J. Dinkins G. Grange is an attorney in Northeast Florida, helping his clients find solutions to their financial problems, which in some cases includes bankruptcy in some cases. This Blog contains general bankruptcy relevant information. His practice includes representing clients in various areas of civil litigation including Fair Debt Collection Practices Act, Chapter 7 and Chapter 13 bankruptcies, foreclosure defense and probate.
Today we will look at the letter "S". The question arises, should S be for Scam, or for Seidling?
Yes, poor Mr. Seidling, a 73 year old Key West, Florida and Hayward, Wisconsin man with only $195 to his name, was forced to file bankruptcy, and what made it even worse, he was unable to participate in his bankruptcy proceedings because of mental and physical infirmities.
Well, don't feel too bad about Seidling, as there is more to the story that resulted in Seidling being convicted by a jury on March 13, 2025 of two counts of Fraud and one count of criminal contempt of court. When Mr. Seidling filed bankruptcy in 2022, he stated he had no real estate, retirement accounts, trust, partnerships, or business related property. He further stated he had only one deposit account with a balance of $195. In actuality, Seidling had millions of dollars in personal and business assets, including more than $3M in personal and business bank accounts, over $1M hid beneath his home, and over $100K in cash discovered in his home together with more than $4M in uncashed cashier's checks.
Seidling defrauded the bankruptcy court by representing he could not meaningfully participate in his bankruptcy case because of his mental and physical health, while he was able to manage his businesses, conduct banking activity, and play tennis.
Seidling also violated an order issued by the bankruptcy court prohibiting the transfer or dissipating of assets when he transferred real estate and drained bank accounts.
Seidling is no stranger to the judicial system, as in 2013 he was convicted in Wisconsin of 50 counts of mail fraud and sentenced to 3 years in federal prison.
As a bankruptcy attorney in Jacksonville, Florida, I practice in several areas of debt relief, including foreclosure defense. The following blog is created with the intent of provoking discussion, addressing bankruptcy, Trustees, and the debtors wishing to retain their homes, when the mortgage is upside down.
So do you want to be in bankruptcy? Of
course not. And if you are also having your house foreclosed on, you
certainly don't want that either. So when you go to your local
attorney, you are advised as to whether or not you should file
bankruptcy, and what chapter you can file. You may also be advised
as to whether or not you can keep your house. If you are looking to
discharge you debts through bankruptcy, and upside down on your house
(that is, your 1st mortgage is higher than the value of
the real property), you may find this blog post interesting.
In Florida, there is reportedly a case
where a debtor decided not to claim a homestead exemption on Schedule
C of his bankruptcy paperwork, thereby allowing the debtor to claim a
$4,000 wild card exemption; this is another way of saying the debtor
can get though the bankruptcy and keep an extra $4,000 worth of
property. The Trustee and the mortgagee came up with the bright idea
of paying the Trustee to short sale the house. This would allow the
mortgagee to foreclose on the house in a very efficient and timely
manner, put some money in the Trustee's pocket, and avoid having to
possibly fight a judicial foreclosure.
The problem with this lies with the
duties of the Trustee, as the duties outlined in the bankruptcy code
do not include the trustee acting as a foreclosure attorney. Another
problem lies with the property itself. If there is no equity, is the
property a bankruptcy asset. There is a very strong argument that
can be made that the property, with no equity, is not an asset of the
bankruptcy estate.
UPDATE: The practice of at least one of the Trustees in the Jacksonville Division is to ask the bank to pay him to short sale the property. This is possible if 1) the debtor does not claim the property as exempt homestead property, and 2) the bank agrees. If you are filing the the Jacksonville Division, make sure you get the advise of an attorney before choosing to NOT claim your property as homestead.
A second case in Florida deals with the
Trustee deciding to tell a debtor to get out of their house when the
house is not claimed as exempt. Under the bankruptcy code, a trustee
either has to administer the asset or abandon it. If the debtor
simply moved out of the property, the debtor may be subject to fines
and penalties for not maintaining the house. These fines and
penalties would not be discharged in the bankruptcy because they
occurred post petition. Of course, we still have the problem of
whether or not the property is even property of the bankruptcy estate
to begin with.
