tag:blogger.com,1999:blog-33597451023550380982024-03-08T09:24:27.734-08:00R. Jason de Groot Attorney at LawR. Jason de Groothttp://www.blogger.com/profile/00533518367491703662noreply@blogger.comBlogger13125tag:blogger.com,1999:blog-3359745102355038098.post-64651070681239758992016-05-12T13:43:00.001-07:002016-05-13T12:01:44.127-07:00<h1 class="entry-title">
Seven famous people who survived bankruptcy</h1>
As
the economy continues to look grim, the word “bankruptcy” is on the
tips of more and more tongues. While being unable to pay one’s creditors
is never a good situation for a company or an individual, it may not be
the financial kiss of death that you might think. (Just ask Donald
Trump, whose casinos have gone bankrupt twice.) A number of successful people have found themselves overextended and
ended up filing for bankruptcy, only to successfully stick it out and
find firmer financial footing again. Here are a few famous names who knew what it’s like to be strapped for cash:<br />
<br />
<b>1. Abraham Lincoln <a href="http://deltonabankruptcylawyer.com/wp-content/uploads/2012/10/abraham.lincoln.gi_.jpg"><img alt="" class="size-thumbnail wp-image-8 alignleft" src="http://deltonabankruptcylawyer.com/wp-content/uploads/2012/10/abraham.lincoln.gi_-150x150.jpg" height="150" style="margin: 10px;" title="abraham.lincoln.gi" width="150" /></a></b><br />
His face may now appear on the penny, but at one time, Lincoln didn’t
have a single cent to spare. Lincoln tried many occupations as a young
man, including buying a general store in New Salem, Illinois, in 1832.<br />
While he may have been terrific at splitting rails, winning debates, and
wearing stovepipe hats, Honest Abe wasn’t much of a shopkeeper. Lincoln
and his partner started buying out other stores’ inventories on credit,
but their own sales were dismal. <br />
As the store’s debts mounted, Lincoln sold his share, but when his
partner died, the future President became liable for $1,000 in back
payments. Lincoln didn’t have modern bankruptcy laws to protect him, so
when his creditors took him to court, he lost his two remaining assets: a
horse and some surveying gear. That wasn’t enough to foot his bill,
though, and Lincoln continued paying off his debts until well into the
1840s.<br />
Lincoln’s not alone in the annals of bankrupt commanders-in-chief,
though. Ulysses S. Grant went bankrupt after leaving office when a
partner in an investment-banking venture swindled him.<br />
<br />
Thomas Jefferson filed for bankruptcy several times, including after
leaving office, possibly because he threw around a lot of cash on food
and wine.<br />
William McKinley went bankrupt while serving as Ohio’s governor in 1893;
he was $130,000 in the red before eventually straightening out with the
help of friends. He won the White House just three years later. <br />
<br />
<b>2. Henry Ford</b><br />
Speculation abounds about the future of the Big Three motor companies,
leading some observers to wonder what Henry Ford would think of this
financial peril. Ford actually couldn’t be too judgmental, though,
because he was no stranger to debt himself.<br />
<br />
In 1899 the young mechanic and engineer started the Detroit
Automobile Company with the backing of three prominent politicians. Ford
hadn’t quite mastered the innovation and production techniques that
would eventually make him rich, though. Over the next two years, Ford
proved to be too much of a perfectionist, and his plant only produced 20
cars as he painstakingly tinkered with designs.<br />
The enterprise went bankrupt in 1901 and reorganized into the Henry Ford
Company later that year. Ford eventually left that group and finally
got things right in 1903, when he founded the Ford Motor Company. Things
didn’t go so badly for the Henry Ford Company after he left, either; it
changed its name into one you might find a bit more recognizable: the
Cadillac Automobile Company.
