Category Archives: Bankruptcy News

Florida Means Test Changes April 1, 2014

The median income used for the bankruptcy means test changes on April 1, 2014.   The median income figures slightly increase.  These figures are the starting point for determining eligibility between chapter 7 and chapter 13. The list below is the median income for each household size: 1    $41,939   2.    $ 52,598   3.     $ 54,742   4.   $64,122, and an additional $8100 for each additional person in the household.  These figures will now be used for any Florida bankruptcy including Fort Lauderdale bankruptcy filings.

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Florida Chapter 7 Lien Strip Alive and Well (For now)

I attended the November 8 Bankruptcy View from the Bench Seminar.  All of the bankruptcy judges from the Southern District of Florida attended as well as a few other judges from elsewhere in Florida.  They provided their annual update and comments on important court cases during the past year. One of the issues discussed was the pending litigation in the GMAC v McNeal case on the stripping off of a wholly unsecured second mortgage in Chapter 7.   Bottom line, the current status of McNeal  provides binding authority for Florida bankruptcies that would permit the elimination of entirely unsecured second mortgages in Chapter 7, but this binding authority might not last long.  Now may be the only time to strip off second mortgages in chapter 7.  If you want to get confused, keep reading the next paragraph. The 11th Circuit Court of Appeals decision was previously unpublished, non-binding,  but became published so is…
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Bankruptcy Mandatory Mortgage Mediation: Success Rate # 2

The new program for mandatory mediation program for South Florida bankruptcies obviously does not yet have any results since the program only became effective on April 1,  2013.  So what basis do we have to estimate a success rate for a Fort Lauderdale mortgage modification in a bankruptcy mediation? The Bankruptcy Court for the Middle District of Florida previously adopted a mandatory mortgage mediation program.   The success rate of the mandatory bankruptcy mediation program is reported to be at 76%, unlike the state court foreclosure mediation rate of under 5%. I should clarify the definition of success.  The 76% figure is based on lenders providing a proposed modified mortgage to the homeowner.   It must be understood that many individuals might be unable or unwilling to accept the proposal made by the lender.  But just getting to the point of receiving a firm offer of a modification within a reasonable time would be a great accomplish for…
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