North Miami Bankruptcy and Tax Attorney Blog

Huge. Stockton, California Chapter 9 Bankruptcy to Go Forward

noreply@blogger.com (Anonymous) — Tue, 02 Apr 2013 17:54:00 +0000

According to an article by the Los Angeles Times the City of Stockton, California is allowed to proceed on the path of their chapter 9 municipal bankruptcy. This is a huge development as municipal bankruptcies are not only rare, but exceedingly hard to pursue.

The battle will be over the treatment of Stockton's pension liability of close to a billion. That's right, close to a billion dollars of unfunded pension liability. Does this sound familiar? Illinois' pension system is also in a mess and its municipalities are going to be hard pressed to avoid Stockton's fate.

My opinion is that Stockton is thinking smart as there is no way that its citizenry can be expected to make up this shortfall by way of higher taxes and austerity measures.

The Law Office of Ben W. Koyl, P.A. offers Bankruptcy Services including Chapter 7 Bankruptcy(Fresh Start) and Chapter 13 Bankruptcy (Bankruptcy Payment Plan); Tax Services including Tax Preparation, Tax Amendments, Offer in Compromise (Tax Settlement), Audit Assistance, and Tax Appeals; Formation of Business Entities (Corporations, LLC, Partnership) Estate Planning (Wills and Trusts) This blog will explore the various areas of law which Ben W. Koyl focuses on and news surrounding each. For more on these topics or for contact information please visit http://northmiamibankruptcyattorney.com/.

Dex One Files for Chapter 11 Bankruptcy, Not Really Surprised

noreply@blogger.com (Anonymous) — Fri, 29 Mar 2013 23:50:00 +0000

It looks as if Dex One has filed for chapter 11 bankruptcy protection, allowing it to merge with struggling Supermedia, Inc. As stated in the Reuters article, the companies are attempting to merge thereby allowing them to repackage their debt and ultimately to free up cashflow for shareholders.

Well Dex's stock went up after the announcement of this merger, but I believe that this is temporary unless this new company is willing to do things differently.

I can tell you from personal experience as a Dex client that print advertising is nearly dead and online directories like dexone.com etc. are not nearly as efficient or effective as a nice Google search placement. Frankly, if you take those two out Dex can only be an SEO company, and they will need to come down in price. After my contracts are up with them I am done for sure with them.

The Law Office of Ben W. Koyl, P.A. offers Bankruptcy Services including Chapter 7 Bankruptcy(Fresh Start) and Chapter 13 Bankruptcy (Bankruptcy Payment Plan); Tax Services including Tax Preparation, Tax Amendments, Offer in Compromise (Tax Settlement), Audit Assistance, and Tax Appeals; Formation of Business Entities (Corporations, LLC, Partnership) Estate Planning (Wills and Trusts) This blog will explore the various areas of law which Ben W. Koyl focuses on and news surrounding each. For more on these topics or for contact information please visit http://northmiamibankruptcyattorney.com/.

Eurozone debt hit 90% of its economy

noreply@blogger.com (Anonymous) — Wed, 24 Oct 2012 17:35:00 +0000

Eurozone debt hit 90% of its economy

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Published: 24 October, 2012, 18:21

TAGS:
EU, Crisis

AFP Photo / Daniel Roland

The total debt of the 17 eurozone member countries reached 90% of the value of the union's economy at the end of the second quarter of 2012, according to the data provided by Eurostat.

Europe’s public debt rose from 88.2% in the previous quarter to the highest level since the euro was launched in 1999, as reported by the EU's statistics office. In the EU-27, government debts rose to 84.9% of combined GDP (against 83.5% in March).

Greece's debt remains the highest accounting for150.3% of the country’s GDP, while Italy holds the second-largest debt of 126.1% of GDP. While the public debt of Germany, Europe’s strongest economy nowadays, amounts 81% of GDP.

Greek debt grew to 150.3% of GDP in the Q2 from 136.9% in Q1 though the country’s debt was reduced to 280 billion in March from 341 billion as private investors agreed to write down part of their loan.

The unresolved economic problems of Europe dented investor confidence, making it harder for countries to boost growth. In October a survey from the IFO Institute found business confidence in Germany fell below expectations and dropped for the sixth month in a row. The IFO index for October dropped to 100 from 101.4 in September.

Germany has been staying afloat amid the eurozone’s crisis supported by growing exports from the likes of BMW, Volkswagen and Bayer. But in the second quarter, exports fell to 0.3% of German GDP from 0.7%, as many European countries cut demand for German products. “Surveys are reflecting the gloomy outlook for exports and uncertainty about the prospects for global economic developments,” the Germany’s Bundesbank said in a report.

