Lanigan & Lanigan, P.L.
831 W. Morse Blvd., Winter Park, Florida 32789
407-740-7379
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Bankruptcy
Generally, something insurmountable has happened to individuals, families or businesses with overwhelming debt that causes them to file bankruptcy. Maybe there was a divorce or a death in the family or a business collapse. Often, bankruptcy begins due to high medical bill. According to NPR, illness not covered by medical insurance causes medical bills to pile up and bankruptcy follows. Consult with Orlando bankruptcy lawyers Eric Lanigan and Roddy Lanigan who provide clients legal representation with a personal touch. You’ll find out that your scenario is different from everyone else’s, however, there are several commonalities. Washington state researchers found that cancer patients were four times more likely to declare bankruptcy than the general population. Looking in-depth at the types of cancer associated with bankruptcy there were several that were more expensive to treat: Lung Thyroid Leukemia/lymphoma Uterine Colorectal Some bankruptcies were filed after paying for cancer treatments which reached as much as $300,000. Generally, something insurmountable — like cancer — has happened to individuals, families or businesses to cause overwhelming debt. Roddy Lanigan and Eric Lanigan handle bankruptcy in Orlando and Central Florida every day. Contact Eric and Roddy Lanigan, of Lanigan and Lanigan, P.L. Set an appointment to come into the Winter Park office and tell us what’s happened to you. They’ll find out what your options are and advise you on how to determine the best result for your...
Bankruptcy
Among the many powers of the trustee, section 547 allows the avoidance of transfers that are fully effective outside of bankruptcy. Generally, non-bankruptcy law permits the preferential treatment of a creditor, however the policies of bankruptcy law does not allow some transactions to occur. The basic purpose is to identity transfers that illegitimately prefer a specific creditor over others and disrupt the collective process of bankruptcy. Identifying Preferential Transfers is Lawyer’s Job However, unlike fraudulent transfers, preferential transfers do not require bad faith or knowledge. Thus, it is important to be able to identify preferential transfers because it allows the trustee to reverse certain transfers that occurred before the filing of the bankruptcy petition. To Be Avoidable the Transfer Must Satisfy Every One of the Following Elements: First, there must have been a transfer of interest in property of the debtor to or for the benefit of a creditor. “Transfer” is defined in broad terms and includes the act of perfecting a security interest. But the main point is that the creditor must have benefitted from something of value from the debtor. Second, the transfer must have been on account of antecedent debt. The term “antecedent” generally refers to debt owed by the debtor before such transfer was made. So, if the debt arose before the transfer was made, it is antecedent. Third, the debtor must have been insolvent at the time of the transfer. To determine insolvency, most courts use the balance sheet test which is when liabilities exceed assets at fair valuation. Fourth, the transfer must have occurred within 90 days before the filing of the petition....
Bankruptcy
Creditors Have a Way Around Things Even though the automatic stay kicks in as soon as you file for bankruptcy, it is common for some creditors to apply for relief from the stay. Often applications for relief from stay are made immediately after the petition is filed, but they could arise at any time during the case. If the court grants relief, a creditor may continue efforts to collect on any unpaid debt which may cause problems for the debtor. At Lanigan and Lanigan, P.L., we will continue to work with you throughout your case and make sure you are treated fairly when creditors attempt to collect from you. If you have filed bankruptcy and are having problems with creditors, contact bankruptcy attorney Roddy Lanigan in Winter Park, Florida. At Lanigan and Lanigan, we will make sure that throughout the bankruptcy process you understand the procedures and are treated with respect. Four Forms of Relief As such, section 362(d) sets out four different forms of relief from the automatic stay: termination, annulment, modification, or conditioning. This allows the court to provide the most appropriate form of relief under the circumstances of the case. Termination of the stay lifts it completely and allows the creditor to commence or resume the suspended activity. However, termination ends the stay only after the court grants the relief, so it does not validate prior violations of the stay. Annulment terminates the stay retroactively which means the stay is treated as if it was never in effect. This means that prior acts that would have been deemed a violation of the stay are allowed and...
