Florida Bankruptcy Lawyer Blog

In Part 1 of this article, I discussed the reasons you should NOT reaffirm a mortgage loan. The decision of whether or not to reaffirm a vehicle loan is more complex. While it is very rarely ever in anyone’s best interest to reaffirm a mortgage loan, it often may be in a Chapter 7 debtor’s best interest to reaffirm a vehicle loan. The main reason for this is that there is a pretty significant chance that your lender has the legal right to repossess your vehicle if you don’t sign a reaffirmation agreement – even if you keep current on all of your payments! If your loan documents specify that filing bankruptcy is itself an event of default (you will need to have an attorney review the documents in order to confirm this), then if you don’t sign a reaffirmation agreement, you are risking losing your vehicle. Now, most people rely heavily on their vehicles for their livelihood: to get them to and from work, to get their kids to and from school, grocery shopping, etc. Not many people are willing to risk losing their vehicle, however small or large that risk may be. So, most Chapter 7 debtors do end up signing a reaffirmation agreement when requested by their lender, and most attorneys will likely support that decision, as long as it does not appear to impose an undue hardship on the debtor to make the monthly loan payments..

Continue reading "Should I Sign A Reaffirmation Agreement Part II" »

I wrote a blog last year entitled “New Check Fraud from Cash Advance Scam.” The basics of the scam are: A debt collector will identify themselves as an investigator investigating the debtors for check fraud arising from a payday loan. The collectors threaten jail unless the debt is paid. In the blog, I wrote that the statements are false as there are no criminal charges for simply not paying debt; debtor’s prison was abolished in the United States in the 19th century. Well, while that is all true, there is a sad trend that debt has a key to the jail’s back door.

Continue reading "The New Debtor's Prisons: How Debt Can Result In Jail" »

After filing a Chapter 7 bankruptcy, you or your attorney may receive what’s called a “reaffirmation agreement” from your mortgage lender, likely accompanied by a letter trying to convince you that you should sign it. What that letter is not going to tell you is the most important piece of information – why signing is NOT in your best interest. That is what I am going to explain to you here.

A reaffirmation agreement is basically a brand new legal contract that revives your personal liability on the mortgage note – a liability that will otherwise be wiped out when you receive your discharge in your bankruptcy case. What this means to you is that if sometime down the road, say, 2 or 5 or 10 years from now, you come upon hard times again and can no longer afford to make your mortgage payments, your lender would not only be able to foreclose and take your home, but the mortgage company can also file a lawsuit against you for the deficiency from the foreclosure sale (ie, the difference between what you owe on the mortgage loan and the amount the property sold for at the foreclosure sale). For example, if you owe $200,000 on your mortgage loan, and your home is worth only $150,000 at the time of the foreclosure sale, then if you sign a reaffirmation agreement now, you could legally owe your lender $50,000 even though you no longer own your home. That is a HUGE risk to take for very little reward.

Continue reading "Should I Sign A Reaffirmation Agreement On My Mortgage After Filing For Chapter 7?" »

As a bankruptcy attorney in Southwest Florida, many times I see clients who think it is best to withdraw all their money from their bank accounts before filing. This is an incorrect assumption for a couple reasons: (1) any amounts held in cash must be disclosed; and (2) exemptions may apply to protect those funds while in the bank account.

Continue reading "Don't Withdraw That Paycheck And Don't Commingle Your Funds" »

Consumer bankruptcy filings are up approximately 14% since the same time last year. The causes of the filings are obviously the recession, unemployment and the housing crisis (the Big Three). In South West Florida, we know the big three all too well. It is expected that over 1.6 million people will file for bankruptcy protection this year.

I have mixed emotions on this issue. First, I think more people should consider the bankruptcy option. I can say this because I understand the bankruptcy process and the benefits it offers. Likewise, I have an open-mind to bankruptcy. I see many people who say that bankruptcy is the worst thing a person can do, and unfortunately, that is not true. Bankruptcy is usually not the worst option.

Continue reading "Consumer Bankruptcies Filings Up 14% " »

Well, according to a recent ABA Journal article, it appears Fannie Mae is going to pursue deficiency judgments against borrowers who walk away from loan obligations without good reason.

A deficiency judgment is a judgment following a foreclosure sale for the difference between the property’s value at the time of the foreclosure sale and the balance owed on the loan obligation. Once the deficiency judgment is obtained, the creditor may be able to garnish wages, seize assets, and take any other action allowed by law. Apparently Fannie Mae will be instructing its servicers to recommend which homeowners should be pursued for deficiencies.

The first question I had when I read this article is what criteria will be used to determine whether a reason for the walk away was a “good reason.” It appears that the Fannie Mae’s goal is to stop people who have the ability and means to pay their mortgages from walking away merely because the property is no longer an economically appealing investment. But with the management of the loans I have seen by the servicers in my clients’ cases I have little doubt that implementation of this program will affect people not intended.

Continue reading "Fannie Mae Will Pursue Deficiency Judgments Against Homeowners" »

On Wednesday, March 24, 2010, Carmen Dellutri was asked to sit on a panel put together by the American Bankruptcy Institute with several bankruptcy experts and discuss the Supreme Court's Espinosa opinion. The Espinosa case dealt with the discharge of student loans in bankruptcy.

The panelists were led in a very lively discussion of the opinion written by Justice Thomas.

Continue reading "Carmen Dellutri on American Bankruptcy Institute Panel" »

Practicing Consumer Bankruptcy Law is very interesting work. Usually, I get to tell bankruptcy clients good news. Sometimes, I have to deliver bad news about their bankruptcy cases. In a recent case, a young man purchased his first home several years ago, and naturally, the value of the home has dropped significantly. He tried modification and was turned down flat (The mortgage is held by a securitized trust). That wasn't the bad part.

The bad part, as you can tell from the title is that he had his Grandfather co-sign for the loan. So, during the course of the bankruptcy when this young man couldn't get the lender to modify, he asked me: Can I short sale the property, and if so, what will happen to me, and what will happen to my Grandfather? These are both excellent questions.