Experts expect the eurozone to plunge into recession in the third quarter of the year when official figures are released next month. A recession is technically defined as two quarters of negative growth in a row. “There are increasing signs that a perceptible expansion of economic growth in the third quarter of 2012 will be followed by stagnation or even a slight decrease in gross domestic product in the final quarter of the year,” according to the Bundesbank.

San Bernardino in Trouble Again

noreply@blogger.com (Anonymous) — Fri, 19 Oct 2012 22:50:00 +0000

Thompson Reuters reports that San Bernardino County is behind on it's post-petition bankruptcy payments. San Bernardino declared for Chapter 9 bankruptcy on July 31, 2012. They have missed their first six bi-weekly "employercontribution payments of more than $1 million to the CaliforniaPublic Employees' Retirement System."

The Debtor and Creditor are making a real effort to work something so it still looks postive.

I'm amazed how many municipal bankruptcy cases are being filed. These pension plans are a huge liability.

Ben W. Koyl

The Law Office of Ben W. Koyl, P.A. offers Bankruptcy Services including Chapter 7 Bankruptcy(Fresh Start) and Chapter 13 Bankruptcy (Bankruptcy Payment Plan); Tax Services including Tax Preparation, Tax Amendments, Offer in Compromise (Tax Settlement), Audit Assistance, and Tax Appeals; Formation of Business Entities (Corporations, LLC, Partnership) Estate Planning (Wills and Trusts) This blog will explore the various areas of law which Ben W. Koyl focuses on and news surrounding each. For more on these topics or for contact information please visit http://northmiamibankruptcyattorney.com/.

Standard & Poor's

noreply@blogger.com (Anonymous) — Wed, 17 Oct 2012 15:36:00 +0000

30 people killed after Muslim herdsmen attack Christian village in Nigeria >>

Go to main page Business News S&P downgrades 15 Spanish lenders

RT on

'S&P downgrade may push Spain to seek further bailouts'

The Standard and Poor’s downgrade may push Spain to ask another EU bailout, but further cash injections will not cure its economic woes, journalist Miguel-Anxo Murado told RT. Whether Spain reduces its deficit or not, its credit rating will suffer.

Eurozone crisis

11.10, 07:537 comments

S&P downgrades Spain to just above junk status

Spain’s credit rating has been downgraded by American ratings agency Standard & Poor's by two notches, leaving it at the lowest investment-grade status, BBB-.

Eurozone crisis

12.06, 23:333 comments

Spanish banks downgraded as country awaits rescue package

Fitch credit agency has downgraded 18 Spanish banks less than a week after downgrading the country’s credit ratings. This comes amid discrepancies regarding the rescue package EU is to provide for Spain.

26.06, 01:3615 comments

Moody's cuts ratings of 28 Spanish banks

Ratings agency Moody's has cut the ratings of 28 Spanish banks following a June 13 downgrade of Spain's sovereign rating by three notches.

Eurozone crisis

S&P downgrades 15 Spanish lenders

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Published: 16 October, 2012, 13:27

TAGS:
EU, Crisis, Banking

AFP Photo/Emmanuel Dunand

The US-based Standard & Poor’s rating agency has cut credit ratings of 15 Spanish banks including the country’s largest Banco Santander SA and Banco Bilbao Vizcaya Argentaria (BBVA), following the national rating cut last week.

“The sovereign downgrade has direct negative rating implications on those banks that we rated higher than the 'BBB-' long-term rating on Spain, and on all banks where we factored extraordinary government support into the ratings,” the S&P said in a statement.

The S&P has lowered long-term ratings on 11 banks and the short-term ratings on four. Santander saw its long-term counterparty credit rating lowered by two levels from A- to BBB with a negative outlook. The S&P has also cut by one notch the ratings on CaixaBank, and its parent company Caja de Ahorros y Pensiones de Barcelona (La Caixa), Banco de Sabadell, Banco Popular Espanol, Bankia, and Banco Financiero y de Ahorros (BFA).

The ratings for six banks such as BFA, and Ibercaja have been put on Creditwatch negative, the agency said in a statement Tuesday. The S&P will continue reviewing the sovereign downgrade’s implications, and is going to conclude the process next month, the company said. “For Santander and BBVA, we don’t anticipate that we would lower” its ratings further, if at all, the S&P said after the review.

The rating action came a few days after Spain was downgraded by two notches to BBB-, one level above junk by the S&P after Madrid announced a fifth austerity package in less than a year and published details about stress tests of its banks. The Spanish government's options for averting a financial crisis are limited by a grinding recession, high unemployment and social unrest, S&P said in a statement.

Earlier this year Moody’s rating agency downgraded 28 Spanish banks and the Fitch credit agency has cut ratings of 18 lenders following Spain's sovereign rating downgrades

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16.10, 09:341 comment

Market Buzz: Optimism from US spend trend

Global stocks Tuesday should mirror positive US retail sales data showing consumer confidence in the world's biggest economy. No strong driver is expected, investors mostly waiting to hear of the next EU development at a Thursday summit in Brussels.

