Bankruptcy Planning Essential Questions Answered Law Office of Yoni Markhoff, PA | (786) | 1835 Miami Gardens Drive Suite 143 North Miami Beach, FL (786)

Bankruptcy Chapters Law Office of Yoni Markhoff, PA | (786) | Are you feeling overwhelmed? Are the credit card companies calling you night and day? Are you in foreclosure and you do not want to lose your house? All of these are valid questions and hopefully this pamphlet will provide some answers and solutions to your financial problems. There are two types of Consumer (Personal) Bankruptcy. Chapter 7 is the “simple” bankruptcy that takes about six months. This is used when the debtor does not have a house in foreclosure or a car that is behind in payments. A Chapter 13 is a little more complicated. It lasts five years and is used when a house is in foreclosure, and the debtor wants to keep the house. We can also do a modification of the mortgage in a Chapter 13.

Credit Counseling Law Office of Yoni Markhoff, PA | (786) | The first step is to complete the Bankruptcy Questionnaire that we gave you, as well as taking the on-line course at: (My attorney code is: ). I will get an notification once complete.

Pre Bankruptcy: Questionnaire Law Office of Yoni Markhoff, PA | (786) | Once the questionnaire and the documents are provided, we will create your bankruptcy schedules. The listed required documents are critical to having a successful bankruptcy, so make sure that you supply us with all of the documents. Also, make sure that you complete the questionnaire accurately, including ANY transfers of property to others, income and expenses. If you provide us with incomplete information it could lead to serious consequences during the bankruptcy. I have plenty of horror stories where I am informed of a transfer of property AFTER we file for bankruptcy. This causes more expenses and potential loss of the property of the debtor. If you tell me upfront and are honest, we can explore other solutions for you.

Pre Bankruptcy: Schedules Law Office of Yoni Markhoff, PA | (786) | We will send you a copy of your schedules once they are complete. We ask that you look over them carefully for accuracy, initial each page, and return the signed copies to us. If you need changes to them, please write them onto the schedules directly and we will make the necessary changes.

Chapter 7 Eligibility Law Office of Yoni Markhoff, PA | (786) | After the bankruptcy code was revised in 2005, a debtor now must be “eligible” in order to file for a Chapter 7 Bankruptcy. The first test is if the debtor’s income, combined with the spouse even if not filing jointly for bankruptcy, is less than the Florida Median Family Income.Florida Median Family Income. The second part to the test is if the Current Monthly Income (CMI) schedule has less than $167 of monthly disposable income (DPI).

CMI Deductions Law Office of Yoni Markhoff, PA | (786) | The bankruptcy court has a very convoluted calculation to arrive at DPI. Essentially, it follows the IRS standard deductions for households, multiplied by the number of people in the household, subtracted from the gross monthly income. We will do our very best to make sure that we get every possible deduction you are entitled to either have you qualify for a Chapter 7 or have lower monthly payments in a Chapter 13.

Meeting of Creditors Law Office of Yoni Markhoff, PA | (786) | Once we file, you will have a Meeting of Creditors (the “341” Meeting) in about one month. We will send you the notice and call you about a week before to remind you of the meeting. The 341 Meeting usually lasts five minutes. The Trustee will ask you a few questions such as why you filed for bankruptcy? are you entitled to any inheritance money? Did you transfer any property to another person? and send you on your way. If you are a Chapter 7 debtor, the Trustee will ask a couple of more questions regarding your assets. They want to make sure that you did not transfer your property just before filing for bankruptcy. This is NOT the time to surprise your attorney with new information. If any assets were transferred, then you should have told your attorney earlier. If you are a Chapter 13 debtor, you MUST make sure that you made your first plan payments BEFORE the 341, and supplied us with a copy of the certified check. Your payments are due on the 30 day anniversary of your filing.