Here is my advice: Yes, as an option, you can do a short sale. Of course, since you are in a Chapter 13, we will need the Judge's permission, and I will have to file a motion with the Court to allow same, but that is not a problem. I don't believe that the Judge will require any additional items from you other than a signed contract. With regard to the deficiency and you, the answer is simple, your debt will be included in the bankruptcy and you will ultimately receive your discharge, so, no problem.

The problem is: How will a short sale on your primary residence hurt you or hurt your grandfather? As to your grandfather, we have to look at a whole new set of issues. Since this property is not his primary residence, any deficiency that is still owed to the lender will have to be dealt with. This can come in two forms: First, they can pursue him for a deficiency balance. In other words, they can sue him for the remaining balance owed on the promissory note. As I have explained in the past, it's kind of like having two fish on a hook and one gets away. The lender still has one fish to reel in (Grandpa)

Continue reading "Co-Signing Your Way To A 1099C" »

Bankruptcy is filled with land-mines. Therefore, if you are thinking about filing for Bankruptcy, you must be careful. We previously listed this a list of Bankruptcy Don'ts. Here is a list of Bankruptcy Do's that we give to our clients.

· Do take the bankruptcy court seriously, and avoid making any financial decisions that may make your creditors suspect you of filing in bad faith.

· Do seek bankruptcy court counsel before you file any papers, and learn your rights and options under the United States bankruptcy code.

· Do maintain timely payments on any collateralized loans that you wish to keep the collateral for. In other words, if you have a mortgage or car payment and you intend to keep the house or car, you must remain current on the payment. (Please alert us if you are not current on a collateralized loan at the time we are preparing your case for filing.)

· Do file your tax returns. Even if you know that you owe the IRS a lot of money, it is still important to file your taxes in a timely fashion. Not filing will only exacerbate the problem.

· Do reduce the amount of future income tax refunds. Refunds are routinely taken in Chapter 7 cases, and may affect plan payments in Chapter 13. If you expect to get an income tax refund , reduce your withholding so that you do not get a refund . If much of the refund id from the Earned Income Tax Credit, apply to get that available at www.irs.gov/pub.irs-fill/fw5.pdf or through your employer. For more information, see the IRS web page. Caution: Do not reduce the withholding for tax so much that you will have a big tax bill to pay.

· Do be honest and forthcoming on your bankruptcy petition. Even if it is embarrassing, it is important that your attorney knows. Any creditors not listed on your petition may not be discharged.

· Do keep our office up to date with your contact information. Mailing address, phone and email.

· Do consider increasing your 401K contribution if you have excess income and you are filing a Chapter 13.

Continue reading "Filing for Bankruptcy - These Things Are OK" »

If you are going to file for Bankruptcy or are thinking of filing for bankruptcy, you have to be careful because you don't want to take any action which may come back to bite you in the end. Here is a list of Bankruptcy Don'ts that we give to our clients.

· Don’t pay your relatives or friends in favor of your other creditors, and don’t try to transfer property out of your name and into theirs. If you do, the bankruptcy trustee may sue them on behalf of your creditors to get the money back.

· Don’t transfer any property to a relative within one year of filing your case. The Trustee may even go back five (5) years from filing the case if the transfer was for a fraudulent purpose such as avoiding paying your creditors.

· Don’t take a loan against your real estate in an effort to reduce the equity. You can often file a bankruptcy and not lose this valuable asset. If you take out a second mortgage to pay a credit card debt, you may be putting your house at risk.

· Don’t pay ahead or pay off balances early on secured loans (loans for which there is collateral).

· Don’t pay ahead or pay off balances early on unsecured loans (personal loans, medical bills, credit cards or store cards, etc.).

· Don’t attempt to sell your property for less than what it’s worth. This will not reduce the amount you eventually have to repay – and you or whoever you sold it to may end up stuck with the difference.

· Don’t run up your credit card debt prior to filing a bankruptcy. The court may view this as an attempt to exploit the bankruptcy system, and the judge may treat it accordingly.

· Don’t buy any luxury items prior to filing for bankruptcy. Any luxury items purchased within 70 days of filing for bankruptcy are viewed as non-dischargeable debt.

· Don’t take any major cash advances off of credit cards prior to filing for bankruptcy. The court may suspect that you are acting in bad faith and may refuse to discharge the debt.

· Don’t borrow, withdraw from or cash out your 401K, IRA, or ERISA qualified savings and retirement plans to pay bills. If you do, you may be liable for penalties and taxes that are not protected by the bankruptcy filing. If you don’t use these funds, you are very likely to have them to draw on after bankruptcy.

· Don’t file if you are about to receive a tax refund or inheritance. Discuss the timing with your attorney.

· Don’t transfer money in to your kid’s bank accounts. They have you as a co-signer and are subject to the same review as your bank accounts.

· Don’t get married just before filing if your spouse has high income.

· Don’t misrepresent facts to your attorney we are working to help you.

· Don’t wait until after filing to purchase a vehicle, if you know you will need a more dependable car please take care of that before filing your case. Each case is different if you need to do this please contact the attorney first.

· Don’t assume that the bankruptcy will get rid of all your debts. Some tax liabilities are non-dischargeable (basically, all tax liability accrued in the three tax years prior to filing are non-dischargeable in most circumstances). Student loans are now non-dischargeable except in cases of extreme hardship.

· Don’t tell your attorney that certain items of personal property do not belong to you if they really do belong to you.

· Don’t expect your Attorney to help you defraud the Bankruptcy Court and your creditors, it won’t happen.

· Don’t lie you will be signing the bankruptcy papers under penalty of perjury.

Continue reading "Filing for Bankruptcy - Don't Do These Things" »

As a Consumer Bankruptcy Attorney, I hear and read about what is going on with consumers who are on the front lines of economic issues. The latest twist on the Foreclosure Crisis is that inventory is hurting the real estate market. I don't know about your neck of the woods, but right here in Southwest Florida our real estate market has taken a beating. As a homeowner, I'm not too happy with the drop in prices, but I am more concerned about others who are facing multiple issues. For example, it is estimated that over 7 million homes in the United States are in trouble.

Continue reading "Bankruptcy Can Cure Real Estate Sickness" »

I was really bothered by something that I heard on the news last night, and this morning I couldn't help but voice my opinion on Bankruptcy Law Network. I know that I shouldn't listen to the news before bed, but I heard the talking head make a comment about why people file for bankruptcy and why businesses file. The joker said that when a business files for bankruptcy, it is done for one reason, and that is because it is in the best interests of the business. When an individual files for bankruptcy protection, it is because they have made bad decisions. Nothing could be further from the truth in my opinion.