16.10, 14:04

Coca Cola HBC move questions viability of Athens exchange

While Coca Cola Hellenic Bottling shifting from the Athens exchange to London will help the company avoid massive losses, the move could drag the Greek economy deeper into recession, ringing alarm bells for investors across the world.

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Offshore and Taxes

noreply@blogger.com (Anonymous) — Fri, 21 Sep 2012 18:05:00 +0000

http://money.cnn.com/2012/09/20/technology/offshore-tax-havens/index.html?iid=SF_BN_River

Offshore havens saved Microsoft $7B in taxes - Senate panel

By Jennifer Liberto @CNNMoneyTech September 20, 2012: 3:08 PM ET

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WASHINGTON (CNNMoney) -- Microsoft has saved nearly $7 billion off its U.S. tax bill since 2009 by using loopholes to shift profits offshore, a Senate panel said in a report released Thursday.

Hewlett-Packard also avoided paying taxes through a series of loans, some spanning 30 months, that shifted billions of dollars between two offshore subsidiaries, according to the Senate panel.

The Permanent Subcommittee on Investigations reviewed tax loopholes used by dozens of companies in the high-tech industry to shift profits offshore. But it focused on moves byMicrosoft (MSFT, Fortune 500)and Hewlett-Packard (HPQ,Fortune 500), according to Sen. Carl Levin, the Michigan Democrat who runs the panel.

The Republicans on the panel, including ranking member Tom Coburn of Oklahoma, said they support the report while stressing it found nothing illegal. Coburn said the report shows the need for reforms to the tax code and lower corporate tax rates.

The Senate investigation, which included subpoenas and voluntary correspondence with the companies, provided an in-depth look into how the companies set up and use overseas tax shelters, as well as the impact on government coffers.

Levin acknowledged that Microsoft has broken no laws. But he blamed a loose tax code, Congress and tax officials for allowing the loopholes.

"The tax practices and gimmicks range from egregious to dubious validity," Levin said. "What these gimmicks do is shift the burden of taxes to citizens that don't use armies of lawyers and accountants and subsidiaries to lower their tax bill."

In the case of Microsoft, the company transferred nearly half of its net revenue from U.S. retail sales to a Puerto Rican subsidiary between 2009 and 2011. That saved the firm $4.5 billion in U.S. taxes, according to the panel.

Related: Tax battle: Obama vs. Romney

Tapping a different tax loophole, Microsoft saved another $2.43 billion by "checking a box" on an IRS form that tells tax officials to ignore "passive" income from royalties -- on things such as patents -- moved to its offshore subsidiaries.

Microsoft Vice President of Worldwide Tax William J. Sample defended the companies' use of legal tax avoidance maneuvers, saying it helps them be competitive overseas and creates jobs in the United States.

"One of the business imperatives faced by Microsoft and many U.S.-based businesses today is that we must operate in foreign markets in order to compete and succeed as a company," Sample said in remarks prepared for delivery at the hearing. "Foreign revenue growth helps support the growth of our U.S. operations, creating additional U.S. jobs and supporting an economic ripple effect that leads to greater growth in local communities."

In the case of Hewlett-Packard, the investigation found the computer maker whittles down its cash kept in the United States by tapping a series of loans made from subsidiaries in Belgium and the Cayman Islands.

For example, in 2009, Hewlett-Packard held $12.5 billion in foreign cash, but only $800 million in the United States. It only pays taxes on the U.S. portion, while tapping a series of ongoing "short-term" loans that, taken together, stretched for 30 straight months, according to the panel.

"This pattern of keeping most of HP's cash offshore and obtaining loans from its offshore entities to fund its U.S. operations was also carried out in earlier years," the report said.

Hewlett-Packard spokesman Howard Clabo said the company has complied with the U.S. tax code and its auditor Ernst & Young has signed off on the accuracy of its financial statement. He said the IRS has permanent offices at two of its facilities and has never raised any concerns about its programs.

" We are disappointed to see what appears to be a politically motivated attack on one of America's largest employers," Clabo said.

Philadelphia Orchestra Re-Emerges from Bankruptcy

noreply@blogger.com (Anonymous) — Tue, 18 Sep 2012 19:59:00 +0000

Good new for classical music lovers everywhere! The Philadelphia orchestra re-emerged from bankruptcy last month. Orchestra chairman, Richard Worley, described exiting bankruptcy as“getting out of jail.” Despite these feelings, orchestra chairman felt bankruptcy (Chapter 11) was still the right choice at the time. Worley was grateful for all the individuals who “helped save this wonderful, living, breathing treasure.” The orchestra received a $50 million dollar “gift” which is being moved to an account at Northern Trust.

