Miami Florida Bankruptcy Blog

Posts Tagged ‘Bankruptcy Gives You A Fresh Start’

A bankruptcy will be on your credit report for up to ten years. More likely than not, if you are filing bankruptcy your credit is already in pretty bad shape. The bankruptcy will actually help your credit in the long run. It will enable you to start with a clean slate and rebuild your credit history.

Typically, you will start to get offers for secured credit cards once your bankruptcy is discharged. In some instances people actually get offers for secured credit cards while they are still in bankruptcy! The key thing to remember is that the use of this post bankruptcy credit will dictate how quickly you rebuild your credit score. It is important to use this credit wisely. Your credit report will indicate that you filed bankruptcy, but just because that is on your report does not necessarily mean you can not get credit.

Secured Credit Cards require you to make a deposit equal to the credit limit of the secured credit card. The interest rates on these credit cards are typically higher than unsecured credit cards, but they are one of the best ways to rebuild your credit. A good rule of thumb for these credit cards is to treat them like you are using cash. If you make purchases during a given period make sure you pay them off. If you run into difficulties paying your balance, stop using the credit card until the balance is paid off.  It is in your best interest to limit the balance you are carrying month to month.  The important thing is that if used responsibly these secured credit cards will help you rebuild your credit.

Over time your responsible use of these secured credit cards will increase your credit score and increase your ability to get additional credit. The most important thing to remember is do not get caught in the credit card trap again. Don’t take out more credit then you are able and willing to pay off in a given time period. It is often better to use cash, as it is typically harder to pay for something in cash than it is with a credit card. Think about the last time you paid $100.00 or more in cash for something, you think about the purchase a lot more than you do when you pull out a credit card to pay for it.

If you have not re-established good credit in 2 to 4 years following your bankruptcy, chances are that it has nothing to do with your bankruptcy. Bankruptcy gives you a fresh start what you do with it is up to you.

Matthew E. Mazur, Jr. Esq., is the managing shareholder of Matthew Mazur, P.A., a Coral Gables, Florida based law firm that represents clients in Bankrutpcy matters. For more information please visit www.coralgablesbankruptcyattorney.com.

The short answer is No. It is against the law. Under the Bankruptcy code, when you file for bankruptcy, you have to list all of your property and all of your debts.

If you want to keep paying on specific debts, you are able to do so. After you file, there are some debts that you have to keep paying. For example, if you have a car, even though it is listed as a debt in your bankruptcy, if you want to keep it you have to keep making your payments. As long as you stay current on the loan and keep the car insured, you are protected under the law and you get to keep it. This is called Reaffirming a debt.  Your creditor typically will want you to sign a new contract (reaffirm) for the vehicle.

With regard to your property, as stated above it has to be listed in your bankruptcy. However there are exemptions available to you to use  while in bankruptcy.  The following is a list of Florida Exemptions:

Homestead

222.01 – Real or personal property, including mobile or modular home and condominium, to unlimited value. Property cannot exceed: 1/2 acre in a municipality, or 160 acres elsewhere. Spouse or child of deceased owner may claim exemption. (Also refer to Florida Constitution, as “Fla. Const. 10-4.”). May file homestead declaration. Also, tenancies by the entireties in real property are exempt as to debts of one spouse [In re Avins, 19 B.R. 736 (S.D.FIa: 1982)].

Personal Property

222.22 – Prepaid hurricane savings accounts, prepaid medical savings account deposits, and prepaid college education trust deposits.

222.25 – Motor vehicle up to $1,000; prescribed health aids; federal income tax credits or refunds.

497.56 – Pre-need funeral contract deposits.

Other – Any personal property up to $1,000 total. (Refer to as “Florida Constitution 10-4″) – Subject to doubling, if filed jointly both the husband and wife can each take $1,000.00 personal property exemption.

Wages

222.11 – For head of family, 100% of earnings up to $500 a week; Applies to either unpaid or paid wages, or wages deposited in a bank account for up to 6 months.

222.21 – Federal government employees’ pension payments that are needed for support and were received up to 3 months prior to the bankruptcy.

Pensions

11 U.S.C. § 522 – Tax exempt retirement accounts. Traditional IRAs and Roth IRAs up to $1,095,000 per person.

121.131 – State officers and employees.

122.15 – County officers and employees.

175.241 – Firefighters.

185.25 – Police officers.

222.21 – ERISA – qualified benefits, IRAs and Roth IRAs.

238.15 – Teachers.

Public Benefits

222.201 – Public assistance, unemployment compensation, Veterans’ benefits, and social security.

440.22 – Workers’ compensation.

960.14 – Crime victims’ compensation unless seeking to discharge debt for treatment of crime related injury.

Alimony and Child Support

222.201 – Alimony and child support needed for support.

Insurance

222.13 – Death benefits payable to a specific beneficiary.

222.14 – Annuity contract proceeds excluding lottery winnings; life insurance cash surrender value.

222.18 – Disability or illness benefits.

632.619 – Fraternal benefit society benefits.

Misc.

769.05 – Damages to employees for injuries incurred in hazardous occupations

If you have more questions about Bankruptcy or exemptions and you live in Miami-Dade County or Broward County, Contact my firm for a free consultation.

Matthew E. Mazur, Jr. Esq., is the managing shareholder of Matthew Mazur, P.A., a Coral Gables, Florida based law firm that represents clients in Bankrutpcy matters. For more information please visit www.coralgablesbankruptcyattorney.com.