10/18/2013
The Real Question should be:
WHAT SHOULD I NOT DO ONCE I KNOW THAT I AM IN FINANCIAL TROUBLE !!!
Once
you know that you are in financial trouble, you should immediately
speak to your accountant, financial planner/counselor and an attorney,
preferably one that practices in the area of Bankruptcy and Asset
Protection. You should contact your creditors and see if they can assist
you in any way. For example, Credit Card Companies may defer some
payments and/or reduce the interest rate or the monthly minimum
payments. Similarly, your mortgage company and the car loan company may
defer some payments, offer you a loan modification, forbearance, etc.
Consult an attorney whenever you are making any changes to the ownership of any of your assets.
Here are some things that you should not do.
1. Don't hide from your creditors. Correspond with them on your own or through a lawyer.
If you are planning to file a Bankruptcy, do not do any of the following:
2.
Do not make excessive contribution to an IRA or 401K. In fact, I
suggest that you stop contributing to a 401K at least 3 months before
the actual filing of the Bankruptcy Petition.
3. Stop paying your 401K Loans immediately.
4. Do not pay debts owed to relatives and family members (two year rule).
5. Do not make excessive payments to one or more particular credit cards. (90 day rule)
6. Absolutely, do not charge up your credit cards or borrow money for anything at all.
7. Do not make any large purchases (food, groceries, medicine and necessities are okay)
8. Absolutely do not take cash advances on your credit cards.
9. Do not make excessive payments towards your mortgage or car.
10.
Do not sell, transfer, or give away any assets for less than their fair
market value. (The Trustee will sue you under the one year rule or
under the 4 year rule, the Uniform Fraudulent Conveyance Act, under
Florida Law). For example If you own a car outright and it is worth,
let’s say $5,000.00, just transferring the title to a relative or friend
is not going to protect it. The Trustee will sue you and your relative
or friend and get the car back, and then he will object to your
Discharge too. It is better to sell the car to a complete stranger for
$5,000.00, put the money in your bank account and write checks to pay
your daily and necessary household expenses. In Florida, a home is
exempt (up to certain limitations), and taking a non-exempt asset, like
the car, and making it exempt by paying your mortgage down is not
against the law, unless you are doing it with the intent to defraud your
creditors. Bankruptcy planning is legal and allowed. Note: Transferring
an asset of value to your Wife is also a Fraudulent Transfer.
11.
You must keep a minimum amount of money in your bank account on the
date of the filing. This does not mean you should withdraw money in cash
from your bank account and hide it under the mattress. This is fraud.
Instead, go to the bank, make money orders or cashiers checks to FPL,
Water, Mortgage, Insurance, and send them to these companies
immediately. The Bankruptcy Trustee will examine your bank statements
and the balance in the bank on the date of filing. If the bank statement
shows that you had $2,000 in your bank account on the day you filed,
then that is what the Trustee will look at, and demand you turnover this
money to him or her within 10 days. Your explanation that you have
written checks to the mortgage company, etc., but that the checks have
not been cleared yet will not be accepted. The Trustee does not care
that the checks have not been cleared.
12. If you have
non-exempt assets, be prepared to surrender them to the Trustee
immediately or pay for them in full and buy it back from the Trustee, or
file a Chapter 13 Bankruptcy or do not file a Bankruptcy at this time.
Sometimes it is better not to rush into Bankruptcy.
13. Transferring assets to a Trust does not protect it from the Bankruptcy Trustee. Bankruptcy Trustee's have powers to avoid such transfers.
Elias Leonard Dsouza, Esq.
"The best compliment you could ever give me is a referral."
A CONSUMER RIGHTS PROTECTION LAW FIRM
"Life is Short. Get Rid of Debts"
111 N. Pine Island Rd., Suite 205
Plantation, Florida 33324
Phone: 954-358-5911
Fax: 954-357-2267
www.DsouzaLegal.com
Skype: elias.leonard.dsouza
Skype: 954-762-7608
Http://Facebook.com/Elias.Leonard.Dsouza
Blog: http://dsouzalegal.blogspot.com
Attorney Elias Leonard Dsouza concentrates his practice on Bankruptcy
[Chapter 7, 13 & 11,] Foreclosure Defense, Defense of Credit Card
Lawsuits, Credit Restoration, and Debt Settlement & Credit
Counseling and Landlord-Tenant law. We Sue Debt Collectors under the Fair Debt Collection
Practices.
MY MISSION:
I
am very passionate about helping consumers protect their rights,
reorganize their debts, help them keep all or most of their property,
save their homes from Foreclosure, stop wage garnishments, and assist
people to “get a fresh financial start”. I am available to assist and
advise you on how to rebuild your credit and buy the new house or start
the new business that you always wanted to. This is a small law firm,
and as such, can and does provide personal service, quality
representation, and excellent follow up. If you would like to learn more
about your options, contact me as soon as possible for a FREE
CONSULTATION.