Loose ends still need to be tied in the month of September. Litigations continue to address $180,000 for 2 concerts that have yet to be paid by a South Korean presenter. Furthermore, “a Sept. 24 hearing will consider some of the 85 claims by creditors being contested by the association”.

Experts believe there are many reasons contributing to the bankruptcies of several orchestras’ around the country, such as Honolulu Symphony and Syracuse Orchestra. One of the major reasons is the decline in interest of classical music among the newer generations. Although classical music has survived the era of jazz, big band, and swing, the cut in music programs throughout the United States is also preventing the younger generation from learning about classical music, thereby contributing to its overall decline.

Experts also believe there is a connection between the bankruptcies of orchestra and the cities to which they belong. Cleveland is a prime example. Once regarded as a “jewel of the Midwest”, Cleveland is now a struggling industrial city. As more and more Cleveland residents have moved away to secure jobs, the city’s orchestra also lost patrons.

http://americancity.org/daily/entry/the-orchestra-and-the-city

The Philadelphia Orchestra should take the Rochester Philharmonic Orchestra as an example of what to do. By adapting to change the Rochester Philharmonic Orchestra was able to recover from bankruptcy. Reinvention will be key.

The Law Office of Ben W. Koyl, P.A. offers Bankruptcy Services including Chapter 7 Bankruptcy(Fresh Start) and Chapter 13 Bankruptcy (Bankruptcy Payment Plan); Tax Services including Tax Preparation, Tax Amendments, Offer in Compromise (Tax Settlement), Audit Assistance, and Tax Appeals; Formation of Business Entities (Corporations, LLC, Partnership) Estate Planning (Wills and Trusts) This blog will explore the various areas of law which Ben W. Koyl focuses on and news surrounding each. For more on these topics or for contact information please visit http://northmiamibankruptcyattorney.com/.

5 things to know about dental implants

noreply@blogger.com (Anonymous) — Mon, 17 Sep 2012 18:10:00 +0000

5 things to know about dental implants

NEW YORK (Money Magazine) -- Implants are a good long-term solution to replacing lost teeth, but they're not cheap.
1. An implant beats bridges or dentures

Bridges, dentures, and implants replace missing teeth.
A bridge requires filing two adjoining teeth, which can make them weaker and prone to decay. Dentures often have fit problems and can interfere with taste.
For an implant, a titanium screw is placed in the jawbone and a prosthetic tooth is attached. A proper implant has no physical downsides and has good longevity, says Dr. Mark Wolff, associate dean at New York University's College of Dentistry.
2. But you'll pay a lot more for it
The problem with implants? Cost.
Implants are rarely covered by insurance, says MacKenzie Lucas, a spokesperson for benefits consultant Aon Hewitt.
Practitioners charge $3,000 to $4,500 for a single tooth. Most dentists refer patients to oral surgeons, periodontists, or prosthodontists.
Related: 5 ways to prevent sports injuries
If you need an implant near a nerve or sinus cavity, it's worth paying for a dentist or surgeon who has specialized training.
3. Not all implants are equal
Most dentists use implants made by the original Swedish manufacturer; studies have found that these implants have high success rates (90% or more), says Dr. Michael Childers, dental director for the Florida region of Dental Care Alliance.
There are also some newer, generic implants that are cheaper but may not have been studied yet. So ask your doctor what kind of implant he uses and the success rate he's had with it.
4. There are ways to nab discounts
Join a discount plan. DentalPlans.com and Brighter.com charge an annual fee of $80 and $99, respectively, and offer a 15% to 25% discount on implants (ask about availability and pricing before you join).
Related: 12 entrepreneurs reinventing health care
Visit a school. Advanced students at some oral-surgery programs may do implants under close supervision for a fraction of the usual cost. You can find local schools at the American Dental Association. .
5. Timing can also help
Implants are usually a two-part process -- first putting in the implant, then covering it with a crown six to 12 weeks later, says Wolff.
If you know you need one, schedule the initial procedure at the end of a calendar year, then have the crown put on in the following year. That way you can use two years' worth of your pretax flexible spending account at work to pay a chunk of the cost. You'll reap as much as 30% savings if you're in a high tax bracket.

http://money.cnn.com/2012/09/14/pf/dental-implants.moneymag/index.html?iid=H_M_News

http://buzz.money.cnn.com/2012/08/31/spain-unemployment/?iid=HP_LN

noreply@blogger.com (Anonymous) — Fri, 31 Aug 2012 19:36:00 +0000

Bankruptcy & Chapter 7

noreply@blogger.com (Anonymous) — Tue, 14 Aug 2012 01:45:00 +0000

Is it better to lose one’s home to bankruptcy, or is it better to serve a life sentence of overtime, 2^nd jobs, and twice as much debt for a home? A house worth $100,000 can easily cost an individual $200,000 through reaffirmation, where individuals agree to pay the debt under a new agreement with the bank.