Ford wasn’t the only auto magnate who knew how bankruptcy felt,
though. General Motors founder William Crapo Durant took a massive hit
during the Great Depression that saw his fortune fall from $120 million
to bankruptcy. He spent his last few years running a bowling alley in
Flint, Michigan.<br />
<br />
<b>3. Walt Disney</b><br />
His name may be a stalwart brand today, but early in his career, Disney
was just a struggling filmmaker with too many bills. In 1922 he started
his first film company with a partner in Kansas City, Kansas.<br />
The two men bought a used camera and made short advertising films and
cartoons under the studio name Laugh-O-Gram. Disney even signed a deal
with a New York company to distribute the films he was producing. That
arrangement didn’t work out so well, though, as the distributor cheated
Disney’s studio.<br />
Without the distributor’s cash, Disney couldn’t cover his overhead, and
his studio went bankrupt in 1923. He then left Kansas City for
Hollywood, and after a series of increasingly successful creations,
Disney debuted a new character named Mickey Mouse in 1928.<br />
<br />
<b>4. Milton Hershey</b><br />
<b> </b>Milton Hershey always knew he could make candy, but running a successful
business seemed just out of his reach. Although he never had a formal
education, Hershey spent four years apprenticing in a candy shop before
striking out on his own in Philadelphia in 1876.<br />
Six years later, his shop went under, as did a subsequent attempt to
peddle sweets in New York City. Hershey then returned home to Lancaster,
Pennsylvania, where he pioneered the use of fresh milk in caramel
productions and founded the successful Lancaster Caramel Company.<br />
In 1900 he sold the caramel company for $1 million so he could focus on
perfecting a milk chocolate formula. Once he finally nailed the recipe
down, he was too rich (and too flush with delicious chocolate) for anyone to remember the flops of his early candy ventures.<br />
<br />
<b>5. Burt Reynolds</b><br />
Burt Reynolds was one of Hollywood’s biggest stars of the 1970s.
Unfortunately, though, he spent money like his career would never hit a
downswing. He owned mansions on both coasts, a helicopter, and a lavish
Florida ranch.
Gradually, his financial situation got grimmer as he made boneheaded
career choices and weathered a pricey divorce from Loni Anderson. By
1996, the Bandit owed $10 million to his creditors, and the royalties
from “Cop and a Half” just weren’t flowing in quickly enough. Reynolds
declared Chapter 11 bankruptcy, from which he emerged in 1998.<br />
Not only did he not have to sell his trademark mustache at auction to
pay his bills, Reynolds even got to keep his Florida estate, Valhalla.
This homestead exemption raised the ire of some observers who didn’t
think hanging on to a $2.5 million mansion while writing off $8 million
in debt was quite in the spirit of bankruptcy laws’ provisions about
keeping one’s home.<br />
In fact, when the Senate passed measures tightening these loopholes in
2001, Reynolds’ keeping his ranch was one of the examples they used to
decry bankruptcy proceedings as going too easy on the wealthy. “There is
no greater bankruptcy abuse than this,” said Wisconsin Senator Herb
Kohl.<br />
<br />
<b>6. H.J. Heinz</b><br />
When Heinz was just 25 years old, he and two partners began a company
that made horseradish. As the legend goes, the spicy root was the first
of Heinz’s famed 57 varieties, but it wasn’t as lucrative as he’d hoped.
A business panic in 1875 bankrupted his enterprise, but Heinz’s passion
for condiments remained strong.<br />
The very next year, Heinz got together with his brother and a cousin to
start a new company in Pittsburgh, Pennsylvania. The reorganized group
started making ketchup, and the business took off. Recently the H.J.
Heinz Company had over $10 billion in revenue.<br />
<br />
<b>7. P.T. Barnum</b><br />
Famous showman P.T. Barnum was always quick with a quip, but he wasn’t
so snappy about paying back his loans. Although he was successful
showing off oddities in New York and around the globe, Barnum had a
habit of borrowing cash from anyone who would open their wallet for him.
Mental Floss: 12 oddball museums preserving our history<br />
He’d use these funds to buy real estate, particularly around Bridgeport,
Connecticut, where he was trying to foster industrial development.
