All items from St. Petersburg Bankruptcy Law Blog

By: Marshall G. Reissman Bankruptcy Attorney in St. Petersburg, Florida at The Reissman Law Group, P.A.
The test that everyone wants to talk about when they come in for a consultation is the Means Test. Folks generally want to know if they qualify to file Chapter 7 by passing the Means Test. This test is pretty simple. If you are below the state median income you qualify. Everyone breathes a big sigh of relief that they won’t be forced into a repayment plan under Chapter 13. The problem with this is the Means Test is where the analysis begins, not where it ends. The actual income and expenses of the Debtor must be taken into account in order to pass the not much discussed “Totality of  Circumstances Test.”

By: Ceara L. Riggs, Bankruptcy Attorney in St. Petersburg, Florida at The Reissman Law Group, P.A.
The question I am probably asked the most is, “How long will I get to stay in my house?” It depends. Looking for a more definite answer? Chances are, any lawyer that wants to keep their Bar Card and Number will give you the same answer.
And as frustrating as that answer probably is, it’s the reality of the situation. So you want numbers, here’s the numbers:

By: Marshall G. Reissman Bankruptcy Attorney in St. Petersburg, Florida at The Reissman Law Group, P.A.
Folks usually seek out the services of a bankruptcy attorney only when their situation becomes dire. One of those situations occurs when a credior sues someone. A lawsuit can be detrimental enough, but the real pain happens if the creditor is able to get a judgment against the person. Once the creditor obtains the judgment, the creditor can take whatever legal action is available to enforce the judgment. One action is the ability of the creditor to garnish a person’s wages, bank accounts, and other revenue streams. A garnishment can turn things from bad to worse.
Fortunately, one way to stop a garnishment is to file bankruptcy. When a person files bankruptcy, an auotmatic stay of protection is put into effect. The automatic stay prevents a creditor from taking certain actions including enforcing a pre-petition garnishment action.  Not only will the garnsihment stop, but as long the person remains in bankruptcy and receives a discharge, the underlying debt will likely be dischargeable as well.

By: Marshall G. Reissman Bankruptcy Attorney in St. Petersburg, Florida at The Reissman Law Group, P.A.
One of the advantages debtors receive when they file for bankruptcy is creditors can no longer seek to collect money from them. At the time a bankruptcy case is filed, an automatic stay of protection is put into place under Sec. 362 of the Bankruptcy Code, which prevents creditors from contacting debtors trying to collect on outstanding debt. When a creditor fails to abide by the Automatic Stay, the bankruptcy court has the ability to levy sanctions against the creditors for failing to abide by the Stay. Oftentimes a creditors will normally stop contacting debtors after receiving a phone call from the debtor’s attorney advising the creditor of the bankruptcy case information. When the creditor continues to violate the Stay, the debtor’s attorney can file a motion with the court and seek sanctions, including punitive damages and attorney fees.
This same principle applies after a debtor receives a discharge. Once a debtor receives a discharge, creditors are forever barred from attempting to collect a debt that was included in the bankruptcy. The same rules apply if a creditor violates the discharge injunction as if they violate the Automatic Stay. Usually, once put on notice, creditors will cease collection activity. It may take several attempts and some sternly worded letters, but creditors usually stop harassing debtors.
Then there are the exceptional cases.