A third case deals with the trustee
charging the debtor rent to stay in the house. That's right! The
problem here is to some extent obvious; that's right, the house may
not be a bankruptcy trust asset to begin with. But something you may
not have though of is, does the Trustee really want to be a
landlord, that is, they would be responsible to maintaining the
property. As far as I know, the typical Trustee does not want to
deal with landlord type problems; you know, the faucet leaks, the
plumbing is stopped up, the grass need mowing, etc. It is also my
understanding, in some jurisdictions, a landlord, or in this case
perhaps a property manager, would need to be licensed by the state.
Should a Trustee be able to take a
house with no equity? To what extent does the bankruptcy code
require the trustee to maintain the asset? If you have any thoughts
of enlightenment on this issue, please let me know below.
So, you filed bankruptcy and have
received your commencement notice from the court that includes, among
other things, the date, time and place of your Meeting of Creditors.
For many of my clients, the name conjures up thoughts from a horror
movie, only worse because instead of watching it on the big screen,
you have suddenly been thrust into, and made a part of, the movie.
"Meeting of Creditors"; that's really a
bad name, but it is what the bankruptcy code has given it. So, why is
it a bad name? Because it is rare that creditors show up. Certainly
they are invited when they receive the commencement notice of your
case (Form B9A). Yes, this is the same form you received in the
mail. But in reality, there is seldom any reason for creditors to
show up.
So, naturally you ask, for the times creditors show
up, why do they show up? Good question. The answer may not be very
straight forward, because obviously there could be as many different
reasons as there are creditors. However, in the past I have seen
creditors show up for several reasons, which can for the most part be
categorized as follows:
The creditor is unsophisticated,
and simply does not know he, she, or it does not need to be there.
The creditor is not clear as to
your intentions are regarding a secured asset, and simply wants a
clarification as to what your intentions are.
The creditor suspects fraud, or the
hiding of assets.
The creditor is upset, and has hired an attorney to attend
the meeting of creditors to ask questions, sometimes to try to
determine if there are any grounds for the court to deny the
granting of a discharge.
OK, so by now I suspect you are really nervous about attending the
meeting of creditors. Well, you can relax, as long as the documents
supplied to the court are truthful and you have been represented by
an attorney, you really do not have anything to worry about.
You
should expect the trustee to ask you hard questions (similar to the
ones I asked in my office during consultation). They will most
likely include some of the following:
Please state your name, address,
and telephone number for the record.
What is your work number?
Did you receive and read the
information sheet from the US Trustee's office?
Did you read the documents your
attorney prepared for you before signing?
Are they truthful and correct?
When you spoke with me on the
phone, did you answer all my questions truthfully?
Are there any changes that need to
be made?
Is there anybody that owes you
money?
Is there anybody you could bring a
cause of action against for damages for anything, including a
personal injury?
Have you ever received an
inheritance?
Have you received your tax refund?
How much was it, and when did you
receive it?
What did you do with it? (or, Do not spend the refund after
receiving it before you contact my office [referring to the
trustee's office]).
Most of all, remember you are placed under oath. Make
sure all you answers are truthful. Should
you get caught lying in federal court, it can definitely ruin your
day!
There may also be some questions about
schedules filed with the court.
I know what your thinking, hard
stuff; yeh, right ;)
That's it. It is usually uneventful,
and that is part of the reason you hired an attorney to help you with
the bankruptcy, to try to make sure it stays that way.
If you are still nervous, just show up
about 20 minutes early to sit in the room and listen to questions the
trustee is asking other debtors. Most likely, your questions will be
similar.
For the Middle District of Florida,
Jacksonville Division, remember a few things:
1) take any documents with you the
trustee asked you to bring (if any);
2) make sure you have your government
issued Photo ID (such as a Driver License) and Social Security card;
and
3) leave you cell phone in your car, as
they are not allowed in the courthouse.
"F" is for FREE. What is free without lots of adds trying to
solicit your business; how about a free credit report. Have you ever
wondered why they would go to the expense of advertising something
for FREE?
