We believe that everyone deserves a fresh start. There are legal solutions available that can help you achieve that fresh start. Through this monthly newsletter, it is our goal to offer you information, as well as solutions, garnered over 35 years of combined legal experience practicing bankruptcy law and student loan law. If you need assistance with your student loans, our goal is to demystify student loans and put you in control of your options. If you are considering bankruptcy, we understand the seriousness of choosing to file bankruptcy, and we want to give you power through knowledge to help you make that decision.  Please contact us for a no-cost consultation.

 

Sincerely, 
 
Jonathan Leiderman and Zach Shelomith
www.lslawfirm.net
[email protected]
954-920-5355

What Can I Lose When Everything is on the Line?


One of the most common fears that individuals face in filing a personal bankruptcy is the belief that they will lose their assets. It is natural to worry about how a bankruptcy will affect your current lifestyle. However, the fact is that, in many circumstances, you are more likely to lose your home and personal property if you do nothing than if you file bankruptcy. Most people who file bankruptcy get to keep most, if not all, of their property. 
 
The answer to the aforementioned question is based on the law of exemptions. While some states allow its residents to choose between using that state's exemptions and federal exemptions, Florida residents who have lived in Florida for at least 730 days must use Florida's state exemptions. Florida residents who have lived in Florida for less than 730 days are not eligible to use Florida's exemptions. Instead, they must look to their former state's laws to determine if they must use their former state's exemptions or if they are able to use the federal exemptions. 
 
How do exemptions work in Florida? 
 
When we file a bankruptcy case for a client, one of the schedules that we file is called "Schedule C - Property Claimed as Exempt." On the day of filing, we help the client claim all of the applicable exemptions and list them on Schedule C. If, after the bankruptcy is filed, no objections to the claimed exemptions are made, the assets claimed as exempt will be excluded from the client's bankruptcy estate. In other words, if the client filed a Chapter 7 bankruptcy, the trustee could not seek to take possession of the client's exempt assets for the purpose of liquidating them for the benefit of the client's creditors. In addition, if the client filed a Chapter 13 bankruptcy or an individual Chapter 11 bankruptcy, the value of those exempt assets would not be a part of the equation used to determine how much the client would need to pay creditors.  
 
Can I protect my home in Florida? 
 
If you are current and able to keep up with your mortgage payments, you are able to exempt your homestead (as long as it is no larger than 160 acres if it is located outside of a municipality or � acre if it is located in a municipality) and keep it after filing a Chapter 7 bankruptcy in Florida, as long as you have owned the home for at least 1215 days prior to the day you file bankruptcy (or if you used the proceeds from a prior Florida homestead to purchase your current home). If you haven't owned the home for that long, the exemption is limited to $146,450.00 of equity. 
 
If you are behind on your mortgage payments, you may be able to keep your homestead and repay the arrears over 3 or 5 years in a Chapter 13 bankruptcy or an individual Chapter 11 bankruptcy. 
 
Can I protect my personal property in Florida? 
 
In Florida, some categories of assets are 100% exempt in and of themselves. The following is a list of some of the more common exempt assets in Florida: 
 
  • Government employee benefits
  • Life insurance proceeds(exempt as to the insured/owner of the policy) 
  • Cash surrender value of life insurance policies and annuity contracts 
  • Unemployment compensation 
  • Disability benefits 
  • .Social security benefits 
  • Veteran's benefits  
  • Necessary alimony and child support 
  • Qualified retirement accounts (401k, IRA, etc.) 
  • Qualified profit sharing plans 
  • Qualified stock bonus plans 
  • Florida prepaid tuition plans 
  • Medical savings accounts 
  • Earned income portion of a tax refund 
  • Workers' compensation 
  • Damages for injury or death at work 
  • Crime victim's compensation 
 
What about my wages? 
 
All of the disposable earnings of a head of family (any person who is providing more than � of the support for a child or other dependent) whose disposable earnings are less than or equal to $750.00 per week are 100% exempt from creditors. Disposable earnings of a head of family which are greater than $750.00 per week may not be attached or garnished by creditors unless such person has agreed otherwise in writing. 
 
If you are not the head of your family, 75% of your disposable income is exempt from creditors. 
 
What about the rest of my personal property that is not innately exempt? 
 
Don't worry. 
 
Each individual who qualifies to use Florida's exemptions, regardless of whether he/she owns any of the innately exempt assets listed above, is entitled to a $1,000.00 exemption that can be applied to any type of personal property. 
 
In addition, each such individual who has equity in a motor vehicle is entitled to an additional $1,000.00 vehicle exemption. 
 
Also, each such individual who does not own a home, or who does not claim or enjoy the benefit of a homestead exemption, is entitled to a $4,000.00 "wild card" exemption that can be applied to any type of personal property. 
 
Thus, individuals who qualify to use Florida's exemptions, in addition to being able to keep all of their innately exempt assets, are entitled to anywhere from $1,000.00 to $6,000.00 of personal property exemptions. These exemptions are doubled for married couples who file a joint bankruptcy, meaning that they may be entitled to anywhere from $2,000.00 to $12,000.00 of personal property exemptions. 
 
Florida's bankruptcy exemptions are fairly liberal and favorable toward debtors.  
 
Don't be afraid of losing assets in your personal bankruptcy. Let an experienced attorney review your individual circumstances and explain how exemptions may protect your property if you file a Chapter 7, 11 or 13 bankruptcy. You might be able to eliminate the majority of your debt and keep most or all of your assets!  
 
To learn how filing bankruptcy could benefit you, contact Leiderman Shelomith, P.A. to schedule a no-cost initial consultation. 
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We Can Now Protect You From Crippling Student Loan Debt!