Unfortunately for Barnum, he went too far with borrowed cash, and in
1855, things bottomed out. Barnum was bankrupt and owed his creditors
nearly half a million dollars.<br />
Barnum didn’t give up, though, and he slowly worked himself out of debt
over the next five years. The showman gave lectures around England about
showmanship and making money, and he regained control of his main
attraction, The American Museum in New York City, in 1860.<br />
In 1871, just a few months shy of his 61st birthday, Barnum entered the
circus business with Barnum’s Grand Traveling Museum, Menagerie,
Caravan, and Circus, which raked in over $400,000 in its first year.R. Jason de Groothttp://www.blogger.com/profile/00533518367491703662noreply@blogger.com0tag:blogger.com,1999:blog-3359745102355038098.post-83372987577855102472012-11-09T08:04:00.000-08:002012-11-09T08:04:26.709-08:00A Reasonable Hypothesis of Innocence
<div align="LEFT" style="margin-bottom: 0in;">
<span style="font-family: Arial, sans-serif;">The
law is well settled in Florida that in a criminal trial when the
evidence presented by the State is wholly circumstantial, the state
must present evidence which contradicts every reasonable hypothesis
of innocence in order to sustain a conviction. If the state does not
do this a motion for judgment of acquittal must be granted. All too
often the state utilizes and relies upon impermissibly stacked
inferences against an accused to suggest guilt. For instance, in a
trial for driving under the influence of alcohol, because each and
every police officer in the state has taken a special course, the
evidence presented will be that the defendant's eyes were bloodshot
or glassy, the speech was slurred, the gait was staggered and there
was a strong odor of alcohol emanating from the defendant or the
defendant's breath. These rotely memorized matters are commonly
written into every police report throughout the state, often without
regard to the actual truth. Invariably, the defendant failed to
maintain a single lane while driving or there can be any one of a
host of other reasons for a traffic stop. Once the stop is made, the
officer subjectively determines the factors which infer guilt from a
litany of seemingly objective observations. It is not a scientific
process, but it will appear to be. It is not a seeking of the truth,
but the necessary foundation to a finding of guilt. But our example
is just one and the context applies to all criminal prosecutions
which employ only circumstantial evidence. The distinction between
direct evidence and that which is circumstantial is at the heart of
the problem. Only testimony from someone who actually witnessed our
defendant consume alcohol and then get behind the wheel and drive
would suffice in this example. Although the observations of our
officer appear to be direct, they are not. Slurred speech, bloodshot
eyes, a staggered gait, and an odor of alcohol are direct evidence of
what the officer observed, but these are nothing more than the proof
of a chain of circumstances pointing to the commission of the
offense, the classic explanation of circumstantial evidence. </span>
</div>
<div align="LEFT" style="margin-bottom: 0in;">
<br />
</div>
<div style="margin-bottom: 0in;">
<span style="font-family: Arial, sans-serif;"><span style="color: black;"><span style="font-size: x-small;">"</span></span><span style="color: black;"><span style="font-size: small;">Evidence
which furnishes nothing stronger than a suspicion, even though it
would tend to justify the suspicion that the defendant committed the
crime, it is not sufficient to sustain conviction. It is the actual
exclusion of the hypothesis of innocence which clothes circumstantial
evidence with the force of proof sufficient to convict.
Circumstantial evidence which leaves uncertain several hypotheses,
any one of which may be sound and some of which maybe entirely
consistent with innocence, is not adequate to sustain a verdict of
guilt. Even though the circumstantial evidence is sufficient to
suggest a probability of guilt, it is not thereby adequate to support
a conviction if it is likewise consistent with a reasonable
hypothesis of innocence." </span></span><span style="color: black;"><span style="font-size: small;"><span style="font-style: normal;"><u>Davis
v. State</u></span></span></span><span style="color: black;"><span style="font-size: small;"><i>,
</i></span></span><span style="color: black;"><span style="font-size: small;"><span style="font-style: normal;">90
So.2d 629, 631-32 (Fla. 1956). </span></span></span></span>
</div>
<div style="margin-bottom: 0in;">
<br />
</div>
<div style="margin-bottom: 0in;">
<span style="color: black;"><span style="font-family: Arial, sans-serif;"><span style="font-size: small;"><span style="font-style: normal;">Our
analysis must turn to this defendant, although not required to prove
or disprove any fact and the constitutional right to remain silent is
absolute<span style="font-size: small;">,</span> <span style="font-size: small;">t</span>he explanation is that at 2:00 a.m., after performing in
