Professional Documents
Culture Documents
All of these are valid questions and hopefully this pamphlet will provide some
answers and solutions to your financial problems.
There are two types of Consumer (Personal) Bankruptcy. Chapter 7 is the “simple”
bankruptcy that takes about six months. This is used when the debtor does not
have a house in foreclosure or a car that is behind in payments. A Chapter 13 is a
little more complicated. It lasts five years and is used when a house is in
foreclosure, and the debtor wants to keep the house. We can also do a
modification of the mortgage in a Chapter 13.
The first test is if the debtor’s income, combined with the spouse even if not filing
jointly for bankruptcy, is less than the Florida Median Family Income.
The second part to the test is if the Current Monthly Income (CMI) schedule has less
than $167 of monthly disposable income (DPI).
We will do our very best to make sure that we get every possible deduction you are
entitled to either have you qualify for a Chapter 7 or have lower monthly payments in
a Chapter 13.
The 341 Meeting usually lasts five minutes. The Trustee will ask you a few questions
such as why you filed for bankruptcy? are you entitled to any inheritance money? Did
you transfer any property to another person? and send you on your way.
If you are a Chapter 7 debtor, the Trustee will ask a couple of more questions regarding
your assets. They want to make sure that you did not transfer your property just before
filing for bankruptcy. This is NOT the time to surprise your attorney with new
information. If any assets were transferred, then you should have told your attorney
earlier.
If you are a Chapter 13 debtor, you MUST make sure that you made your first plan
payments BEFORE the 341, and supplied us with a copy of the certified check. Your
payments are due on the 30 day anniversary of your filing.
If you wish to modify your mortgage, then at this time we will be submitting the
modification documents and setting up a mediation date.
It is critically important that you continue to make your plan payments to the Trustee.
Make the certified check payable to: Standing Chapter 13 Trustee
In either case, we have a successful program to fight the IRS as to the validity of this
debt. If it is in fact valid, we can help you with either an IRS Resolution or an Offer in
Compromise.
If you purchased a car with a high interest rate, then we can adjust the interest rate
and even the loan amount, in bankruptcy. The only qualification is that the loan must
be older than 910 days from the date of filing.
Chapter 7
$2500 plus court costs of $306. If you are filing jointly (husband and wife) then an
additional $250 of fees, and if you have more than $4000 of assets then an additional
$250 of fees. Finally, if you have a car loan or lease then an additional $250 of fees.
These fees will need to be paid prior to filing.
Chapter 13
$4500 plus court costs of $281. Value collateral is $750 of additional fees. This might
seem like a lot, but only $3000 of the Chapter 13 fee is paid upfront.The remainder is
paid out over the five year plan. Additionally, you are actually not paying any extra
money because the remainder of fees that are paid to us would otherwise go to pay
off your creditors.