Bankruptcy Petition – What is it?
After your bankruptcy petition is completed, it will be emailed to you for your approval. You will be required to read petition to ensure it is accurate and sign the document, attesting under penalty of perjury, it is accurate. Any changes or corrections need to be brought to your attorney’s attention immediately. Once you sign the petition the original “signature pages” need to be mailed to your attorney who must keep the original signatures on file. The bankruptcy petition will be filed electronically upon your approval. You will be assigned a bankruptcy number. It will look something like “3:25 -bk-00001” Your bankruptcy petition must accurately state the balance of any and all bank accounts on the date you file for bankruptcy.
What is a “Statement of Financial Affairs” a/k/a/ ”SOFA”?
The Statement of Financial Affairs or SOFA section on your bankruptcy petition advises the bankruptcy trustee and the court about your financial situation and transactions before you filed for bankruptcy.
What is the “Summary of Assets and Liabilities” section of my bankruptcy petition?
The Summary of Assets and Liabilities section on your bankruptcy petition helps the bankruptcy court determine if your debts are primarily consumer or non-consumer debts. Consumer debts ones incurred by an individual for personal, family, or household purposes. Any other debt is non-consumer debt. Business debt for example is non-consumer debt. It’s crucial to note, that if more than half of your debts are business debts, the “means test” does not apply.
What’s the “Statement of Your Current Monthly Income” section?
The Federal Bankruptcy Code requires a debtor filing for bankruptcy to list all the gross income received the six months preceding the month your bankruptcy petition is filed. If your gross income is at or below the median income for Florida, you can file Chapter 7 bankruptcy without a presumption of abuse. If your income level exceeds median income for Florida, you will need to complete an “extended means test” to see if you will qualify for a Chapter 7 bankruptcy.
What is the “Declaration” that I must sign?
At the end of the bankruptcy schedules is the “Declaration about Schedules.” When you sign this declaration, you are stating that all the information provided in your bankruptcy petition is true and correct. If you are married, your spouse must also sign the “Declaration about Schedules”. A friendly reminder, there can be a fine of up to $250,000, imprisonment of up to 20 years, or both for bankruptcy fraud.
What is a “Statement of Intention”?
The “Statement of Intention” section on the bankruptcy petition is where you advise all interested parties and the bankruptcy court if you intended on keeping your secured or leased assets.
What is Florida’s Bankruptcy “Wildcard Exemption?”
Florida’s Wildcard Exemption allows you to keep up to $4,000 of personal property if you do not use the homestead exemption.
What is a “Creditor Matrix?”
Your bankruptcy petition should create a “creditor matrix,” once it is completed, which lists your creditors and their addresses. You must sign your bankruptcy petition before it is filed, which certifies under penalty of perjury that you listed all your creditors and their addresses. You should never intentionally leave out a creditor. If you fail to include a creditor, they may not be discharged in your bankruptcy. This list is intended to provide notice to your creditors that you have filed for bankruptcy. They are given the opportunity to attend your creditors meeting and question you regarding the debt. Any creditor can object to you discharging their debt and they must be notified there is an automatic stay in place and to cease any collection attempts or lawsuits. Your creditors are also notified of the time and place of your 341 “meeting of creditors” and are allowed to attend and question you regarding your debt.
What if I don’t have a social security number?
If you do not have a social security number, you must use a tax-processing number issued by the IRS called an “ITIN number.” An ITIN is often assigned if you cannot get a social security number because of your immigration status. If you do not have a social security number or an ITIN number, you will need to be assigned one before filing bankruptcy.
How do I know which trustee was assigned to my case?
The Chapter 7 bankruptcy trustees are assigned to cases at random by the bankruptcy court. Every bankruptcy trustee is different, and each has their own requirements regarding documents that bankruptcy debtors or their bankruptcy lawyers need to provide before the creditors meeting. Your bankruptcy attorney can advise you what documents must be provided to your bankruptcy trustee or to the United States Bankruptcy Trustees Office. A list of trustees and their addresses can be found at – https://www.justice.gov/ust/eo/private_trustee/locator/7.htm#mfl.
How do I obtain a copy of my bankruptcy discharge order?
You can obtain a copy from the bankruptcy clerk’s office by coming in person or sending a written request. You may also contact the Bankruptcy Court’s contracted photocopying service, Judicial Research and Retrieval Service in Tampa at (813)-228-7200, Orlando at (800)-529-6226, and Jacksonville at (813) 228-7200. You can access it online using PACER or call your attorney and get a copy.