Bankruptcy
Provide All Financial Facts Very Carefully There are important principles for homeowners divulging financial information and facts during bankruptcy. Even a small mistake in estimating your equity or applying a homestead exemption could cost you your home if you’re found guilty of bankruptcy fraud. Filing for bankruptcy for the average homeowner can be confusing and even scary at times so it is important to talk to your bankruptcy attorney if you have any concerns or are confused. Bankruptcy attorneys Eric Lanigan and Roddy Lanigan, of Lanigan and Lanigan want to help you understand the process and will discuss procedures and strategies to help you keep what is legally yours. There are some essential principals to keep in mind if you are worried about your home within a bankruptcy case. Keeping Your Home in a Chapter 7 In a Chapter 7, you can keep your home unless your equity exceeds the homestead exemption by about 10% or more. The amount of your homestead exemption usually determines whether or not you will lose your home in bankruptcy. If you are behind on payments and you file bankruptcy, the court will usually allow the lender to proceed with foreclosure, upon request. However, the lender must prove that it is the correct party making the request so if the mortgage has been resold or repackaged it may be hard for them to prove this. Mortgage Payments Continue Most of the time you will have to continue making mortgage payments during bankruptcy to avoid foreclosure. If you fall behind on your mortgage payments, the Chapter 7 automatic stay won’t prevent foreclosure. Mortgage modification generally requires you to...
Bankruptcy
The bankruptcy process can be very complicated so at the Winter Park, Florida, law firm Lanigan and Lanigan, P.L., we want to make sure you know and understand the court process. Hence, it is important to understand the way in which bankruptcy jurisdiction is channeled to the bankruptcy and district court. Bankruptcy Code The Bankruptcy Code is a federal law created by Congress and falls within the realm of federal courts. Under 28 U.S.C. 1334, jurisdiction over bankruptcy is conferred to the district court. This jurisdiction covers the bankruptcy case itself as well as matters arising under the Code and relating to the case. The district court then refers these matters to the bankruptcy court where most of the litigation occurs. However, the final disposition of the bankruptcy litigation depends on the nature of the rights in issue. This is because bankruptcy judges do not have Article III status under the U.S. Constitution and thus cannot adjudicate matters that do not arise out of the bankruptcy code itself. Bankruptcy Core Proceedings vs. Non-Core Proceedings As a result, the bankruptcy code makes a distinction between “core” proceedings and “non-core” proceedings to determine if a bankruptcy court has the power to render a judgment on an issue or whether it must give recommendation to the district court. A core proceeding has been defined as one that, “invokes a substantive right provided by Title 11…that, by nature could arise only in the context of a bankruptcy case.” In re Wood, 825 F. 2d 90, 97 (5th Crt. 1987). On the other hand, if it is not a core proceeding and is related...
Bankruptcy
Making the Decision to File Bankruptcy The Lanigans explain how Chapter 11 Bankruptcy and Chapter 13 Bankruptcy differ. Chapter 13 bankruptcy and Chapter 11 bankruptcy are both plans of reorganization but they have very specific differences. When you reach the point where you are considering bankruptcy contact Winter Park, Florida, lawyer Roddy Lanigan for a meeting to determine your bankruptcy options. The final decision is yours but you have to qualify and find out based on your finances which bankruptcy is optimal. Chapter 11 Bankruptcy Chapter 11 is usually for businesses or for individuals who owe much more than the average person. Chapter 11 allows businesses to get on a payment plan and try to get out of debt while still operating as a viable company. Section §109(d) governs Chapter 11 which gives the same list found in §109(b) for Chapter 7 (you can file in Chapter 11 only if you can file under Chapter 7) except Chapter 11 includes railroads, uninsured banks and banks organized under the Federal Reserve Act. Chapter 11 is very loose, can be expensive and complex but this flexibility allows the companies to negotiate and can take a lot of time. In addition, Chapter 11 does not require a trustee and the person running the bankruptcy is known as the “debtor in possession.” This allows any party of interest to file a plan which is then voted on by the creditors to determine which one best serves their interests. Chapter 13 Bankruptcy Conversely, Chapter 13 bankruptcy is known as the “working man’s or woman’s plan” and focuses on average consumers who are not looking to...
Bankruptcy
Under section 506(a) of the Bankruptcy Code, a creditor holding a lien perfected under non-bankruptcy law against bankruptcy estate property, and which is not subject to avoidance, is entitled to retain that encumbrance. However, where the value of the collateral is less than the amount the debtor owes, the debtor may elect to retain the collateral and be obligated to pay the creditor only that amount equaling the value of the estate’s interest in the property. This process is called “lien stripping” which reduces the lien to the value of the collateral to which it attaches and removes a wholly unsecured lien in its entirety. Thus, this allows a debtor to bifurcate a mortgage claim into secured and unsecured debt based on the value of the home so that the debtor will only have to pay the secured part of the claim. The code is clear that this is not permissible for homes that are the debtor’s principal residence. Furthermore, courts generally have determined that only senior liens can be stripped down and that it is impermissible to strip down junior liens (a second lien). However, in the recent landmark decision in LORRAINE MCNEAL v. GMAC MORTGAGE, LLC, HOMECOMINGS FINANCIAL, LLC the 11th circuit reversed this holding. In this case, the debtor had reported that her home was subject to a first and second priority lien. The debtor contended that, because the senior lien exceeded the home’s fair market value, GMAC’s junior lien was wholly unsecured and, thus, void under section 506(d). The bankruptcy court denied the debtor’s motion, concluding that section 506(d) did not permit a Chapter 7...
