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Jeffrey David Solomon

Jeffrey Solomon’s Answers

476 total


  • What are the benefits of debt consolidation/negotiation?

    We were going to file Chapter 13 bankruptcy however, have decided no to do so. Our income is back to where we can pay some bills but it will take us some time to get caught up. In addition, we have a vehicle that we would like to see about having...

    Jeffrey’s Answer

    Debt settlement or chapter 13 bankruptcy? This question should be reviewed on a case by case basis. Avoiding a bankruptcy is certainly a goal. You should be careful of debt settlement firms who might charge high fees as they hold your money as you make a monthly payment to them. Typically, if you are able to settle one creditor at a time with a lump sum discount, then you can have savings in the long run. Sometimes the amount of debt is too high to make this approach practical, so a chapter 13 ends up being the better result.

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  • Why chapter 7 destroyed my home ownership?

    Why? Filed Chapter 7 and was discharged (3 years ago). Hired the worst attorney, my fault. Second mortgage supposedly stripped- Discharged letter received from trustee Now i did a Title search to find out where i stand in order to possibly ...

    Jeffrey’s Answer

    Traditionally a chapter 7 would discharge the debt on a second mortgage but the lien remained. The second mortgage would have to sign a release to be able to sell or refinance. There was a period of time during the last 2-3 years or so where in Florida debtors could file a motion to strip a second mortgage. A separate order would be retained and recorded in the public records. If this took place then the second mortgage would not have to be paid. There should be no reason why a chapter 7 trustee would have to sign any papers to sell if your chapter 7 is closed and you had listed the property as homestead. You need to consult an attorney to review what took place and what needs to be done now.

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  • Can the trustee take my tax refund 10 months after i filed chapter 7 if the case still open

    I filed chapter 7 in April 2015, the case still open due to liquidated some of my personal property that was sold by trustee. my question is: I get ready to prepare my income tax and wondered if the trustee can still take my tax refund. Thank y...

    Jeffrey’s Answer

    The trustee has a claim on assets only as of April 2015 when you filed your chapter 7.. The trustee could make a claim on a portion of your 2015 refund. If you filed bankruptcy on April 1, 2015, the trustee could claim 3/12 of the return, so 1/4. If you only worked after April 1, you could argue the refund is only from wages earned after April 1, 2015.

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  • What is the complete cost of a Chapter 7 ? Can this 1099-C be included in Bankruptcy ? Will my 401K be affected ?

    Credit report shows 4 credit card debts totaling $58,000 ( one of these is not mine ). February 04, 2016 I received a 1099-C showing $17,359 as income in 2015, for a secured vehicle loan ( Park Model Trailer ) repossessed July 2012.. My only inco...

    Jeffrey’s Answer

    Your 401(k) is exempt. The 1099-C might be the most important question your raise. The 1099-C has been issued before you have filed a possible bankruptcy. However, if you are insolvent, you can use an IRS form 982 to avoid any tax liability. (The problem your 401k would I believe count as an asset towards determining whether you are insolvent, but you indicate you have more debt). You should consult a tax professional to deal with the 1099-c.

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  • Can you fIle on a irs taxes if u owe money to them with chapter 7

    Irs taxes

    Jeffrey’s Answer

    Many people are surprised that under certain circumstances federal income taxes can be discharged in bankruptcy. The rules are complicated and you need to consult an attorney to review your case. The short answer is that is possible if over 3 tax years ago. For example, for 2012 income taxes, if you timely filed your tax return due by April 15, 2013, then add three years, so you file after April 15, 2016, you might be able to discharge the taxes.

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  • Discover is taking me to court, how should i defend myself?

    Discover card is taking me to court for $1,400 (400 of it is interest and late fees)..I got the credit card to pay for a medical emergency and kept up w/ the minimum payments for as long as i could..i have no income/car/house/other property, i'm a...

    Jeffrey’s Answer

    A creditor can obtain a Final Judgment. This does not mean that the creditor is able to collect on the Judgment. You might in the future be able to make arrangements to pay. If your total debt is $ 1400, you would not want to file a bankruptcy.

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  • When I do my taxes and declare the cancellation, does that mean that I'm acknowledging the debt, therefore, restarting it?

    I received a cancellation of debt from the mortgage/servicer company. The cancellation of debt I'm assuming is from the late fee and charges, because the principal amount is still the same. The late fees and charges are now reflective of the cance...

    Jeffrey’s Answer

    You will need to address the 1099c on your tax return. But you might not actually owe any taxes. You might be able to avoid any income tax with an IRS Form 982. You might have been insolvent. This might have been the mortgage on your homestead and covered by an exception to owing any tax. You should consult a tax professional.

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  • How would this work and what are the risk.

    I have a family member in Panama that is lending me $60,000.00 as a business loan. I am to pay him 3.33% monthly interest and repay him the amount loaned to me by April 16, 2016. He would like to secure this loan with a lien to my property (whi...

    Jeffrey’s Answer

    You should consult with a real estate attorney so that the promissory note,mortgage, funding, and recording of the mortgage are properly documented. If you file bankruptcy, the trustee will want to see that this is a real loan (though if your homestead you have that additional protection). Your family member would have a right to foreclose if you do not pay back according to the terms of the promissory note.

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  • My question is, If I rent my house out, do I lose the homestead exemption even thought is a life estate?!

    I elected life estate on the house left by my late husband, with his 2 kids from previous marriages as remainder mans. I am on my early 30s and though the IRS table says I should retain 95% of the profit in case the house sales, the remainder mans...

    Jeffrey’s Answer

    Homestead rights are based on the property being homestead. It must be your residence. It is not your residence if you move out and rent out the property.

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  • How can I reopen the bankruptcy case in Florida to add the omitted creditor considering that I'm stationed in Alaska?

    A few years ago I signed a personal guarantee on a business loan. Not long after the business folded and I filed for chapter 7 bankruptcy which was discharged with no assets. Foolishly I omitted this personal guarantee. I joined the military and a...

    Jeffrey’s Answer

    There is a new procedure effective December 1, 2015 in the Southern District of Florida. Traditionally, we had to file a motion to reopen and a separate adversary complaint or lawsuit within the bankruptcy. The procedure is now simplified. You can file a motion to reopen and proceed simply by motion with notice to the creditor. The creditor will then have a deadline to contest the discharge of the debt. The creditor could raise objections. For example, they have incurred legal fees and costs suing you because they had not been notified of the bankruptcy.

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