Securities Fraud Lawyers Blog

Three Things You Need to Know Before Filing for Bankruptcy

Published on: June 25, 2015 | by Savage Villoch Law, PLLC

Filing for bankruptcy does not necessarily mean you are an irresponsible person or an untrustworthy consumer. In fact, studies conducted at the National Bureau of Economic Research found that even those well-paid Tampa Bay ball players you love were filing shortly after they retired their jerseys (actually, more than 78% of them). The reason behind this occurrence is what’s known as “financial stress,” and we all go through it. Regardless of whether we make millions or simply survive from paycheck to paycheck, we are all definite candidates for bankruptcy if things go awry.

Three Tips to Help You Prepare for a Smooth Bankruptcy

Financial stress or not, you need to proceed with caution. Before you even think about getting started, be sure to arm yourself with strong team of professionals. You could be doing irreparable damage to your case and not even know it. A good attorney will always give you detailed instructions on the dos and don’t of filing for Chapter 7 or Chapter 13 bankruptcy. However, there are some basic things everyone should know before moving forward.

When filing bankruptcy do I have to sign a reaffirmation agreement?

Published on: June 18, 2015 | by Savage Villoch Law, PLLC

During a bankruptcy filing, most people wish to keep their home and vehicle. In some cases, secured creditors will ask people filing bankruptcy to sign a reaffirmation agreement. In nearly all cases, this is not a good idea for a number of reasons.

What is a reaffirmation agreement?

Reaffirmation agreements are in effect an agreement that you owe a lender money. One of the things that many bankruptcy filers are unaware of is that when they file bankruptcy, the promissory note portion of the mortgage is part and parcel of the bankruptcy. If you do not sign a reaffirmation agreement, and later have trouble paying your mortgage, the lender cannot hold you accountable for the debt. This also means if your home is sold for less than what you owe, the lender cannot successfully pursue a deficiency judgment.

Yes, Florida in the Ponzi scheme news again!

Published on: June 12, 2015 | by Savage Villoch Law, PLLC

Are you surprised to see Mr. Ponzi again? Didn’t think so – this IS Florida after all.

As reported by Jim Schoettler of at the Florida Times Union in Jacksonville reported, Scott Hall, 50, stood before Corrigan and promised to somehow find a way to earn a living and pay his victim’s back once he’s freed from his ten year sentence.

Remarkably, Scott had the courage to tell the Court that “[t]his was not supposed to happen this way,” while he stood there wearing leg shackles and an orange jail jumpsuit. Of course not! He was not supposed to get caught is what he really meant. Do you think he truly has remorse for anything other than the fact that he was caught? I don’t think so.

Is Do it Yourself Bankruptcy Filing a Good Idea?

Published on: June 11, 2015 | by Savage Villoch Law, PLLC

When you want something done, do it yourself. That mantra doesn’t work in all industries. Filing bankruptcy in the legal world isn’t a DIY project. There are legal jargon and confusing phrases that only a trained and experienced bankruptcy lawyer can decipher. If you go into this procedure alone, you risk dismissal and delays that wouldn’t happen with a professional.

This is a list of complications due to incorrect paperwork and/or filing:

Forgetting to include debt to discharge in the paperwork

Bankruptcy: It Can Happen to Anyone

Published on: June 4, 2015 | by Savage Villoch Law, PLLC

I bet that up until this point, you haven’t given much thought to the financial security of celebrities. I also bet that a recent article in the Washington Post reporting on the bankruptcy rates of NFL players may change your mind. According to the research, football players are just as likely to file for bankruptcy as anyone else in their age bracket.

What I take from this, is that anyone can find themselves in a bankruptcy situation. Financial security is not static and it may be harder to amend fluctuations on your own than you think. If you find yourself asking whether bankruptcy is right for you or your business, it is best to find an experienced professional to discuss your bankruptcy options.

Do you want to liquidate your assets and start fresh?

What Are the Main Reasons People Have to File For Bankruptcy?

Published on: May 28, 2015 | by Savage Villoch Law, PLLC

The decision to file for bankruptcy is a personal one for you and your family. There are many reasons to consider bankruptcy, and here are some of the most common:

Getting out of credit card debt: Credit card debt is one of the main reasons why people in America today consider filing for Chapter 7 bankruptcy. You can easily become overwhelmed with credit card debt, especially when you consider the interest, late fees and other penalties, and ever-increasing minimum monthly payments. High credit card balances are one type of debt usually discharged or eliminated by filing a Chapter 7 bankruptcy.

