Florida Bankruptcy Attorney Blog

A company in Orlando, Mirabilis Ventures, Inc., pulled off one of the biggest payroll tax frauds in United States history. As a result of the scheme the company was forced to file bankruptcy in 2008. The battle is now being fought in federal court as to who will be recovering the lost money resulting from these schemes of CEO Frank Amodeo. Amodeo pleaded guilty to fraud and was sentenced to 22 years in prison. The case appears to be an interesting combination of federal criminal and bankruptcy law.

Prosecutors and the IRS have been attempting to get the company itself (as opposed to the CEO) to plead guilty to tax fraud, and these ages are fighting the receiver/trustee for this admission in an ultimate fight over who will be controlling the recovery of the fraudulently conveyed funds. Generally this would be an issue for bankruptcy courts to decide but there is a valid argument for the other agencies to have charge of the restitution aspects of this case. A careful analysis of the caselaw and arguments used on both sides is more than can be discussed here, but would prove interesting.

Moving around Orlando, residents will likely have noticed an increase in the road signs offering services such as lawn care and maintenance, and homes for sale. Included among the signs are often advertisements for legal work. These road signs often spell bad news. Not only do they reflect a failing economy, but many of the companies advertising are scams. These signs are also illegal according to Orlando ordinances.

You almost certainly will not talk to a lawyer if you respond to one of these advertisements. There are even signs throughout Orlando that have advertised bankruptcy services. Usually these small road sign advertisements are not lawyers, and the advertiser has no more experience with the bankruptcy code than the typical layperson. The most they could do is sloppily prepare your petition in a way that is inadequate for the bankruptcy legal system. A very high percentage of these petition preparation petitions are dismissed from the bankruptcy courts. None of these services are able to represent you before the bankruptcy judge or the trustee.

We have even had clients come to us asking whether we could sue these services after their bankruptcy was dismissed due to inadequate preparation.

As a result, we invite our readers to beware of these advertisements and seek the services of a competent, licensed, bankruptcy lawyer that will be able to handle your petition and address the numerous problems that could arise. Here are only some of that problems that could arise in a typical bankruptcy: creditor or trustee alleges bankruptcy fraud, creditor files for relief from the automatic stay, creditor seeks adequate protection payments, trustee seeks to seize your assets which could have been saved if exemptions had been properly applied, among numerous other issues. Only a bankruptcy attorney/lawyer can represent you on these issues before the judge and the courts, and these issues are not uncommon in bankruptcies.

It pays to seek out a bankruptcy lawyer for all bankruptcy and foreclosure needs, especially since we offer payment plans and discounts depending on your circumstances.

Retail establishments that specialize in video rentals and sales, as well as CD sales and rentals continue to be beat hard by a combination of recession and technological advancement. As more and more people in every generation continue to grow more savvy about use of the personal computer as well as downloading software and video products, video retail establishments like Blockbuster, Hollywood Video, etc... continue to go out of business or flirt with Chapter 11/7 Bankruptcy. Blockbuster's General Counsel recently announced that the company could not rule out the possibility of such a filing. Electronic and video products, unlike clothing and furniture, are often convenient to the consumer to purchase online. People often need to inspect the clothing and furniture they purchase. Not so for video programs and software. There is nothing in the nature of video to inspect before purchase, as the very experience of watching the video is what is purchased. People obtain information on whether the purchase is worthwhile through critics or other third parties. Clearly, the video industry is probably not a good place to be investing your money, and bankruptcy or corporate dissolution may become prominent in this area for some time to come. Prevailing economic conditions do not help either.

Many have been asking how likely it is that British Petroleum will declare bankruptcy. As with individuals, often corporations have other options to exhaust before filing in Chapter 11. Large oil companies like British Petroleum often have an enormous amount of assets, which is of course also reflected in their market capitalization. BP could sell its debt, could reduce capital expenditures, it could curtail its 10 billion a year in dividends, or tap into its tangible assets. As a result, Chapter 11 is not likely for a company as wealthy and established as BP. Chapter 7, which is straight liquidation of its assets, is likely not even on the radar screen. Contrast this with GM where the balance sheet and available resources were far more scarce, making a reorganization of that company necessary.

Bankruptcy is hardly ever an option for most people or entities until liabilities vastly outweight assets, because assets can be used to develop systems, programs, or opportunities for reorganization prior to the additional legal helps that are available. Especially with large corporations, lack of confidence may also result from the filing of the petition itself.

(a) The court may issue any order, process, or judgment that is necessary or appropriate to carry out the provisions of this title. No provision of this title providing for the raising of an issue by a party in interest shall be construed to preclude the court from, sua sponte, taking any action or making any determination necessary or appropriate to enforce or implement court orders or rules, or to prevent an abuse of process. (b) Notwithstanding subsection (a) of this section, a court may not appoint a receiver in a case under this title.

Section 105(a) and (b) above outline the powers of the bankruptcy court. The powers of the bankruptcy court, as with other federal courts, are largely delineated by statute. As one can see from the statute above, the powers of the bankruptcy court are quite broad, and the court may issue any order necessary to carry out any of the provisions of the bankruptcy code itself. This includes the Bankruptcy Court acting on its own initiative, even without a motion filed by the attorneys (sua sponte).

