Bankruptcy Law, Consumer Bankruptcy

What Assets Can Creditors Seize in Bankruptcy?

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Bankruptcy filers often fear losing everything they own when going through a Chapter 7 or Chapter 13 bankruptcy case. You may think that filing for bankruptcy means you have to give up your home, your car, and other important assets.  This is simply not true. Laws are in place to help protect you, while also providing creditors with a portion of debt repayment.

All nonexempt assets may be used to repay your creditors in a Chapter7 bankruptcy. These include:

  • Vehicles
  • Land
  • Houses
  • Investment Properties
  • Items of value, like jewelry artwork.

However, many Chapter 7 cases are no-asset cases, meaning the debtor gives up no possessions. This happens for two reasons. First, you can allot for basic assets, called exemptions that are necessary for day-to-day living.  For example, the homestead exemption that protects your primary residence. Your vehicle that you need to get to and from work. Personal items and household goods, tools of the trade (i.e. – items you own and use to make a living) are all protected.

The U.S. Bankruptcy Code and Florida bankruptcy laws protect a great deal of a consumer’s property, if used appropriately. The State of Florida has some of the most generous bankruptcy exemptions in the country, but these exemptions only apply to individuals who meet certain residency requirements. For these exemptions to apply, the consumer must have lived in the state for at least two years before filing. Otherwise, federal exemptions apply.

Click here to read more.

If you have questions on this topic or are in financial crisis and considering filing for bankruptcy, contact an experienced Miami bankruptcy attorney who can advise you of all of your options. As an experienced CPA as well as a proven bankruptcy lawyer, Timothy Kingcade knows how to help clients take full advantage of the bankruptcy laws to protect their assets and get successful results. Since 1996 Kingcade Garcia McMaken has been helping people from all walks of life build a better tomorrow. Our attorneys help thousands of people every year take advantage of their rights under bankruptcy protection to restart, rebuild and recover. The day you hire our firm, we will contact your creditors to stop the harassment. You can also find useful consumer information on the Kingcade Garcia McMaken website at www.miamibankruptcy.com.

Car Repossession, Florida Bankruptcy Exemptions

Do I Have to Surrender My Car in Bankruptcy?

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Filing for Chapter 7 bankruptcy can clear most unsecured debts, but it may also require selling or giving up some assets to pay debts. A fair question and one many people have is: “Will I be able to keep my vehicle if I file for bankruptcy?”

The answer is yes. Most filers will be able to keep their vehicle after filing for bankruptcy. Florida bankruptcy laws offer generous exemptions which allow individuals to keep various types of property, including their vehicle.  Vehicles are often exempt if they are necessary for you to maintain a job and household.

In a Chapter 7 bankruptcy, if your car is financed, you can surrender it by returning it to the lender. With that, the loan will be discharged in bankruptcy but will leave you without a car.

If you file Chapter 7 bankruptcy and are current on payments, you can keep the car if your equity is protected under state law. Under the Florida Motor Vehicle Exemption, bankruptcy filers can exempt up to $1,000 in motor vehicle equity. This amount can be even more if a married couple is filing for bankruptcy jointly. In cases where you are keeping a car with a loan on it, make sure you continue to stay current on your payments. The lender can still assert its lien rights if you get behind on payments and you could lose your car.

Secured Loans

It helps to understand the nature of a car loan as compared to other debt in a bankruptcy case. Since a car loan is attached to an asset, this debt is labeled as a secured debt, which means the asset can be used to pay off the amount owed if the consumer cannot continue paying. This debt is not liquidated in a Chapter 7 case if the consumer wishes to keep the car after everything is over. Therefore, the filer must file Form 108 at the start of the case, which is known as a statement of intention. This form tells the court whether the consumer wishes to reaffirm the car loan, redeem the car, or surrender it. This statement of intention must be filed within 30 days of the bankruptcy case being filed, or the car loan is not considered part of the bankruptcy proceeding.

