Wednesday, December 10, 2014

When Not to File for Bankruptcy - 13 More Examples



miami chapter 7 chapter 13 bankruptcy attorney1. Urban Legend - doing it inappropriately because "everybody at work did it"

2. Foreclosures - to discharge a potential mortgage deficiency on your home - the mortgage lender may never bring it

3. Exemptions - recently moved to Florida from another state, another state's exemptions apply,  and alot of your property is subject to liquidation in a chapter 7 case 

4. Too Much Property - substantial amount of property that is not exempt and the chapter 7 trustee is able to liquidate a lot of property 

5. Too Much Income -  an "abusive filing" and that will be dismissed or converted to chapter 13 or 1

6. Intangible Property - intangible property is real property. A potential personal injury claim or interest in a trust or estate may be very valuable. Non-exempt intangible property is not yours anymore when you file chapter 7 - it belongs to the chapter 7 trustee. That valuable personal claim - all the chapter 7 trustee has to do is pick up the phone and settle for whatever he deems appropriate by the Court - in most case, you get nothing.

7. Chapter 7 - when should have filed under chapter 13

8. Chapter 13 - when should have filed under chapter 7, such as little income and no non-exempt property

9. Cooperation - full cooperation with a chapter 7 trustee is required and the failure to do so may result in the lack of discharge of debt

10. Only One Large Creditor - sometimes if there is only one creditor, you are just moving the state court case over to the Bankruptcy Court - even worse, the creditor may have more power over you in a bankruptcy case

11. Valuable Real Estate in Another Country - a chapter 7 trustee can have a real estate broker in the other country sell it

12. Property Owned Together with Spouse - the exemption for property owned as "tenants by the entireties" is not always not a good bet as does not always fully work or is very difficult to prove

13. Eviction - to buy a few more days