a bar for a total of six hours and having been up since 6:00 a.m. the
preceding morning, the defendant was exhausted when stopped by the
officer. Surely, this negates each and every circumstance which lead
the officer to suspect a crime. Fortunately, this defendant refuses
all sobriety tests. So, there is no evidence except the officers
testimony. </span></span></span></span></div>
<div style="margin-bottom: 0in;">
<br /></div>
<div style="margin-bottom: 0in;">
<span style="color: black;"><span style="font-family: Arial, sans-serif;"><span style="font-size: small;"><span style="font-style: normal;">Tell me what you think. Should the court grant a motion
for judgment of acquittal, or should the defendant be convicted?</span></span></span></span></div>
R. Jason de Groothttp://www.blogger.com/profile/00533518367491703662noreply@blogger.com1tag:blogger.com,1999:blog-3359745102355038098.post-12774018749569336962012-08-07T09:09:00.000-07:002012-08-07T09:09:59.055-07:00Grand Theft, Defrauding a Financial Institution, and Double JeopardyThe Supreme Court of Florida and each of the District Courts of Appeal have ruled that Grand Theft and Organized Fraud convictions based upon the same conduct violated the Double Jeopardy principles. The applicable rule of law is that offenses are separate if each offense contains an element that the other does not. This is known as the Blockberger analysis and has been codified in Florida Statutes, Section 775.021(4). When each offense does not contain an element that the other does not, they are considered to be the same offense for double jeopardy purposes. The Double Jeopardy clause protects those charged with crime with three separate protections. It guards against being tried twice for the same offense after acquittal. It guards against a second prosecution for the same offense after conviction. And it guards against multiple punishments for the same offense. Analysis is very technical and always complicated. <br />
<br />
The question in a recent case is whether Grand Theft and Defrauding a Financial Institution based upon the same conduct, when the Defendants have already been tried and acquitted of Grand Theft, RICO and Conspiracy to Committ RICO, violate Double Jeopardy. The pending prosecution contains one count of aggravated white collar crime, based upon 13 separate instances of defrauding a financial institution, and three counts of defrauding. In 10 of the predicate offenses to count one, the Defendants were previously acquitted in prosecutions for Grand Theft, based upon the same conduct. Grand Theft, in essence, is a deprivation. Defrauding a Financial Institution is deprivation by fraud on a bank. The offenses are the same for double jeopardy purposes. The elements for DFI contain elements that Grand Theft does not. But Grand Theft does not contain an element that DFI does not. Thus, the Defendants cannot be tried again for the same offense.R. Jason de Groothttp://www.blogger.com/profile/00533518367491703662noreply@blogger.com0tag:blogger.com,1999:blog-3359745102355038098.post-79307246753423544252011-11-07T08:20:00.001-08:002011-11-07T08:20:50.756-08:00Bankruptcy and Foreclosure<div class="MsoNormal"><b><span style="font-size: 12.0pt;">Bankruptcy will stop a foreclosure sale. It will stop all state court actions unless and until the automatic stay is lifted by the Bankruptcy Judge. It may force the mortgage company to take a different stand, one more amenable to modification or negotiation. In the foreclosure crisis that the nation is facing, it has probably become more common to file for bankruptcy relief only to stop a foreclosure sale. However, it is an abuse of the Bankruptcy Code to file a bankruptcy for the sole purpose of halting a foreclosure sale. When a bankruptcy is filed, one of the first things which occurs is that the clerk sets a meeting of creditors which will take place within a month or six weeks. If the debtor does not show up for the meeting, another meeting will be set, and if the debtor fails to show for the second meeting, the case can be dismissed. A debtor who files a bankruptcy for the sole purpose of stopping a foreclosure sale will not usually appear for the mandatory meeting, and will not usually file all the documents required. The case will eventually be dismissed, and the mortgage company will eventually get the automatic stay lifted so that the foreclosure can proceed. It is important that each debtor acts in “good faith” when filing for bankruptcy protection, and filing solely to stop a foreclosure is not acting in good faith. The mortgage companies have too many properties which have already been foreclosed upon, and are more likely to allow modification. There are millions of foreclosed and vacant homes across the country and with over one million foreclosures being filed each year, there will be more. The current economic circumstances are dismal and for many there is no real choice but to file for protection. If and when you file, be sure not to fall into the category of “bad faith” filings, make sure to follow through with filing all the documents required and attending the meeting of creditors. A fresh start is available.