Price Increases Set For June 2014

OK, it appears the Court is increasing fees again.  Recently the Court raised fees, followed by a shifting of having Debtor's attorneys mailing Orders (ultimately an extra expense for Debtors), to the Court cutting back on staff.  Now the fees are again being increased.

Please see the email correspondence I recently received.  
(PLEASE REMEMBER, I'm just the Messenger)

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The Judicial Conference of the United States met on March 11, 2014, and approved changes to the Bankruptcy Court Miscellaneous Fee Schedule effective June 1, 2014. A summary of those changes follow: 

The fee for filing a complaint increases to $350.00.
The following administrative fees are increased to the totals noted:
- For the filing of a petition under Chapter 7, 12, or 13, $75.00.
- For the filing of a petition under Chapter 9, 11, or 15, $550.00.
- When a motion to divide a joint case under Chapter 7, 12, or 13 is filed, $75.00.
- When a motion to divide a joint case under Chapter 11 is filed, $550.00.

As a consequence the increases effective June 1, 2014, the full fee for filing a -
Chapter 7 will be $335.00
Chapter 9 will be $1,717.00
Chapter 11 will be $1,717.00
Chapter 12 will be $275.00
Chapter 13 will be $310.00
Chapter 15 will be $1,717.00
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So, what is the change for Chapter 7 and Chapter 13 Filers?

For Chapter 7, the fee is increased from $306.00 to $335.00.
For Chapter 13, the fee is increased from $281.00 to $310.00.

That's right, a $29.00 increase.

If you feel like giving me your feedback on this, I certainly understand.  Do you think there should be a limit as to what the filing fees should be to file bankruptcy?

 

How Can I Stop Telemarketing Phone Calls?

The following can be found at

http://www.usa.gov/topics/family/privacy-protection/telemarketing/do-not-call.shtml

The federal government's Do Not Call (DNC) Registry allows you to permanently restrict telemarketing calls by registering your phone number at donotcall.gov or by calling 1-888-382-1222. If you receive telemarketing calls after your number has been in the national registry for three months, you can file a complaint using the same web page and toll-free number.

The Federal Trade Commission advises that it is not necessary to register cell phone numbers on the DNC Registry despite e-mail claims circulating on the Internet telling you to do so.   [This is regulated by the Telephone Consumer Protection Act]

Placing your number on this national registry will stop most telemarketing calls, but not all of them. Calls that are still permitted include those from:

• Political Organizations
• Charities
• Telephone surveyors
• Some insurance situations
• Organizations with which you have a relationship

How To File A Complaint About A Sales Call

If you think a sales call is in violation of the Federal Trade Commission rule and want to file a complaint, use the online resource.

A Federal Trade Commission rule defines what telemarketers can and cannot do when making a sales call. Callers must:

• Provide the seller's name.
• Disclose that the call is a sales call.
• Tell you exactly what they're trying to sell.
• Disclose the total cost and other terms of sale before you make any payment for the goods or services
• Tell you if they don't allow refunds, exchanges or cancellations
• If a prize is involved, the caller must give you the odds of winning, inform you that no purchase is necessary, and tell you how to get instructions for entering without buying anything.

It's illegal for telemarketers to:

• Misrepresent what they're offering.
• Call before 8 a.m. or after 9 p.m.
• Threaten, intimidate or harass you, or call again if you ask them not to.

This FTC rule applies even when you receive a call from a telemarketer in another state or country. It also applies if you make a call to a company in another state or country in response to a mail solicitation.

The rule generally does not apply when you call to order from a catalog or in response to an ad on television or radio, or in a magazine or newspaper. It also does not apply to solicitations you receive by fax or e-mail. Be aware that certain types of businesses, including nonprofit organizations, investment brokers and advisors, banks and financial institutions, are exempt from the rule.

In addition, telemarketers are not allowed to use auto dialers to reach cell phones.

If you get a phone call from someone who says they are with your bank and/or credit company and they ask you to provide or confirm any personal information:

• Do NOT answer any questions.
• Hang up immediately.
• Call your bank or credit company directly and tell them what happened.

Clay County Florida Bankruptcy Attorney

I thank all my wonderful clients for a great year in 2013. Now, in 2014, I would like to change things to be able to better serve my clients. As things slowed down around the Christmas holidays, I had a chance to sit back and take inventory of my practice. I have decided to make a few changes.

First, I have a goal of making myself more accessible to my clients. Toward that end, I am going to develop a way to provide consultations over the internet using current technology, such as Skype. This should prove to be much more efficient than having to get people to come into my office.

Secondly, I plan on moving my office to a more central location for my clients. I am looking at opening 2 offices; one in Green Cove Springs and one in Middleburg. While the offices are only 30 minutes from each other, they are in very different geographic locations within Clay County.

I have a web address of www.bankruptcyjax.com, which is not very descriptive of being a Bankruptcy Attorney in Green Cove Springs, or a Bankruptcy Attorney in Middleburg. Both are in Clay County, and as such, perhaps I should promote myself as a bankruptcy attorney in the Greater Clay County Area.

How should I promote my web site? Any thoughts?

UPDATE:  Effective February 15, 2014, my Green Cove Springs office will be open, and by March 1, 2014, my Middleburg office will be open.

NACBA 2014 Convention in New York City

 

The National Association of Consumer Bankruptcy Attorneys (NACBA) 2014 Annual Convention is being held in New York.  This is the 22nd annual convention for the organization, and they are "pulling out all the stops" for this one, as this is the first year it is being held in New York. 