Friday, October 18, 2013
Friday, October 4, 2013
I am Judgment Proof. Creditors cannot take anything from me. Really !!! Think Again !!!
10/4/2013
A potential Client came to see me in March, 2013. She had a boat load of credit card debts. Her house was in foreclosure. She was being sued by at least 3 credit card companies. There were at least 2 recorded judgments against her.
Her attitude: I am Judgment proof. I do not have any assets. I have 3 minor children, and in Florida they cannot garnish my wages, or take my home. I explained to her that she should consider getting rid of her debts by filing a bankruptcy and get a "fresh start."
This morning I get a text from the same Client at 5.00 a.m. [Yes, all my Clients have my cell phone number] "The Sheriff is at my door. He wants to take my car. He says he has a Writ of Execution from "creditor XYZ." What should I do ???
The first thing that came to my mind was "I guess you are not Judgment Proof after all."
Creditors have rights...sometimes more rights than Debtors. You may think you are Judgment Proof, but you are not.
Here is some of the things that the Creditor can do to you once a Judgment is entered against you:
1. Garnishment of wages: (25% of monthly disposable earnings) unless you qualify as a Head of Household with a Dependent. A Judge has to rule that you are a Head of Household. Your "JOB" is your biggest asset. If you are single or do not have a qualified dependent, your Wages can be garnished.
2. Garnishment of bank account(s): Social Security and pensions cannot be garnished. However, the burden is on you to show that the money in the bank account is from Social Security or Pension. Don’t mix monies in bank account.
3. Seize and sell vehicles even if they are not owned outright. Seize your personal property [Yes, folks, I am talking about your furniture in the home.]
4. Force the sale of real property even if it is not owned outright: Creditors cannot force the sale of a Florida Homestead.
5. Place liens on Florida Homestead: preventing a future refinance or sale unless certain legal actions are taken.
6. Report to the Credit Bureaus: for seven to ten years.
7. Suspension of your Drivers License if the Judgment is from a vehicle accident.
If any or all of the above apply to you, you are not “judgment-proof”.
Under Florida Law, Creditors have 5 years from the date of last payment to sue you and
get a judgment. If they have not sued you within the 5 years, the debt cannot be collected because of the Statute of Limitations. However, the debt will remain on your credit report for 7 years from the date of last activity. Tax Liens can remain indefinitely or as long as 15 to 20 years.
A “Judgment” gives the Creditor the right to garnish your wages, levy on your bank accounts, vehicles, CD’s, and other personal property for up to 20 years from the date of the award of the judgment, and while you may be broke now, your financial situation will improve in the next two decades, and the dormant “Judgment” will come to haunt your. A judgment once recorded in the county records becomes a lien on any other real estate or personal property that you may own in that county. Once the Creditor obtains a “judgment,” it can force you to disclose your assets and finances in court every year.
Most people who have judgments entered against them are qualified to file a personal Chapter 7 or 13 bankruptcy, and get a “discharge” of their debts, and get a “fresh start.” A “discharge” is a legal forgiveness of debt. Once the Court issues you a “discharge” nobody can collect this debt from you. You are now able to go forward with your life and “start over.” The filing of a bankruptcy is a “financial” decision not a “moral” decision. Even though the fact that you have filed a bankruptcy remains on your credit report for about 7 to 10 years, most people see increased credit score within 12 to 18 months. Most people are also qualified to get another mortgage within 2 years. In fact most people get credit cards with small limits within a few months of the filing of the bankruptcy. Bankruptcy has lost the stigma that it had long time ago.
Elias Leonard Dsouza, Esq.
"The best compliment you could ever give me is a referral."
A CONSUMER RIGHTS PROTECTION LAW FIRM
"Life is Short. Get Rid of Debts"
111 N. Pine Island Rd., Suite 205
Plantation, Florida 33324
Phone: 954-358-5911
Fax: 954-357-2267
www.DsouzaLegal.com
Skype: elias.leonard.dsouza
Skype: 954-762-7608
Http://Facebook.com/Elias.Leonard.Dsouza
Blog: http://dsouzalegal.blogspot.com
Attorney Elias Leonard Dsouza concentrates his practice on Bankruptcy [Chapter 7, 13 & 11,] Foreclosure Defense, Defense of Credit Card Lawsuits, Credit Restoration, and Debt Settlement & Credit Counseling and Landlord-Tenant law. We Sue Debt Collectors under the Fair Debt Collection Practices.
MY MISSION:
I am very passionate about helping consumers protect their rights, reorganize their debts, help them keep all or most of their property, save their homes from Foreclosure, stop wage garnishments, and assist people to “get a fresh financial start”. I am available to assist and advise you on how to rebuild your credit and buy the new house or start the new business that you always wanted to. This is a small law firm, and as such, can and does provide personal service, quality representation, and excellent follow up. If you would like to learn more about your options, contact me as soon as possible for a FREE CONSULTATION.