Chapter 7, also known as, “a fresh start” provides people with just that: a fresh start.

When Robert and Betsy first agreed to declare bankruptcy, they were heart broken. While employed they had worked very hard to maintain a home. They shared many fond memories in that house and were not willing to give it up.

A few months following bankruptcy, they realized the important things they shared were still with them. They had one another, their children, and they still had their fond memories. More importantly, they didn’t have the stress of having to “save” their home, by countless additional hours of work. They didn’t have the stress of how they would find a 2^nd or 3^rd job to pay off the obscene new agreement they would have had to sign. Things hadn’t worked out the way the planned, but they forgave themselves for whatever misfortune they found, but now they were living life anew.

Some lawyers believe only a third of individuals seeking bankruptcy will choose Chapter 7.

Aside from mortgage debt, the 2^nd biggest debt comes from student loans, which currently cannot be declared in bankruptcy. This is unfortunate for those individuals who are burdened with a loan of $100,000 but only earn a salary of $30,000. For those individuals who already have a home, this can be considered a 2^nd mortgage.

Bankruptcy & Student Loans

noreply@blogger.com (Anonymous) — Sat, 28 Jul 2012 17:15:00 +0000

The government is in the process of allowing college grads to file bankruptcy for student loans for those individuals who make an attempt over a 5-7 year period to pay back the loans. However, it only applies to private loans.

It turns out that companies such as Sallie Mae are not necessarily opposed to student loan bankruptcy. How is that, you say? Simple business sense. It has to make sense for their business. So, here’s how it works.

Currently Sallie Mae earns interest plus principle on portfolios, since they are federally guaranteed. If a borrower is delinquent, but later makes payments, Sallie Mae makes a little extra on the late payments. So that’s, interest plus principle plus late fees. However, over the course of a year, before the borrower is officially transferred over to the government for delinquency, Sallie Mae has to contact the borrower several times. Contacting borrowers means “servicing costs”. If, on the other hand, the accounts were paid on time, Sallie Mae would “trade late fees for delinquent costs”, which, in the long run, is more profitable.

While we wait on a final decision on student loan bankruptcy, it is important to look at the things we do have control over, and the things that can be filed for bankruptcy.

Keep in mind that in a 1934 decision, the Supreme Court had the following to say about bankruptcy: “[It] gives to the honest but unfortunate debtor…a new opportunity in life and a clear field for future effort, unhampered by the pressure and discouragement of preexisting debt.”

Bankruptcy is for the “honest but unfortunate debtor,” and under Chapter 7, Chapter 11, & Chapter 13 codes, bankruptcy can be filed for several reasons, including: credit card debt, property, and business-related debt. Under Chapter 13, individuals also have the option for repayment over 3-5 year installment plans.

Even Cities Go Bankrupt

noreply@blogger.com (Anonymous) — Thu, 19 Jul 2012 01:51:00 +0000

Of course, they are doing it for different reasons. Over-spending the cities’ budget and falsifying information are some of them, unfortunately. But in the case of San Bernadino, the rising costs of pensions are supposedly one of the reasons.

As long as you aren’t scheming to falsify information, but are, nevertheless, drowning in debt, bankruptcy may still be the best option for you. Why wait? Some experts believe that waiting to declare bankruptcy when there is only a slight chance to pay off debts can make a situation worse. And those of you who hesitate, the honest ones, are primarily concerned about how the rest of the world will view you. The fact of the matter is, life goes on after bankruptcy. There is no written rule that says you will not be successful in the coming years following bankruptcy. Times are tough for the majority of Americans (as it is for the Spanish, Greek, etc). So if bankruptcy is indeed inevitable, do yourself a favor: stop feeling guilty, forgive yourself, and move on.

Bankruptcy is a Business Decision

noreply@blogger.com (Anonymous) — Tue, 07 Feb 2012 17:28:00 +0000

Many people feel ashamed or embarrassed when they think about filling for bankruptcy or after they have done so. The fact is that there is no reason to be embarrassed. Just know that while most people don’t talk about their financial status, many of those same people you don’t want finding out about your financial troubles are facing the exact same issues as you are. Bankruptcy is not limited to any group of people or any amount of income. It’s not just the person next door or the less well-off people of this country filing for bankruptcy. The fact is that many of the country’s most influential and wealthy figures have at one time or another filed for bankruptcy.

