Several bankruptcy courts in Florida have held that an income tax refund payable to a husband and wife from their joint tax return is considered to be tenants by entireties money which is exempt if one spouse files Chapter 7 bankruptcy. Now, one bankruptcy judge disagreed and reached a different conclusion. Continue reading
Are Gambling Debts Dischargeable in Chapter 7 Bankruptcy?
A debtor who borrows money on credit cards in order to gamble the money may still discharge these credit card debts in Chapter 7 bankruptcy according to the court decision in In re Rembert. Continue reading
Bankruptcy’s Effect On Federal Security Clearance
I have been asked more than once whether filing bankruptcy can adversely impact the debtor’s security clearance with a private business or government agency. Continue reading
Article Discusses Appellate Proceedings and the Automatic Stay
The bankruptcy stay stops all collection actions including court cases in which the debtor is being sued. If a bankruptcy debtor is a party to a state civil case where a judgment has been entered and the case is being appealed, does the bankruptcy stay stop the appeal? This question is the subject of a recent article in the Florida Bar Journal. Continue reading
Bankruptcy in Canada
I was visited by a Canadian bankruptcy trustee vacationing in Florida who wanted to learn more about our bankruptcy system. Canada has the equivalent of Chapter 7 and Chapter 13 bankruptcy statutes. Continue reading
Is Payment of Past Due Secured Debt A Bankruptcy Preference?
A debtor owes money to his parents, and his parents long ago recorded a mortgage on the debtor’s real property. The debtor was behind in the note payments to the parents. The debtor is concerned about that paying his loan to his parents would be an improper preferential payment in a Chapter 7 bankruptcy proceeding. Continue reading
Must You File Bankruptcy in the Bankruptcy Court Closest to Your Home?
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Many of my Chapter 7 bankruptcy clients whom I represent in Orlando bankruptcy court reside outside the Orlando area. Some live near Jacksonville; others live close to Tampa. What choice do debtors have regarding their bankruptcy court? Continue reading
Debtor May Strip Unsecured HOA Lien Off Homestead
Debtors living in homes with upside down mortgages can strip their second mortgages off their homestead in a Chapter 13 bankruptcy when their home is worth less than the first mortgage balance. What if the debtor does not have a second mortgage but owes his HOA dues and assessments incurred prior to bankruptcy, and the HOA has recorded a lien to secure repayment. Continue reading
Does Contract To Sell House Forfeit Homestead Exemption?
A caller this week was interested in filing bankruptcy but is concerned about preserving a valuable homestead owned free and clear. The caller stated that he had signed a contract to sell the house for about $500,000. He is concerned about protecting the house and sales proceeds in a Chapter 7 bankruptcy. Continue reading
Debtor’s Non-Consumer Debts May Bypass Means Test
To qualify for filing Chapter 7 bankruptcy the debtor’s household income must be below the applicable median income, or the family expenses must offset income to the extent that the debtor passes the means test. Bankruptcy debtors do not have to pass the means test if their debts are primarily non-consumer debts. Continue reading