Filing for Bankruptcy Has Advantages

With the growing number of people finding themselves in debt year after year, many struggle to pull themselves out of the loop alone. Rather than attempting to solve an issue that affects you more drastically than you may realize, finding a solution is crucial. Although many believe that filing for bankruptcy results in consequences, there are many advantages.

To begin with, your biggest benefit is that you will no longer drown in debt. Your debt will be liquidated to creditors and you will no longer receive the harassing and annoying phone calls from creditors about your missed payments.

Since you will be pulled out of debt, you no longer have to face the possibility of your property of values, such as your car from being repossessed. Also, you don't have to worry about your utilities being cut off, such as your electricity or water.

You now have the ability to start fresh. Your negative payment and billing history is completely eliminated. Since you know what brought you to credit card debt, you know what mistakes and habits to avoid. Now you have the opportunity to demonstrate to creditors that you know how to spend wisely.

If you're struggling in debt, speak to a bankruptcy attorney in Jacksonville to help pull you out and let you start fresh. Don't let bankruptcy run your life.

Buried in Credit Card Debt? There is a Way Out

Credit card debt is a serious issue that continues to grow each year in the United States. Figures by the Federal Reserve demonstrate that the average American has four credit cards and has access to approximately $19,000 in combined credit card funds. Last year, U.S. citizens carried more than $886 billion in credit card debt – this according to the U.S. Census Bureau. This astounding number is expected to grow to $1.177 trillion this year.


Credit cards get swiped more than most Americans realize. From the grocery store to the gas pump, from the mall, to cell phone bills, Americans are always bringing out their credit card. Before people know it, they’ve spent more on their plastic card than their bank account can support. Many people try to pay off their debt using their own means, such as making monthly minimum payments or taking money from their savings account. However, these solutions don't always work and many are still left buried deep in credit card debt. Fortunately, there are solutions.


You can file for bankruptcy. Although, most view filing for bankruptcy as a desperate measure, to be avoided at all costs, bankruptcy is a solution to solving your credit card debt issue. It can even come with several benefits.


For starters, filing for bankruptcy will immediately dig you out of your debt hole. Your debt will be liquidated to creditors, and you will no longer have to be concerned about paying off bills. In addition, you will no longer have to receive repetitive, annoying phone calls from creditors about your payments. This means, no more threats about facing the consequence of losing personal assets, such as home furniture and your car.


Once you're out of debt, you have the opportunity to start fresh. Your previous bad payment history is eliminated and you can now improve your credit score. Since you've already been down the road of bad spending habits before, you can make educated decisions about how you spend your money moving forward.


If you're ready to live without the burden of trying to pay off your large amount of credit card debt, then speak to a Jacksonville bankruptcy lawyer, from our law offices today. We have the most talented team of bankruptcy lawyers in the state and look forward to helping you climb out of debt.

Jacksonville Bankruptcy Court is One of the Busiest in the Nation

The Jacksonville bankruptcy court is part of one of the largest bankruptcy divisions in the nation. The U.S. Bankruptcy Court Middle District of Florida, which oversees metropolitan areas such as Jacksonville, Orlando, Fort Myers and Tampa, hear more than 60,000 cases a year. The district covers 25 of the state’s 67 counties and ranks in the top five among districts nationwide in volume.

The Middle District is the second busiest in the country behind the Los Angeles district, according to Chief Judge Paul Glenn. Double-digit unemployment in the wake of economic crises yielded 2010’s record year of 66,618 filings within the district.

The reasons behind the high volume of claims are varying. The biggest is the sheer size of the district. Stretching from Jacksonville to Fort Myers, the district covers some of the largest urban areas in the state. Not only is it a large area, it’s a diverse area consisting of the tourist mega city Orlando, the industrial and financial cities of Jacksonville and Tampa, the retirement area of Fort Myers, and, of course, the agricultural areas between them. Florida’s population has also has been increasing and the Middle District jurisdiction area has made up for 70 percent of the state’s population increase. So, as the population rises, so will the bankruptcy numbers. Overall in 2006, only California Central District (18 million people) had a bigger population than the Middle District’s 10 million – which is even bigger at five years of population increase.

Of course, the filings did decline after the passing of Bankruptcy Abuse Prevention and Consumer Protection Act of 2005, but they have since risen and peaked last year. This is all in the wake of the economic recession that has not only hit Florida and the United States, but also the world.