Status of Vehicle

Determining the status of the filer’s vehicle is important before determining if he or she can keep the car. The status can be either the person owns it free and clear, he or she is leasing the car, or the person is still paying a loan on the car. If the filer is still making monthly payments on a loan, the lender holds the title to the car as collateral. Once the car loan is paid in full, the title then shifts to the vehicle owner. If, during the loan payments, the filer cannot keep up with payments, the lender will then take the car back, which is also known as repossession.

Being current on the car loan’s payments is key in both Chapter 7 and Chapter 13 in terms of the ability to keep the filer’s car. It makes it more likely that the filer will be able to continue paying on the car even after the bankruptcy case is over.

Value of the Car

The value of the vehicle is also important in how it is treated in bankruptcy. In a bankruptcy case, the value of the car is determined by the actual cash value of the vehicle. This value is usually the retail replacement value of the car. The car’s make and model, mileage, and condition determine the actual cash value of the car. Equity is important, as well, which is determined by subtracting what the filer owes on the car from its current value.

Bankruptcy Exemptions

Equity is key when it comes to determining the exemption that allows the filer to keep the car. Florida has one of the most generous bankruptcy exemptions in the country. To use Florida’s exemptions, the filer must have resided in Florida for at least 730 days before filing his or her bankruptcy petition. To claim the full value of the homestead exemption in Florida, the filer must have owned the property for at least 1,215 days before the bankruptcy filing. Under Florida bankruptcy exemptions, the filer can exempt up to $1,000 in motor vehicle equity or more if the person is married and filing for bankruptcy jointly.

Redeeming the Car

In a Chapter 7 case, the filer may be able to keep the car by redeeming its current replacement value. To do this, the filer pays to the lender what is owed on the car, minus the car’s current replacement value to own the car outright. Unfortunately, not many filers are able to do this since most do not have this kind of money available, which is why fewer than two percent (2%) of all filers redeem their car.

Reaffirmation Agreement

The filer can also keep the car by reaffirming the debt. This means he or she will agree to a new payment plan with the lender. To reaffirm the debt, the filer must submit Form 108, which is a statement of intent. Approximately two-thirds of all filers take this route.

Surrendering the Vehicle

If the filer cannot pay the debt in full or is not able to feasibly reaffirm the debt, he or she may surrender the car. Filers normally surrender their vehicles when they are significantly behind on payments. When a surrender happens, the lender gets the car back and the debt owed on it is forgiven. Unlike a repossession, the consumer is no longer liable for the deficiency balance owed on the car, which is what occurs in a repossession when the lender resells the car for less than what is still owed on it.

Chapter 13 Bankruptcy

The above options are normally the choices available to consumers in a Chapter 7 bankruptcy case. However, if the consumer wishes to keep his or her car, Chapter 13 bankruptcy is usually the best route for him or her. In a Chapter 13 case, the consumer works with the bankruptcy trustee to create a repayment plan that takes three to five years to complete where he or she pays down debts over the course of the case, liquidating whatever is left at the end of this period.

If the consumer has a lot of equity in the vehicle and if he or she can pay past due payments while remaining current on all other payments, it is likely he or she will be able to keep the car in a Chapter 13 case.

Many times, the bankruptcy court can also get the lender to reduce the interest rate on a vehicle loan under Chapter 13. This reduction will lower the person’s monthly payments and will make it easier for him or her to make payments.

Additionally, in a Chapter 13 case, if the consumer has owned the car for more than 910 days, which is roughly about two and a half years, the bankruptcy court can rule that the loan balance owed will be based on what the car is worth now as opposed to what the balance of the original loan is.

If you have questions on this topic or are in financial crisis and considering filing for bankruptcy, contact an experienced Miami bankruptcy attorney who can advise you of all of your options. As an experienced CPA as well as a proven bankruptcy lawyer, Timothy Kingcade knows how to help clients take full advantage of the bankruptcy laws to protect their assets and get successful results. Since 1996 Kingcade Garcia McMaken has been helping people from all walks of life build a better tomorrow. Our attorneys help thousands of people every year take advantage of their rights under bankruptcy protection to restart, rebuild and recover. The day you hire our firm, we will contact your creditors to stop the harassment. You can also find useful consumer information on the Kingcade Garcia McMaken website at www.miamibankruptcy.com.