<o:p></o:p></span></b></div>R. Jason de Groothttp://www.blogger.com/profile/00533518367491703662noreply@blogger.com0tag:blogger.com,1999:blog-3359745102355038098.post-14164894736386064542011-11-04T11:43:00.001-07:002011-11-04T11:43:51.764-07:00Bankruptcy and Foreclosure Statistics:<div class="MsoNormal"><span style="font-size: 12.0pt;">In 2010 there were a total of 1,139,601 Chapter 7 Bankruptcies and 438,913 Chapter 13 Bankruptcies filed in the <st1:country-region w:st="on"><st1:place w:st="on">U.S.</st1:place></st1:country-region> The total consumer Chapter 7 filings were 1,100,116., while the total consumer Chapter 13 filings were 434,739. In the Middle District of <st1:state w:st="on"><st1:place w:st="on">Florida</st1:place></st1:state> there were a total of 47,730 Chapter 7, and 15, 967 Chapter 13 filings, by individuals. It appears that <st1:state w:st="on"><st1:place w:st="on">Florida</st1:place></st1:state>’s middle district had the third highest non-business Chapter 7 filings in the nation, being topped by the Central District of California and the Northern District of Illinois, which had 105,094 and 49,017, respectively. Business Chapter 7 filings were 39,485 in 2010, along with 4,174 Chapter 13 filings nationwide. There were over 1 million home foreclosures in the nation during 2010, alarmingly close to the number of bankruptcies filed. This figure could have been much higher if it had not been for the home foreclosure robosigning scandal in the 4<sup>th</sup> quarter. Foreclosures are expected to be over 1.2 million, and bankruptcies are expected to reach 1.6 million in 2011. <o:p></o:p></span></div>R. Jason de Groothttp://www.blogger.com/profile/00533518367491703662noreply@blogger.com1tag:blogger.com,1999:blog-3359745102355038098.post-90593333068964588512011-11-04T11:30:00.000-07:002011-11-04T11:30:13.060-07:00Chapter 20 Bankruptcy?<div class="MsoNormal"><span style="font-size: 12.0pt;">Chapter 7 Bankruptcy is primarily for consumers. Chapter 13 Bankruptcy is primarily for people who can pay a percentage of the debts they owe. But what is a Chapter 20? There is no Chapter 20 in the Bankruptcy Code. It is a theory, an intellectual pondering, on a scenario wherein someone files a Chapter 13 to reorganize their secured debt, and then converts the case to a Chapter 7 to get rid of their unsecured debt. Some use the scenario where a Chapter 7 is filed and when a discharge is received, a Chapter 13 is filed to reorganize the remaining debt. Most theorists would say that converting to Chapter 7 from a 13 should only be used, and is only possible, when a Chapter 13 debtor’s financial circumstances have worsened after filing. Otherwise, someone who filed a 13 with the intention of later converting to a 7, would be planning to fail, and could, in essence, be viewed as abusing the system. When one files a Chapter 13, the creditors have the comfort of knowing that they will be paid part of what is owed, according to the plan the debtor has filed. When someone files a Chapter 7, the creditors all back off and do nothing. At the very least, the creditor can report the money owed as a loss for that calendar year, a direct deduction from gross income. There do not appear to be yearly figures available for the number of Chapter 13 bankruptcies which have been converted to Chapter 7, nor do there appear to be any statistics available for those converting a 7 to a 13. <span class="apple-style-span"><span style="background: white; color: #333333;">The Bankruptcy Code allows the debtor to convert a chapter 7 case to a chapter 13 case as long as the debtor is eligible under the new chapter. However, a condition of the debtor's voluntary conversion is that the case has not previously been converted to Chapter 7 from another chapter. In addition, a debtor cannot receive a Chapter 13 discharge if the debtor has received a Chapter 7 discharge within the last 4 years. Moreover, a Chapter 13 debtor who suffers a drastic loss in income, has a right to convert the case to Chapter 7. So, there are two forms of Chapter 20 Bankruptcy, which combine 7 and 13. One being a 7 followed by or converted to a 13, and the other being a 13 followed by or converted to a 7. In either scenario the debtor is required at all times to act in good faith. Here is a link to a case which discusses Chapter 20: </span></span><a href="http://www.rib.uscourts.gov/D/1998/Keachcnf.PDF" target="_blank"><span style="background: white; border: none windowtext 1.0pt; color: windowtext; mso-border-alt: none windowtext 0in; padding: 0in; text-decoration: none; text-underline: none;">http://www.rib.uscourts.gov/D/1998/Keachcnf.PDF</span></a><o:p></o:p></span></div>R. Jason de Groothttp://www.blogger.com/profile/00533518367491703662noreply@blogger.com0tag:blogger.com,1999:blog-3359745102355038098.post-78590182435275291572011-11-03T09:22:00.001-07:002011-11-03T09:22:44.175-07:00The