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Means Test Changes

Means Test Changes

As of April 1, 2019 a new household income is in effective for determining if you qualify for Chapter 7 Bankruptcy.

As of 5/1/19 use this one
It’s Tax Time

It’s Tax Time

It’s that time of the year you dread.  Lucky it only comes once a year!  Doing your taxes can be overwhelming, but it is a necessary evil.   Even if you are going to owe money and can’t pay, make sure you file your taxes on time without an extension.   Most taxes that are filed on time without an extension and are over 3 years old are dischargeable in your bankruptcy, failing to file on time no could effect you in the future.

Here are five tips for organizing your self for tax season:

  1. Know what can be deducted.   For Example: Deduct cash, property and stock donations made to a charity. Make sure you have receipts. You can deduct mileage and vehicle expenses for a charitable purpose.   You can deduct your medical expenses including mileage for doctors.  You can deduct business expenses.
  2. Get proper documentation. Doctors,  pharmacies, child care providers will all provided you a print out of what you spent with them the prior year if you ask.  For any single contribution to a charity over $250 you must have a written acknowledgment from the charitable organization.  For property valued at more then $5,000 you must have a qualified appraisal.
  3. Keep limitations in mind. Your cash gifts are generally deductible up to 50 percent of your adjusted gross income. Noncash gifts, such as property or stock owned for more than one year, are generally deductible up to 30 percent. You can carry over any remaining deduction for up to five consecutive years.
  4. Transfer records to personal budgeting software such as QuickBooks or Quicken. Enter the information from tax-related transactions electronically to stay organized. Doing so will also help you forecast your tax situation to help you gauge whether to give more to maximize tax benefits.
  5. Involve the professionals. Hiring a CPA or accountant  or tax attorney who is up to date on the tax laws to do your taxes is well worth the cost. Just remember you have to provide them the detailed information so they can get you your maximum deductions.




There is a scam  auto dialer calling cell phones claiming to be the IRS.  The voice mail message goes like this:

” Hello. This call is officially a final notice from IRS- Internal Revenue Service. The reason  of this call is to inform you that the IRS is filing a lawsuit against you to get more information about this case file please call immediately on our department  number 786-452-5241. I repeat 786-452-5241. Thank you ”


I repeat this is a SCAM do not call do not give your social security number or any personal information.

Judgments and How they Effect You

Judgments and How they Effect You

If you fail to pay your credit cards, medical bills,  have a foreclosure, or car repossession  they can sue you for the balance owed.   This will normally result in a judgment against you.  Judgments are then recorded with the Clerk of Court in the county in which they were issue.

What you need to know.

How long is the judgment good for?

Lien of Judgment under FSA §55.081 is good for 20 years.

Actions on non-recorded judgments under  FSA §95.11(2)(a) are good for 5 years.

Mechanic Lien judgments under FSA §95.11(5)(b)  are good for 1 year.

Judgments of Foreclosure where  a deficiency is reserved on must have the action on the deficiency filed within  1 year from the foreclosure judgment.  FSA §95.11(2)(c)

Many judgments can be re-recorded for an additional 10 years.

The Judgment will appear on your credit report.

Once a judgment is filed against you it will show under public records on your credit report. This is information that is pulled by the credit bureaus through various services.  The majority of unsatisfied judgments will sit on your credit report for 7-10 years from the date  the judgment is filed by the court.  This will have a major derogatory impact on your credit score.

If the judgment is re-recorded before the 7 year period runs, it can appear for an additional 7-10 years on your credit report from the new recording date.

Satisfied Judgments

If you pay a judgment you will receive a notice of Satisfaction from the  lender. You need to record this with the Clerk of Court. Some lenders will  record these, but many will not.  Once the Satisfaction is recorded with the Clerk of Court the next time the credit bureaus pull your public records they will be notified of the update.  You can also send a letter  of dispute on  your credit report with a copy of the recorded satisfaction.   This will not result in removal of the judgment from your credit report, but you can have it noted in consumer comments.

Vacated Judgments

Vacated judgments can be removed from your credit report. Send a copy of the order Vacating the judgment to the credit bureau.

Some mortgage lenders will require judgments to be paid off in order to  close on a mortgage depending on your credit.

Credit reports contain inaccurate or missing information  about 1/4 of the time. You should check your credit report  for each agency on a yearly and follow up on anything that needs to be disputed.  You can pull a free credit report here: It is best to only pull one report every 4 months so you have a constant snap shot, unless you find an error.

Judgments and Bankruptcy

The underlying debt if disclosed to  your attorney, or on your credit report, will be included in your bankruptcy. This means  you will no longer be liable under the judgment once your bankruptcy is  discharged.  However, this does not remove the judgment lien. Additional action, which incurs additional attorney fees in needed.

This action is a Motion To Avoid A Judicial Lien, the typical charge is $400.00 and it is filed during your bankruptcy case.  The Order is then filed and recorded in your State Court Action, thereby releasing the lien.  These judgments can then be removed from your credit report.

Related Articles:

Unpaid Debt and the Statute of Limitations

Debt Collection Calls

Debt Collector’s Calling?