Sources:

If I File Bankruptcy, Can I Keep My Car? (debt.org)

What Happens to My Car During Bankruptcy? – Experian

student loan debt, Student Loans

Judge Blocks Biden’s New Student Loan Forgiveness Plan

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U.S. District Judge Randal Hall in Augusta, Georgia, has issued a temporary restraining order against President Joe Biden’s second effort to cancel student loan debt for millions of Americans. Earlier this summer, millions of federal student loan borrowers received an email from the Biden administration informing them that debt forgiveness was on the way, and they may be eligible.

Judge Hall, responded to a lawsuit against the relief package brought by seven Republican-led states. The states — Alabama, Arkansas, Florida, Georgia, Missouri, North Dakota, and Ohio — said the U.S. Department of Education’s new debt cancellation effort, like its previous attempts, ‘is illegal.’

Hall said the states had made a convincing case that the department was overstepping its authority and blocked the Biden administration from moving forward with its attempt to cancel federal student loan debt.

In June of 2023, the Supreme Court ruled Biden’s first attempt to cancel around $400 billion in federal student loan debt unconstitutional.

Biden’s first attempt to forgive student loan debt was through an executive action. This latest time, his administration has pursued the regulatory process, a lengthier route that it hoped would make its relief package more immune to legal challenges.

Click here to read more.

For borrowers who are struggling with student loan debt, relief options are available. Many student loan borrowers are unaware that they have rights and repayment options available to them, such as postponement of loan payments, reduction of payments or even a complete discharge of the debt. There are ways to file for bankruptcy with student loan debt.  It is important you contact an experienced Miami bankruptcy attorney who can advise you of all your options. As an experienced CPA as well as a proven bankruptcy lawyer, Timothy Kingcade knows how to help clients take full advantage of the bankruptcy laws to protect their assets and get successful results. Since 1996 Kingcade Garcia McMaken has been helping people from all walks of life build a better tomorrow. Our attorneys help thousands of people every year take advantage of their rights under bankruptcy protection to restart, rebuild and recover. The day you hire our firm, we will contact your creditors to stop the harassment. You can also find useful consumer information on the Kingcade Garcia McMaken website at www.miamibankruptcy.com.

Bankruptcy Filings, Bankruptcy Trends

Bankruptcy Boom: Why More Young Adults are Filing for Bankruptcy

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Bankruptcy filings among 18 to 29-year-olds have surged 17% from Q1 to Q2 of 2024 and are up 13% compared to last year.

While the pandemic produced a drop in filings due to relief measures, debt among young adults has since risen, reaching $1.12 trillion for 18- to 29-year-olds. Filings have jumped 50% since a 24-year low in early 2022.

This trend is aligned with other factors, including rising interest rates, which have driven up minimum credit card payments. Some people avoid filing for bankruptcy due to the fear of damage to their credit and the stigma of being labeled ‘financially irresponsible,’ even when it could offer a much-needed fresh start.

While bankruptcy is often considered damaging to a person’s credit score, that is not entirely accurate. Many people’s credit score is already struggling by the time they consider filing.

Filing for bankruptcy can actually give your credit score a boost once your debts are wiped out, as long as you have a solid plan to rebuild your credit strategically. There are two main types of consumer bankruptcies: Chapter 7 and Chapter 13, and choosing the right one depends on your financial situation. To see if bankruptcy is the right choice for you, start by talking with an experienced attorney who specializes in bankruptcy law.

Click here to read more.

If you have questions on this topic or are in financial crisis and considering filing for bankruptcy, contact an experienced Miami bankruptcy attorney who can advise you of all of your options. As an experienced CPA as well as a proven bankruptcy lawyer, Timothy Kingcade knows how to help clients take full advantage of the bankruptcy laws to protect their assets and get successful results. Since 1996 Kingcade Garcia McMaken has been helping people from all walks of life build a better tomorrow. Our attorneys help thousands of people every year take advantage of their rights under bankruptcy protection to restart, rebuild and recover. The day you hire our firm, we will contact your creditors to stop the harassment. You can also find useful consumer information on the Kingcade Garcia McMaken website at www.miamibankruptcy.com.