 

We are excited to announce that our firm has expanded our practice areas to now include student loan law. We can assist individuals who live in Florida with their federal, state, and private student loans.  

 

We offer a comprehensive and personalized package - discussing the various repayment options, performing an analysis of what the best options are for the client given his/her particular situation, and implementing the solution. We help individuals who are in good standing, but see that they are not able to afford their monthly student loan payments, and we also help borrowers who are delinquent or in default with their federal, state, or private student loans.

 

For federal student loans, we can help borrowers cure their defaults through settlement, rehabilitation, or consolidation, and assist with extended repayment plans, many of which involve partial student loan forgiveness. There are also administrative discharge options available to some borrowers. 

 

We also now defend student loan lawsuits, brought either by private lenders or the Department of Education. There are numerous options available that many borrowers do not know about, and there is a great deal of misinformation on the internet.  There are also several possibilities available for a full or partial bankruptcy discharge, including loans that were not to an "eligible education institution", loans that were not for an "eligible student", and loans that were not made for "qualified higher education expenses".   

 

Our firm can help borrowers who simply want assistance with their student loans, and we can also help individuals who are interested in filing for bankruptcy, but who also want to see if there are strategies for dealing with their student loan issues.

 

We give a no-cost initial consultation to all prospective student loan law and bankruptcy clients. If you, or someone you know, is interested in learning more, or if you have a potential client referral, please feel free to call our office at 

(954) 920-5355. 

 

Upcoming Events

June 5, 2014

Bankruptcy 101 Seminar 
Sponsored by Pincus Professional Education
 
Jonathan Leiderman and Zach Shelomith will both be featured speakers.

Miami Marriott  
Biscayne Bay
1633 N. Bayshore Drive
Miami, FL 3313

June 6, 2014 

University of Miami School of Law's 24th Annual Bankruptcy Skills Workshop.

Zach Shelomith will be a featured speaker. 

 

 

 

A Common Bankruptcy Myth Dispelled

 

A married couple who had a 3 year old daughter and had lived in Florida for the past 5 years came to see us for an initial bankruptcy consultation. They were interested in filing a Chapter 7 bankruptcy, as the husband recently lost his job, and the couple was unable to keep up with their monthly expenses. They had unsecured debt (credit cards and medical bills) of approximately $200,000.00. They rented their home, and owned personal property (clothing, household goods and furnishings, jewelry, and electronics) worth about $7,500.00. The husband was collecting unemployment. The wife was the head of her family. The husband and wife each owned cars with equity valued at $1,000.00. The wife had an IRA through her employer worth $25,000.00. They were worried that if they filed a Chapter 7 bankruptcy, they would lose their assets.

We were able to put the couples' minds to ease very quickly. This was a good example of how people can discharge all of their unsecured debt in a Chapter 7 bankruptcy and also keep all of their assets.

First, we explained that as long as the wife left the $25,000.00 in her IRA, it was completely exempt.

Second, we explained that they were each entitled to a $1,000.00 motor vehicle exemption. Since each car had equity of only $1,000.00, they were both completely exempt.

Third, we explained that since they rented their home and did not own a home to claim as exempt, they were each entitled to personal property exemptions totaling $5,000.00 (collectively $10,000.00). Since the rest of their personal property was only worth $7,500.00 (under $10,000.00), they were able to claim it all as exempt.

A common bankruptcy myth was dispelled. They were thrilled!

If you, or someone you know, are considering bankruptcy, but are worried that you may not be able to keep all of your assets, please contact our office for a no-cost consultation.
 
About Leiderman Shelomith, P.A. 

Leiderman Shelomith, P.A. was founded by Jonathan Leiderman and Zach Shelomith in 2003. The firm quickly built an excellent reputation across South Florida as a boutique bankruptcy law firm, handling both personal and corporate bankruptcy matters, including Chapter 7, Chapter 11 and Chapter 13 bankruptcy cases, as well as state court Assignments for the Benefit of Creditors. Ashley Prager Popowitz joined the firm as an associate attorney in 2009.  The firm began representing borrowers with their federal, state, and private student loan matters in 2014, including the defense of student loan lawsuits.

 

The firm's attorneys have been recognized as a South Florida Legal Guide Up and Comer, a Super Lawyer Rising Star for the State of Florida, a Florida Legal Elite Up and Comer, and a Florida Legal Elite. Our attorneys are members of the National Association of Consumer Bankruptcy Attorneys, the American Bankruptcy Institute, and the Bankruptcy Bar Association for the Southern District of Florida, among other organizations. The firm's attorneys are also frequent lecturers at seminars and community programs, speaking about bankruptcy law to attorneys and the general public.

 

The firm, Mr. Leiderman, and Mr. Shelomith, are AV� Preeminent Rated Attorney's, awarded by LexisNexis� Martindale-Hubbell�, for having obtained the highest possible peer-review rating for their ethical standards and legal ability.

 

The firm represents debtors, creditors, and bankruptcy trustees in all aspects of bankruptcy cases, including litigation and appeals, handling both liquidations and reorganizations. The firm also represents borrowers in all aspects of student loan law, including federal, state, and private student loans. Our office is conveniently located in suburban Fort Lauderdale, Florida, and is easily accessible from anywhere in Miami-Dade, Broward, and Palm Beach Counties. We handle bankruptcy debtor cases across the Southern District of Florida, particularly in Broward, Miami-Dade, Palm Beach, and Monroe Counties, and other bankruptcy cases and student loan matters throughout the entire State of Florida.