The Florida Bankruptcy Law Blog

Study Suggest Reasons For Failure of Voluntary Mortgage Modifications And Solution Through Chapter 13 Changes

Mortgage lenders' voluntary loan modification programs have given many homeowners hope that their bank will negotiate with them to help save their homes from foreclosure. However, a study sponsored by an organization of bankruptcy attorneys (the "NACBA") found that the voluntary loan modifications are not helping homeowners, and in some cases, are making matters worse. The study reported that less than 10% of the time do the mortgage lenders voluntary result in reduced principal loan balances as more than half of the modifications involve nothing more than capitalizing unpaid interest and fees into a larger mortgage balances. According to the study, only about one-third of the voluntary mortgage modification reduce monthly payments and nearly half actually increase payments as a result of the mortgage modification process.

People Without "Green Cards" May File Bankruptcy in Florida

Do you have to be a U.S. citizen or a permanent resident to file bankruptcy in Florida? A caller asked me today whether he had to have his "green card" before he could file Chapter 7 bankruptcy. You do not have to be a permanent resident of Florida or of any other state to file bankruptcy as long has you have substantial property in this country. Section 109 of the Bankruptcy Code states who may file bankruptcy. The Code says that, "a person that resides or has a domicile, a place of business, or property in the United States, or a municipality, may be a debtor under this title." A person with a business or property, including financial accounts, in Florida may file bankruptcy in Florida even if they are not permanent residents. These same people may not, however, be entitled to claim the Florida banrkuptcy exemptions.

Discharge Of Attorney Fees Awarded As Discovery Sanction In Civil Lawsuit

A caller and prospective bankruptcy debtor asked if attorneys fees awarded in a civil proceeding as a discovery sanction could be discharged in a Chapter 7 bankruptcy. The caller was concerned that "sanctions" imposed by a civil state court are in the nature of a "fine" or "penalty" for violation of court discovery orders. Section 523 of the bankruptcy code lists all types of debts which are non-dischargeable. All debts not listed in that Code section are dischargeable. Attorney fee sanctions in civil proceedings are not among the listed non-dischargeable debts.

Gambling Debt In Chapter 7 Discharge

From time to time I speak with prospective bankruptcy debtors who have accumulated gambling debts. Some of these callers have borrowed large amounts of money on their credit cards to fund their gambling enterprises. The issue is whether money borrowed to gamble is dischargeable in bankruptcy. There are many court decisions dealing with aspects of this issue. The bankruptcy Code lists debts which are not dischargeable. Gambling debt is not among the list nondischargeable debts. However, if someone borrows a large amounts of money for any purpose without the ability or the intent to repay the debt the creditor can file a complaint seeking an order that the debt is fraudulent and not included in the bankruptcy discharge.