Consumer Debt, Credit Card Debt

Consumer Credit Card Debt Reaches an All-Time High of $1.14 Trillion

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Consumers are carrying more debt than ever before on their credit cards, according to a new report from the Federal Reserve Bank of New York. Outstanding credit card balances in the U.S. have reached $1.14 trillion.

Credit card balances grew by $27 billion over the first three months of 2024, according to the report, and are up 5.8% over last year. Delinquency rates also increased for credit card holders with 9.1% of card holders now in default on their outstanding balances.

Earlier this week, new data released by Bankrate showed that 50% of U.S. credit card users are carrying a balance on their accounts, up from 44% in January. This is a rate not seen since the early days of the pandemic.

The average credit card interest rate now stands at 24.84%, according to Lending Tree. An individual’s credit score can have a significant impact on the rates charged by card issuers. For example, an applicant with exceptionally good credit can expect an average APR of 21.41% while someone with a poor credit history will see an average APR offer of 28.28%.

As bankruptcy attorneys, we see credit card debt as one of the most common problems facing those with serious financial challenges.  It is not surprising with the high interest rates, unreasonable fees, harassing debt collection calls, penalties and never-ending minimum payments that don’t even seem to make a dent.

Filing for bankruptcy is a viable option for those struggling with insurmountable credit card debt. Chapter 7 is the fastest form of consumer bankruptcy and forgives most unsecured debts like credit card debt, medical bills, and personal loans.  There are certain qualifications a consumer must meet in regard to income, assets, and expenses to file for Chapter 7 bankruptcy, which is determined by the bankruptcy means test.

Please click here to read more.

If you have questions on this topic or are in financial crisis and considering filing for bankruptcy, contact an experienced Miami bankruptcy attorney who can advise you of all of your options. As an experienced CPA as well as a proven bankruptcy lawyer, Timothy Kingcade knows how to help clients take full advantage of the bankruptcy laws to protect their assets and get successful results. Since 1996 Kingcade Garcia McMaken has been helping people from all walks of life build a better tomorrow. Our attorneys help thousands of people every year take advantage of their rights under bankruptcy protection to restart, rebuild and recover. The day you hire our firm, we will contact your creditors to stop the harassment. You can also find useful consumer information on the Kingcade Garcia McMaken website at www.miamibankruptcy.com.

Foreclosure Defense, Foreclosures

Home Foreclosures in Florida on the Rise

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Foreclosure numbers from the analytical firm, ATTOM reveal an increase in foreclosure filings in Florida. According to the leading provider of nationwide property data, the three biggest areas where foreclosures are on the rise are in Lakeland, Orlando and Miami.

This year’s numbers in South Florida are up nearly 50% compared to February 2022, according to the South Florida Business Journal.

When Can Foreclosure Start?

Foreclosure cannot start until the homeowner is more than 120 days past due on his or her payments. The purpose of this length of time is to give the homeowner time to submit a loss mitigation application before the foreclosure process begins.

If you are not able to make your monthly mortgage payments, you have options available to you that can keep you from losing your home.

REMEMBER: In Florida, the homeowner has rights when it comes to foreclosure! But do not delay.

Choosing the right attorney can make the difference between keeping your home or losing it in foreclosure. A well-qualified Miami foreclosure defense attorney will not only help you keep your home, but they will be able to negotiate a loan that has payments you can afford. Miami foreclosure defense attorney Timothy Kingcade has helped many facing foreclosure alleviate their stress by letting them stay in their homes for at least another year, allowing them to re-organize their lives. If you have any questions on the topic of foreclosure, please feel free to contact me at (305) 285-9100. You can also find useful consumer information on the Kingcade Garcia McMaken website at www.miamibankruptcy.com.