One particular power the Court does not have is the ability to appoint a receiver over the bankruptcy proceeding. This is logical, since the entire point of a reorganization proceeding is to allow the reorganization to be either overseen by the debtor-in-possession or the United States Trustee. There is no point to having a receiver run the debtor organization in such a circumstance. Additionally, the duty of the receiver is mainly to preserve the assets of the debtor for the duration of a litigation, rather than institute liquidation as in a Chapter 7. The functions of a receiver may overlap with those of the debtor-in-possession during a reorganization.

The Bartlett Law Firm, P.A. now has 3 new attorneys ready to assist you in your bankruptcy and litigation needs. The firm has also moved to a new location, which is still quite close to our old location. This location continues to provide us with easy access to the bankruptcy court and the other courts in the Orlando area. Thank you for allowing us to serve you. We are able to assist you in the full range of your Chapter 7, Chapter 11, or Chapter 13 bankruptcy options. Please contact us today for a free consultation. We serve all of Orlando and surrounding counties.

We are able, depending on your situation, to seek discharge of student loan obligations, conduct adversary proceedings and litigate bankruptcy disputes, disputes regarding the extent or priority of a lien, and serve in your whole range of bankruptcy requirements. The firm is able to help you far beyond mere petition preparation.

Thank you for contacting us today to assist you.

Happy New Year from The Bartlett Law Firm, P.A. in Orlando, FL.

Bankruptcy filings in 2009 for the Orlando area increased to about 20,000 filings. This is a substantial increase from only around 12,000 one year earlier. It is clear that many people found themselves in substantial financial trouble during this time. The bankruptcy system was there for them, helping them to discharge much of their debts. If you are thinking of filing bankruptcy, feel free to take advantage of our free consultation.

So far, for 2010, there are have been about 500 filings in the Orlando area, essentially the same rate as filed thus far last year.

Because of the substantial numbers of anticipated future foreclosure filings, as adjustable rate mortgages continue to reset in massive numbers this year and next year, it would seem that many more people will likely choose to file in the coming months. It is important that these people choose bankruptcy lawyers that will be able to assist them effectively in this important time.

The judge of the General Motors bankruptcy noted today that the officers of the company were now spending more time on focusing on consumer needs, rather than in bankruptcy efforts, and efforts at Chapter 11 reorganization. This likely represents a step forward for the financially strapped and strained company. Meanwhile, General Motors still has significant reorganization to complete, including (unfortunately) possibly removing up to an additional ten thousand employees from payroll in order to make the company viable. Consumers are giving the new product lines a positive response.

As the recession continues and more people are being saddled with significant debt burdens and increasing rates of default, the question continues to arise whether student loans should be discharged in bankruptcy. Prior to amendments a few years ago, it was common and acceptable for people to discharge their private student loans after seven years if they were unable to make the monthly payments. Unfortunately, due to changes resulting from BAPCA, it became virtually impossible to discharge your student loans unless you could prove to the court that you would be undergoing an inordinate hardship. The requirements to show the court that you had this kind of hardship are very strenuous and most people simply do not fulfill the required conditions. It takes a good lawyer to put on a good case for those facing student loan defaults. The Bartlett Law Firm, P.A. has experience handling student loan defaults in bankruptcy cases, for all chapters. Hopefully, though, with more and more people realizing the incredible burden student loans can create for those who are trying to restart their lives on a proper footing, legislation will eventually be passed making it easier for normal people to discharge their student loans like any other debt.

The Bureau of Labor Statistics released a larger than expected increase in the rolls of the unemployed, and the total rate of the unemployed now stands at 9.8%. This kind of activity will cause the economy to only slowly pull out of this monster of a recession that has been affecting us all. If you're considering filing a bankruptcy because of your unemployment situation, definitely give us a call. Often when you file bankruptcy because you are unemployed, and have been unemployed for awhile, you will get better terms than if you waited until you were employed again. Sometimes timing is everything in the bankruptcy process. Give us a call today to see how we can help you figure out when it would be best for you to file.

When you file a bankruptcy the Court imposes an automatic stay on all actions against you, with certain exceptions. Any one who has what is called a claim, or cause of action for damages, can no longer pursue you for those particular damages until the stay is lifted. Thus, if you owe alot of money on a credit card, when you file bankruptcy the credit card company is no longer permitted to come after you. This happens when you file the initial paperwork, and as long as the paperwork is filled out properly and the action is not dismissed, this stay will last for approximately 3 to 4 months in a Chapter 7 case, and even longer in a Chapter 13 case.

The Bankruptcy Courts have the power to impose these measures pursuant to federal statutes and the supremacy clause when dealing with state courts.

There are exceptions to the automatic stay, usually involving a request to preliminarily lift the stay.

The automatic stay can be very useful for those who are attempting to calm the waters and get their lives back together through the bankruptcy process, and most importantly it stops those annoying phone calls!

Economic indicators appear to be mixed at this time, and the direction of the economy remains uncertain. In the midst of this uncertainty, Chrysler appears to be about to declare bankruptcy. It will be interesting to see what plan Chrysler will file and how they will reorganize to remain a viable concern. This is especially interesting considering that, last year, with the "bail out" extravaganza, bankruptcy was deplored as the least viable option by many. Perhaps now it is realized by more and more people to be the only acceptable way to handle Chrysler's difficulties.