For a while, they were keeping it quiet as to what hotel it would be held at while they were negotiating for a room block.  Now their web site has made it official; it will be held at the New York City Hilton Midtown from April 10-13, 2014, and the room rates are expected to be $279.00 per night when the room block opens later this winter.  This rate is good for three days before and after the event.  I know this might sound high, but for New York Midtown, this is really a good rate.

I expect the 10th of April (the first day) to be a group activities event day.  So, if you think you might want to participate in the group activity, you might want to show up a day early.  If you are simply there for the CLE, then showing up on the April 10th should be fine.

The Convention, with five plenary sessions, 20 breakout sessions, and roundtable discussions will cover some of today’s hottest bankruptcy topics.

Arrangements for things like pre-convention group activities, speakers, and other event related activities are still being finalized.  As I receive more information about the event, I will try to post it.

Retirement Funds:A Look At The Solo 401(K) For The Self Employed

TAXES -- OK, don't stop reading now, and don't start getting teary-eyed.

Of course, taxes are relevant to bankruptcy.  But, I am actually going to take a different approach than what you might be thinking concerning bankruptcy.

There are but few places where one can maintain assets in a secured place, free from the threat of creditor's claims.  One place is created by everybody's best friend, the IRS (yes, love your enemies!).  If you have a retirement account, recognized by the Internal Revenue Service, in most instances, those funds are probably protected.

OK, so now for retirement accounts.  While everyone has heard of many of the more popular retirement plans, such as an IRA, and a 401(k).  But there are actually many types and varieties of retirement plans, including one I only recently heard of referred to as a Solo 401(k).

That's right, this blog is really about something you might be interested in reading if you are self-employed and looking for a way to put aside some money.

If you are looking for a way to put aside some money for retirement, a Solo 401(k) may be just the thing for you. As you probably already know, there are limited places you can put funds to where they are protected from creditor's claims.  While it appears most self-employed individuals have an IRA as a retirement vehicle, a Solo 401(k) allows you to put away a significant chunk of change that’s protected from taxes and creditors.  It’s all in the name of retirement and long-term financial well-being.


Freelancers, self-employed professionals and others are used to the “feast or famine” routine.  Good years can be spectacular, but they’re largely balanced out by the not-so-good ones.

Solo 401 (k) – A Better Bet For Self-Employed

The Solo 401(k) allows much larger annual contributions than the typical IRA account.  If you (or you and your spouse) are the only employees, you get to skip all of the fairness rules that make running a 401(k) plan so expensive. For 2013, you can put away more than three times the IRA limit if you are over 50.  You can also defer some of your earnings for later years, too.  Total contributions in a year can be as much as $50,000.  That will fund lots of leisure in retirement, if you contribute regularly.

Read more: Solo 401(k) Do’s and Don’ts

Solo 401(k) Must Be Opened By December 31. In order to take advantage of the Solo 401(k) for this year, you must open and fund your plan by December 31.  This is in contrast to the normal deadline of April 15 for opening and funding an IRA.

Contact any of the discount brokerage houses to open up your Solo 401(k) Plan.  Your future self will thank you.

Some Bankruptcy Fees Going Up December 1, 2013

 
What ever happened to the concept of what goes up, must come down.  I think this concept is a bit blurred when it come to government, and as of late, the Courts.

The Bankruptcy Court is at it again, that is, they are increasing fees on certain things.  



Information from the U.S. Bankruptcy Court, Middle Florida on fee increases based on recent actions taken at the Judicial Conference and Changes effective December 1, 2013 are as follows:

     - a new fee of $176.00 has been established for the filing of motions for the sale of property free and clear of liens under 11 U.S.C. § 363(f).
     - the records retrieval fee in all federal courts has been increased by $11.00 (from $53.00 to $64.00) for the first box requested from a Federal Records Center, and created a new fee of $39.00 for each additional box requested.

and for those that handle bankruptcy appeals, under the Conference increased the appellate filing fee (referred to as the "docketing fee" in the schedule) from $450.00 to $500.00.

As for the good news, most of the fees bankruptcy practitioners deal with everyday have not been touched.  At least, not yet.

How Is Social Security Income Treated in a Chapter 13 Bankruptcy?

 

So, you need to file a Chapter 13 bankruptcy.  Your earned income covers your secured payments, such as your mortgage and vehicle payments.   But you also have unearned income in the form of monthly Social Security checks.  So, do you have to include the social security checks as income in the Chapter 13 Plan?

The short answer is NO. 

Social Security income may be used, it does not have to be used in means test or the Chapter 13 Plan.  This means, this is income you can keep. Although it must be disclosed, it is not included in disposable income that must be paid to the Trustee.

If you are interested in a longer analysis of this, you would first look to the good faith test under Code § 1325(a)(3).  This does not require the contribution of Social Security benefits to a Chapter 13 plan. 42 U.S.C. § 407 was passed by Congress to protect Social Security benefits, which have a special status in
this country.

Next, you should look to Section 407, which was meant to be so wide and sweeping that § 407(b) provides that “[n]o other provision of law ... may be construed to limit, supersede, or otherwise modify the provisions of this section except to the extent that it does so by express reference to this section.”

And lastly, we should review the good faith test under § 1325(a)(3); it does not mention section 407, so §1325(a)(3) must not be meant to limit, supersede, or otherwise modify section 407.

Consequently, debtors are not in bad faith merely for doing what the Social Security Act and the Bankruptcy Code allow them to do.

In re: Canniff, --- B.R. ----, 2013 WL 5310178 (Bankr. S.D. Ind. Sept. 19, 2013)