.

The most common bankruptcies filed are Chapter 13 and Chapter 7. Filing a Chapter 7 stops creditor phone calls and discharges some types of unsecured debt. Filing a Chapter 13 stops foreclosure, harassing collection actions and allows you to create a debt repayment place to pay off certain debts. This is not to say that it is easy to declare bankruptcy, because it is not. It is a distressing process and many people are embarrassed to admit they are going to file.

No worries. These days, no one looks at you sideways for declaring bankruptcy. It is what it is. The question you may be struggling with is what type of bankruptcy is the best for your situation? The law has made it harder for some debtors to get rid of their debts under Chapter 7, but some may still be able to do this if they have an income that is under the state’s median income level or they pass a means test. Just ask your Iowa bankruptcy lawyer what the rules are in the state.

If you want a quick and simple and relatively inexpensive way to declare bankruptcy, typically, Chapter 7 will do the trick. This process is there for married couples, partnerships, corporations and individuals. Truth be told, it is best for individuals with limited income and wages and don’t have many assets to protect from liquidation.

For Chapter 7, there is a court-appointed trustee assigned to your file to identify non-exempt assets, and liquidate them to pay your creditors. There are some instances in which you get to keep secured property, but only if you are able to negotiate new debt repayment terms.

Let us say you do not meet the criteria for filing a Chapter 7 bankruptcy. If that is the case, you might find Chapter 13 is a viable alternative. Under a Chapter 13 filing, you may keep your assets, avoid foreclosure on your house, stop creditor calls and repossessions and repay a portion of your debts with a restructured debt repayment plan within 3 to 5 years. A trustee is assigned under a Chapter 13 filing as well, who supervises the debt collection process and distribution of monthly payments.

It is important to know that not all of your debts are done away with under either Chapter 7 or Chapter 13 bankruptcy filings. Your Iowa bankruptcy lawyer will outline what you need to know. Debts you cannot discharge include maintenance for your spouse, child support, any debts owed to certain tax advantage retirement plans, debts acquired as a result of fraud or embezzlement, debts for malicious injury to another person or property, debts that are not laid out in a debt repayment plan, some types of taxes and personal debts for damages caused by a debtor who was DUI.

Kevin Ahrenholz is an Iowa bankruptcy lawyer and Iowa bankruptcy attorney. To contact him, visit http://www.iowachapter7.com or call 1.877.888.1766.

The goal of most individuals in a bankruptcy is to eliminate all debt, except for those debts they wish to keep like a car loan or a mortgage. Dependent on a person’s income, the chapter of bankruptcy will be determined. However, regardless of which chapter is used, some debts cannot be discharged. The most common non-dischargeable debts are:

Taxes and fines, including ones you paid through a credit card
Alimony, child support, and other divorce decree debts
Government-backed student loans
Debts not properly listed in the bankruptcy petition
Debts caused by malicious injury, fraud, or DUI
Condo or co-op fees accrued after the bankruptcy filing
An individual is still responsible for these debts and they will continue to increase during the bankruptcy filing and proceedings if unpaid. All other debts can be discharged, thus releasing the individual from personal liability for those debts. Every individual has a different mix of debts and scenarios, so it’s wise to get an experienced bankruptcy attorney to represent you prior to filing for bankruptcy.

In a bankruptcy you’ll need to provide many financial documents as evidence to support your case. Having a skilled bankruptcy lawyer review the documents thoroughly will help your chances of a successful filing. Tax documents, bank statements, paystubs, and other relevant information is needed. Tax records are particularly important, so if you haven’t filed them because you did not have the money to do so, you could be unable to complete a bankruptcy.

Approximately one month after filing your petition, you will attend a meeting of the creditors at the courthouse. Under oath, you will meet with the bankruptcy trustee and your attorney. If any of your creditors wish to appear and ask questions, they may do so, but it most cases no creditor shows. A knowledgeable bankruptcy attorney will help prepare you for this meeting ahead of time. What’s crucial is to be honest, thorough, and adhere to what the court asks of you during the meeting. If you hide assets or falsify your circumstances, your bankruptcy could be challenged.

Brandon bankruptcy attorney O. Reginald Osenton has counseled clients throughout the Tampa Bay area through the complexities of bankruptcy filing and the creditors meeting for more than 20 years. Osenton Law Offices holds free monthly bankruptcy seminars to help individuals and families explore their options.

For more information:

http://www.brandonlawoffice.com

Osenton Law Offices, P.A.

500 Lithia Pinecrest Road

Brandon, Florida 33511

Phone: 813-654-5777

Fax: 866-941-5609

O. Reginald (“Reggie”) Osenton is the Owner and President of Osenton Law Offices, P.A. If you need a Brandon bankruptcy lawyer, Tampa bankruptcy lawyer, or Tampa bankruptcy attorney, call 813.654.5777 or visit Brandonlawoffice.com.

Reginald Osenton, the Brandon bankruptcy attorney at Osenton Law Offices, will go over the difference between the two different versions of bankruptcy, Chapter 7 and Chapter 13.

“The seminars allow you to ask any question you have about bankruptcy and you can remain anonymous,” said Osenton, who has handled hundreds of bankruptcies for clients. “We know many people need an advocate on their side during a stressful time.”

With more than two decades of experience, Reginald Osenton knows how to help his clients preserve their integrity and create a better financial future. Every case gets personalized attention and he will determine what type of bankruptcy is most effective given a person’s situation. Debt is completely eliminated in Chapter 7, but for individuals whose income is too high to qualify, Chapter 13 can be the route to slash debt over time.

Osenton Law Offices is also skilled in foreclosure defense. When a mortgage lender is trying to repossess a client’s home, Osenton will counsel on how to keep the property in that individual’s name and minimize any deficiency that a lender might want to put on an individual’s credit.

“The seminars help people learn about their rights and how they can move forward with their finances and life,” Osenton said.

Reginald Osenton practices law in Florida, Virginia, West Virginia, the District of Columbia, and before the Internal Revenue Service. Osenton Law Offices is also accomplished in probate, estate and trust planning, business, real estate, and taxation law.

For more information on the Osenton Law Offices Bankruptcy Seminar, call 813-654-5777 or email: info@brandonlawoffice.com as space is limited.

http://www.brandonlawoffice.com

Osenton Law Offices, P.A.
500 Lithia Pinecrest Road
Brandon, Florida 33511
(813) 654-5777