Hereare just a few of the people who have filed for Bankruptcy at one point in their lives: Michael Jackson, Elton John, Walt Disney, Stan Lee, PT Barnum, and Donald Trump. This small list of very successful people illustrates the fact that Bankruptcy does not prevent you from becoming a successful, contributing member of society. Instead, it shows that Bankruptcy is used by even the very wealthy and successful as a tool to deal with debts in a smart, business savvy manner..

Many major American companies have also filed for Bankruptcy in addition to many famous and influential people. Hostess Brands Inc, a wholesale baker and creator of the Twinkie has now filed twice for Bankruptcy. American Airlines, the third largest airline in the country, has also filed for Bankruptcy. The list of companies who have filed for bankruptcy, much like the list of famous and successful people, is long and extensive.

The reason I am telling you this is to encourage you to not worry about any embarrassment. If you are having financial troubles it is important to seek help from an experienced Bankruptcy attorney and not ignore or hide your issues. Know that you are not alone. Thousands of Americans file for some type of Bankruptcy every year. Understand that it is nothing to be ashamed of and should instead be viewed as something to be proud of. You are taking responsibility for your debts, dealing with your issues, and helping out yourself as well as those around you. There could be nothing worse than ignoring the problems you are facing until there is nothing that can be done about it.

Just know that Bankruptcy is not the end. Think of it as a new beginning, a fresh start. You CAN recover from this and become very successful in your life. Just look at all of the large companies and wealthy and successful people who have utilized Bankruptcy to their advantages and have continued a successful and prosperous existence.

In Brief, What Bankruptcy Can and Cannot Do

noreply@blogger.com (Anonymous) — Thu, 02 Feb 2012 00:48:00 +0000

For whatever reason you are filing for Bankruptcy it is important to know which debts will be eliminated and which debts will remain. That’s why it is important to seek the services of an experienced Bankruptcy attorney to aid in your choice on which Chapter to file.

Which debts Chapter 7 and Chapter 13 can and cannot help with.

Bankruptcy Can:

Wipe out unsecured debts, debts which the creditor does not have a lien on any of your property and cannot repossess any items if you fail to pay the debt. Unsecured debt, like credit card debt, is exactly the type of debt Bankruptcy is designed to eliminate. However, Chapter 13 and Chapter 7 deal with the discharge of unsecured debts differently. When you file for Chapter 13 they may have to pay a portion of their unsecured debts through their payment plan. After successful completion of their payment plan the remaining unsecured debt will be eliminated.

Bankruptcy Can't:

Prevent a secured creditor from repossessing property. If you have a secured debt, a debt where the creditor has a lien on your property and can repossess it if you don't pay the debt, bankruptcy can eliminate the debt, but it does not prevent the creditor from repossessing the property unless you invoke certain procedures during the bankruptcy case.

Eliminate child support and alimony obligations.Child support and alimony obligations survive Bankruptcy.

Wipe out student loans. Student loans cannot be discharged through bankruptcy unless you can show that repaying the loan would cause "undue hardship.” The you must show not only that you cannot afford to pay the loans now, but also that you have very little likelihood of being able to pay them in the future.

Eliminate most tax debts.Eliminating tax debt in bankruptcy is not easy, but it is sometimes possible for older debts for unpaid income taxes. There are many requirements to be met, however.

Eliminate other non-dischargeable debts.The following debts are not dischargeable under either Chapter 7 or Chapter 13 bankruptcy:

-Debts not listed on your bankruptcy papers, unless the creditor learns of your Bankruptcy case

-Debts for personal injury or death caused by your intoxicated driving, and

-Fines and penalties imposed for violating the law, such as traffic tickets and criminal restitution.

If you file for Chapter 7, debts which cannot be discharged in Bankruptcy will remain when the case is over. If you file for Chapter 13, these debts will have to be paid in full during your repayment plan. If they are not repaid in full, the balance will remain at the end of the case.

There are some situations in which the judge may decide dischargeable debts should survive the Bankruptcy. These include debts incurred through fraud, such as lying on a credit application or passing off borrowed property as your own to use as collateral for a loan.

What Only Chapter 13 Bankruptcy Can Do:

Stop a mortgage foreclosure. Filing for Chapter 13 bankruptcy will stop a foreclosure and force the lender to accept a plan where you make up the missed payments over time while staying current on your regular monthly payments. To make this plan work, you must be able to demonstrate that you will have enough income in the future to support such a repayment plan.

Allow you to keep nonexempt property.You don't have to give up any property in Chapter 13 because you use your income to fund your repayment plan.

"Cram down" secured debts that are worth more than the property that secures them. You can sometimes use Chapter 13 to reduce a debt to the replacement value of the property securing it, then pay off that debt through your plan.

12 Reasons to File Bankruptcy Part II of II

noreply@blogger.com (Anonymous) — Thu, 26 Jan 2012 21:54:00 +0000

Part II of Twelve common reasons people file for Bankruptcy.