So, I wrote a blog this morning titled: Bankruptcy Double Standard ? : Businesses and Individuals

Continue reading "Double Standards in Bankruptcy" »

In Florida, we pay our property taxes at the end of the year. On April 15, our federal income taxes for the previous year are due. So, within a 4 to 6 month period we may be hit with property and income taxes. In the last few years, there has been a push by the credit card companies, like Visa, American Express, Mastercard and Discover to allow you to pay your taxes with a credit card.

Don't be fooled they are not doing it because they like you. They are doing it to protect themselves. When the Bankruptcy Laws were changed in 2005, Congress added to the list on non-dischargeable debts. A non-dischargeable debt survives the bankruptcy and is still and owing after the bankruptcy discharge arrives in your mailbox. So, what did our wonderful politicians stick us with this time. Well, Congress expanded credit cards protection. While a separate statute provided the credit card companies protection when people pay income taxes and then file bankruptcy, Congress extended this protection to state and local taxes that are paid with credit cards.

Continue reading "Taxes And Credit Cards" »

Yesterday, Board Certified Consumer Bankruptcy Attorney Carmen Dellutri published an article on the Bankruptcy Law Network about Debt to Income Ratios. The blog put into perspective what a debt to income ratio is, the importance of your debt to income ratio and how to use a debt to income ratio to gain control over your finances.

Continue reading "Debt To Income Ratio Explained" »

As a Board Certified Consumer Bankruptcy Attorney, I see people considering filing for bankruptcy each and every day from Sarasota, Port Charlotte, Fort Myers, Cape Coral, Lehigh Acres and Naples. One of the most common asked questions about bankruptcy is: Can I File Bankruptcy Right Away? The answer is yes and no. Yes, because you can. No, because you cannot just file bankruptcy without a detailed analysis of your complete financial situation.

Continue reading "Can I File Bankruptcy Right Away?" »

Recently Carmen Dellutri was interviewed by Rachelle Grossman for Parr Legal. Parr Legal is a website developed for people to find attorneys and the consumer can watch the attorney before meeting them.

Continue reading "Carmen Dellutri on ParrLegal - Bankruptcy and Dellutri Law Group" »

Board Certified Consumer Bankruptcy Attorney, Carmen Dellutri, of Fort Myers, Florida was recently interviewed by CNN on the issue of Medical Bills and Bankruptcy.

See the video:

The interview lasted approximately 20 minutes, and only this appearance made it off the cutting room floor.

Continue reading "Carmen Dellutri on CNN about Medical Bill Bankruptcy" »

Are we all just one medical problem away from Bankruptcy?

As a Board Certified Consumer Bankruptcy Attorney, I speak with many people about filing for bankruptcy and their debts. Medical Bill bankruptcies are a very real and growing problem. Don't get me wrong, this is not a new phenomena that suddenly came to rise like the epidemic or pandemic known as swine flu. People have always had to deal with medical bills when either they or a loved one became sick or were injured. However, it seems that over the last few years, medical bill bankruptcies have been on the rise.

Continue reading "Medical Bill Bankruptcy - An Epidemic or a Pandemic?" »

Board Certified Consumer Bankruptcy Attorney Carmen Dellutri was recently cited in an online article by Melissa Yeager. Melissa was asking whether the debt collectors were cranking up their debt collection activities in Southwest Florida. The answer is yes.

Please click on this link and go read the article.

Continue reading "Carmen Dellutri cited in Wink News Article" »

Declaring Bankruptcy is one the most difficult decisions that a person will ever have to make in their lives. So, when you are faced with financial problems, the first decision you should make is to hire the attorney with the skill and experience to help you navigate through these unchartered waters. But where do you start. You start by looking for a Board Certified Attorney in Fort Myers, Port Charlotte, or Naples.

As the only Board Certified Consumer Bankruptcy Attorney in Southwest Florida who handles only consumer cases, I realize that Bankruptcy is much more than a financial issue.

Depending upon the individual, bankruptcy can be devastating emotionally, physically, and financially. Individuals who are experiencing the loss of a home need to take steps to regain control of their lives and their finances. The choice of which Bankruptcy Attorney you should use will be the first step on the road to recovery.

Continue reading "Hiring a Bankruptcy Attorney in Fort Myers, Port Charlotte and Naples, Florida" »

The Senate will vote either today or tomorrow on a bill that could give Bankruptcy Judges the ability to cramdown home mortgages to the present level owed on the home. Currently, Bankruptcy Judges cannot cramdown first mortgages on debtor's homesteads. In today's market, now is the time and place for this bill to be passed. If you are a reader of this blog or any other blogs that I write for, you know how important this bill, as passed by the House of Representatives, is for the people of Southwest Florida, especially Cape Coral and Lehigh Acres.

So, either today or tomorrow we will know if our elected officials have sold us out to the Banks and Mortgage Companies. My bet is that they will, and for each elected official that sells us out for political gain, I say vote them out. There is no issue that is more important to the people of the United States right now than housing. If you are not sure of where you will be sleeping tonight, how can you be a productive American at work. The issue of housing is core to our economy, and the jokers in Washington are playing politics with the Banks. They are in discussions with banks that we the people own. Why do the banks have any say in this legislation? Aren't we a democracy (Rule by the People)? Sure, as long as you can hire a lobbyist with a politician in his or her back pocket. These are things that baffle my mind. Let's wait and see if they do the right thing.

Continue reading "Senate To Vote On Bankruptcy Judge Cramdown" »

The Dellutri Law Group Website has recently been updated to add bankruptcy videos. These videos explain the bankruptcy process in detail. The videos are a good resource for individuals who have not researched bankruptcy and are unsure about what they may be getting themselves into. It only takes a few minutes to watch each video. But, each video will answer many of the general questions that many people have about bankruptcy and the bankruptcy process.

The videos are located in the media center, which can be found on the lower right side of the homepage.

Click Here to be linked to the bankruptcy videos.

It should be noted that the Dellutri Law Group, P.A. did not produce the videos, and any legal advice contained therein is hereby disclaimed.