Time Barred Debt in Chapter 13


Carol A. Lawson, Esq., 28870 U.S. Hwy 19 #300, Hodusa Towers, Clearwater, FL 33761, Phone: (727) 410-2705 email:

2015 Note Worthy Bankruptcy Cases

2015 Note Worthy Bankruptcy Cases

As the year comes to a close, some cases from 2015 in Bankruptcy Court should be noted.

§ 330(A) Hibbard v. General Electric Credit Union (In re Hibbard), 2015 Bankr. LEXIS 3885 (Bankr. M.D. Fla. November 13, 2015) (May, B.J.). Trustee’s attorneys’ fees awarded with significant reductions based on lodestar calculation.

§ 507(A)(1) In re Hause, 2015 Bankr. LEXIS 3923 (Bankr. M.D. Fla. November 13,2015) (Jackson, B.J.). Claim for lump sum payment to debtor’s former spouse owed pursuant to divorce in lieu of alimony was a property settlement not entitled to priority status.

§ 1329(B)(1)  In re Ford, 2015 Bankr. LEXIS 3883 (Bankr. M.D. Fla. November 13,2015) (Funk, B.J.). Debtor could modify plan when medical condition resulted in decreased income.

§ 506(A)  IN RE TRAVERS, 2015 Bankr. LEXIS 3934 (Bankr. E.D. Ky. November 16,2015) (Schaaf, B.J.) Wholly unsecured junior lien could be avoided as Sixth Circuit precedent was not affected by the U.S. Supreme Court’s decision in Caulkett; discussing Lane case.

§ 522(D)(10)(D) IN RE ROYSTER, 2015 Bankr. LEXIS 4001 (Bankr. D. Kan. November 23,2015) (Somers, B.J.)Attorney fees awarded to debtor in state court divorce proceeding were not exempt.

§ 523(A)(8) JOHNSON V. UNITED STATES DEP’T OF EDUC. (IN RE JOHNSON), 2015 Bankr. LEXIS 4000 (Bankr. N.D. Ala. November 24, 2015) (Mitchell, B.J.)_Discharge of student loan debt denied absent undue hardship.

§ 547(B) DYMARKOWSKI V. SAVAGE (IN RE HADLEY, 2015 Bankr. LEXIS 3983 (Bankr.N.D. Ohio November 23, 2015) (Gustafson, B.J.) Prepetition transfer of motor vehicles to debtor’s attorney as payment of fees was avoidable.

§ 554(C) STURGEON V. HART CNTY. FIN., LLC (IN RE STURGEON), 2015 Bankr. LEXIS 3960 (Bankr. W.D. Ky. November 20, 2015) (Lloyd, B.J.)Bankruptcy court lacked jurisdiction over debtor’s adversary proceeding based on a claim abandoned by the trustee.

§ 105  KLOEBER V. MONTANARI (IN RE MONTANARI), 2015 Bankr. LEXIS 3682(Bankr. E.D. Tenn. October 29, 2015) (Bauknight, B.J.) Debtor sanctioned for failing to finalize agreed-upon, binding settlement with creditor and settlement terms were incorporated in final judgment.

§ 522(B)  LOWE V. DEBERRY (IN RE DEBERRY), 2015 Bankr. LEXIS 3694 (Bankr. W.D. Tex. October 28, 2015) (Gargotta, B.J.) Proceeds from post-petition sale of exempt homestead were not property of the estate.

§ 522(P)(1)(A) BRUESS V. DIETZ (IN RE BRUESS), 2015 Bankr. LEXIS 3672 (B.A.P. 8th Cir. October 29, 2015) (Saladino, B.J.) Debtor’s homestead exemption limited where the property was acquired within 1215 days prior to petition date.

§ 524(A)(2)  BEST V. NATIONSTAR MORTG. LLC (IN RE BEST), 2015 Bankr. LEXIS 3722 (B.A.P. 1st. Cir. October 30, 2015) (per curiam) Informational correspondence did not violate the discharge injunction.

§ 541  LEONARD V. WELLS FARGO HOME MORTG. CO. (IN RE LEONARD), 2015 Bankr. LEXIS 3686 (Bankr. N.D. Miss. October 29, 2015) (Ellington, B.J.)_Debtor lacked standing to pursue adversary proceeding based on prepetition cause of action that was now property of the estate.

§ 1307(B)  IN RE MILLS, 2015 Bankr. LEXIS 3706 (Bankr. D. Kan. October 29, 2015)(Nugent, C.B.J.) Chapter 13 debtor had absolute right to voluntary dismissal even inlight of alleged bad faith.

§ 1322(B)  JORDAHL V. BURRELL (IN RE JORDAHL), 2015 Bankr. LEXIS 3721 (B.A.P. 8th Cir. November 2, 2015) (Schermer, B.J.) Debtor’s plan could not provide for regular payments on student loan debt while paying less on other unsecured non-priority debts.


Carol A. Lawson, Esq., 28870 U.S. Hwy 19 #300, Hodusa Towers, Clearwater, FL 33761, Phone: (727) 410-2705 email: