TAMPA BANKRUPTCY ATTORNEY’S: Bankruptcy Liquidation Analysis 813-222-8210

Question of the Day: Tax Refunds in Bankruptcy: Under Chapter 7, Your tax refund may be property of the bankruptcy estate and you may be required to turn over all or part of your tax return to the bankruptcy trustee for the benefit of your creditors. Under Chapter 7 the tax return may be considered an asset of the bankruptcy estate and may exceed the value of the allowed exempt assets under the Liquidation Analysis. Assets above the level that you are allowed to keep must be turned over or bought back from the Bankruptcy Trustee, this includes anything of value that is not specifically exempted such as cash, cars, and tax refunds. Under Chapter 13, the Court may require you to turn over your tax refund and tax returns each year that your case is open. The Court may consider the tax refund part of your disposable income as defined by the means test. This excess or disposable income must be paid to the Bankruptcy Trustee for the benefit of creditors. Since part of your tax refund may have its own exemption such as child credits, please call your bankruptcy attorney prior to filing to discuss how your tax refund may be addressed in your bankruptcy case. NOTE: Your Tampa Bankruptcy Courts Have the power to help you catch up on a mortgage in a chapter 13 bankruptcy that you are behind on, and can help you save your home. Further, your Tampa Bankruptcy Attorney may be able to modify your mortgage before after or during a chapter 13 or chapter 7 bankruptcy. Tampa Bankruptcy Judges are now sending Banks and mortgage lenders to mediation to remove, reduce, revalue or otherwise modify mortgages. This is a voluntary but effective program to help people revalue obtain relief from underwater mortgages.The goal would be to reduce your mortgage to 31% of your gross income. This may include a reduction of interest or mortgage principal.

Can a Tampa Bankruptcy Attorney discharge all of my debt?

Certain debts cannot be discharged in bankruptcy, but such debt may be open to renegotiation or reorganization in bankruptcy. These debts include, but are not limited to, certain taxes debt, student loans, child support, alimony, and certain kinds of tax debts. Student loans will not be discharged unless you can show that repaying the debt would be an undue burden, which is a very tough standard to meet. And other types of debts might not be discharged if a creditor convinces the court that the debt should survive your bankruptcy.

Can a Tampa Bankruptcy Attorney save my home from foreclosure?

Often Yes. A Chapter 13 Bankruptcy may stop a foreclosure and allow you to bring your mortgage up to date by paying the delinquent amount over time. Recently the Tampa Bankruptcy Court adopted a mediation program that may allow for the reduction or modification of a mortgage in a Chapter 13 Bankruptcy. The Mortgage Modification program may allow for a principal reduction or interest rate modification. Click here to learn more about a Chapter 13 Mortgage Modification.

What is the difference between Chapter 7 and Chapter 13 bankruptcy?

This is explained in Better detail in your Tampa Bankruptcy Attorney’s Bankruptcy Director page, but here is a short overview: A Chapter 7 Bankruptcy is a liquidation of assets.You must immediately turnover to the bankruptcy estate all assets that are not covered under your allowed exemptions, unless you purchase them from the bankruptcy trustee. Most people do not have assets outside of the exemption level, but you must seriously and truthfully review your assets with your Tampa Bankruptcy Attorney before filing a chapter 7 bankruptcy. Chapter 7 Bankruptcy Overview A Chapter 13 Bankruptcy is a reorganization of debt. The case states with the creation of a plan of reorganization in which you pay a portion of your debt back. The repayment plan in part is based on a repurchase of non-exempt assets from the bankruptcy estate; accordingly you may keep most, if not all, of your assets. Chapter 7 Bankruptcy Overview

What assets are exempt in Florida? 

The largest and most common bankruptcy exemptions are:

  • Homestead. Generally, you may keep the Equity in your home.
  • Insurance. You usually get to keep the cash value of your policies.
  • Retirement plans. Most retirement benefits are protected in bankruptcy.
  • Personal property. A personal property exemption ranging between $1,000 and $5,000.
  • Vehicle. Equity in a vehicle of up to $1,000.

What type of bankruptcy do I file?

The best way to determine what type of bankruptcy you should file is to contact a Tampa Bankruptcy Attorney for a no cost, no obligation phone conference or in-person consultation to get an expert opinion. Typically people do not have much of a choice between Chapter 7, 11, and 13. Please Click here for Bankruptcy FAQ’s 1-5and here for 11-15 412 E. Madison Street * Suite 1106 * Tampa, FL 33602 * Stan “The Man” Galewski * www.Galewski.com * 813-222-8210