TAMPA BANKRUPTCY LAW
A Tampa Bankruptcy Lawyer can help you gain a fresh start. Bankruptcy and debt restructuring are
complicated processes that have long term effects, both beneficial and adverse, on a person’s life.
The court process, dealing with creditors and the events leading up to the decision to take action
involve financial and emotional issues. It is frequently a stressful, frustrating, and intimidating
experience. You should have an experienced and skillful Tampa Bankruptcy Lawyer to represent you
throughout that process. Even an experienced bankruptcy lawyer cannot foresee every difficulty that
may arise in your unique case. The complexities of insolvency law are such that the services of a
bankruptcy lawyer who is knowledgeable and experienced in that field is highly advisable.
We understand the strain that this process may put on you and your family. We are dedicated to
personal service and our sympathetic Tampa Bankruptcy Lawyers are ready to help walk you through
this difficult time. Since we understand your position, we approach each case with the compassion,
dedication and heart that you deserve. For more information or to see if bankruptcy is an option for
you, please contact our office for a no-obligation consultation with a Tampa Bankruptcy Lawyer.
Question of the week:
I am surrendering a home to a mortgage lender to help consolidate my debt, may I still
collect rent on the home, and does this change after filing a chapter 7?
If you have rental income from property but are planning on surrendering the property to the
mortgage lender, either in bankruptcy or foreclosure, the rental income may belong to the mortgage
lender. Please refer to your mortgage and note for details, but often rental income is assigned as part
of the mortgage. If you were to file a chapter 7 or 13 bankruptcy, you may still not be able to keep the
rental income. In a chapter 7 bankruptcy, the bankruptcy estate would own the rental property and
they would be the proper party to collect the rent. Even if the rent is paid to you, you may be required
to turn over the rent to the bankruptcy trustee. If you file a chapter 13 or reorganization, the rental
income may be used in calculating your income for purpose of determining your discretionary income
and ultimately your chapter 13 plan payments.
I am up-side-down or have negative equity in my home, can a Tampa Bankruptcy Lawyer
help me?
If you owe more than your house is worth, your Tampa Bankruptcy Lawyer may help you decide
between four options: pay for the house until the home value increases, return the home to the bank,
attempt to negotiate with the bank for a loan modification or sell the home. If you sell the home, a
Tampa bankruptcy attorney may help you to negotiate a short sale with the bank, so you do not need
to bring money to sell. If you decide to give the house to the bank, this may be done, with or with out
a the help of a Tampa Bankruptcy Attorney. If you do not file a bankruptcy the Court may grant the
bank a deficiency judgment against you for the difference between the sale price and the amount
owed. The bank may attempt to collect the difference from your personally or may file a 1098/1099
with the IRS, and treat the deficiency amount as earned income. You would then be personally liable
for the difference as if it were earned income from that tax year. A bankruptcy or reorganization may
save you from the deficiency judgment and the 1099 taxable gain. It is often easier for your Tampa
Bankruptcy Attorney to obtain a discharge from the Tampa Bankruptcy Court prior to the foreclosure
sale. Call your Tampa bankruptcy lawyer for more information.
Click here for your Tampa Bankruptcy Lawyer's Answers to FAQ.
To start the process we will need the following information:
Chapter 7 Questionnaire PDF WORD
Chapter 13 Questionnaire PDF WORD
What happens and what questions are asked at the 341 Meeting of Creditors?
Click here for your Tampa Bankruptcy Lawyers 341 Meeting of Creditors information sheet.
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Tampa Attorney
GALEWSKI LAW GROUP, P.A.
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Tampa Bankruptcy Attorney’s Update to the Bankruptcy Mortgage Reduction or Bankruptcy Mortgage Modification
Amendments:
Senate Rejects Mortgage Cramdown Provision
The Senate defeated by 51 to 45 votes an amendment to the Helping Families Save Their Homes Act that would have granted bankruptcy judges broad
authority to modify the mortgage terms for at-risk homeowners.
Assistant Senate Majority Leader Dick Durbin, D-Ill., chief sponsor of the ‘cramdown’ provision, said he was disappointed with the vote but would continue to
bring the issue to the floor “until the Senate decides to put the interests of homeowners above the interests of bankers.” Durbin noted that the number of
homeowners at risk of losing their homes now stands at over eight million, compared to nearly two million only two years ago.
“We’ve given the bankers who got us into this crisis every opportunity to responsibly address this crisis and they have failed,” Durbin said.
The White House said that notwithstanding the Senate vote on the Durbin amendment it looks forward to working with Congress to craft “appropriately tailored
legislation to provide a mechanism for homeowners who are out of other options to file for bankruptcy and implement a responsible plan to pay the debts that
they are able to pay.”
Meanwhile, Senate Minority Leader Mitch McConnell, R-Ky., said the provision would have lead to higher interest rates and even greater uncertainty in the
housing and credit markets. “It’s clear that we cannot fix the housing problem by implementing bad policies,” he said.
The American Bankers Association agreed, noting that Congress and the administration have taken several strong steps to help troubled borrowers and get
the economy back on track. “Giving bankruptcy judges broad cramdown authority would work against those efforts and effectively undermine the goal of
stabilizing the housing market,” the association said.
Analysis: Your Tampa Bankruptcy Lawyer notes that this means that for the time a Bankruptcy cannot be used to
reduce the principal amount due on a first mortgage, but since the House has passed the Bankruptcy Reform Bill,
it is possible that a Bankruptcy Judge may have the authority to cramdown or modify a mortgage in the near
future.
LATEST REPORT ON BANKRUPTCY MORTGAGE MODIFICATION:
Bankruptcy Court Set To Require Mortgage Lenders To Negotiate Mortgage
Modifications With Chapter 13 Debtors
The Orlando bankruptcy court is preparing to adopt a rule providing for mandatory mediation
between homeowners and their mortgage companies to facilitate mortgage modification.
Congress rejected a change in the bankruptcy code that would have empowered Chapter 13
debtors to force reduction in their first mortgage principal to their residence’s current fair market
value. This proposed procedural rule will not circumvent the bankruptcy code and will not force
reduction of first mortgage principal. What the rule will do is enable Chapter 13 debtors by motion
filed with the court to compel a bank representative with full authority to modify mortgages to meet
with the debtor and an independent mediator to negotiate in good faith a possible modification of
the debtor’s first mortgage terms. The terms and the conditions of the rule are expected to be
announced shortly. This bankruptcy rule should be a big help to debtors who want to save their
primary residence from foreclosure.
The Florida Supreme Court is requiring mediation in state court foreclosure cases. This state
court rule is helpful, but the bankruptcy court rule could be better for homeowners. Before getting
to mediate with a bank agent with full authority the homeowner has to be in a foreclosure case.
The homeowner first has to stop paying the mortgage for at least three months, wait for the bank
to file a lawsuit, hire a civil attorney to answer the lawsuit, proceed for several months in civil
litigation, and then at some point, arrange for a court ordered mediation. The result of the
mediation is a contractual agreement to modify the mortgage, and the modification usually calls
for a few months of trial payments before it is binding.
Chapter 13 mediation should be faster and more definitive. A debtor probably can get an order
requiring mediation with their mortgage lender very soon after filing a Chapter 13 bankruptcy
petition. The borrower/debtor will not have to miss several mortgage payments and fall farther
behind on their mortgage. There will probably be uniform court orders. The bankruptcy rule
probably will permit a court order adopting any mediated mortgage modification which order can
be recorded in the public real estate records.