Continue reading "Dellutri Law Group Adds Bankruptcy Videos To Website" »

In Lee County Florida, we have been feeling the economic pinch for a long time. People living in Fort Myers, Cape Coral and Lehigh Acres, Florida have witnessed a dramatic landscape change over the past two years. From a booming economy to a depression, many people are still shaking their heads wondering how their homes, which were once valued at $350,000, are now valued at $150,000, and still there are no buyers.

Continue reading "Eddie Bauer And Other Retailers Are Considering Bankruptcy" »

The Obama Administration released it plan to help the housing market yesterday, better known in Lee County as Foreclosure Alley, and the News-press is reporting that the Obama Plan will help 34,000 southwest Florida homeowners. At the Dellutri Law Group, we disagree with this analysis. We believe that quite literally, Southwest Florida residents got the shaft. Our team of consumer attorneys is combing the bill to look for some glimmer of hope for the residents of Southwest Florida.

At this point in time, it appears that bankruptcy will still be the best option because the House of Representatives is still debating: Helping Families Save Their Homes in Bankruptcy Act 2009. Let's hope our elected officials don't over-think this one, and they allow our residents to modify their mortgages in the bankruptcy courts.

Continue reading "Bankruptcy Still Best Option for Lee County Residents" »

As an avid news watcher, one could not help but witness the carnage happening on Wall Street. Although we haven't heard of any bank runs yet, it is probably going to happen soon if Bank of America (BAC) and Citigroup (C) don't get their acts together. Bank of America's stock price closed at $3.93 per share and Citigroup closed at $2.51 cents per share. Both stocks are down even further in pre-market trading. BAC C.

The title of this blog is when, not if, Citigroup and Bank of America will be Nationalized. Right now, the Federal Government has already pumped in 500 billion to these two behemoths and where did it get us? Unfortunately, no where. Why? Because no one in Washington has the guts to tell us the truth or they have their heads so far up the special interest groups butts that they cannot see the light of day or what is really going on there.

Continue reading "When Will Citibank and Bank of America Be Nationalized" »

Quite a bit has been written lately on the Helping Families Save Their Homes In Bankruptcy Act. I have written several blogs on the topic. Today, at 1:00 p.m., the members of the House Judiciary Committee will be meeting to mark up the bill. It is expected that the bill will pass by a narrow margin. The question is: When will it get to President Obama? and When will it become the law of the land? There is much more to come on this issue.

Continue reading "House Judiciary Committee Meets Today to Mark Up New Bankruptcy Bill" »

We have Good News and Bad News. First the Bad News. President Obama is working closely with Members of both houses of Congress on the economic recovery plan. The Bad News is that the economic recovery plan will not include the Bankruptcy Amendments that we have been hoping for. For some reason or another, I guess saving people's homes was not as important as giving more money to the banks.

The other Good News is that President Obama is committed to getting the new bankruptcy amendments passed into law as soon as possible. We will have to wait and see what comes out of Washington next? I hope it's more bailouts. They have been working so well thus far. I'm optimistic for Change, but all I'm seeing is more of the same.

Continue reading "Helping Families Save Their Homes In Bankruptcy Act 2009" »

Recently, there has been quite a buzz about a possible amendment to the Bankruptcy Code. There is a bill in both houses of Congress right now. In the House of Representatives, it is known as H.R. 200. The text of the bill can be viewed at this link. the Sponsors and Co-sponsors of this bill are: Rep. John Conyers [D-MI], Robert Scott [D-VA], Rep. Jerrold Nadler [D-NY], Rep. Henry Johnson [D-GA], Rep. Donna Edwards [D-MD], Rep. Raul Grijalva [D-AZ], Rep. William Delahunt [D-MA], Rep. Maxine Waters [D-CA], Rep. Steve Cohen [D-TN], Rep. Linda Sánchez [D-CA], Rep. Luis Gutiérrez [D-IL].

The Senate Version of the Bill is known as S. 61. The Text of the Bill can be found at this link.

The Bill was sponsored and co-sponsored by: Sen. Richard Durbin [D-IL], Sen. Barbara Boxer [D-CA], Sen. Russell Feingold [D-WI], Sen. Charles Schumer [D-NY], Sen. Dianne Feinstein [D-CA], Sen. Sheldon Whitehouse [D-RI], Sen. John Reed [D-RI], Sen. Thomas Harkin [D-IA]

I've written more about this on Bankruptcy Law Network. Click here to review that article. There will be more coming on this, alot more.

Continue reading "Helping Families Save Their Homes In Bankruptcy Act" »

This morning I wrote a blog for the Bankruptcy Law Network on the increase in Bankruptcy filings in the United States. Click here to read the blog.

In other news, I have been writing quite a bit abou the Helping Families Save Their Homes In Bankruptcy Act. Click here for a link to my article.

Continue reading "Bankruptcy Filings Increase By 32% In 2008" »

As a Board Certified Consumer Bankruptcy Attorney who also defends mortgage foreclosure cases for consumers, I was asked whether the proposed 2009 Amendments to the Bankruptcy Code, Helping Families Save Their Homes In Bankruptcy Act, will prevent foreclosures or cause more foreclosures and then will it prevent bankruptcy filings or cause more bankruptcy filings?

Continue reading "Will the 2009 Bankruptcy Law, If Passed, Lessen Foreclosures" »

The Commercial Real Estate Market in Southwest Florida will tank in 2009. All the handwriting is on the wall, and the information is now beating us over the heads. Despite what is printed in the News-press, our local newspaper, things are not looking good. Just take a slow ride down U.S. 41and block out all the honking horns and hand gestures as you slowly cruise in the left hand lane (the fast lane for all of youse Northerners) and look at the signs out in front of all the building on U.S. 41.

Foreclosures on residential real estate will not slow down despite what the Federal Government does with a Stimulus package. That is another blog that makes my blood boil. Commercial Real Estate Delinquencies are mounting and the Commercial Real Estate Foreclosure attorneys are getting ready to have their best year ever. They are beefing up their departments.

Continue reading "Commercial Real Estate Will Tank In 2009" »

Carmen Dellutri's recent article titled: Helping Families Save Their Homes In Bankruptcy Act is the featured article on the Bankruptcy Law Network.

