Florida Bankruptcy Attorney Blog

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.

Depending upon the jurisdiction in Florida or elsewhere, it may be better for a client to declare either a Chapter 7 or Chapter 13 for a client to protect his home. For those behind on their payments, a Chapter 13 bankruptcy is often touted as the best solution. But this is not necessarily the case. Sometimes it is better to fight and renegotiate your mortgage and then declare a Chapter 7, even though there is an element of risk doing this. Much of this kind of decision rests upon the amount of income you are generating. Factors to consider include things as minor as Trustee collection fees. For these and other complicated reasons it is always good to consult with a bankruptcy lawyer and not engage in this process without professional help.

The economy continues to tailspin as retail numbers make their largest decline in years. People often have no idea of the power of the consumer. Consumer spending is one of the largest portions of domestic GDP every year. The power resides not with corporate america, but with your average consumer. Forget about Wall Street being spooked. If your average consumer is spooked and not spending appropriately, the entire economy will begin to feel the harshest bite of a recession. Most of our clients are typical consumers, and we rely on the good faith of our consumer clients for our own bankruptcy business. Most Chapter 7 bankruptcies are consumer bankruptcies, and involve little to not distribution of any actual assets because most of the consumers that come are not able to make even basic credit card payments. Every consumer should have the right, once every eight years, to this kind of fresh start. Do not underestimate the power of the consumer to get back on his feet and get the economy running again.

Florida bankruptcies have risen from one year ago but fallen over the past two months according to a recent article in the Miami Herald. Orlando bankruptcy lawyers have seen serious business lately. It seems there was a huge wave of bankruptcies in the summer, but this would be an indication that the most serious of the troubles for those contemplating bankruptcy would have been happening in late 2007 through the spring of this year. It could be that the tax rebates and similar federal initiatives temporarily have provided a boost and that the bankruptcy rate may rise again as we approach late fall and winter. Obviously some of this will depend on prevailing economic conditions.

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