Two Entity Theory in Bankruptcy<b><span style="font-size: 12pt;">When you file for Chapter 7 Bankruptcy protection, you create a new, separate, and distinct legal entity from yourself. It is called your bankruptcy estate and is comprised of everything you own and everything you owe, on the date that you file a petition. It has a life of its own which lasts for a number of months. The second entity is viewed as you without all of your debt and is called your post-petition estate. In theory, these two entities are distinctly different. The trustee in bankruptcy can get at any non-exempt assets which you own on the date of your filing, but cannot get his or her hands on things that came into your possession on the day after you file bankruptcy. If you had an income tax refund or an inheritance coming to you on the date you filed, these items are part of your bankruptcy estate. But if you win the lottery on the day after you file bankruptcy, in theory, the trustee cannot get at those funds because they are part of your post-petition estate. In all likelihood someone who wins the lottery shortly after filing, would probably want to pay off their debts with the winnings, and would probably make a motion to have the bankruptcy dismissed. Bankruptcy has long been viewed as a system of people helping other people out of debt. It rarely becomes adversarial. Most creditors back off when you file for bankruptcy, because the automatic stay prevents them from trying to collect the debt or even calling you on the telephone. The clean slate or fresh start are available, you can legally erase the debt. If your expenses exceed your income and you just cannot make ends meet, you may want to create a new, separate and distinct legal entity which will help you get out of debt.</span></b>R. Jason de Groothttp://www.blogger.com/profile/00533518367491703662noreply@blogger.com1tag:blogger.com,1999:blog-3359745102355038098.post-87573356377320501442011-10-31T08:57:00.001-07:002011-10-31T08:57:19.193-07:00Bankruptcy no longer carries the social stigma that it once did.<div class="MsoNormal"><span style="font-size: 12.0pt;">Many very famous people have filed for bankruptcy over the years. Presidents Jefferson, Lincoln, Grant, and McKinley all filed bankruptcy. Here are just a few more: Mark Twain, Donald Trump, Larry King, Willie Nelson, Mickey Rooney, Wayne Newton, Jerry Lee Lewis, Margot Kidder, Meat Loaf, Tammy Wynette, Ted Nugent, Cindi Lauper, Mike Tyson, Oscar Wilde, Thomas Paine, and Burt Reynolds. Bankruptcy became an option for all of these famous people. It could become an option for you. Find out if you can get a fresh start. Bankruptcy just can’t carry the social stigma that it has in the past, the shame associated with being unable to pay your bills, when all of these people have filed for relief.<o:p></o:p></span></div>R. Jason de Groothttp://www.blogger.com/profile/00533518367491703662noreply@blogger.com0tag:blogger.com,1999:blog-3359745102355038098.post-68036383617067684952011-10-31T08:53:00.000-07:002011-10-31T08:53:59.052-07:00Consumer Credit Counseling Agencies<div class="MsoNormal"><b><span style="font-size: 12.0pt;">It is now necessary to get a certificate from an approved credit counseling agency prior to filing a Chapter 7 Bankruptcy. One of these agencies, and there are many, may be able to help you reduce your debt without filing bankruptcy. They can contact creditors and possibly get them to reduce the interest on your account, and lower your payments. Many agencies have online courses, or you can call them over the phone. The point is that the law changed in 2005 to require that people who are about to file bankruptcy to obtain a certificate from an approved counseling service, which states that you have had a briefing with them and they have assisted you in making a budget analysis of your current financial circumstances. If you are married, you will need two certificates. The certificates must be dated within 180 days prior to filing. It is also necessary to take a course in personal financial management after you file a Chapter 7 Bankruptcy and get a certificate. Most agencies are approved for both requirements. <o:p></o:p></span></b></div>R. Jason de Groothttp://www.blogger.com/profile/00533518367491703662noreply@blogger.com0tag:blogger.com,1999:blog-3359745102355038098.post-1345502656821606422011-10-30T09:54:00.001-07:002011-10-30T09:54:48.577-07:00Know what is included when you hire a bankruptcy attorney.<div class="MsoNormal"><b><span style="font-size: 12.0pt;">When you hire a bankruptcy attorney you can expect the following services:<o:p></o:p></span></b></div><div class="MsoNormal"><br />
</div><div class="MsoNormal" style="mso-layout-grid-align: none; text-autospace: none; text-indent: .5in;"><b><span style="font-size: 12.0pt;">a. <span> </span>Analysis of the your financial situation, and rendering advice to you in determining whether to file a petition in bankruptcy;<o:p></o:p></span></b></div><div class="MsoNormal" style="mso-layout-grid-align: none; text-autospace: none; text-indent: .5in;"><br />