Bankruptcy
In bankruptcy, generally, secured claims are paid first and in full while general unsecured creditors are paid pennies on the dollar. However, for policy reasons the bankruptcy code has determined several “priority claims” which get paid after secured creditors but before general unsecured claims. Bankruptcy code and details are as important as working with a bankruptcy attorney experienced in handling the details of Chapter 7 or Chapter 13 bankruptcy. Eric Lanigan and Roddy Lanigan will explain and clarify complex bankruptcy information that you need to understand if and when you decide to file bankruptcy. Consult with the Lanigans in their Winter Park, Florida, office. You’ll learn what to do, when to do and will leave the court and filing process to the Lanigans. Section 507 lists the order of priority claims which are paid in descending order. The order only matters in a Chapter 7 bankruptcy case because in Chapter 13 bankruptcy priority claims must be paid in full. Nevertheless, the fourth and fifth priority claims involve past due employee salary and benefits. This includes wages, salaries, severance, etc. earned during the 90 days prior to filing but cannot exceed $11,725 per employee. Any remainder will be an unsecured non-priority claim. In addition, employee’s can receive the contributions made to employee benefit plan during the 180 days before filing or end of business. Thus, the formula to determine fourth and fifth priority claims are as follows: Take $11,725 and multiply it by the number of employees That number is the maximum amount you can give to the 4th and 5th priority claims. You take that number and subtract the amount of...
Bankruptcy
Fraudulent Credit Card Charges Are Easy to Spot There are very serious legal consequences for individuals who spend thousands of dollars on a credit card before filing bankruptcy. Bankruptcy attorney Roddy Lanigan warns debtors: Do not max out your credit cards and then file bankruptcy because you may face fraud charges which can’t be dismissed or waived. People overwhelmed by debt file bankruptcy due to high medical bills, job loss, accidents with injuries, high credit card bills (from legitimate expenses not shopping sprees), mortgages with massive late fees and balances due to high annual percentage rates. Individuals and businesses have the right to file bankruptcy. If you’re going to file Chapter 7 bankruptcy or Chapter 13 bankruptcy, do not spend carelessly and fill up your credit limit. Doing this will become a very serious issue. Winter Park bankruptcy attorney Roddy Lanigan can help to explain why this can be considered credit card fraud. Questionable Credit Card Activities Do not: Go on a shopping or spending spree Suddenly buy luxury items Spend after you consult with an attorney Spend when card has been recalled Spend a lot and then file bankruptcy Spend up to your credit limit Pull cash withdrawls to max out your card Using card knowing you can’t afford to pay it, i.e., after a job loss Some Debts Survive Bankruptcy If a creditor files a motion in court to prove that the debt shouldn’t be discharged. For example, if a creditor successfully objects to a debt arising from your fraudulent actions or recent credit card charges for luxuries, those debts will be waiting for you after your...
The Law
Determining whether a reverse mortgage is a viable option for an individual who is over 62 years old is as simple as consulting first with an attorney. The only time a reverse mortgage is not a worry or an issue is when a homeowner wants to stay in a home, can afford all taxes, insurance and any unforeseen and normal maintenance. Reverse mortgages are beneficial to borrowers because holders don’t have to repay the loans unless they sell their homes or move, so the term “default” seems contradictory. Unpaid insurance bills and taxes, however, are considered to be in default. Lowered home values make it hard for anyone, retirees especially, to rely on home appreciation to support retirement. Diving home values make it even harder to hard to sell a home or take out a home-equity line of credit. Falling home values reduce the amount of cash a retiree could pull for a reverse mortgage. So the key to a successful reverse mortgage are sorting through the complicated terms that can only truly be clarified by an attorney to land on the side of the homeowner. Incredible closing costs can turn a good deal sideways. Cash-strapped seniors who use savings to pay for those closing costs can easily fall behind on tax and insurance bills. Those holding reverse mortgages may no longer have any equity, because their home has dropped in value which ultimately makes it harder to sell the home. There is currently some debate over one specific type of reverse mortgage, the Home Equity Conversion Mortgage (HECM). The HECM is designed so that borrowers can never be...