Well, I imagine you have guessed the
correct answer. It's because its not really free. You have to sign
up for a service by giving them account or credit card information.
So, how is their service free. Well, some services allow you to
cancel your agreement within a given number of days, and be charged
nothing. So, it's really not free if you have to do extra work to
get it.
The good news is, there actually is a
source for getting a free credit report once every 12 months. It is
from annualcreditreport.com. According to the Federal Trade
Commission, annualcreditreport.com is the only authorized source to
get your free annual credit report under federal law. You can go to
their website or call 877-322-8228. You can also order by mail by
filling out the Annual Credit Report Request Form and mailing it to
AnnualCreditReport.com
is the ONLY authorized source for the free annual credit report
that's yours by law. The Fair Credit Reporting Act guarantees you
access to your credit report for free from each of the three
nationwide credit reporting companies — Experian, Equifax, and
TransUnion — every 12 months. The Federal Trade Commission has
received complaints from consumers who thought they were ordering
their free annual credit report, and yet couldn't get it without
paying fees or buying other services. TV ads, email offers, or online
search results may tout "free" credit reports, but there is
only one authorized source for a truly free credit report.
I’ve seen a box at the top of some
websites saying:
"You have the right to a free credit report from
AnnualCreditReport.com or 877-322-8228, the ONLY authorized source
under federal law."
What’s this about?
A new law requires commercial websites that say they offer free
credit reports to include a box letting you know you can get a free
credit report atwww.AnnualCreditReport.com.
Click on the link to www.AnnualCreditReport.com,
the only place to get the free report that's yours by law.
Many companies claim to offer free credit reports – and some do.
But others give you a report only if you buy other products or
services. Still others say they’re giving you a “free” report
and then bill you for services you have to cancel. If you go to
www.AnnualCreditReport.com
and follow the prompts for your free credit report, you can be sure
the reports you get really are free.
How do I request my free credit
report?
You can request your free report online, by phone or by mail.
Visit AnnualCreditReport.com,
call 1-877-322-8228, or fill out theAnnual
Credit Report Request form and mail it to Annual Credit Report
Request Service, P.O. Box 105281, Atlanta, GA 30348-5281. No
matter how you request your report, you have the option to request
all three reports at once or to order one report at a time. By
requesting the reports separately, you can monitor your
credit more frequently throughout the year.
Why should I request my
credit report?
Because the information in your credit report is used to evaluate
your applications for credit, insurance, employment, and renting a
home, you should be sure the information is accurate and up-to-date.
In addition, monitoring your credit is one of the best ways to spot
identity theft. Check your credit report at least once a year
to correct errors and detect unauthorized activity.
What should I look for when
I review my credit report?
If you see accounts you don’t recognize or information that is
inaccurate, contact the credit reporting agency and the information
provider. For more information, read the FTC’s tips on how
to dispute credit errors.
If you suspect identity theft, you may need to place a fraud alert
on your credit report, close compromised accounts, file a complaint
with the FTC, or file a police report. Start by visiting the
FTC’sidentity theft website.