Continue reading "Featured Article on Bankruptcy Law Network" »

Yesterday, I wrote a blog for the Bankruptcy Law Network about the new legislation, which, if passed, will allow homeowners to cram-down their mortgages to the value of their house. Here is a link to a summary of the bill.

If passed into law, this bill could radically transform the landscape of Southwest Florida. More homeowners will remain in their homes, and that stability will help the residents of Southwest Florida survive this recession.

Continue reading "Helping Families Save Their Homes In Bankruptcy Act" »

This morning I wrote a blog for the Debt Law Network discussing whether the United States is going broke. You can read the blog by clicking here.

Continue reading "Is the United States Going Broke?" »

This morning I wrote a blog for the Bankruptcy Law Network on the New Bill recently introduced by Senator Dick Durbin which would amend the Bankrutpcy Code to allow the modifications of first mortgages. Click here to read the blog.

Continue reading "New Bankruptcy Bill Has Been Introduced" »

Recently, I wrote about the amount of Adversary Proceedings that the firm was able to resolve in the month of December 2008. The best news is that two of our clients received double their attorney's fees back. In other words, clients were not only able to get a free bankruptcy, but they also made money on their bankruptcy case. Here is how it happened.

Continue reading "Adversary Proceedings Pay For Your Bankruptcy Fees" »

There is currently legislation in both houses of Congress (S.3690 and H.R. 7328) that would amend the Bankruptcy Code to allow Bankruptcy Judges to modify first mortgages on homestead real estate. Under current law, Bankruptcy Judges are not allowed to modify first mortgages on homestead real estate; however, they are allowed to modify first mortgages on vacation homes or investment properties. Hmmmm.

The legislation was introduced in the Senate by Senator Dick Durbin and in the House by Representative Brad Miller. The intention is to have a piece of legislation ready to go after the inauguration of President Barack Obama. The new Congress will convene on January 6, 2009, and will likely be ready to present a bill to the new President sometime shortly after that.

Continue reading "New Legislation Seeks Mortgage Modifications In Bankruptcy Court" »

December was a great month to settle Adversary Proceedings, and Our Clients are glad that it was. Attorneys, David Fineman, David Lampley, and Carmen Dellutri were able to settle a record number of adversary proceedings and put more money back into our client's pockets than any other month in the history of the firm.

Continue reading "December Was A Great Month For Adversary Proceedings" »

As a consumer bankruptcy attorney in Southwest Florida, I like to see how our bankruptcy economy compares to the rest of the United States. The consumer bankruptcy filing statistics are out for November 2008, and these bankruptcy statistics do not look good. When you look at how many consumer bankruptcy cases were filed in November 2007, the numbers have gone up 39.2% in just a year. The only good news is that the number of consumer cases filed dropped from October 2008 when there were over 106,000 cases filed. So far in 2008, over 980,000 consumer bankruptcy cases were filed. This puts us on a track to file well over 1 million consumer bankruptcy cases this year.

Just three (3) short years ago, Congress sent the President a piece of legislation that was supposed to prevent fraud in the Bankruptcy Courts and reduce the number of individual consumer bankruptcies. Unfortunately, like so many other things that our Government does (Can you say Bailout packages), the legislation was woefully inadequate to the point that it never should have been passed. Now, people who really need bankruptcy relief are dealing with a ridiculous statute that creates a dog and pony show in my opinion. The only way that I can see the United States moving is in a downward spiral. We will see many more consumer bankruptcy cases in the years to come.

Continue reading "November Bankruptcy Filings Up 39%" »

As a Board Certified Consumer Bankruptcy Attorney there is usually not much to get excited about in day to day practice. Bankruptcy filings are up because the economy is in the toilet and property values are falling faster than John McCain's popularity. We still don't know what Senator Obama will do if elected because he won't answer any questions directly. The Federal Reserve, Ben Bernanke, U.S. Treasury, Henry Paulson, FDIC, Sheila Bair, White House, Senate, House of Representatives and the President are making plans to spend enough money that could fill the Grand Canyon.

So, it comes as no surprise that the Third Anniversary of the Bankruptcy Code re-write will come and go without much excitement. For three years, practitioners have been muddling their way through the new code trying to make sense of it all, and it has not been easy.

Continue reading "Third Anniversary of BAPCPA " »

This morning I finished a blog for the Bankruptcy Law Network about rising bankruptcy rates. I wanted to go a bit further on the subject here. There are two different theories that have been floating around since I started that blog a couple of days ago. The first line of thought poses the question this way: if Bernanke and the Fed, Paulson and the Treasury, and Bush and the White House decide to nationalize the banking system, why will people need to file for bankruptcy? The second line of thought is: Bernanke and the Fed, Paulson and the Treasury, and Bush and the White House will not nationalize banks, but the taxpayers will own equity stakes in them, thereby increasing liquidity, and keeping the free markets open, which will cause more people to file for bankruptcy. There will be more to this story after the President speaks in a few minutes.

Continue reading "Will More Bankruptcies Be Coming in 2009?" »

S. 3197 The National Guard and Reservists Debt Relief Act is on the way to the White House for the President's signature which will make it a law. The House of Representatives and the Senate both approved the bill unanimously. Once the President signs this bill, and it becomes law, it will amend the Bankruptcy Code.

Continue reading "National Guard and Reservist Debt Relief Act Passes Congress" »

While we slept last night, some pretty interesting things were going on overseas. All one has to do is go to CNN.com or Foxnews.com and see that overseas markets tanked last night, and in response, the Federal Reserve Chairman, Ben Bernanke, cut the key interest rate down to 1.5% from 2%. The Fed had not cut the rate since June of 2008.

Continue reading "The Federal Reserve Cuts Interest Rate One Half Point" »

Recently, I wrote a blog entitled What is LIBOR? for Mortgage Law Network. It would be a good time to review that article now because LIBOR is going through the roof. Simply put, LIBOR is the London interbank offered rate. What? Good Question. It is the average rate that banks in and around London lend money to one another. Another Good Questions is: Why are we talking about LIBOR?