6. Stop Harassing Phone Calls From Creditors
Some creditors try to harass debtors or try and intimidate them until they pay their debts. Many times creditors will relentlessly call you at home or at your job to try to get you to pay your debt. A Bankruptcy filing will immediately stop your creditors, and stop their harassing phone calls and other collection actions. Creditors may only contact the attorney representing the debtor and there may be a claim against that creditor if they do contact the debtor themselves after the filing of a Bankruptcy.

7. Restore or Prevent Your Utilities From Being Shut Off.

If your home is in risk of foreclosure then your utilities such as electric and heat may also be in risk of being terminated. Filing bankruptcy can prevent the utility company from leaving you in the dark and without heat.

8. Provide Help For Massive Amounts Of Student Loan Debt.
Even though student debt will not be eliminated in most cases, Bankruptcy can consolidate your student loan debt into a payment plan. This consolidation will allow a debtor to make monthly payments through a Chapter 13 plan, that is within the financial ability of the debtor.

9. Stop a Wage Garnishment.

A Chapter 7 case will immediately stop a wage garnishment. A wage garnishment basically takes away 10% of your weekly paycheck. After the wage garnishment eats up your paycheck, then you most likely will not have enough of your paycheck left to pay your rent, buy food, and support your kids. By filing for a Chapter 7 you will once again be able to support yourself and your family.

10. Challenge Certain Claims of Fraudulent Creditors or Padded Debts.

A bankruptcy will allow you to challenge these claims from creditors who are trying to collect more money from you than you really owe. Many creditors charge you so much interest, late fees, and attorney fees that they try to collect twice as much from you as you borrowed.

11. You are recovering from a bad divorce.

Divorce is a major reason why many people file for bankruptcy. Child support and alimony payments can take away most or all of a spouse’s income, leaving them with no way to support themselves.

12. You are trying to deal with a lawsuit that has been filed against you.

Many people file Bankruptcy to stop a lawsuit that has been filed against them. Bankruptcy stops any litigation that has been filed against you. Bankruptcy stops credit card lawsuits, car accident cases, and any other small business related lawsuits.

http://ezinearticles.com/?Top-Ten-Reasons-People-File-for-Bankruptcy&id=15274

http://newjerseybankruptcycenter.com/wordpress/2009/01/05/top-twelve-reasons-people-file-for-bankruptcy/

12 Reasons to File Bankruptcy, Part I of II

noreply@blogger.com (Anonymous) — Thu, 19 Jan 2012 22:48:00 +0000

Once a person is educated on what Bankruptcy is and what it can do, the next thing they must decide is whether they have a valid reason to file for bankruptcy in which it will help them. Although Bankruptcy is a beneficial tool people must remember that it does have some negative repercussions that must be contemplated. Bankruptcy can affect credit, may create issues with keeping bank accounts and credit cards, can cause the loss of valuable possessions, and makes it difficult to get on with necessities of life such as buying or renting a home or car, getting insurance or finding a job. Financial advisors may view bankruptcy as a desperate last resort that should only be carried out with the counsel of an experienced bankruptcy attorney like myself, and only when budgeting, credit counseling or other efforts have failed.

Why do people file for Bankruptcy?

There are many reasons why people may find it beneficial, if not necessary, to file for Bankruptcy. Here is a list of twelve common reasons:

1. Eliminate the Legal Obligation to Pay Most of Your Debts.

As was discussed in a prior blog, the goal of bankruptcy is to discharge debt and give the debtor a fresh start. This can be done through Chapter 7, liquidation, or Chapter 13, reorganization.

2. Stop the Foreclosure on Your House and Allow You to Effectively Make Payments to Catch up on Missed Payments of Your Mortgage.

If your home is in a foreclosure, then a Chapter 13 will stop it if is filed before the sheriff’s sale. However, a bankruptcy does not eliminate your mortgages that are filed on your home. A Bankruptcy will structure a repayment plan to enable you to repay the amount that you are behind on your mortgage over a three to five year period.

3. Prevent Your Car or Other Property From Being Repossessed.

Bankruptcy can save property such as a car from being sold even if it has already been repossessed. However, your bankruptcy must be filed before the car or other property is sold at the auction. Again, money owed will be consolidated into your Chapter 13 plan. After you file, you will no longer pay the bank or the finance company, instead you will make your monthly payments to the bankruptcy trustee who in turn will pay the finance company your missed payments over a three to five year period.

4. Reduce or Even Wipe Out High Medical Bills.

A Chapter 7 Bankruptcy can wipe out your outrageous medical bills that simply won’t go away.

5. Recent Loss of a Job.
Many people fall behind in bills and seek to file bankruptcy due to the loss of a job or some means of income. Many times the loss of a job is combined with the fact the debtor is also incurring high medical bills. The loss of employment is also intertwined with a family also incurring high medical bills.