Failure
Begets Success Philadelphia Suburban
Bankruptcy Lawyer, Chris Carr MBA Family
Farmer/Fisherman Omaha and Lincoln,
Nebraska Bankruptcy Attorney, Ryan D. Caldwell Financial
Fatigue Cleveland Area Bankruptcy Lawyer,
Bill Balena First
Northern California Bankruptcy Lawyer, Cathy Moran Foreclosure
Colorado Springs Bankruptcy Attorney Bob Doig Foreclosure
Kauai Bankruptcy Attorney, Stuart Ing Foreclosure
Jacksonville Bankruptcy Attorney, Monica D. Shepard
Forgiveness
of Debt Los Angeles Bankruptcy Attorney,
Mark J. Markus Forms
Jacksonville, Florida Bankruptcy Attorney, J. Dinkins G. Grange
Fraud
Philadelphia Bankruptcy Attorney, Kim Coleman Fraudulent
Transfer Allen Park, Michigan Bankruptcy
Attorney, Christopher McAvoy Fraudulent
Transfer San Francisco Bankruptcy Attorney,
Jeena Cho Free
Consultation Wisconsin Bankruptcy Lawyer,
Bret Nason Fresh
Start Marin County Bankruptcy Attorney,
Catherine Eranthe Fresh
Start Metro Richmond Consumer and
Bankruptcy Attorney, Mitchell Goldstein Fresh
start Daniel J. Winter, Chicago Bankruptcy
Lawyer Future
Flow Agreement New York Bankruptcy Lawyer,
Jay S. Fleischman Free
Consultation Livonia, Michigan Bankruptcy
Attorney, Peter Behrmann Bankruptcy
Attorney Fees Michigan Bankruptcy Attorney
Kurt OKeefe Filing
Requirements Miami Bankruptcy Attorney,
Dorota Trzeciecka
Yes, "P" is for Payment. So, you just filed a Chapter 7 bankruptcy,
and at the time of filing, you were current on your payments on your
vehicle. You intend to reaffirm (keep) the vehicle. But now, after
filing and before your discharge, you have become late on a payment.
How will this effect you?
First, when presented with this
question, the number one concern usually centers around whether the
creditor can repossess the vehicle. The short answer is “That
Depends”. When you file bankruptcy, and automatic stay is put in
place preventing any collection efforts until one of several things
happen.
First, if the case is dismissed, the
automatic stay is lifted; that is to say, the creditor can commence,
or continue, collection efforts including the repossession of the
vehicle. If your case is dismissed, you are no longer in bankruptcy,
therefore, you are no longer afforded the protections of bankruptcy.
Depending you the circumstances surrounding your dismissal, you may
have to wait before you can refile.
Secondly, you are suppose to perform
your intention (reaffirm, surrender, or redeem) within 30 days after
the date set for your meeting of creditors, also known as the 341
meeting. If you fail to perform your stated intention, then the
creditor can go after the asset. However, from a practical
standpoint, the creditor may wish to seek permission from the court
before going after the vehicle.
If your initial intention regarding the
vehicle is to reaffirm it, you may want to consider if this is really
in your best interest. If the payments get behind after you have
signed and filed the statement of intentions, and you have been
granted a discharge, the creditor can repossess the vehicle, and go
after you for a deficiency balance the same as if you had not filed
bankruptcy. The difference is, it may be a while before bankruptcy
can help you again.
--- Other notable sites for "P is for ...":
Pay
Advice New York Bankruptcy Lawyer, Jay S.
Fleischman
Phone
Call Cleveland Bankruptcy Attorney, Bill
Balena
Plan
Omaha and Lincoln, Nebraska Bankruptcy Attorney, Ryan D. Caldwell
UPDATE - Revised 8/3/2020 The Court REVISES its Permissive Use
of Negative Notice List and Accompanying Orders List on a regular basis. The latest revised list may be
viewed on the Court's website or by clicking here.
Negative Notice
Yes, N is for Negative Notice. I realize this page is really catering to attorneys where I practice, and as such, may not be very useful to others. This page deals with procedural matters within in the Middle District of Florida only.
The following is taken from the FLMB
Newsletter, Volume 1, Issue 1, (No, not Willow Pond, as in the pic to the left) from Chief Judge Karen S. Jennemann. This is a newsletter for the Middle District of Florida, and the following should not be used in other bankruptcy districts.
Local Rule2002-4 provides for negative notice as permissible when
filing certain pleadings in order to determine if a matter is
contested. You must provide at least 21 days for responses
unless the list provides otherwise. Check Local Rule 2002-4 for more
details on how negative notice works in our district.
NOTE: This list has been EXTENSIVELY REVISED. See the latest posted updates at Negative Notice List.
Should you have a question regarding the Negative Notice List, please feel free to contact me, or another bankruptcy attorney for advise.
-----
Other links to the letter "N" are as follows:
Naked
New York Bankruptcy Lawyer, Jay S. Fleischman
Never
Cleveland Bankruptcy Attorney William Balena
No
Asset Metro Richmond Consumer and
Bankruptcy Attorney, Mitchell Goldstein
The letter “Y” is for Yacht.
