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.

GALEWSKI LAW GROUP, P.A.

. GLG
Tampa Attorney

GALEWSKI LAW GROUP, P.A.
Tampa's Best Bankruptcy Lawyers: 201 E. Kennedy Blvd. * Suite No. 760 * Tampa, FL  33602 * T 813.222.8210 * F 813.222.8211

www.Galewski.com

www.GalewskiTitle.com














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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:

The Senate voted down the bill proposing to give Bankruptcy Courts the ability to modify

Representatives in the two houses of Congress are looking for new ways to allow your bankruptcy
lawyer to help you save your home:

"People in the servicing industry and in the broader financial industry must understand that if this
last effort to produce significant modifications fails, the argument for reviving the bankruptcy
option will be extremely strong," said Frank.

But Durbin told The Progress Report in an interview that, ultimately, "I think we're going to
beforced into alternatives." One alternative option is taking away the tax advantage enjoyed by
trusts that hold mortgage-backed securities "if the investors refuse to allow modifications."

There is also mandatory mediation, a very successful program requiring that lenders and
borrowers meet and try to work out an agreement before a foreclosure can proceed. Congress
could also "temporarily change the rules on foreclosure to give people facing foreclosure the right
to rent their homes" at the market price, giving banks an incentive to modify mortgages, in order
to avoid becoming landlords.

LATEST REPORT ON BANKRUPTCY STUDENT LOAN FORGIVENESS:

Several member of Congress have recently stated that they will attempt to pass new
legislation regarding student loan discharge.  Currently student loans may only be
discharged if they create an undue hardship.  The Courts have held that student loans may
only be forgiven in the most serious of situations.  Congress has the power to modify the
bankruptcy code to define undue hardship and to remove the favoritism to private student
loan creditors over other creditors.  We will keep you updated as the bill moves through
Congress.