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 consumer bankruptcy attorney, I am often asked: Can I save any money during my bankruptcy? Well, if you filed a Chapter 7 case, this really isn't an issue. If you filed a Chapter 13 plan of reorganization, you will probably be in the bankruptcy for three to five years. The simple answer is: No, you aren’t supposed to save money; however, that is not realistic. In a chapter 13 bankruptcy, a debtor must pay to the bankruptcy trustee all of his disposable income for 3 to 5 years. Continued reasonable 401K contributions are considered an acceptable expense, but most other forms of saving money is prohibited.

Continue reading "Can I Save Money During Bankruptcy?" »

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" »

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?" »

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" »

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" »

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%" »

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?" »

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 best way to do this is with a Debit Card tied to your bank account. Naturally, this comes with a bit of responsibility. Debit cards allow you to pay for items by automatically taking money out of your account and sending it to the creditor, so you are not incurring debt at all. Likewise, Visa, Mastercard, Discover, and American Express will not have the ability to charge you interest on the outstanding balance at the end of the month. So, that $5 coffee this morning from Starbucks doesn't wind up costing you $35 in an over the limit fee. This is where I ask my clients to analyze the true cost of things.

Continue reading "Debit Card Do's And Don'ts Part II" »

As a Consumer Bankruptcy Attorney, it seems as if a couple of questions are on everyone's mind. One of those questions is: After bankruptcy, how will I rent a car or secure a hotel room if I cannot keep any of my credit cards? My reply is simple: Use your debit card. People are often shocked that yes, they can use their debit cards for this purpose. Yesterday, my friend and colleague in Connecticut, Eugene Melchionne, wrote a blog for the Credit Law Network, titled "Using Debit Cards and ATM's Effectively". After reading Gene's article, it made me think of several reasons why people using debit cards need to be careful.

Continue reading "Debit Card Do's And Don'ts Part I" »

As a Board Certified Consumer Bankruptcy Attorney, I am seeing bankruptcy clients each and every day who are surrendering their homes in the bankruptcy process. Some individuals are choosing not to file bankruptcy and are deciding to leave their homes. Right now, Southwest Florida is experiencing one of the highest foreclosure rates in the country. People are literally walking away from their homes each and every day. Port Charlotte, Cape Coral and Lehigh are experiencing higher rates of foreclosure than other areas of Florida. Each day I speak with the people who are suffering through this problem, and they all tell me the same thing. I am going to mail the keys to my mortgage company or servicer.

Continue reading "What is Jingle Mail?" »

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?" »

January 2008 was the beginning of the new year for most people in Southwest Florida, and for of our other citizens, it was more bad news of the same old variety. In January 2008, 1,833 foreclosure lawsuits were filed in Lee County. This is a very depressing statistic. Lee County had approximately10,700 foreclosure lawsuits filed in 2007. In 2006, the number was approximately 3, 920. The increase is dramatic, but understandable. Unless you have been living under a rock for the past 36 months, you know what happened in the Lee County real estate market.

Continue reading "New Foreclosure Record Set For January 2008 In Lee County, Florida" »

As a Board Certified Consumer Bankruptcy Attorney, I definitely march to the beat of a different drummer. I like what bankruptcy can do for people, and I love educating people about the myths of bankruptcy: My favorite is when I hear the myth that all people who file bankruptcy are looking to abuse the system. On the contrary, in today's society, the next person that files for bankruptcy protection could be your neighbor, brother, co-worker, and/or best friend. I really enjoy speaking with people who work in retail, and they ask if you would like to save 10% by applying for a "Store Visa Card"? Here is where you insert nails scratching down a chalkboard. Nothing is more irritating for me to hear.

Continue reading "Bankruptcy And Christmas Shopping" »

As a Consumer Bankruptcy Attorney on the West Coast of Florida, I see many people deciding to file bankruptcy everyday, and these individuals make the tough choice of surrendering their homes in the bankruptcy process. As if bankruptcy alone isn't enough, these individuals are making another tough choice and walking away from their homes. For most, it is the best financial decision because they quite simply cannot afford the homes with the exotic mortgage that they were coaxed into using (that's the subject of another blog or blogs).

Continue reading "After Bankruptcy: Is Renting A Viable Option" »