Continue reading "LIBOR Rises 157 Basis Points To 3.94 percent" »

Believe it or not, I am an optimist. I just cannot find anything optimistic to say about the stock market right now except, Thank God for Dollar Cost Averaging. In the last 15 months, we have managed to take the country further down the toilet than ever before. I say we, because we all must suffer some blame in this game. We voted these meat-heads into office, and we allowed them to create laws on our behalf and run our country. We also allowed them to put our country's future at risk by allowing Wall Street to run amok. Now we are beginning to pay the piper for being lazy. Our 401K plans have been on Nutri-System lately, and now they look like 201K plans.

Continue reading "$2 Trillion Dollars Loss In Retirement Funds" »

The numbers are coming in for September car sales, and the numbers don't look good at all. Interestingly, the imports didn't do so good, and they usually keep ahead of the curve when it comes to slumping sales. Toyota sales fell 32.3%, Honda slumped 24% and Nissan plummeted 37%. In the domestic category; Ford fell 34%, Chrysler 33% and General Motors fell 15.8%. GM was aggressively marketing its vehicles and it paid off for them, but the industry as a whole is not looking good. This is a sign of things to come.

Continue reading "September Car Sales Plummet 27%" »

I am extremely proud of our leaders who stood against the bailout. You must remember that as a Bankruptcy Attorney I would love to see the bailout bill pass with a reformation of the Bankruptcy Code. As an American citizen, I would love to see the bailout fail because in my opinion it rewards years of corporate greed and does nothing to help the people who would be paying for it.

Continue reading "$700Billion Bailout Fails" »

As reported on msnbc.msn.com, a Bankruptcy Judge in St. Louis ordered a larceny victim to pay damages to the thief who stole from him for violating the automatic stay, and to make matters worse, the victim had to pay the thief's attorney's fees. Obviously, there is more here than meets the eye. The victim, Mark Poveromo, had hired the thief, Mark R. Koch, to build a building. Koch received half the money up front and never started building. In Southwest Florida, I don't think that is a crime anymore. Anyhow, Poveromo filed a criminal complaint, and Koch was convicted of larceny and ordered to pay restitution.

Continue reading "Bankruptcy Judge Orders Victim To Pay A Thief" »

In a recent article by the Boston Globe, it seems that more and more Americans with no-where else to go are resorting to living in tents. Whether it is due to a loss of work, loss of home or just no-where else to go, the rate of homeless people in America is rising dramatically. So far, this has not become a problem yet in Southwest Florida, but we really don't know how many people have moved into secluded areas as squatters yet. I'm willing to bet that we have our fair share of people camping in secluded areas.

This is one of the issues I grappled with when I wrote my 2008 predictions part I and II. I really had hoped that it wouldn't get this far this quickly, and I am afraid that it is only going to get worse.

Continue reading "Tent Cities Are Beginning To Pop-Up" »

Ladies and Gentlemen:

Changes are coming to the Florida Bankruptcy Lawyer Blog whether you like it or not. It's time to kick the tires and light the fires and slap a new coat of paint on this puppy. We also might throw in some cool features like a new website and a new look for the Florida Injury and Accident Lawyer Blog as well.

So, keep your eyes peeled, and watch out for the new stuff. It may just hit you right between the eyes.

Continue reading "Changes, They Are A Coming" »

The Dellutri Law Group, P.A. is pleased to announce that we have opened a new office for our Naples clients. The new office is located at the Fountain Park Center, 7935 Airport Pulling Road, Suite 200, Naples, Florida 34109. Our Naples phone number is 239-403-3011, and the fax number is 239-939-0588.

Continue reading "Naples Office Is Now Open For Bankruptcy Clients" »

As a Board Certified Consumer Bankruptcy Attorney, I see Bankruptcy clients all week long. This week, I saw a potential client who was convinced that her foreclosure was going to continue if she filed for bankruptcy protection. Since she had never filed for bankruptcy protection before, there is no limitation on the automatic stay provisions. The automatic stay is an injunction that goes into place immediately to prevent a creditor from taking any action to collect on a debt. That includes continuing the foreclosure process.

Continue reading "Bankruptcy Stops Foreclosure!" »

What will happen to the Bankruptcy Code if Presidential Candidate Obama picks a Vice President who is commonly known as Senator MBNA aka Senator Joe Biden. The Bankruptcy Code was changed in 2005 and Senator Joe Biden was instrumental in the changes to the Bankruptcy laws.

Now, we have a dilemma. At first blush it would appear to be a conflict as Barack Obama's past statements about how he would change the Bankruptcy Code would seem to conflict with his potential decision on his Vice President. In the past, Senator Obama has stated on numerous occasions that he would seek an amendment to the bankruptcy code to allow individuals to cram down their first mortgages on their homesteads, which is now prohibited. However, if Senator Obama picks Senator Joe Biden as his running mate, he may have some questions to answer.

Continue reading "Obama and Senator MBNA" »

Republican Presidential Candidate John McCain's wife Cindy, has at least $200,000.00 in credit card debt with American Express. Somehow she was able to negotiate a zero percent interest rate. The amount owed on her credit cards could be as high as $500,000.00. This information has been disclosed by the McCains only recently.

Continue reading "Senator McCain's Wife has over $200,000 in Credit Card Debt at 0% Interest" »

The month of May has changed the way I think about politics. I used to be upset that nothing was being done to help the people living in Southwest Florida, now I am just ticked off. Foreclosure filings were up 48% over May of last year. This statistic proves several things: First nothing is being done on the Federal level to help the people of Southwest Florida keep their homes. Second, nothing is being done on the State level to help residents keep their homes. Third, where are the results that the mortgage companies promised when they argued not to change the bankruptcy laws. Where is Hope Now, President Bush's coalition of mortgage companies dedicated to helping people save their homes.

Continue reading "May 2008 Sees Foreclosures Surge 48%" »

Bankruptcy Courts are seeing many consumer issues along with the increasing bankruptcy dockets. Therefore, Bankruptcy Judges are naturally becoming more sophisticated on the issues surrounding consumers. Recently I argued a case against a debt collector and one of the issues was the creditors purchasing of discharged debts. Why would a creditor purchase debts which are discharged by a Federal Court Discharge Order? Theoretically, these debts are no longer collectible.