A potential Client came to see me in March, 2013. She had a boat load of credit card debts. Her house was in foreclosure. She was being sued by at least 3 credit card companies. There were at least 2 recorded judgments against her.
Her attitude: I am Judgment proof. I do not have any assets. I have 3 minor children, and in Florida they cannot garnish my wages, or take my home. I explained to her that she should consider getting rid of her debts by filing a bankruptcy and get a "fresh start."
This morning I get a text from the same Client at 5.00 a.m. [Yes, all my Clients have my cell phone number] "The Sheriff is at my door. He wants to take my car. He says he has a Writ of Execution from "creditor XYZ." What should I do ???
The first thing that came to my mind was "I guess you are not Judgment Proof after all."
Creditors have rights...sometimes more rights than Debtors. You may think you are Judgment Proof, but you are not.
Here is some of the things that the Creditor can do to you once a Judgment is entered against you:
1. Garnishment of wages: (25% of monthly disposable earnings) unless you qualify as a Head of Household with a Dependent. A Judge has to rule that you are a Head of Household. Your "JOB" is your biggest asset. If you are single or do not have a qualified dependent, your Wages can be garnished.
2. Garnishment of bank account(s): Social Security and pensions cannot be garnished. However, the burden is on you to show that the money in the bank account is from Social Security or Pension. Don’t mix monies in bank account.
3. Seize and sell vehicles even if they are not owned outright. Seize your personal property [Yes, folks, I am talking about your furniture in the home.]
4. Force the sale of real property even if it is not owned outright: Creditors cannot force the sale of a Florida Homestead.
5. Place liens on Florida Homestead: preventing a future refinance or sale unless certain legal actions are taken.
6. Report to the Credit Bureaus: for seven to ten years.
7. Suspension of your Drivers License if the Judgment is from a vehicle accident.
If any or all of the above apply to you, you are not “judgment-proof”.
Under Florida Law, Creditors have 5 years from the date of last payment to sue you and
get a judgment. If they have not sued you within the 5 years, the debt cannot be collected because of the Statute of Limitations. However, the debt will remain on your credit report for 7 years from the date of last activity. Tax Liens can remain indefinitely or as long as 15 to 20 years.
A “Judgment” gives the Creditor the right to garnish your wages, levy on your bank accounts, vehicles, CD’s, and other personal property for up to 20 years from the date of the award of the judgment, and while you may be broke now, your financial situation will improve in the next two decades, and the dormant “Judgment” will come to haunt your. A judgment once recorded in the county records becomes a lien on any other real estate or personal property that you may own in that county. Once the Creditor obtains a “judgment,” it can force you to disclose your assets and finances in court every year.
Most people who have judgments entered against them are qualified to file a personal Chapter 7 or 13 bankruptcy, and get a “discharge” of their debts, and get a “fresh start.” A “discharge” is a legal forgiveness of debt. Once the Court issues you a “discharge” nobody can collect this debt from you. You are now able to go forward with your life and “start over.” The filing of a bankruptcy is a “financial” decision not a “moral” decision. Even though the fact that you have filed a bankruptcy remains on your credit report for about 7 to 10 years, most people see increased credit score within 12 to 18 months. Most people are also qualified to get another mortgage within 2 years. In fact most people get credit cards with small limits within a few months of the filing of the bankruptcy. Bankruptcy has lost the stigma that it had long time ago.
Elias Leonard Dsouza, Esq.
"The best compliment you could ever give me is a referral."
A CONSUMER RIGHTS PROTECTION LAW FIRM
"Life is Short. Get Rid of Debts"
111 N. Pine Island Rd., Suite 205
Plantation, Florida 33324
Phone: 954-358-5911
Fax: 954-357-2267
www.DsouzaLegal.com
Skype: elias.leonard.dsouza
Skype: 954-762-7608
Http://Facebook.com/Elias.Leonard.Dsouza
Blog: http://dsouzalegal.blogspot.com
Attorney Elias Leonard Dsouza concentrates his practice on Bankruptcy [Chapter 7, 13 & 11,] Foreclosure Defense, Defense of Credit Card Lawsuits, Credit Restoration, and Debt Settlement & Credit Counseling and Landlord-Tenant law. We Sue Debt Collectors under the Fair Debt Collection Practices.
MY MISSION:
I am very passionate about helping consumers protect their rights, reorganize their debts, help them keep all or most of their property, save their homes from Foreclosure, stop wage garnishments, and assist people to “get a fresh financial start”. I am available to assist and advise you on how to rebuild your credit and buy the new house or start the new business that you always wanted to. This is a small law firm, and as such, can and does provide personal service, quality representation, and excellent follow up. If you would like to learn more about your options, contact me as soon as possible for a FREE CONSULTATION.
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