</div><div class="MsoNormal" style="mso-layout-grid-align: none; text-autospace: none; text-indent: .5in;"><b><span style="font-size: 12.0pt;">b. <span> </span>Preparation and filing of any petition, schedules, statements of affairs which may be required;<o:p></o:p></span></b></div><div class="MsoNormal" style="mso-layout-grid-align: none; text-autospace: none; text-indent: .5in;"><br />
</div><div class="MsoNormal" style="mso-layout-grid-align: none; text-autospace: none; text-indent: .5in;"><b><span style="font-size: 12.0pt;">c. <span> </span>Representation of you at the meeting of creditors and any adjourned meetings thereof.<o:p></o:p></span></b></div><div class="MsoNormal"><br />
</div><div class="MsoNormal"><b><span style="font-size: 12.0pt;">You can also expect that your attorney will negotiate with the Trustee regarding any non-exempt assets and purchasing them back from your bankruptcy estate.<o:p></o:p></span></b></div><div class="MsoNormal"><br />
</div><div class="MsoNormal"><b><span style="font-size: 12.0pt;">Most attorneys will not include adversarial proceedings in the services to be rendered. Adversarial proceedings are time consuming and expensive, but very rare. They are usually filed only when the creditor suspects fraud and wants the debt determined to be non-dischargeable. In addition, most attorneys will not include proceedings to have money judgments, which have already been entered against you, rendered null and void. There is a motion to get money judgments determined null and void. It requires more time on the attorney’s part to draft the motion and notice and make sure an order is entered. If you have any judgments against you, be sure to provide certified copies to your attorney.<o:p></o:p></span></b></div>R. Jason de Groothttp://www.blogger.com/profile/00533518367491703662noreply@blogger.com0tag:blogger.com,1999:blog-3359745102355038098.post-89887866769282339012011-10-30T06:52:00.001-07:002011-10-30T06:52:49.219-07:00Florida Exemptions in Bankruptcy<div class="MsoNormal"><b><span style="font-size: 12.0pt;">The <st1:state w:st="on"><st1:place w:st="on">Florida</st1:place></st1:state> Constitution provides a homestead exemption which makes your home “sacred” property. This exemption is the most important one in <st1:state w:st="on"><st1:place w:st="on">Florida</st1:place></st1:state> and covers up to ½ acre in a city and up to 160 acres outside of a city. In order to claim this exemption you must have owned the home for 40 months. If you owned the home for less than 40 months, then you can only claim $136,875.00 per person in equity. <span> </span>The Constitution also provides an exemption of $1,000.00 in personal property for a single person and $2,000.00 in personal property for a married couple. If you do claim or receive the benefits of a homestead exemption, you can claim up to $4,000.00 in personal property.<o:p></o:p></span></b></div><div class="MsoNormal"><br />
</div><div class="MsoNormal"><b><span style="font-size: 12.0pt;">The <st1:state w:st="on"><st1:place w:st="on">Florida</st1:place></st1:state> Statutes also provide exemptions for $1,000.00 of equity in a single motor vehicle, pension or retirement funds, social security funds, pre-paid college funds, annuity contracts, disability benefits, prescribed health aids, medical savings accounts, hurricane savings accounts, wages and unemployment compensation, and the cash surrender value of life insurance policies. <span> </span>In order to claim any of these exemptions, they must be included on Schedule C which is filed along with the other documents in your bankruptcy.<o:p></o:p></span></b></div>R. Jason de Groothttp://www.blogger.com/profile/00533518367491703662noreply@blogger.com0tag:blogger.com,1999:blog-3359745102355038098.post-50850667375684195842011-10-28T11:49:00.000-07:002011-10-28T11:49:41.298-07:00Chapter 7 Bankruptcy Creditors Meetings<div class="MsoNormal"><br />
</div><div class="MsoNormal"><span style="font-size: 12.0pt;">You must attend, and you must bring your driver’s license and social security card. It is best to arrive early so that you can find a seat, get comfortable, and listen to the questions being asked to the people in front of you. There will usually be a schedule outside the room. The Trustee will put you under oath and ask you questions about your case. The usual questions include whether you listed all of your debts and all of your assets in the documents filed with the court, whether the documents are complete and accurate, whether there are any changes to the schedules, whether you have an income tax refund coming to you, whether you expect to receive an inheritance, and any other questions concerning your case. The usual meeting of creditors lasts about three minutes. Your creditors can be present and ask you questions. They are usually there to see if you want to reaffirm part or all of your debt and keep some credit with them.<b><o:p></o:p></b></span></div>R. Jason de Groothttp://www.blogger.com/profile/00533518367491703662noreply@blogger.com0tag:blogger.com,1999:blog-3359745102355038098.post-45182348457256658522011-10-28T11:23:00.000-07:002011-10-28T11:23:53.673-07:00The 5 Most Important Things to Know When Filing a Chapter 7 Bankrutcy<ol start="1" style="margin-top: 0in;" type="1"><li class="MsoNormal"><b><span style="font-size: 12.0pt;">Hire a Bankruptcy Attorney.<o:p></o:p></span></b></li>
