I was thinking about going bankrupt on a sub s corporation.  I am no longer in business.

Practice area: Bankruptcy

-          Business Bankruptcy 

Additional Details 

I still have about $ 30,000 in debt.  We have no investors or assets.  But my wife does have a annuity in her name.  Will they go after her annuity?

Answer

As stated previously, a corporate chapter 7 may not make sense.  However, if you personally guaranteed the debts of the business you may want to consider a personal bankruptcy.  Your wife does not have to file bankruptcy with you if she did not also guarantee the $30k in debt.  If she did also guarantee the debts, Florida has an exemption for annuity contracts.  You will need to speak with a local bankruptcy attorney, try www.NACBA.org to find one in your area.  Here is the statute section you may want to review. 

Florida Statute 222.14 Exemption of cash surrender value of life insurance policies and annuity contracts from legal process.

ExCEL Act does not use fixed repayment plans but varies with the borrowes income.  Higher income earns pay the student loan back sooner.

“If you are earning a higher income after leaving school, you would repay your loan more quickly, although with no more than 15 percent of your income beyond an allowance for basic living expenses.  If you lose your job, get sick, or can’t find a good job, your loan payments would automatically be kept at affordable levels,” he said.

In addition, interest on student loans would not compound during repayment and would be capped at 50 percent of the loan’s balance upon graduation.  “Students would have to repay what they borrow, but they wouldn’t face interest spiraling out of control just because of a temporary bout of unemployment,” Petri said.

Daley Law may be able to help you modify your mortgage or save a home were payments have fallen behind.  Call us for a free consultation. (321) 504-9935

Good news seems to be the number of foreclosure filings has fallen, which means the worst may be over for the housing market.

 To get the calls to stop at work I recommended they call from home and tell the collectors your work does not allow you to take calls of this kind at work, even on breaks.  If you communicate with them and inform them not to call you at work, they should not do it again.  If they do this could be a clear violation of the FDCPA.  You can also tell them to stop contacting you in general or request all communication be in writing.

 Debt Collectors cannot do the following: 

• Contact consumers by telephone outside of the hours of 8:00 a.m. to 9:00 p.m. in the consumers local time zone 
• Communicate with a consumer in any way (other than litigation) after receiving written notice that said consumer wishes no further communication or refuses to pay the alleged debt.  (Certain exceptions may apply)
  • This includes advising that collection efforts are being terminated, or
  • That the collector intends to file a lawsuit, or
  • That collector is going to pursue other remedies where permitted 
• Cause a telephone to ring or engaging any person in telephone conversation repeatedly or continuously: with intent to annoy, abuse, or harass any person at the called number. 
• Communicate with a consumers at their place of employment after having been advised that this is unacceptable or prohibited by the employer 
• Contact a consumer known to be represented by an attorney (Florida has a similar provision in the State statutes)  
• Communicate with a consumer after request for validation 
• Publishing the consumer’s name or address on a “bad debt” list  
• Seek unjustified amounts, which would include demanding any amounts not permitted under an applicable contract or as provided under applicable law  
• Threaten to arrest or take legal action that is either not permitted or not actually contemplated  
• Abusive or profane language used in the course of communication related to the debt  
• Reveal or discuss debts with third parties 
• Reporting false information on a consumer’s credit report or threatening to do so in the process of collection

 Additionally in Florida, debt collectors must be licensed by the State. 

If a Debt Collector is harassing you, you should contact an attorney in your area that focuses on FDCPA violations. 

If you prevail in court against a Debt Collector for violations, you can receive $1,000 in civil penalties for each violation plus attorney’s fees and costs. 

Call my office for a free consultation, 321-504-9935 or Staff@DaleyLaw.com

In a Chapter 13, every creditor in your case no matter if you are continuing to pay the debt (your first mortgage for example) or getting rid of the debt (your second mortgage for example) has until a certain deadline to file a “proof of claim.”  A proof of claim consists of documents that substantiate you actually owe the debt the creditor says you owe.  If a creditor does not file a proof of claim by the deadline then for an unsecured claim such as a credit card, they will receive no money from your bankruptcy case; for a secured debt (mortgage, automobile) if they do not file a claim, your attorney may file one on their behalf.

In almost every bankruptcy, a mortgage company will hire an attorney to ensure all deadlines are met as well as to monitor the progress with each case.  During a Chapter 13 bankruptcy, the trustee pays the mortgage payment each month.  Once the bankruptcy is complete, you will then immediately resume making your regular mortgage payment because the term of the mortgage will last longer than a bankruptcy reorganization plan.

After the deadline to file a “proof of claim” passes, your bankruptcy attorney is required to review all claims to ensure they were filed properly and will object to any claims not filed properly.  If the proof of claims are not corrected by the creditor, then the creditor will receive no funds from your trustee under your Chapter 13 Plan.  Also at this time, the Trustee assigned to your case is reviewing your case to see if it is ready for confirmation if the plan has not already been confirmed at the initial confirmation hearing.  Once the trustee has thoroughly reviewed your case, a date will be set for a confirmation hearing.  Unless there is something out of the ordinary most debtors will not need to attend this hearing here in the Orlando Division of the Middle District of Florida.  The Confirmation Order is an order by the bankruptcy Judge stating your Chapter 13 plan is acceptable.

I believe it will be hard for many of the 3.5 million that are still working to recover the equity they lost before retiring.

Ronald J. Drescher has an interesting article detailing more statistics.  Click here to read it.

Many seniors could possibly save their homes by stripping an unsecured second mortgages in bankruptcy.  Another alternative is to seek mortgage modification through the bankruptcy court coupled with discharging unsecured debts. 

If the first mortgage is more affordable due to a modification, bankruptcy removes the second mortgage and the credit card debts are discharged in bankruptcy the resulting monthly budget may be more affordable and allow the senior to recover financially.

If you would like to learn more, please call our office for a free consultation.  321-504-9935

The National Association of Consumer Bankruptcy Attorneys (NACBA) has been campaigning since February 2012; they are trying to call attention to the “Debt Bomb” of one trillion dollars of student loans.  The 2005 Bankruptcy Reform Act made it all but impossible to discharge these student loans; this change is leaving a whole generation of students with no options to deal with the student loans.  The economy and job market has made their situation almost irreversible as the interest compounds on the debt.

Click Here to Read the Report

This new law prohibits “Dual Tracking”.  California now prohibits the mortgage company from continuing the foreclosure action while the bank at the same time works with the homeowner on a loan modification.

No “Robo-Signing” this part of the new law addresses the same issues as many lawsuits.  The law now provides homeowners a cause of action (reason to sue) the bank if they utilize robo-signing a foreclosure case.

Another creates part “Single Point of Contact”.  The banks must provide a single point of contact for homeowners to work with while attempting a loan modification.

This seems to be a great law that we could use in all 50 States.