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.

While it is true that making balance transfer before bankruptcy can cause a trustee to examine your case.  If the balance transfer was done not to defraud creditors but with the intent to prevent you from bankruptcy then the balance transfers should not be a problem.  Either way it is important to speak with a bankruptcy lawyer in Tampa, Fl before making this type of decision.  Also, as a bankruptcy attorney in Tampa I often help clients settle their debts.  Please give me a call today so that I can help you: (813) 402-0903.

What do you think?

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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Florida has a number of rules in whether a person can keep their home i.e. their equity in their home, even though they file for bankruptcy.  Each state has its own exemption amount and Florida has a very debtor-friendly amount.

If you would like for me to help you determine whether you can keep your home in bankruptcy, I would be happy to speak with you about it.  Conversely, if you want to dispose of your home and mortgage in bankruptcy, I can also help you facilitate that as well.

Florida has what we can certain exemptions when you file for bankruptcy.  Exemptions are those things that are protected when you file for bankruptcy.  Each state has their own set of rules for exemptions.  Florida has very beneficial rules to debtors for their home, cars, jewelry, clothes, tools of their trade, and miscellaneous items as well.  A debtor can keep all of their property up until the exemption amount.

Exemptions are a huge part of the bankruptcy practice.  Make sure you find a Tampa Bankruptcy Attorney who knows the exemptions well and can help you keep your property even though you are filing for bankruptcy.

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.