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Orlando Bankruptcy Law Blog

Chapter 13 debt repayment plan can benefit Florida families

When families struggle financially, one option for ending the struggle and regaining financial control is to file for bankruptcy. However, deciding to file for bankruptcy is only the first step. The type of bankruptcy then has to be determined. For some families in Florida, the debt repayment plan allowed under Chapter 13 bankruptcy is the right choice.

Chapter 13 bankruptcy is an option for some Floridians for a number of reasons. One reason is simply the fact that some people will not qualify for a Chapter 7, leaving them with limited viable options once they realize Chapter 7 is not a possibility. Another reason Chapter 13 is chosen over other types of bankruptcy is that it gives a petitioner the ability to keep some assets that would be lost otherwise.

Home foreclosure problem helped by Florida jobs

Florida has been dubbed ground zero for home foreclosures during the recession. The high rate of home foreclosure filings in Florida led to a terrible back log of homes that needed to be dealt with through the legal system. This high amount of vacant homes are finally filing back up, at least in one part of central Florida, and new job opportunities are cited as the reason why.

It has been reported that Universal Orlando Resort has created a plethora of jobs that have helped the economy of the surrounding area. The jump in jobs is estimated to be around 7,000. This has led to a jump in home ownership. The sales of existing homes in the area are up 19 percent and prices are on the rise.

Unsecured debt could cause issues for students in Florida

Any kind of debt can get out of control and wreak havoc on an individual's finances. One area in particular is predicted to cause issues for college students in the near future in Florida and elsewhere. That issue is student loan debt. It is predicted that, as far as unsecured debt is concerned, student loan debt may soon pose a deeper problem than credit card debt.

According to analysts, there are more than 43 million Americans currently in the process of paying back student debt of some kind. It is also reported that roughly one in four of those student loan borrowers is either in default or delinquent in that debt. While there are loan forgiveness programs in place, many are not getting to the root of the problem.

When loan modification is tempting, review bankruptcy options

There may be nothing more frightening for a family than being unsure if it can catch up on a mortgage or if permanent action to save the home is needed. One option that more and more people have turned to recently is a loan modification. While a loan modification may be a tempting and helpful resource for some Florida homeowners, others may want to pursue other options or at least fully understand what other options may be available given their financial situation.

The banks are typically eager to work out some kind of deal because, despite the impression they may give, banks don't want to foreclose on a property. If you investigate the bankruptcy option, you may see that it is one way to avoid foreclosure and get back on track over time. Chapter 7 bankruptcy in particular is helpful as other debts are discharged, and then the extra money that was going toward paying down those unsecured debts can now be used to catch up on mortgage payments.

Home foreclosure inaction in Florida leads to free homes

The home foreclosure process is very detailed and can be a lengthy legal process. After the backlog within the court system in Florida and elsewhere created by the recession, the home foreclosure process went past the statute of limitations for some. The banks' failure to initiate a home foreclosure proceeding or finish the process in the allotted amount of time has led to a unique legal conundrum as some homeowners are still in homes they have not paid toward in years.

One case in Florida has garnered attention recently. The woman involved has missed five years' worth of mortgage payments. She is still in the house, and the statute of limitations has run out. This means the bank can no longer take action and she essentially gets the house without any more legal repercussions. However, lenders may be able to place a lien on the home to guard against the home being sold without payment of the claimed mortgage balance.

Florida families should be aware of rising credit card debt

Analysts are working to inform consumers about the rise of credit card debt for American families. According to the latest statistics, the numbers related to credit card debt are fast approaching the levels that caused havoc for Florida families in 2008. In fact, analysts have warned that the new numbers show that many Americans may be headed toward an "unsustainable level".

The average household has $7,100 in credit card debt. This marks the sixth consecutive quarter showing an increase in the average amount of debt for American households. The analysts claim that a level of $8,300 is the so-called tipping point of unsustainability.

Major lenders set to help those who sought loan modification

As the recession hit, many homeowners had no choice but to seek help from their lenders. One source of help for many in Florida was a loan modification. A loan modification under the Home Affordable Initiative in 2009 helped many people obtain new payment amounts that were much more affordable. However, those were not permanent changes, and many fear what may occur as new rates go into effect and payments again rise to amounts that may be unmanageable.

Lenders do not want to see homeowners struggle to pay. As a way to deal with the possibility of putting homeowners back in a challenging position of financial uncertainty, Freddie Mac has decided to modify some mortgages again. The move to re-modify for some will help those homeowners avoid defaulting again.

Bankruptcy can help stop home foreclosure action in Florida

The thought of going through the home foreclosure process can be stressful and even frightening for some homeowners. It may behoove some Florida homeowners to investigate how filing for bankruptcy may act as a means to stop a home foreclosure action against them.  Different types of bankruptcy can impact a pending home foreclosure situation.

Chapter 7 bankruptcy can lead to the discharge of unsecured debts. This includes overwhelming credit card debt. For many people, filing this kind of bankruptcy can free up funds to allow a family to catch up on mortgage payments and keep a home. Once bankruptcy is filed, the foreclosure action will stop while the situation is assessed in Bankruptcy Court. However, if you are substantially behind on your mortgage payments, a lender could receive permission from the court to continue a foreclosure action.

Despite laws, military still subject to home foreclosure

The home foreclosure process can be overwhelming and time-consuming. For people who are in the military and subject to long deployments, facing a home foreclosure can be even more traumatic as that military member may be unable to fight the home foreclosure action or even know what is taking place thousands of miles away. Because of the seemingly unfair nature of a foreclosure unfolding while a soldier is serving our country, there are certain laws in place to protect Florida military members. However, some institutions are circumventing those policies, and as a consequence, military members feel unprotected.

The Service Members Civil Relief Act is in place to stave off foreclosure and repossession action when a military member is overseas. But, some banks and lenders are using the fine print to their advantage and still going through with the process while a service member is unable to attend a hearing. The banks defend using a mandatory arbitration clause to pursue action by saying it is more cost-effective.

Credit card debt back on the rise for Americans

When the recession hit, many American families found themselves drowning in debt. One major unmanageable source of debt was credit card debt. For Florida residents, credit card debt led to an upswing in bankruptcy filings. While the recession has waned and the economy has improved, credit card debt is back on the rise, giving experts cause for worry.

The average credit card debt has risen for families again. It has risen to about $7,200 for the average family. According to experts, $8,300 in credit card debt is considered unsustainable. This marks six consecutive quarters of an increase in credit card debt for Americans.

Paul Urich
Orlando Office

Law Office of Paul L. Urich, P.A.
1510 East Colonial Drive
Suite 204
Orlando, FL 32803
Phone: 407-896-3077
Fax: 407-896-3041

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