</ol><div class="MsoNormal" style="text-indent: .25in;"><b><span style="font-size: 12.0pt;">Don’t think that you can do it yourself, or that a petition preparer knows as much about bankruptcy as an attorney. Most bankruptcy lawyers give free consultations nowadays. Ask questions and get advice on other alternatives. Besides getting competent legal advice from an attorney, make sure that the attorney you hire will attend the creditors meeting with you. These days many bankruptcy attorneys get others to cover meetings for them. Since this is an important, mandatory, and very personal matter, it will put you more at ease if the attorney you hire will attend the creditors meeting with you. All too often I have encountered bedraggled clients at creditors meetings, asking me if I am covering for another attorney. They don’t already know that the meeting will take only about three minutes, and they are upset, afraid and confused because they are supposed to meet someone who they do not know, and they don’t know what to expect. Hire an attorney who will give your case the personal attention you deserve.<o:p></o:p></span></b></div><div class="MsoNormal" style="margin-left: .25in;"><br />
</div><ol start="2" style="margin-top: 0in;" type="1"><li class="MsoNormal"><b><span style="font-size: 12.0pt;">Get your documents together.<o:p></o:p></span></b></li>
</ol><div class="MsoNormal" style="text-indent: .25in;"><b><span style="font-size: 12.0pt;">Get the most recent statements from each creditor, copies of the deed to real estate and vehicle titles, pay stubs for at least 60 days, income tax returns for the last 3 years, bank statements, statements from 401k, pension, or other retirement funds. You also need a certificate from an approved consumer credit counseling agency. Organize everything in one place. Have a good idea of what your income has been for the last five years, and what your expenses have been, before you see an attorney.<o:p></o:p></span></b></div><div class="MsoNormal" style="margin-left: .25in;"><br />
</div><ol start="3" style="margin-top: 0in;" type="1"><li class="MsoNormal"><b><span style="font-size: 12.0pt;">Cut up the credit cards.<o:p></o:p></span></b></li>
</ol><div class="MsoNormal" style="text-indent: .25in;"><b><span style="font-size: 12.0pt;">Creditors can come after you for purchases made on credit cards just prior to filing bankruptcy, under certain circumstances. So, it is important to stop using credit cards at least a few months before filing.<o:p></o:p></span></b></div><div class="MsoNormal" style="margin-left: .25in;"><br />
</div><ol start="4" style="margin-top: 0in;" type="1"><li class="MsoNormal"><b><span style="font-size: 12.0pt;">List everything you own and everything you owe.<o:p></o:p></span></b></li>
</ol><div class="MsoNormal" style="margin-left: .25in;"><br />
</div><div class="MsoNormal" style="text-indent: .25in;"><b><span style="font-size: 12.0pt;">You cannot pick and choose which debts you are going to go bankrupt on. On the other hand, you can choose to reaffirm a debt and most people want to reaffirm mortgages and car loans. You must list every creditor you owe money to, even the family member who loaned you money.<span> </span>In addition, you have to list everything you own, with fair market values. Don’t put an outrageous price on something, just list what you would be willing to sell it for, garage sale values are probably best. <o:p></o:p></span></b></div><div class="MsoNormal" style="margin-left: .25in;"><br />
</div><ol start="5" style="margin-top: 0in;" type="1"><li class="MsoNormal"><b><span style="font-size: 12.0pt;">Know when it will be filed.<o:p></o:p></span></b></li>
</ol><div class="MsoNormal" style="text-indent: .25in;"><b><span style="font-size: 12.0pt;">You want to stay in close contact with your attorney’s office after you have given them the questionnaire answers.<span> </span>It is very important to make sure that you don’t have to pay some monthly bills twice. <span> </span>For instance, if you have a number of checks that have not cleared your bank account, the money in the account at the time you file can be claimed by the trustee. You do not want to have to pay your utilities twice in that month, or your mortgage or car loan. So, you need to make sure that your bank account has a close to zero balance on the day your Chapter 7 is filed.<o:p></o:p></span></b></div><div class="MsoNormal"><br />
</div>R. Jason de Groothttp://www.blogger.com/profile/00533518367491703662noreply@blogger.com0