Can I access the court records to check on my case?
Yes, bankruptcy court records are accessible via the website “PACER” (Public Access to Court Electronic Records). Information on obtaining a PACER account is available at: PACER Service Center.
When will I get a copy of my bankruptcy discharge order?
Approximately 60 days after your creditors meeting, you will receive a Discharge Order entered by the Bankruptcy Judge. Your Bankruptcy Lawyer will receive a copy too. If you lose your copy, your Bankruptcy Lawyer can obtain a copy for you, or you can go to https://pacer.login.uscourts.gov where you can retrieve a copy of your Bankruptcy Petition, including the Discharge Order.
What does a bankruptcy discharge order do?
A bankruptcy discharge in a bankruptcy case voids any judgment with respect to any debt discharged. It acts as an injunction against the commencement or continuation of any legal action to collect recover or offset any such debt. It discharges all your applicable debt.
What is a Proof of Claim?
If the trustee believes money or assets will be recovered, the creditors listed on your bankruptcy petition are required to complete a “proof of claim” to be paid out of the proceeds recovered. Each creditor is paid proportionately to what they are owed. If you receive a proof of claim there is nothing for you to do. You don’t need to submit one to the trustee.
Can my lawyer terminate me as a client?
Yes. If you do not cooperate, are not truthful or are making unreasonable requests, your attorney can ask the judge to allow them to withdraw as your attorney. They will need the courts permission to withdraw and must continue providing you competent representation so long as they are your attorney.
Can I terminate my lawyer if I am not satisfied?
Yes. Advise your attorney your dissatisfied with their services and they will file a motion to withdraw as the attorney of record. Bankruptcy retainers are typically non-refundable, so any refund is unlikely.
Will my friends, family, or employer find out about my Bankruptcy?
Not unless you owed them money. Although Bankruptcy filings are public record through the PACER website, they are difficult to locate.
What if I paid my relative money owed before I file bankruptcy?
If you pay back an “insider,” like a family member or friend etc., money owed to them prior to filing for bankruptcy, the trustee may ask you to pay the same amount of money to the trustee that you paid to the “insider(s)”. The trustee will distribute the proceeds to your creditors that filed valid proof of claims. Each creditor will be paid in proportionate to the amount of debt owed to them. The remaining unpaid debt will be discharged in bankruptcy.
Please read the “Bankruptcy Information Sheet”.
Please read the “Bankruptcy Information Sheet” which will be provided to you by the trustee via U.S. mail. Your attorney’s office will email you a copy to read as well. Reading it is required by 11 U.S.C. §341 and the trustee will ask you at the meeting of creditors whether you have received and read it. The meeting cannot be concluded until you have done so
What is an “Overage”?
When you file for bankruptcy protection some or all your assets are “exempt” meaning they are not part of your bankruptcy estate, and you keep them. If your assets exceed the amount of the exemptions allowed, there will be an “overage”. If you have an overage, you have two options: 1) Surrender the asset to the trustee who will auction it off and divide the proceeds among your creditors that have filed a valid proof of claim with the bankruptcy court; 2) Pay the trustee the overage amount in either a lump sum payment or over a 10-month period with no interest. A discount is usually given for a lump sum payment. Typically, your first payment will be due approximately 90 days after your bankruptcy petition is filed. You’ll pay the Trustee directly. If you do not believe the Trustee is being fair, you can dispute the amount of the overage at the hearing. Please call me when you get the chance so we can discuss how to proceed. The trustee or their attorney may file a Motion to Turn-Over Property and an Objection to the Exemptions and a hearing will be set. Most cases settle before the hearing. If you have an overage your attorney will discuss with you how much the overage is, why there is an overage and your options.
What if I have lawsuits pending or recently settled.
You must disclose any lawsuits or settlements.
What is a judgment?
After an order for the debt, you owe is entered against you, you are a “judgment debtor.” You owe the ordered amount plus penalties and interest so long as not paid in full. A judgment can last for up to 20 years and interest and attorney fees can accrue every year. A creditor who obtains a judgment against you is called a “judgment creditor”. If a judgment is entered against you by a court, your wages or bank account may be garnishment. There is a legal process called a levy or execution where a creditor can collect money owed under a judgment including the seizure of personal property and real property. When this happens, a judgment creditor pays a bond to the local sheriff to seize personal property owned by a judgment debtor so that it can be auctioned, and the proceeds applied to pay the judgment. The law allows the judgment creditor to obtain a writ of garnishment, which orders your employer to deduct money from your paycheck until you have paid off the judgment.