SOURCE: Home Foreclosures in Florida Rising – Florida Daily

Bankruptcy Law, Debt Relief

5 Questions to Ask BEFORE Filing for Bankruptcy

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If you are struggling with overwhelming debt, such as credit card debt or personal loans, one option is filing for bankruptcy. By doing so, you can wipe out your debts and receive a fresh start with your finances. The latest statistics show bankruptcy filings are up 16% year-over-year, which can be attributed in part to economic issues and persistent inflation.

While filing for bankruptcy can relieve you from your debts, it is not a step to be taken lightly. Be sure to ask yourself the following questions before filing for bankruptcy.

  • Have I exhausted all my options? Thoroughly investigate alternatives or consider selling assets to pay off your debts. Alternatives, such as loan modifications and credit counseling, may provide a way to manage your debt and avoid some of the costs of filing for bankruptcy.
  • What type of bankruptcy is most appropriate for my situation? There are different types of bankruptcy. For individuals, the options are Chapter 7 and Chapter 13 bankruptcy. Chapter 7 involves liquidating your assets to pay off debts, while Chapter 13 establishes a repayment plan over a three-to-five-year period. Each has its own eligibility requirements, so understanding which type you qualify for is key.
  • How will bankruptcy affect my credit score and for how long? Bankruptcy will have an impact on your credit score, potentially lowering it by 200 points or more. However, if your score is already low, perhaps due to high credit card balances or late payments, it may not drop that many points.
  • Can I afford the costs associated with filing for bankruptcy? While it may seem counterintuitive, filing for bankruptcy isn’t free. It is a legal process that comes with costs. There are court filing fees and it is important to hire an experienced bankruptcy attorney to help you navigate the process.
  • Will bankruptcy discharge all my debts? Not all debts can be discharged in bankruptcy. For example, federal student loans, most tax debt, alimony and child support payments cannot be discharged in bankruptcy.

Click here to learn more.

If you have any questions on this topic or are in financial crisis and considering filing for bankruptcy, contact an experienced Miami bankruptcy attorney who can advise you of all your options. As an experienced CPA as well as a proven bankruptcy lawyer, Timothy Kingcade knows how to help clients take full advantage of the bankruptcy laws to protect their assets and get successful results. Since 1996 Kingcade & Garcia, P.A. has been helping people from all walks of life build a better tomorrow. Our attorneys help thousands of people every year take advantage of their rights under bankruptcy protection to restart, rebuild and recover. The day you hire our firm, we will contact your creditors to stop the harassment. You can also find useful consumer information on the Kingcade & Garcia website at www.miamibankruptcy.com.

Credit, Credit Card Debt

Banks Prepare for Consumers to Stop Paying Off Their Credit Cards

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Big banks, like JPMorgan Chase, Bank of America, Wells Fargo and Citigroup are preparing to face more risk when it comes to their lending practices. With interest rates sitting at a two-decade high and inflation rates rising, these banks have raised their provisions for credit losses from the previous quarter.

These provisions are the money that financial institutions set aside to cover any potential losses from credit risk, including delinquent or bad debt and lending, like commercial real estate (CRE) loans.

JPMorgan built up $3.05 billion in provision for credit losses in the second quarter; Bank of America had $1.5 billion in stores; Citi’s allowance for credit losses totaled $21.8 billion at the quarter’s end, more than tripling its credit reserve built from the prior quarter; and Wells Fargo had provisions of $1.24 billion.

A recent analysis by the New York Fed found that Americans owe a collective $17.7 trillion on consumer loans, student loans and mortgages. Credit card balances totaled $1.02 trillion in the first quarter of the year.

Credit card issuance and, subsequently, delinquency rates are also on the rise.

With rents up more than 30% nationwide (between 2019 and 2023) and grocery costs rising 25% in that same period, renters who did not lock in low rates and are struggling with rental prices that have exceeded wage growth are seeing the most stress in their monthly budget.

