Bankruptcy Law
Hollywood, Florida

When debts are out of control and you are being hounded by creditors, it is an extremely stressful situation. In the current economy, many individuals and families are suffering from financial troubles, either through the loss of employment, mortgage payments that have increased outrageously or through divorce, medical bills or other situation. In such cases, most people try to solve their problems by juggling payments or ignoring calls from creditors.

Unfortunately, the situation rarely improves. As the situation progressively gets worse, repossessions of vehicles, foreclosure on your home, and wage garnishment often results. If you are in a serious financial condition and want to be free to move forward with a new start, it is crucial that you contact a bankruptcy lawyer from Mansfield, Bronstein & Cohen, P.A. Our firm has the goal of helping our friends and neighbors in the community who are suffering from serious financial stress through the application of the federal bankruptcy laws. We can assist our clients in any of the following bankruptcy and finance-related situations:

1. Bankruptcy Overview
2. Chapter 7
3. Chapter 13
4. Business Chapter 7
5. Business Chapter 13

Our firm focuses on Chapter 7 and Chapter 13 bankruptcies. There are various factors that would determine whether you should opt for Chapter 7 or Chapter 13. Through Chapter 7 Bankruptcy you can use liquidation, which literally means that you sell off property in order cover as much of the debt as possible, but at the same time you should have enough of the property left over in order for you to start all over again financially. On the other hand, the Chapter 13 Bankruptcy is the reorganization type of bankruptcy where the debtor is allowed three to five years over which to pay back the debt.

POTENTIAL EXEMPTIONS:

Homestead

§222.01 - Real or personal property, including mobile or modular home and condominium, to unlimited value. Property cannot exceed: 1/2 acre in a municipality, or 160 acres elsewhere. Spouse or child of deceased owner may claim exemption. (Also refer to Florida Constitution, as "Fla. Const. 10-4."). May file homestead declaration. Also, tenancies by the entireties in real property are exempt as to debts of one spouse [In re Avins, 19 B.R. 736 (S.D.FIa: 1982)].

Personal Property

§222.22 - Prepaid hurricane savings accounts, prepaid medical savings account deposits, and prepaid college education trust deposits.
§222.25 - Motor vehicle up to $1,000; prescribed health aids; federal income tax credits or refunds.
§497.56 - Pre-need funeral contract deposits.
Other - Any personal property up to $1,000 total. (Refer to as "Florida Constitution 10-4") - Subject to doubling.

Wages

§222.11 - For head of family, 100% of earnings up to $500 a week; Applies to either unpaid or paid wages, or wages deposited in a bank account for up to 6 months.
§222.21 - Federal government employees' pension payments that are needed for support and were received up to 3 months prior to the bankruptcy.

Pensions

11 U.S.C. § 522 - Tax exempt retirement accounts. Traditional IRAs and Roth IRAs up to $1,095,000 per person.
§121.131 - State officers and employees.
§122.15 - County officers and employees.
§175.241 - Firefighters.
§185.25 - Police officers.
§222.21 - ERISA - qualified benefits, IRAs and Roth IRAs.
§238.15 - Teachers.

Public Benefits

§222.201 - Public assistance, unemployment compensation, Veterans' benefits, and social security.
§440.22 - Workers' compensation.
§960.14 - Crime victims' compensation unless seeking to discharge debt for treatment of crime related injury.
Alimony and Child Support
§222.201 - Alimony and child support needed for support.

Insurance

§222.13 - Death benefits payable to a specific beneficiary.
§222.14 - Annuity contract proceeds excluding lottery winnings; life insurance cash surrender value.
§222.18 - Disability or illness benefits.
§632.619 - Fraternal benefit society benefits.

Misc.

§769.05 - Damages to employees for injuries incurred in hazardous occupations.

“Wildcard” Exemption - In the State of Florida, one can claim $4,000.00 dollars or more per person in personal property exemption plus an additional exemption for motor vehicles in the amount of $1,000.00 dollars so long as one does not make a homestead claim. Furthermore, unless a judgment creditor has a lien or security interest in the personal property at issue, the Florida constitutional exemption of $1,000.00 dollars and the Florida statutory exemptions of $5,000.00 dollars allow one to protect up to a total of $6,000.00 dollars per person worth of personal property from execution or attachment. Osborne v. Smith, 398 B.R. 355 (S.D. Fla. December 5, 2008); Fla. Const., Art. 10, § 4; and Fla. Stat. §§ 222.25(1)(4).

It is absolutely essential that you understand and take seriously the following important points if you are going to be filing bankruptcy.

1) IMPORTANT: Do not incur any new debt prior to filing bankruptcy! Running up new debt when you know that you are in a bankruptcy situation is absolutely 'fraudulent.' Debts incurred fraudulently are not dischargeable through bankruptcy, and can even lead to you having your entire case thrown out.