During the first half of this year, bankruptcy claims have decreased, including Jacksonville bankruptcy claims. However, they are expected to increase during the second half. Chapter 7 liquidations were down 16 percent and remained to be 75 percent of all bankruptcy filings. Chapter 11 reorganizations fell nearly 28 percent, accounting for about 12 percent of total filings.

The courts are certainly busy along with bankruptcy attorneys in Jacksonville. Here are some rankings of the Middle District as compared to other courts nationally:

- In Chapter 11 claims the Middle district is ranked fourth behind Central California, Southern New York and Delaware. 
- In Chapter 7, the Middle District is ranked third behind Central California and Northern Illinois.  
- In Chapter 13, the Middle District is ranked second behind Central California.  
- The Middle district ranks second in total business fillings  
- The Middle District is second busiest in cases per judge, only Detroit is higher due to that area’s hard hit times.

What is the Bankruptcy Abuse Prevention and Consumer Protection Act?

On April 14, 2005, Congress passed the Bankruptcy Abuse Prevention and Consumer Protection Act, which was signed six days later by President George W. Bush. This act consists of changes to the U.S. Bankruptcy Code. 

Credit Counseling

Anyone planning to file bankruptcy must contact a government-approved credit counseling program within 180 days prior to filing for bankruptcy. Also, the person filing must complete a debtor education course, which lasts between 45-90 minutes and can be taken over the phone or online. 

Tax Returns & Proof of Income

You must provide the Trustee or Court with copies of your federal tax returns from the last year filed. Also, you have to provide copies of paystubs for the 60 days prior to your case being filed. 

Domestic Support Obligations 

Domestic Support Obligations include alimony, child supports and property distribution, in which these are given priority over just about every other creditor. 

Means Test

This is a test to determine if a person is financially eligible for filing for Chapter 7 bankruptcy. Speak to a bankruptcy attorney to determine if you are financially eligible as this depends upon your household income in your state. 

Time Restrictions 

If you received a Chapter 7 discharge in the previous 8 years, you cannot file for Chapter 7 bankruptcy.

Although these new measures may seem to add more work to filing for bankruptcy, working with an experienced bankruptcy attorney in Jacksonville will help you understand and go through the process as quickly and hassle free as possible.

www.saratremellaw.com blog 062911

www.saratremellaw.com blog 062911

The Bankruptcy Code: Chapters 7 & 13

With today's economic hardships, filing for bankruptcy doesn't sound alarming. In 2010, a total of 1,596,355 people filed for bankruptcy, according to statistics by the Administrative Office of the U.S. Courts. This number is nearly a 14% increase from the 1,402,816 bankruptcy cases filed in 2009.

Bankruptcy laws help those who cannot pay off creditors by selling assets or forming a repayment plan in order to pay off debts. Cases vary in justifying the need to file for bankruptcy, one of the most common being high debt due to not being able to pay off a mortgage, medical bills, student loans or auto loans, for example. Other reasons for filing for bankruptcy include unfortunate circumstances, such as a sudden illness or a natural disaster, or economic hardships such as losing a job unexpectedly. In addition, poor decisions such as gambling can lead to bankruptcy.

As written in Article I, Section 8 of the U.S. Constitution, Congress is authorized to enact "uniform Laws on the subject of Bankruptcies." In 1978, Congress enacted the "Bankruptcy Code," which is the uniform federal law governing all bankruptcy cases.  According to the U.S. Department of Justice, the majority of bankruptcy cases are filed under Chapter 7 or Chapter 13 of the Federal Bankruptcy Code.

Chapter 7 bankruptcy is usually filed by those who have a large amount of debt, such as credit card or medical bills, or those who are in debt due to unemployment. In such a case, a person or a company's assets are liquidated in order to pay off creditors. Chapter 13 bankruptcy is an individual debt adjustment in which the person in debt follows a specific plan to repay creditors over a period of time. Unlike Chapter 7, a person who files Chapter 13 bankruptcy will not have to turn over valuables. However, Chapter 7 allows an individual to be immediately discharged from debt and Chapter 13 requires a person to make payments under the set plan before a discharge can be received.

Because bankruptcy is a complex legal system, it's important to choose a reliable bankruptcy attorney to help you in the process. Whatever your reason for filing for bankruptcy, a Jacksonville bankruptcy attorney from the Law Office of Sara Tremel will help you throughout the entire process.  

If you are facing bankruptcy and would like to speak to a consultant, contact us today.