Frequently Asked Bankruptcy FAQs

In most cases, the answer is no. In the Middle District of Florida Bankruptcy Division, you are usually only required to attend your meeting of creditors, which is held in an annex of the federal courthouse in Tampa. Any other hearings would be attended by Jill McDonald on your behalf.

You will not lose your home or car during your bankruptcy case as long as your equity in the property is fully exempt. Even if your property is not fully exempt, you may still be able to keep your property. In a Chapter 13 bankruptcy plan, you will be required to pay at least the equivalent of the non-exempt equity you have in your home or car and any amount you are behind on your home or car loan over the course of the three- to five-year plan. You also will be required to continue making the regular monthly payments.

In a Chapter 7 bankruptcy case, you can keep all the property which is exempt from the claims of creditors. In determining whether property is exempt, you must keep a few things in mind. The value of property is not the amount you paid for it, but what it is worth now. Generally, the trustee is interested in the resale value of your property, so for most personal effects this is the resale value of your property. In Florida, there is a homestead exemption for your residence (Up to a value of $).

You also only need to look at your equity in property. This means that you count your exemptions against the full value minus any money that you owe on mortgages or liens. For example, if you own a $50,000 house with a $40,000 mortgage, you count your exemptions against the $10,000 equity you have in the home. While your exemptions allow you to keep property even in a Chapter 7 case, your exemptions do not make any difference to the right of a mortgage holder or car loan creditor to take the property to cover the debt if you are behind. If you are behind on secured debt payments, you should consider a Chapter 13 bankruptcy. This will allow you to keep your property and give you 3 to 5 years to get caught up on your payments in arrears.

In a chapter 13 case, you can keep all of your property if your plan meets the requirements of the bankruptcy law. A loan modification is possible in a Chapter 13, but in most cases you will need to make your current payment along with the portion of the payments in arrears.

Once you and your assets are protected by the federal bankruptcy laws, creditors are prohibited from calling you about any debts owed. They can in no way be perceived as trying to collect on a debt. This usually means that online account access is stopped when you file. It usually is possible to get the online access restored by submitting an authorization letter to the creditor.

Once you file bankruptcy, your responsibility for the joint debt is gone. But the co-signer is still responsible for the debt. You should list the co-signer as a creditor in your bankruptcy; otherwise, they could file a claim against you.

In most circumstances, the answer is no. There are very strict rules about the discharge of student loans in a bankruptcy. Although it may still be of benefit to look at bankruptcy as an option because it can eliminate other debts that you may have.

In most circumstances, the answer is yes; you can stop a civil judgment by filing bankruptcy. If there was any criminal activity associated with the judgment (drunk driving, assault, etc.), then there may be questions as to the judgment's dischargeability. You would want to confer with Attorney Jill McDonald to discuss your bankruptcy options.

If you would like to have a free consultation to learn about your options with the civil judgment, then contact the Law Offices of Jill McDonald today at (727) 231-4300. We are a low-stress office that is here to help you get a fresh start. Attorney Jill McDonald is a highly respected bankruptcy attorney with offices in Clearwater and Pinellas Park.

The timing of the discharge varies, depending on the chapter under which the case is filed. In a chapter 7 bankruptcy (liquidation) case, for example, the court usually grants the discharge promptly on expiration of the time fixed for filing a complaint objecting to discharge and the time fixed for filing a motion to dismiss the case for substantial abuse (60 days following the first date set for the 341 meeting). Typically, this occurs about four months after the date the debtor files the petition with the clerk of the bankruptcy court. In cases under chapter 13 (adjustment of debts of an individual with regular income), the court grants the discharge as soon as practicable after the debtor completes all payments under the plan. Since a chapter 13 bankruptcy plan may provide for payments to be made over three to five years, the discharge typically occurs after all payments are made.

Any credit cards that you had when you file bankruptcy will most likely be cancelled. Even those with a zero dollar balance. But rest assured that you will still get offers for credit cards.

Our advice is to use a secured credit card that reports to the three credit bureaus to rebuild your credit. After about a year, your credit score should be back on track to recovery.

Yes, you can, but joint debts would still be the responsibility of your spouse. If you file jointly, then you would be able to get rid of joint debts. If one spouse only has non-dischargable debts, then it may be advisable for only one spouse to file the bankruptcy.

The representative of the bankruptcy estate who exercises statutory powers, principally for the benefit of the unsecured creditors, under the general supervision of the court and the direct supervision of the U.S. trustee or bankruptcy administrator. The trustee is a private individual or corporation appointed in all chapter 7, chapter 12, and chapter 13 cases and some chapter 11 cases. The trustee’s responsibilities include reviewing the debtor’s petition and schedules and bringing actions against creditors or the debtor to recover property of the bankruptcy estate. In chapter 7 bankruptcy, the trustee liquidates property of the estate and makes distributions to creditors. Trustees in chapter 12 and chapter 13 bankruptcy have similar duties to a chapter 7 trustee and the additional responsibilities of overseeing the debtor’s plan, receiving payments from debtors, and disbursing plan payments to creditors.

An agreement by a Chapter 7 debtor to continue paying a dischargeable debt (such as an auto loan) after the bankruptcy, usually for the purpose of keeping collateral (i.e., the car) that would otherwise be subject to repossession or surrender. In many cases, a reaffirmation agreement would not need to be signed, and in some circumstances it isn’t recommended that they be signed. You should confer with your attorney about the agreement before you sign it.

A discharge is a release of the debtor from personal liability for certain specified types of debts. In other words, the debtor is no longer required by law to pay any debts that are discharged. The discharge operates as a permanent order directed to the creditors of the debtor that they refrain from taking any form of collection action on discharged debts, including legal action and communications with the debtor, such as telephone calls, letters, and personal contacts. Although a debtor is relieved of personal liability for all debts that are discharged, a valid lien (i.e., a charge upon specific property to secure payment of a debt) that has not been avoided (i.e., made unenforceable) in the bankruptcy case will remain after the bankruptcy case. Therefore, a secured creditor may enforce the lien to recover the property secured by the lien.

Utility companies cannot refuse you service because you filed bankruptcy. But they can require a deposit.

Federal law prohibits discriminatory treatment of debtors. There are different rules pertaining to private and government discrimination. But a private employer may not discriminate with respect to employment if the discrimination is based solely upon the bankruptcy filing.