Legal Question in Bankruptcy in Florida

Re: assets and chapter 7

Hello: I have filed chap 7 cases where my client owned time shares. There are several issues that are important here. You may already know that there is a limit on the total value of assets you can keep and file a chap 7 (where you wipe out all unsecured debts without making any payments). The cap is $2,000 if you are filing jointly or $1,000 if you are filing singularly.

You need to know the time share's fair market value, then deduct what is owed by you...this will determine your equity (which counts towards your total assets) in the property. If it is under the cap or upside down, you add up your other assets and see if you can file a chap 7. There are some other issues to qualify for a chap. 7 such as...your income has to be below the State's median income (there is a formula for this deducting your reasonable expenses.

If you have more assets than allowed or if your income is over the cap, you can always file a chap. 13 (where you keep your assets and make monthly payments to the trustee for three years. 'Hope this helps. If my office can be of assistance, give us a call. Tom Rosenblum