In addition, when you file for bankruptcy, the court places a stay of protection on you that stops all debt collection attempts. That includes phone calls, letters, and lawsuits.

The Difficulties of Discharging Student Loan Debt With Bankruptcy

Published on: May 21, 2015 | by Savage Villoch Law, PLLC

Recently, President Obama proposed the idea of making student loan discharge through bankruptcy easier for millions of people who can’t make their payments. Soon after, thirteen U.S. Senators introduced the Fairness for Struggling Students Act of 2015 which places private student loans on the same level as other forms of consumer debt.

Although less than 10 percent of loans are with private lenders, talking about making student loans more eligible to discharge in bankruptcy is a step-forward for many drowning in debt.

This discussion is especially pressing because student loans are only behind home mortgages as the largest source of consumer debt in the U.S. There is even more student loan debt than that with credit cards.

Judge's Ruling Regarding General Motors 2009 Bankruptcy To Impact Ignition Switch Cases

Published on: May 14, 2015 | by Savage Villoch Law, PLLC

An April 15 ruling by a federal bankruptcy judge clarifies the impact of General Motors’ 2009 bankruptcy proceedings upon legal claims pertaining to faulty ignition switches.

Details of the Ruling

Judge Frank Gerber, of the U.S. Bankruptcy Court in Manhattan, was responsible for the ruling. He also presided over GM’s bankruptcy proceeding in 2009. Essentially, the ruling absolves the “new GM” from financial responsibility for misconduct by the “old GM.”

Choosing the right bankruptcy lawyer

Published on: May 7, 2015 | by Savage Villoch Law, PLLC

Choosing to go through bankruptcy is usually a final attempt by people in a difficult financial situation, who are trying to salvage what they may of their lives. They are sinking – due to the market collapse, a job loss, business going under, unexpected medical emergencies and the attendant sky-high bills, a mortgage they can no longer afford, the kids’ college tuition, or maybe just from poor money management – whatever the reason, their financial boat is under water. Creditors are threatening to take the few assets they’ve managed to keep and they’re facing utter ruin. At this point they need to find the best bankruptcy lawyer they can – the best one for them, specifically.

To this end, they must ask qualifying questions of their prospective lawyer:

What kind of bankruptcy should I file: Chapter 7 or 13, or is my situation more complex than that?

How do I know which chapter of bankruptcy to file?

Published on: May 4, 2015 | by Savage Villoch Law, PLLC

Bankruptcy is very complicated, and you should consult with an experienced and skilled bankruptcy attorney about your debt relief options. People with primarily consumer (not business debts) can file bankruptcy under either Chapters 7, 11, or 13 of the bankruptcy code. You must elect one chapter to proceed under at the very beginning of your case when you file the petition with the court. There are a few exceptions, but once you elect a chapter, you must stick with that chapter so it is very important that you know which chapter is best for you before you file.

Chapter 7 is for people who wish to give up their non-exempt assets in exchange for a discharge of most, if not all, of their debts. You must qualify for chapter 7, however. And to qualify, you must pass the “means test.” The means test looks back at your monthly income (from whatever sources, e.g., job income, rental income, alimony, child support, etc.) for the last six months. It will also consider your spouses income, if any, and how many dependents that you have. If you make below a certain amount as determined by these factors, then you qualify for chapter 7. If you made more than that amount, then you are required to file a Chapter 13 case.

Chapter 13 is for people who make a regular wage and either they make too much money to qualify for Chapter 7 (see means test above) and/or they would like to keep non-exempt assets that they would otherwise lose to liquidation in a Chapter 7 case. In a Chapter 13, a person agrees to pay a portion of his or her disposable income to a trustee who then makes the payments to the person’s creditors. The payment plan can be 3 to 5 years, but most of the time, it’s a 5-year plan. One of the benefits to a Chapter 13 case is that the debtor gets to keep non-exempt assets. For instance, if the debtor was involved in an auto accident case and is expecting a large settlement, but financial struggles have the debtor filing bankruptcy, then the debtor can keep the future settlement so long as the debtor elects Chapter 13 and makes all of his or her payments under the plan.