That's right! Can I keep it? Am I off my rocker? After all, we are talking about
bankruptcy right? Well, some people, though admittedly not many,
have boats, or a yacht, that end up filing a personal bankruptcy.
One of the questions I ask at every
consultation is whether or not he or she has any cars, boats, planes,
or recreational vehicles. Most, including me at times, think this
question is overkill. However, being in Florida, it is not uncommon
for debtors to have boats.
A bankruptcy
trustee recently won court permission to hire real-estate and yacht
brokers to sell the assets of Frederick Darren Berg. Berg’s mansion
in Mercer Island, Wash., is listed at $8.2 million, according
to the Seattle Business Journal. Located on Lake Washington, the
5,400-square-foot house has four bedrooms, six baths, six fireplaces,
a hot tub, wine cellar, wet bar and two kitchens. That’s not to
mention its city and mountain views, boat dock and covered parking
for four vehicles.
Also up for
grabs is Berg’s 70-foot Holland yacht, the Screaming Cora,
which Berg says is worth $800,000. Sale proceeds will pay off Berg’s
creditors, including Sun Trust Bank (owed $797,450 on a boat loan
secured by the yacht) and Commerce Bank of Washington (which holds
the $4.38 million home mortgage). [emphasis added]
So, yes, there is at least this bankruptcy proceeding that
included a yacht. Normally, boats and planes in the name of the
debtor are not exempt from the bankruptcy process. The trustee would
take the asset and sell it (assuming there is equity in the asset) in
order to distribute the proceeds to creditors. Of course, in that case, the Trustee is thinking of Y as meaning "yield".
In Florida, however, if someone was living on there boat, or in
there RV, they might be able to claim the asset as their homestead
property. You see, the Florida Constitution provides for unlimited
homestead protection, and though there are not many cases involving
yachts being claimed as homestead property, there are a few cases
involving boats. Unfortunately, there is not a bright line as to
what can be claimed as homestead property, and what can not be
claimed as homestead, though the cases provide some very useful
insight into how the courts will rule.
So, if you have a yacht, or RV, that you live in, and are curious
about whether you will be able to keep the asset after filing
bankruptcy, you should consult with a bankruptcy attorney in your
area.
Zero. When you think of zero, what do you think of? Is zero a verb, noun, or adjective?
Obviously, the word zero can mean many different things. However, when one is contemplating bankruptcy, the field of meanings may be narrowed a bit. It could refer to a zero balance in the bank, or perhaps the amount you are eligible to barrow, or the number of creditors continuing to extend credit.
What one may not think of is zero-rate, referring to a value added tax, or zero-sum whereby gains equal losses. If you were to ask a bankruptcy attorney what zero means, you might find he or she refers to a zero percent plan.
So, what is a zero percent plan?
The filing of a Chapter 13 bankruptcy includes something called a Plan. The Plan, once confirmed, or approved by the Bankruptcy Court, controls many aspects of the case as an agreement between creditors, debtors, and the Trustee assigned to your case. It will include how much money is to be paid to the bankruptcy estate, how often, and for how long; it also includes how those funds are to be distributed.
So, how does zero apply to the Plan? No, it does not mean No Plan. It refers to the amount, or percentage of the payments in the plan paid to unsecured creditors, such as credit cards and medical bills. So, for instance, in the typical Chapter 13 bankruptcy, priority creditors, like the IRS, the Trustee, your attorney, and support payments, would be paid first; then secured creditors, like mortgagees, would be paid. After they are paid, any additional disposable income is paid to unsecured creditors. When there is nothing left to pay unsecured creditors (or less than 1%), then you have what is sometimes referred to as a zero percent plan to unsecured creditors.
While some courts allow such treatment of unsecured creditors, others do not. If you are contemplating filing such a plan, you should check with a bankruptcy attorney in your area to see if this is permitted within the division you are filing in.
Other attorneys speaking about the Letter Z include: Caldwell Law, LLC
So, what do I mean by "Quick". After all, after a bankruptcy consultation, planning for bankruptcy, coming up with the money, filling out the petition, schedules, statement of intentions, statement of financial affairs, and means test, you can finally file. Oh, don't forget the financial counseling certificate.