A recent survey found that 48% of Americans depend on credit cards to cover essential living expenses. As consumer’s pre-pandemic savings dwindle down, the reliance on credit for necessities, such as gas and groceries, has become the norm for many.

Click here to read more.

If you have any questions on this topic or are in financial crisis and considering filing for bankruptcy, contact an experienced Miami bankruptcy attorney who can advise you of all of your options. As an experienced CPA as well as a proven bankruptcy lawyer, Timothy Kingcade knows how to help clients take full advantage of the bankruptcy laws to protect their assets and get successful results. Since 1996 Kingcade & Garcia, P.A. has been helping people from all walks of life build a better tomorrow. Our attorneys help thousands of people every year take advantage of their rights under bankruptcy protection to restart, rebuild and recover. The day you hire our firm, we will contact your creditors to stop the harassment. You can also find useful consumer information on the Kingcade & Garcia website at www.miamibankruptcy.com.

student loan debt, Student Loans

Can Your Student Loan Forgiveness Be Taxed?

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According to recent data from the Federal Student Aid Data Center, 43.6 million people have outstanding federal student loan debt. In February 2024, the Biden Administration canceled $1.2 billion for 153,000 borrowers enrolled in the Saving on a Valuable Education (SAVE) repayment plan. And in March, 78,000 borrowers were granted student loan forgiveness through the public service loan forgiveness (PSLF) program, which included many teachers, nurses, firefighters, social workers, and other public servants, including the military.

For those struggling to afford their monthly payments, forgiveness on their student loans may seem like a dream come true. However, it is not always a clean break, and certain forms of student loan forgiveness are taxable.

Thanks to the American Rescue Plan Act of 2021 any student loan debt forgiveness that passes between December 31, 2020, and January 1, 2026, is considered tax-free. Previously, any forgiveness on student loan debt was treated as taxable income.

From Jan. 1, 2026, onward, how student loan forgiveness and discharge programs are taxed depends on the program.

Public Service Loan Forgiveness (PSLF)

Those who work for nonprofit organizations, government agencies, or public service groups may qualify for PSLF if they work for a qualifying employer full-time for 10 years and make 120 qualifying monthly payments. After reaching those milestones, borrowers can apply for debt forgiveness. Once approved, the government forgives the remainder of the balance. PSLF is one of the few programs that is excluded from federal income taxes; none of the forgiven loan amount is taxable as income.

Income-Driven Repayment (IDR) Discharge

IDR plans are for federal loan borrowers and extend the loan terms and base the borrower’s monthly payments on a percentage of their discretionary income.

The government will discharge the remainder if the borrower still has a balance at the end of their loan term. However, the forgiven loans are taxable as income at the federal and state levels.

Borrower Defense to Repayment Discharge

Borrower Defense to Repayment Discharge is a program that eliminates federal student loans belonging to borrowers who their college misled, or if their schools engaged in misconduct and violated state laws.

The IRS and the U.S. Department of the Treasury have issued notices that clarify that loans discharged through Borrower Defense to Repayment are not taxable as income.

Total and Permanent Disability Discharge (TPDD)

TPDD applies to borrowers who become totally and permanently disabled. The government will discharge the remaining loan balance for eligible federal loan borrowers.  How and if these are taxed depends on when the loans were discharged. If you received discharge before January 1, 2018, the discharged loan amount is subject to federal income taxes.

Tax on student loan forgiveness for private student loans.

Private student loans are not eligible for federal loan programs like PSLF or TPDD. However, borrowers with private student loans may qualify for other loan forgiveness or discharge programs. For example, some private lenders will discharge the loans of borrowers who become totally and permanently disabled.

The American Rescue Plan specifies that forgiven private student loans are also exempt from federal income taxes through the end of 2025. However, they may be subject to state income taxes. According to the IRS, student loan amounts forgiven under PSLF are not considered income for tax purposes. You will not be taxed by the federal government, but your state may tax you. Any debt forgiven because of PSLF will not create a federal tax liability for you.

Click here to read more.