2) IMPORTANT: Do not give away, trade-in, or sell ANYTHING (that includes money, cars, real estate, jewelry, personal belongings, whatever!) prior to or during your bankruptcy case! You do not want to commit any action that could be seen by the trustee as a 'fraudulent transfer of assets' before filing bankruptcy. Nor do you want to transfer any assets without the trustee's permission during your bankruptcy, because your assets are then technically owned by the 'bankruptcy estate' and do not fully belong to you. Under certain circumstances it is allowable to transfer certain types of assets in certain ways, but you must talk to us about it first!

3) IMPORTANT: Do not make any large payments to any unsecured creditors prior to filing (especially if the creditor is a family member or a business associate)! The only creditors that you should continue to pay prior to (and after) filing bankruptcy are secured creditors; i.e. your mortgages or car payments. If you have made any payments totaling more than $600 to any one unsecured creditor within 90 days prior to filing, the trustee can demand the money back from that creditor so that it can be broken up evenly among all unsecured creditors.
This rule, of course, does not apply to secured creditors (mortgages, car payments). You must keep paying those creditors if you want to be able to keep those assets.

4) IMPORTANT: When you get your petition in the mail from us you must check to make certain that all your creditors are included in the schedules and that their addresses are correct! You are required by the court to list all of your creditors, and, it is in your best interest to do so. If a creditor does not receive proper notice of your bankruptcy because you provided us with incomplete or inaccurate information (or left them out altogether), that creditor may attempt to enforce their claim against you later on, even if you receive a discharge from the court on all your other debts.

Do not worry if the dollar figures for the amounts owed are off by a little. As long as the creditor is properly notified, all debts you owe to them are completely wiped out, whether it is ten dollars or ten million dollars. But, again, it is your responsibility (not your attorney's) to provide a complete list of creditors with correct addresses so that they receive proper notice.

6) IMPORTANT: The court filing fee must be either cash (physically brought to our office) or in the form of a money order made out to "Mansfield, Bronstein & Cohen, P.A." or left blank. The filing fee is $299 for a Chapter 7 bankruptcy and $274 for a Chapter 13 bankruptcy. The filing fee cannot be paid by personal check. If you send us a personal check for the filing fee we will just have to send it back to you, and it will delay the filing of your petition with the court. And, PLEASE, do not send the money order to us until after you have received your completed bankruptcy petition in the mail from us. Then, send the money order back with the signed petition. Money orders can be purchased at the Post Office and most convenient stores for about $1.00.

7) IMPORTANT: CONCERNING SECURED DEBTS (mortgages, car payments, etc.): You absolutely must make your payments to secured creditors ON TIME after filing bankruptcy (especially in Chapter 13 bankruptcy)! NOTE: AUTOMATIC DEBITS MAY BE STOPPED, MAKE SURE YOU WATCH YOUR CHECKING ACCOUNT! This is far and away the most common cause for complications in bankruptcy cases. If you get behind on a secured payment after filing bankruptcy, that creditor has every right to make a motion to vacate the automatic stay and take the asset away from you (and they most likely will). It seems that no matter how often or how strongly we emphasize this fact to clients, it still happens.
We strongly suggest that for at least six months after your bankruptcy case is filed that you make your payments to your secured creditors by money order or bank check (they cannot bounce), and that you send it by certified or registered mail, return-receipt requested, so that you have proof of when they received it. And, you must get it to them before the originally scheduled due date, not the later date given in the grace period.

For Chapter 7 Bankruptcy Debtors Only

8) IMPORTANT: We cannot file your bankruptcy petition with the court until the entire attorney's fee has been either paid in full, or we have made a monthly payment arrangement. Call our office for details.

9) IMPORTANT: Anything you own above what the law allows you to keep in the exemptions is fair game for the trustee to take, if you cannot reach an agreement with him or her to buy it back! When you choose to file a Chapter 7 bankruptcy, you are essentially surrendering all of your assets to the Bankruptcy trustee, except for those things the law specifically allows you to keep in the exemptions. Under the Florida exemptions:

A) your primary residence equity is completely protected from the bankruptcy trustee;
B) you are protected only up to $1,000 per person for the equity in your automobile (the amount the vehicle is worth less what you owe on it); and
C) you are protected only up to $1,000 per person for the value of all your other personal property, $4,000 if homestead exemption is not claimed.
If you own anything above what these exemptions allow you to keep you will most likely have to either surrender it to the trustee or make payment arrangements with the trustee to be able to keep it.

Menina@cohenowens.com to discuss your case with a Florida bankruptcy attorney at no charge.

USEFUL LINKS:
U.S. Bankruptcy Court Southern District of Florida:
http://www.flsb.uscourts.gov/

Making Home Affordable
http://makinghomeaffordable.gov/

We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.
11 U.S.C. § 528(a)(4)

“At Mansfield, Bronstein & Cohen, P.A. ,

we do not work from 9-5;

we work from beginning to end.”