Handling all these can be time consuming, and for some, stressful. So, what does one do when they are in a hurry to get filed in order to prevent things such as wage or bank account garnishment, or eviction order being issued by the court?
Fortunately, the code allows for emergency filings, which I place into the category of quick. It allows for the filling of a minimal number of documents, with the remaining documents being filed within a specific time frame. This allows for an automatic stay to be put in place quickly, thereby stopping collection activities and most civil law suites. The automatic stay will remain in force until lifted by the court or the case is dismissed.
Well the next on the list is F. What
could this stand for? Well, it could stand for a four letter word;
something you say when you receive a call from a debt collector, or
one of their hart to hart letters that you through to the side and
don't open because you know what is inside. Well, fortunately, we
are not going down that road. At least, not in this blog, as I, and
my clients, believe in taking the upper road.
F stands for Forms, and not just any
forms. These are the official forms for filing bankruptcy, and as
chance would have it, the specific form F refers to is called
Schedule F. Why they call it a schedule, instead of a form, I really
don't know, but if I were to guess, I would say it sounds more
official, or politically correct. Yes, it's called a schedule, but
it sure looks like a form to me.
So, why is this form important? Well,
of the schedules that are filed in a Chapter 7 or Chapter 13
bankruptcy, which consist of Schedule A through Schedule J, this is
be far the most widely used. This is where all the non-priority
unsecured debts are listed; debts like credit card and medical bills
are listed on this form. Generally, when I ask someone who they owe
money to, it goes on this form as long as it is not the IRS
(depending on the year taxes are due from), or a domestic support
obligation (alimony, child support), or a secured creditor
(mortgagee, auto loan).
It consist of the name of the creditor,
along with anyone else associated with the debt, like a debt
collector, their respective addresses, the amount of the debt, and
whether or not the debt is disputed. It is very important to list
all creditors that should be listed on this form, as if you forget to
list someone, you not only could still owe that creditor after your
discharge (which is what I thought the letter D should be for), but
you may be prohibited from discharging the debt in a subsequent
bankruptcy.
I wonder if creditors, after receiving
a commencement letter indicating someone has filed bankruptcy, thinks
of a four letter word beginning with F while placing the paper in the
debtor's file.
Do you remember back in the early days
of school, books were simple, sometimes with pictures, in which you
would begin to learn how to read, which would eventually lead to
further learning about the ways and wonders of the world. Step by
step instruction is nothing new. Sometimes it is in an organized
fashion, and sometimes it is in bits and pieces like a puzzle, and
does not fully come to gather until all the pieces are known and put
in their proper place.
As you can imagine, the bankruptcy code
a similar to both. It is an organized bunch of bits and pieces. One
of the first steps in understanding the bankruptcy code is to
understand its terminology, as the bankruptcy code, similar to many
other fields or professions, has its own lingo.
So where is a good place to start
learning the lingo of bankruptcy. Well, perhaps a good start might
be to learn it like we learned in our early years of school; learning
from “A to Z”. Is this unorganized? You bet. But there is a
well known bankruptcy attorney, Jay Fleischman, that has a site
called Legal Practice Pro, and is going to post on his blog site over
the next 26 days, terms as they apply to bankruptcy, starting with A
and ending with Z. Well, actually, he starts with an introduction.
If you are interested in viewing some of these blogs, you can find
his introduction at
After reading his post, please feel
free to let me know what you think by commenting below.
Over time, I will be adding content to this blog, at random, concerning various letters of the alphabet, and applying an explanation of each letter as it may apply to bankruptcy. Some may think of this a being the bankruptcy alphabet, but I think that is misleading, as it is not meant to be inclusive the terms related to bankruptcy. As such, I am categorizing it as "Bankrupthabet".
What does it mean. Well, bankrupthabet, as of now is undefined. A common phrase among attorneys is, "I know it when I see it". This stems from a court case concerning the definition of pornography. So, how would you define the picture to the left?
