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Does Business Debt Help Me Qualify For A Chapter 7 Bankruptcy?

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Roughly eighty percent (80%) of new businesses fail within the first eighteen (18) months and one-half (50%) of the new businesses fail after the first four (4) years.  Only twenty percent (20%) make it past their five-year (5) anniversary. So, what happens to the business debt of small business owners if their business folds? Business owners who sign personal guarantees can be held liable personally for the debts. However, business debt helps you qualify for a Chapter 7 bankruptcy because the Means Test does not apply in bankruptcy cases where the debts are primarily business-related debts. “Primarily” is defined as 50 percent or more of the total debt owed by the debtor. An experienced Florida bankruptcy attorney understands how to help a business owner qualify and file for debt relief under Chapter 7. If you have questions, please contact the Law Office of Tony Turner. Mr. Turner is an Orange Park Bankruptcy Attorney who offers a free bankruptcy consultation. If your business is e
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Older Debtors Filing Is The Recent Trend In Bankruptcy?

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  A recent trend is that older debtors are beginning to file bankruptcy with more frequency. The rate is more than double what it was in the early 1990s. The rate of debtors over the age of 65 filings for bankruptcy increased over 200% from 1991 to the present. The cause of this increase is the medical bills as well as the lower incomes they receive and the nationwide decline in pension, retirement pay, and interest rate earned on money saved or the death of a spouse. Many resort to living with their children or doing without necessities to pay their bills. Medicare does pay some health care costs, but it does not cover extensive care, hearing aids, dental procedures, eye exams, foot care, and some other treatment. Sometimes there are co-pays, coinsurance, and deductibles. The skyrocketing medical costs are just too much. Sometimes Churches, friends, or family will help. However, once they get behind on their bills, the constant calls from bill collectors are just too stressful and t
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Bankruptcy Filings Decline By 2.2 Percent (10.31.18)

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According to a report published on the US Court Government website on October 31, 2018, bankruptcy filings fell by 2.2 percent for the 12-month period ending September 30, 2018, compared with the year ending September 30, 2017.  The September 2018 annual bankruptcy filings totaled 773,375, compared with 790,830 cases in the previous year, according to statistics released by the Administrative Office of the U.S. Courts. The number of bankruptcy cases filed was the lowest for any 12-month period since the year ending June 2007. A national wave of bankruptcies that began in 2008 reached a peak in the year ending September 2010, when nearly 1.6 million bankruptcies were filed. Total Bankruptcy Filings By Chapter Year                                           Chapter 7                  11               12                       13 2018        477,248        7,014         468            288,550 2017        486,542       7,052         508            296,599 2016        498,367     
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How to Choose a Good Bankruptcy Lawyer?

Are you undergoing major financial pain? Tried out all possible debt help techniques? But getting no results. The only answer to all your problems is “ Bankruptcy” . It is not advised by all financial experts, but when all other options fail, then it is the only option left to make the complicated process less stressful. What is Bankruptcy? The term Bankruptcy actually means a legal state in which an individual or organization is unable to repay debts to the creditors. It is quite a serious matter and in this situation, there is no option left for a person or business rather than filing a bankruptcy. Whether it happens to an organization or individual, it is necessary to seek the services of a bankruptcy lawyer who is completely up to date with bankruptcy law and will be able to protect you from the creditor’s appeal. He/she will guide you through the laws and make the most of your bankruptcy claim. In many cases, a lawyer can help save a great deal of your assets from being liquid
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Supreme Court Approves Amendments To Bankruptcy Rules!

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The U.S. Supreme Court earlier this year approved amendments to the Federal Rules of Bankruptcy Procedure that are expected to become effective on December 1, 2018. Firstly, Many of the amendments are technical. They are to conform the Bankruptcy Rules to recently amended rules of appellate and civil procedure. Bankruptcy Rules affected by the amendments. It includes Rules 3002.1, 5005, 7004, 7062, 8002, 8006, 8007, 8010, 8011, 8013, 8015, 8016, 8017, 8021, 8022, 9025, and new Rule 8018.1 as well as Part VIII Appendix. Rule 3002.1 Bankruptcy Rule 3002.1 requires creditors with claims secured by a debtor’s personal residence. It is to provide notice of all post-petition payment changes, fees, expenses, and charges incurred. The proposed amendments to the rule would create flexibility regarding notice of payment changes. That includes home equity loans, a procedure for objecting to payment changes as well as expand the category of parties who can seek a determination of fees, expense
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Bankruptcy Petition Filing Statistics!

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According to the Bankruptcy Petition filing statistics, consumers filing for bankruptcy in 2017 reported total assets of $80 billion and total debt of $105 billion, according to an annual report filed by the Judiciary with Congress. The report, required by Congress under the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005.  Some notable highlights in the report are: 1.       Sixty-two percent of assets were real property, and the remaining assets were personal property. 2.       Debtors in the Northern District of California and in the Southern District of Florida reported the highest average assets per petition, at $583,000 and $338,000, respectively. Filers in the Western District of Tennessee reported the lowest average assets, $44,000. 3.       The median average income reported by debtors was $2,741 a month, and the median average monthly expenses were $2,645. 4.       A total of 742,323 consumer bankruptcy petitions were filed in 2017, 1 percent fewer than
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A Look At The Requirements Imposed By The “Fair Credit Reporting Act.”

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If a furnisher makes “an accommodation with respect to 1 or more payments on a credit obligation or account of a consumer,” and the consumer “makes the payments or is not required to make 1 or more payments pursuant to the accommodation,” then the furnisher “shall report the credit obligation or account as current.” 15 U.S.C. §1681s-2(a)(1)(F)(ii). If the credit obligation or account was delinquent before the accommodation, the furnisher must “maintain the delinquent status during the period in which the accommodation is in effect; and, if the consumer brings the credit obligation or account current during the period described,” the furnisher must report the credit obligation or account as current. Id. Excepted from these new requirements is a “credit obligation or account of a consumer that has been charged-off.” 15 U.S.C. §1681s-2(a)(1)(F)(iii). The “covered period” began retroactively on January 31, 2020, and lasts until the later of either 120 days after March 27, 2020, the date of
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