Monthly Archives: October 2014

Florida Means Test Changes Nov. 1, 2014

The Florida bankruptcy means test figures change again on November 1, 2014.  The median income figures both increase and decrease.  For a household of 1, there is a slight increase to $42,036.00;  for a household of 2, a slight decrease to $51,584.00;  for a household of 3, a large increase to $57,052.00;  and for a household of 4, a large increase to $66,461.00.  The median income increases an additional $8100 for each additional member of the household.  Overall, the median income figures have increased.  This means higher incomes will be considered as under median income for purposes of eligibility for chapter 7. (This also affects the length of the required fort lauderdale chapter 13 bankruptcy.  You can contact us to explain the “applicable commitment period” of 3 or 5 years.)

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Trustees Find New Ways to Sell Debtor’s Real Estate

Trustees are finding new ways to sell debtor’s real estate in South Florida bankruptcies. I recently litigated this issue as to  property that was co-owned by the debtor and a non-debtor, which will be discussed below. I represented the co-owner who was not in bankruptcy. The basic idea is that Debtors could be unpleasantly surprised if not fully aware of this development.  Trustees have made arrangements with lenders to sell all of the trustee’s right, title and interest in the debtor’s real estate.    These sales could be by short sale or actually by selling back to the foreclosing lender.  The bankruptcy trustee would be paid a “carve out”,  meaning the trustee receives funds for the benefit of the bankruptcy estate. In theory, there would be a meaningful contribution to unsecured creditors, but realistically, most would go to the trustee and his or her attorney.  An aggressive pilot program has…
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