Continue reading "Creditor Claims Trading: What is next?" »

In April I wrote a blog about the airline industry and asked a question: Is the word airline synonymous with bankruptcy? At the time I intended for it to be a bit of a joke because four (4) different airlines had filed bankruptcy. Now, several months later, it could prove to be almost prophetic. Back then, Skybus, ATA, Aloha and Frontier had filed for bankruptcy protection. Delta recently emerged from bankruptcy protection and announced that it was planning a merger with Northwest, and Alitalia was on the brink of bankruptcy. All in all, things weren't looking so good for the airlines.

Continue reading "Airlines Are No Longer Flying High" »

Will bankruptcy filings exceed 1 million this year? A look at the current data and the historical data make the case for bankruptcy filings to exceed 1 million. But wait a minute, I thought Congress changed the bankruptcy laws in October 2005 to curtail consumer filings and prevent abuses in the system. I though Congress had fixed the problem. As usual, Congress fixed a problem that didn't need fixing and created several other bigger problems. Our fearless leaders have created an economic nightmare in this country that needs to be fixed, and they are doing nothing to improve the problems. I'm willing to bet that if their homes were going into foreclosure something would be getting done to stem the wave of foreclosures in this country.

Continue reading "How Many Bankruptcies Will Be Filed In 2008?" »

This is part two of the story:

Recession is not part of the business plan and there are not enough cash reserves to cover the lines of credit and make all of the lease payments, so the business owner thinks about bankruptcy for the business. In reality, there is no reason to file a bankruptcy for the business because the business doesn't own anything. The business has the right to use the leased equipment but it does not own the equipment or the premises. The business has an obligation to pay for the equipment and the premise, but if the business closes down and there is no money left in the bank account, how is that going to happen? Usually, when this happens, and it happens quite often, the creditors will begin to look for the individual who personally guaranteed the loan.

Continue reading "What Is A Business Bankruptcy? Part II" »

As a Board Certified Consumer Bankruptcy Attorney, I see people on a daily basis who are facing financial problems. Bankruptcy has taken on a whole new life recently as were are in the midst of a serious recession that is only getting worse. Bankruptcy is now on the minds of people who never thought they would find themselves in financial difficulty. More and more small business owners are finding it hard to make ends meet. Many of these small businesses relied on one industry or another that has dried up in Southwest Florida. These business owners believe that the solution to their financial problems is to bankrupt the business and put it behind them. However, many do not know that filing bankruptcy for a small business may not be a very good idea at all.

Continue reading "What Is A Business Bankruptcy? Part I" »

As a consumer bankruptcy attorney in Southwest Florida, I hear about financial news as it happens. This is particularly true when it comes to creditors hitting hard times. Many of my clients keep me updated with creditor information like TIB Financial Corp. TIB bank and its affiliates finance cars and real estate. Their 2008 first quarter loss was $1.44 million dollars. This information alone is not so bad; however, when you combine it with the losses from the fourth quarter of 2007 of $6.49 million, then you start to see a problem. In the last 6 months, TIB Financial Corp. has lost almost $8 million.

Continue reading "TIB Financial Corp Showing Losses" »

The topic of bankruptcy is usually not discussed by office workers around the water cooler. Nor is bankruptcy discussed at cocktail parties. I can honestly state that no-one has ever said to me, "I have the best bankruptcy attorney in the world", or, "Have you considered speaking with a bankruptcy attorney about that financial decision". Quite frankly, bankruptcy has always been that other b-word, unless you are an airline. We all know that four major airlines have filed for bankruptcy protection over the last few weeks: Skybus ATA, Aloha, and Frontier. Additionally, we all know that Delta recently emerged from bankruptcy protection, and that they lost $6.39 billion in the first quarter of 2008 (accounting write off) or $274 million, whichever you prefer. So, the question is: Is Airline synonymous with Bankruptcy? At this point the jury is still out.

This post was written by Carmen Dellutri, Esq. of The Dellutri Law Group, P.A. Mr. Dellutri is a Board Certified Consumer Bankruptcy Attorney, and he is also one of the founding members of the Bankruptcy Law Network, Mortgage Law Network, Debt Law Network and Credit Law Network.

It seems that you cannot go anywhere today without hearing someone speaking about what is going on with the foreclosures in Southwest Florida. It's in the newspapers and on the minds of many people living in Southwest Florida. Most people in Southwest Florida will fall into one of three categories: First, there are the rich that will never have to worry about the foreclosure crisis, so we will leave them out of this. We will talk about them later when the stock market takes a dive, and then we can say, we told you so, but you were too busy attending wine auctions that you missed all of the economic indicators predicting a recession. Second, you have the middle class, which is our largest group. Many of these individuals are homeowners with mortgages on their primary residences, and they are feeling the pinch of the recession as their home values plummet. These are the people who have either lost their homes already, live in fear of losing their homes, or are renting somewhere else in an attempt to save their homes.

Continue reading "Foreclosures In Southwest Florida: It's A Community Problem" »

Bankruptcy Filing Across the Nation achieved a milestone since the inception of BAPCPA (Bankruptcy Abuse Prevention and Consumer Protection Act) in October 2005. March filings were in excess of 90,000, and based upon a 21 working days in March, bankruptcy filings reached 4,300 per day.

Continue reading "Bankruptcy Filings Exceed 4000 A Day In March" »

Why do companies, especially credit cards, market to individuals in Bankruptcy? The simple answer is that individuals who file for bankruptcy (7) are prohibited from receiving another discharge for 8 years. But, is that really the answer? Are these companies afraid that the individual will file bankruptcy again? I don't think so. The credit card companies like Visa, Mastercard, American Express, and Discover know that individuals will have a tough time changing their spending habits, and therefore, why not try to lure these individuals back into the charge and pay lifestyles that they may have once led. Kind of like a dope dealer pedaling dope to someone recently out of rehab.

Continue reading "Why Do Companies Market to Individuals in Bankruptcy?" »

This post is submitted by Carmen Dellutri, Esq. founder of the The Dellutri Law Group, P.A. Mr. Dellutri is a Board Certified Consumer Bankruptcy Attorney and is also one of the founding members of the Bankruptcy Law Network.