For borrowers who are struggling with student loan debt, relief options are available.  Many student loan borrowers are unaware that they have rights and repayment options available to them, such as postponement of loan payments, reduction of payments or even a complete discharge of the debt. There are ways to file for bankruptcy with student loan debt.  It is important you contact an experienced Miami bankruptcy attorney who can advise you of all your options. As an experienced CPA as well as a proven bankruptcy lawyer, Timothy Kingcade knows how to help clients take full advantage of the bankruptcy laws to protect their assets and get successful results. Since 1996 Kingcade Garcia McMaken has been helping people from all walks of life build a better tomorrow. Our attorneys help thousands of people every year take advantage of their rights under bankruptcy protection to restart, rebuild and recover. The day you hire our firm, we will contact your creditors to stop the harassment. You can also find useful consumer information on the Kingcade Garcia McMaken website at www.miamibankruptcy.com.

SOURCES:

Reasons You Can or Can’t Be Taxed on Student Loan Forgiveness (aol.com)

Will I be taxed on student loan forgiveness? (yahoo.com)

Bankruptcy Law, Consumer Bankruptcy

The Bling Factor: Jewelry An Issue in Shilo Sanders Bankruptcy Case

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Colorado defensive back Shilo Sanders filed for bankruptcy in October, hoping to discharge a $11.8 million court judgment against him in Texas.

The son of Football Hall of Famer and Buffaloes head coach, Deion Sanders, is now facing questions about his income. It will be up to the court whether to discharge that debt. If the discharge is denied that judgment is owed to a man who has been closely monitoring Sanders’ possessions that could be sold to collect on it, including Shilo’s many necklaces and the business deals that bring him income from his name, image, and likeness (NIL).

The court judgement is a result of the 2015 assault of John Darjean, a high school security guard at Focus Academies in Dallas, Texas. Shilo Sanders allegedly assaulted Darjean after Darjean tried to confiscate his phone at school when Sanders was 15 years old. Darjean said Shilo Sanders hit him so hard near his neck with his elbow that it left him with permanent injuries, nerve damage and incontinence.

“Flashing bling” is part of the Sanders family brand. According to Darjean’s attorneys, it was hard to miss after Shilo’s ‘displays of wealth on social media.”

But because of the bankruptcy, Shilo now has reason to tone down his image, while still being truthful in disclosing all that he owns in court, as required by law.

It is important to disclose all your assets in court, but do not give any potential debt collector more reasons to question where you are getting the money to buy new things or whether certain necklaces you are wearing were properly included in your court disclosures.

Jewelry has been an issue in Shilo’s bankruptcy case from the beginning. In his initial Chapter 7 bankruptcy filing in October, he listed $478,000 in assets, including necklaces he valued at $75,000. His attorney then amended the value of his assets in December down to about $320,000 and removed the necklaces from the list of assets he owned, changing it to say he had $75,000 in necklaces that were on loan pursuant to an NIL deal with Saki Diamonds.

Bankruptcy trustees are experts at finding undisclosed property, vehicles, boats, jewelry, antiques, and collectibles. If you are caught trying to hide assets, the consequences are big. Your discharge will be denied, and you will be unable to discharge the debts you listed in a subsequent bankruptcy filing. In addition, the potential penalty for bankruptcy crimes includes fines and imprisonment of up to five years.

If you have any questions on this topic or are in financial crisis and considering filing for bankruptcy, contact an experienced Miami bankruptcy attorney who can advise you of all of your options. As an experienced CPA as well as a proven bankruptcy lawyer, Timothy Kingcade knows how to help clients take full advantage of the bankruptcy laws to protect their assets and get successful results. Since 1996 Kingcade & Garcia, P.A. has been helping people from all walks of life build a better tomorrow. Our attorneys help thousands of people every year take advantage of their rights under bankruptcy protection to restart, rebuild and recover. The day you hire our firm, we will contact your creditors to stop the harassment. You can also find useful consumer information on the Kingcade & Garcia website at www.miamibankruptcy.com.

SOURCE:

Bankruptcy case of Deion Sanders’ son Shilo has a bling factor (usatoday.com)