Bankruptcy Tampa Attorney | Tampa Bankruptcy Attorney » Chapter 7

Means Test Alternative

admin — Mon, 25 Jan 2010 19:30:16 +0000

As a Tampa bankruptcy lawyer, many of my clients who call me want to know if they can file a chapter 7 bankruptcy or if they need to file a chapter 13 bankruptcy. I explain to them that in most cases, a chapter 7 is much more favorable because it takes about 4-5 months to complete as opposed to a chapter 13 bankruptcy which takes about 3-5 years to complete.

As part of my free over the phone consultation with my clients, I often go over a few items with them to figure out if they are eligible for a chapter 7 bankruptcy. Certainly, the most important numbers are their income numbers for the past 6 months which I use to calculate whether they are below the median income.

Often times, potential clients will be above the median income in Florida and even do not pass the means test, but all hope is not lost. I then check whether they are a non-consumer debtor. This may often be overlooked by bankruptcy lawyers but can play a big role in saving you years and a lot of money in bankruptcy.

As a non-consumer debtor, you do not even have to pass the means test to be eligible to file for a chapter 7 bankruptcy. So what is a non-consumer debtor? This is any type of debtor in which 51% of their debts are non-consumer debts i.e. from business or investments.

Examples

An example which can illustrate this, let’s say you have $40,000 of credit card debt. You are self-employed and $21,500 of this was incurred as part of your business. Since 51% of your total debt is non-consumer debt you qualify for a chapter 7 bankruptcy even though you may have flunked the means test.

Another example would be let’s say you own a home that has a $200,000 mortgage and you have $50,000 of credit card debt. You also own an investment property that has $251,000 mortgage. Since your business debt from your investment property is more than 50% than your consumer debt of your home mortgage and credit cards then you are eligible for a chapter 7 bankruptcy, even though you may have failed the means test.

Summary

Checking whether your business debt is greater than your consumer debt is an often overlooked part of figuring out whether a client can file for a chapter 7 bankruptcy. As a Tampa bankruptcy attorney, this as well as many other questions, are part of my over the phone consultation to determine whether you qualify for a chapter 7 bankruptcy. If you would like to speak with me about your situation you may give me a call for my free bankruptcy phone consultation.

Lien Strip a 2nd Mortgage

admin — Tue, 10 Nov 2009 21:45:50 +0000

I had a call from a potential client today who wanted to know if she could strip her 2nd mortgage in a chapter 7. This is a very interesting question because in general you cannot strip a lien in a chapter 7 case. In fact both cases Ryan v. Homecomings and In re Laskin disapproved of a lien strip off in a chap 7. So why am I so hesitant to say that you cannot strip a 2nd mortgage in a chapter 7? Because there was recently a case in Orlando where a bankruptcy judge approved a lien strip on a 2nd mortgage in a chapter 7. This is by far uncommon and either happened by mistake or happened because the motion for the lien strip was uncontested. I do not think this case will become precedent for a lien strip in a chapter 7.

Of course, you always have the ability to strip your 2nd mortgage completely in a chapter 13 case when your 2nd mortgage is wholly unsecured by the value of the property.

For more information please call my law office located at: 503 East Jackson Street, Suite 133, Tampa, Florida 33602 or call me at: (813) 402-0903.

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How to Find the Right Tampa Bankruptcy Attorney

admin — Thu, 20 Aug 2009 11:26:07 +0000

There are many different factors that go into finding the right bankruptcy lawyer in tampa for you. First of all, this bankruptcy attorney should be someone who is knowledgeable about bankruptcy and many other legal areas such as property law. The reasons is that bankruptcy touches on so many other facets of the law that it must be known within the context of a larger legal picture.

The second thing you’ll want from your bankruptcy lawyer is that he will be available to you to answer all of your questions. There are many attorneys out there up to their necks, overloaded with cases, not giving their clients the individualized attention they deserve. Make sure you find an attorney who has time for you.

Third, make sure your bankruptcy attorney in Tampa empathizes with your position. This is a difficult time for many people and they need a helping hand. An attorney helps you file for bankruptcy but he should do it in a way that you feel honored, dignified, and respected.

If you would like to speak with me about your financial situation, I would be happy to give you a free over-the-phone consultation to help you determine whether you qualify for bankruptcy and if bankruptcy is right for you.