Normally, when a client goes to see a bankruptcy attorney for a bankruptcy consultation, it is usually the worst part of their day. Imagine what could be worse than walking into an attorney's office and putting all of your financial details on the table for discussion. Most people would rather be any other place in the world. Yesterday, I had the honor of sending a client a check for four (4) times the amount she paid me in attorney's fees for handling her bankruptcy case. That's right, the attorney sent the client a check. This happens all the time at the Dellutri Law Group, and the clients love it.

Continue reading "Discharge Violations Pay Off for Dellutri Law Group Clients" »

United States Bankruptcy Judge John C. Ninfo is taking financial literacy to the next level. As bankruptcy filings rise, Judge Ninfo is teaching students of all ages to live within their means. Although, the Judge has some very strong views about the people that he is seeing in his courtroom, his message is crystal clear to the students.

At the Dellutri Law Group, we encourage the members of our firm to go out into the public, especially schools and trade organizations, to speak with people about what we do and how we do it. In the bankruptcy/consumer world, people always have so many questions. This is also true when we go into classrooms and speak about personal injury cases. The questions are always entertaining and enlightening.

Continue reading "New York Bankruptcy Judge Is Taking Financial Literacy To The Students" »

This post was written by Carmen Dellutri, Esq. of The Dellutri Law Group, P.A. Carmen Dellutri is a Board Certified Consumer Bankruptcy Attorney and is one of the founding members of the Bankruptcy Law Network.

According to the American Bankruptcy Institute, bankruptcy filings rose again in February 2008. Consumers filed approximately 76,120 petitions for bankruptcy relief. This total was up from the 66,050 filed in January. Interestingly, Chapter 13 bankruptcies were over 36% of the filings.

Continue reading "Bankruptcy Filings Up Again" »

This post is published by Carmen Dellutri, Esq. of The Dellutri Law Group, P.A. and a founding member of the Bankruptcy Law Network, Debt Law Network, Credit Law Network and Mortgage Law Network.

Unfortunately, Divorce and Bankruptcy go hand in hand in today's society. The problems that are associated with divorce and credit cards are all too familiar to bankruptcy attorneys. Usually, the problems don't arise until one of the parties stops paying on the debts that they agreed to pay in the divorce. Then the collection calls start, and the person who shouldn't be responsible for the debt contacts my office.

Continue reading "Divorce, Joint Credit Cards And Bankruptcy" »

I just attended a hearing in small claims court for two of my clients. I haven't been in small claims court for a couple of months. However, it appears that the number of small claims court filings are growing exponentially. I spoke with the attorney who is repesenting the creditors as local counsel, and he told me that he is working 7 days a week trying to keep up with the number of lawsuits coming into his office. He said that he has never seen anything like this. He predicted that the volume of lawsuits would continue through 2009. He based this upon the volumes of debt being purchased at substantial discounts. All of this debt will need to be collected in some way, shape or form.

Continue reading "Small Claims Court Are Being Overwhelmed By Collection Lawsuits" »

This post is written by Carmen Dellutri, Esq. of the Dellutri Law Group, P.A. Carmen Dellutri is a Board Certified Consumer Bankruptcy Attorney with offices in Port Charlotte, Fort Myers and Naples, Florida.

In the month of February2008, consumers across the nation filed over 76,000 bankruptcies. This is a staggering number, and the United States has not seen a number like this since before the BAPCPA. As you will recall, BAPCPA is the name of the new bankruptcy law which is now over 2 years old. The interesting part of this story is that the number of bankruptcy filings was up over 15% from January. That means over 10,000 more cases were filed in February. This may be a sign of things to come in the future.

Continue reading "Consumer Bankruptcy Filings Rise in February" »

This blog is written by Carmen Dellutri, Esq., Board Certified Consumer Bankruptcy Attorney and a founding member of the Dellutri Law Group, P.A. and the Bankruptcy Law Network.

On January 28, 2008, the House of Representatives introduced a new piece of legislation called the Medical Bankruptcy Fairness Act. I am in the process of writing a series of blogs on this topic for the Bankruptcy Law Network You can view a copy of Part I. On the one hand, I am glad that individuals who are suffering under the immense pressure of medical bills that they cannot pay will get some added relief. However, the lawyer in me is skeptical. After reading the bill one time, it contains some gaping holes that will need to be filled prior to becoming law.

Continue reading "Bankruptcy For Medical Bills May Be On The Horizon" »

This post is authored by Carmen Dellutri, Esq., Board Certified Consumer Bankruptcy Specialist and a founding member of The Dellutri Law Group, P.A. (www.DellutriLawGroup.com) and a founding member of the Bankruptcy Law Network (www.bankruptcylawnetwork.com)

Another member of the Bankruptcy Law Network ( www.bankruptcylawnetwork.com) has been chosen to represent the National Association of Consumer Bankruptcy Attorneys www.nacba.org as its member of the month. You may remember that in December 2007 Cathy Moran (www.moranlaw.net) was also NACBA's member of the month. I am very proud to say that both of these two remarkable individuals are founding members, along with me, of the Bankruptcy Law Network www.bankruptcylawnetwork.com

Continue reading "Brett Weiss is the January Member of the Month at NACBA" »

Each and every month, the National Association of Consumer Bankruptcy Attorneys (NACBA) www.nacba.org, names a member of the month. In December 2007, the lawyer of the month was Cathy Moran, and they couldn't have picked anyone better. Cathy is more like 3 or 4 lawyers all tied up into one, and I'm proud to be affiliated with her as a friend and colleague.

Cathy is the owner and founder of the Moran Law Group, and her website is one of the most informative websites in the bankruptcy world, www.moranlaw.net. Additionally, Cathy is a prolific blogger. She blogs on her personal blog titled: On the Bankruptcy Soapbox, which can be found at: www.moranlaw.net/blog. Cathy is also co-founder of the Bankruptcy Law Network, www.bankruptcylawnetwork.com.

The Bankruptcy Law Network was co-founded by a handful of bankruptcy lawyers who were upset by the lack of good information on the internet about bankruptcy law. Together, these attorneys started the bankruptcy blog, and this labor of love has expanded into other websites; www.mortgagelawnetwork.com, www.creditlawnetwork.com and www.debtlawnetwork.com.

Cathy is a California attorney with a no-nonsense reputation. If you state a position, she will question you on it and make sure your position is well supported. The U.S. needs more consumer advocates like Cathy.