If any of the first five reasons to file Bankruptcy fit your situation please contact Ben W. Koyl at Our Website. Check in to our next blog for seven more common reasons people file for bankruptcy.

Resource #1

Resource #2

Chapter 7 and Chapter 13, The Basics

noreply@blogger.com (Anonymous) — Mon, 16 Jan 2012 21:18:00 +0000

Chapter 7 may be filed by an individual or a business and is considered liquidation because some or all of the debtor’s property may be sold (liquidated) in order to pay off some of their debt. However, in Florida and other states, some property, known as exempt property, is protected and cannot be sold in order to pay money owed by the debtor. In return for filing Chapter 7 some or all of the debtor’s unsecured debts (debt with no collateral attached) will be discharged. Secured debts on the other hand are usually not dischargeable in Chapter 7 Bankruptcy. There are several choices of what to do for money owed on a secured debt. The debtor can either allow that property to be repossessed by the creditor, to continue payments on that property by reaffirming that debt, or redeem the property by paying the creditor a sum equal to the replacement value of that property.

Not everyone is entitled to file for Chapter 7 Bankruptcy because certain criteria must be met. The debtor’s income cannot be over a certain amount, and if it is, the debtor must pass what is known as "means test." Additionally, the court may dismiss the bankruptcy action if the debtor has filed a previous bankruptcy within a certain period of time or if the court believes the debtor is attempting to cheat their creditors.

Chapter 13 Bankruptcy

Chapter 13 is a type of bankruptcy referred to as reorganization because the debtor keeps all of their property but their debts are reorganized so that they may make monthly payments over of a time period of usually three to five years. Many times Chapter 13 is favored over Chapter 7 because it allows the debtor to save their homes from foreclosure by providing the option for the debtor to make up for those payments in their repayment plan. In order to file Chapter 13 Bankruptcy the debtor must have a reliable source of income that can be used to repay debts over a period of three to five years. The payments are determined by how much the debtor earns, how much is owed, and how much unsecured debt may have been paid.

The Law Office of Ben W. Koyl, P.A. offers Bankruptcy Services including Chapter 7 Bankruptcy(Fresh Start) and Chapter 13 Bankruptcy (Bankruptcy Payment Plan); Tax Services including Tax Preparation, Tax Amendments, Offer in Compromise (Tax Settlement), Audit Assistance, and Tax Appeals; Formation of Business Entities (Corporations, LLC, Partnership) Estate Planning (Wills and Trusts) This blog will explore the various areas of law which Ben W. Koyl focuses on and news surrounding each. For more on these topics or for contact information please visit http://northmiamibankruptcyattorney.com/.

Insolvency Can Happen to Anyone and Bankruptcy Can Help

noreply@blogger.com (Anonymous) — Thu, 12 Jan 2012 21:12:00 +0000

The very word often brings an almost dirty connotation to the minds of many people. People with little knowledge on the topic of bankruptcy often have misplaced or incorrect feelings and beliefs on what bankruptcy is and what it actually does. Before researching and learning about bankruptcy I was one of those people who had misplaced beliefs. I thought of bankruptcy as if it were in the game Monopoly. I believed it was just something that happened to someone when they lost all of their money, were poor, and were not productive members of society. I could not have been more wrong. Not only have I learned that there are many types of bankruptcy, but I have learned that it affects people of all walks of life and financial status.

So what does bankruptcy basically do?

One of the most important things about bankruptcy many people do not know is that it can be an effective tool to discharge one’s debt and protect assets such as real property. Bankruptcy allows people in over their heads to improve their financial condition by either discharging unsecured debts or through the creation of a payment plan which suits the individual debtor’s ability to pay while still being able to live.

There are several types of bankruptcies used for various situations.

“Chapter 7 Bankruptcy involves the liquidation of an individual or business’s assets and is the simplest and fastest version available. Chapter 9 Bankruptcy is known as municipal bankruptcy used to resolve municipal debt. Chapter 11 Bankruptcy is known as reorganization or rehabilitation bankruptcy primarily used by business debtors which liquidate some functions and assets while a business continues to maintain their day to day operations relatively undisturbed. Chapter 12 Bankruptcy is rare and is used for rehabilitation of fishermen or farmers that have lost a portion of their capital due to bad catch or harvest, among other reasons.Chapter 13 Bankruptcy is a rehabilitation bankruptcy that comes with a payment plan for individuals with a regular source of revenue or know someone that is willing to pay the creditors in installments while a person’s finances is being restored. Chapter 15 Bankruptcy is known as ancillary bankruptcy and is used primarily in international situations to enable foreign investors and debtors to clear debts that they cannot pay and cannot be held liable in the issuing country.”