Personal Financial Management Class Law Office of Yoni Markhoff, PA | (786) | Following the 341, we will send you a reminder that you must take the second on-line class, the personal financial management class. You must include your case number in the class. If you use our recommended provider, it is the second class in red. (My attorney code is: )

“2004”: Bankruptcy Term for Deposition Law Office of Yoni Markhoff, PA | (786) | If you are a Chapter 7 debtor, the Trustee may request for a deposition in order to ascertain some inconsistencies in your schedules. Believe me when I tell you that they have been doing this for many years and you are not going to be able to hide anything from the Trustee. It is better to inform me prior to filing, and together we can create a strategy that will meet your needs.

Chapter 13 Plan Law Office of Yoni Markhoff, PA | (786) | We will create a “plan” for you that will pay your creditors and allow you to keep your assets. Generally speaking, the plan payments must be 100% of your total Disposable Income (that is found on your Current Monthly Income Schedule). The plan has to be confirmed by the court, and this generally takes a few months as each “confirmation” hearing is once month. During this process, your plan will likely change slightly, so be aware of those changes as we inform you of them. It is important that you regularly check your that you gave us. If you wish to modify your mortgage, then at this time we will be submitting the modification documents and setting up a mediation date. It is critically important that you continue to make your plan payments to the Trustee. Make the certified check payable to: Standing Chapter 13 Trustee Robin R. Weiner (Broward & West Palm)Nancy N. Neidich (Miami) P.O. Box 2258P.O. Box 2099Memphis, TN 38101

Loan Modification Mediation (LMM) Law Office of Yoni Markhoff, PA | (786) | If you want to keep your primary residence, and it is underwater, the bankruptcy courts have a great program called LMM. We are only one of four bankruptcy courts in the country that have this program. (Orlando, New York, Tampa) The bankruptcy code does not allow a debtor to modify the mortgage of a primary residence in bankruptcy. Due to the collapse of the mortgage industry, many homeowners were faced with a foreclosure on a home that was significantly underwater. The bankruptcy courts stepped up to the plate and created this program. We are seeing a good portion of our clients getting a modification and keeping their home.

IRS Debt Law Office of Yoni Markhoff, PA | (786) | If you have IRS debt in a Chapter 13, then it will need to be paid completely in your plan. In a Chapter 7, the debt will NOT get discharged. Meaning, you will still be responsible for it after your bankruptcy. In either case, we have a successful program to fight the IRS as to the validity of this debt. If it is in fact valid, we can help you with either an IRS Resolution or an Offer in Compromise.

Domestic Support Obligation Law Office of Yoni Markhoff, PA | (786) | Domestic Support Obligation (DSO) are treated a little differently in a Chapter 13 bankruptcy. If you are current on your DSO, then you can continue to make the payments as you normally do. However, if you are not current, then all of the arrears will need to be paid completely within your bankruptcy.

Value Collateral Law Office of Yoni Markhoff, PA | (786) | If you have a rental income property, then we can adjust the mortgage to the current market value of the property. However, you will need to pay the full amount within the five years of your Chapter 13 bankruptcy. If you purchased a car with a high interest rate, then we can adjust the interest rate and even the loan amount, in bankruptcy. The only qualification is that the loan must be older than 910 days from the date of filing.

Pricing Law Office of Yoni Markhoff, PA | (786) | Just as when you go to the mechanic and you get a fixed price for the work on your car, we do the same. We firmly believe that as a client you are entitled to know how much it will cost you. That is why we have fixed pricing for our bankruptcy services. Chapter 7 $1500 plus court costs of $306. If you are filing jointly (husband and wife) then an additional $250 of fees, and if you have more than $4000 of assets then an additional $250 of fees. Finally, if you have a car loan or lease then an additional $250 of fees. These fees will need to be paid prior to filing. Chapter 13 $3500 plus court costs of $281. If you want to LMM then an additional $2500 of fees plus a mediator fee of $365. Value collateral is $750 of additional fees. This might seem like a lot, but only $2000 of the Chapter 13 fee is paid upfront, and $1200 of the LMM fee. The remainder is paid out over the five year plan. Additionally, you are actually not paying any extra money because the remainder of fees that are paid to us would otherwise go to pay off your creditors.

Law Office of Yoni Markhoff, PA | (786) | 1835 Miami Gardens Drive Suite 143 North Miami Beach, FL (786) We are a debt relief company that seeks to assist consumers with the filing of bankruptcy.