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Orlando Bankruptcy Law Blog

Credit card debt can be tackled responsibly by Florida residents

Credit card debt can impact every area of a person's life and finances. There are many solutions touted for those looking to take back control. However, Florida residents should know the difference between responsible and logical ways to handle overwhelming credit card debt and solutions that can result in deeper financial trouble.

Some credit card companies will dangle the enticing option of balance transfers as a means of getting a 0 percent interest rate to pay down a balance. Some of these offers are only for a short amount of time. This means failure to pay off the debt in the allotted special percentage offer time frame could result in deeper debt that is even more difficult to pay off. Car title loans are another option that can result in a lien on a car and even more debt.

Chapter 7 bankruptcy may be best option for some in Florida

Despite the amount of overwhelming debt that one has, there are options that can help alleviate the strain and anxiety of the situation. For some in Florida, filing for Chapter 7 bankruptcy may be the best way to tackle insurmountable debt and get back on the track to financial stability. However, not everyone qualifies, and all debt will not be automatically wiped away.

Passing the means test is the first order of business before you can proceed with a  Chapter 7 bankruptcy. This is essentially an evaluation of your income. If your monthly income at the time of filing is under the median income for families of the same size in your area, Chapter 7 is likely an option. If not, further steps can be pursued if you wish to be considered a candidate for Chapter 7 bankruptcy.

Statute of limitations halts home foreclosure action for some

A notice of foreclosure can strike fear in the heart of any home owner. For many in Florida, the crush of home foreclosure actions that came as a result of the recession meant many homeowners found it impossible keep a roof over their heads. However, for some Florida homeowners, that crush has meant the statute of limitations has run out, and some may be able to stay in homes for which they quit paying the mortgage.

Mortgage lenders have been informed through the Florida courts that a foreclosure action cannot be pursued under certain circumstances. If the foreclosure case was lost by the lender and that lender did not pursue more legal action within five years, the resident cannot be evicted. The time frame means some are able to stay in their homes without any more financial ramifications.

Bankruptcy can help homeowners avoiding home foreclosure

Not being able to pay a mortgage or make the payments on a second mortgage can lead to fear and anxiety for any homeowner. Florida homeowners may be interested to learn how filing for bankruptcy can help in avoiding home foreclosure altogether. The type of help available and the right options for keeping a home vary according to each family's unique situation.

One option for homeowners who struggle to make the mortgage payment each month, much less make up the late fees and arrears, is to file for Chapter 7 bankruptcy. This allows a homeowner to get rid of unsecured debt, such as credit card debt. With this debt no longer weighing homeowners down, money can be diverted toward the mortgage when the homeowner undertakes to continue paying any outstanding secured debt. Moreover, it may be possible to have mortgage arrears discharged.

Loan modification program extension may benefit Florida owners

Many homeowners found themselves on the verge of home foreclosure after the recession hit. Fortunately, the number of potential foreclosures has been reduced in Florida, thanks in part to federal programs aimed at helping struggling homeowners obtain loan modifications. These home loan modification programs were set to expire this year, but they have now been extended to the end of 2016.

The programs have helped homeowners obtain more manageable payments. The payments were lowered because homeowners were given the ability to refinance with lower interest rates. This ability was even available to homeowners who had no equity in their homes.

Chapter 7 bankruptcy filed by Jim Greer, Florida GOP chairman

Criminal matters and a conviction leading to jail time can result in financial chaos that needs to be addressed. Recently, in Florida, an ex-GOP chairman found himself filing for Chapter 7 bankruptcy. The filing comes after spending more than a year in prison. Jim Greer pleaded guilty to theft and money laundering while he was chairman.

The ex-chairman of the Florida political group has a number of creditors and also owes his ex-wife child support to the tune of $35,000. He also owes more than $15,000 to the Ellington Estate Homeowners' Association. He states that the filing for Chapter 7 bankruptcy is a means of getting the fresh financial start he needs.

Credit card debt can be tackled through bankruptcy

Credit card debt is a serious problem for many Americans, and Floridians are no exception. The issue of how to deal with credit card debt can be complex and distressing for Florida families who are struggling financially. One option to tackle unmanageable credit card debt is to file for bankruptcy. However, it is vital to understand how the different types of bankruptcy can affect any credit card debt.

Chapter 7 bankruptcy is the most popular type of bankruptcy filed for families and individuals. As it pertains to credit card debt, this form of bankruptcy can result in a discharge of that debt. Some credit card companies may try to tell debtors that bankruptcy will no longer result in a discharge of debt; however, that information is false. The discharge of the debt simply means you will not have to pay back the credit card companies.

Home foreclosure may make future ownership less likely

The threat of home foreclosure and the actual loss of a home can impact the financial future of a family. When the financial crisis began, many Florida families found home foreclosure to be the only option. New estimates have recently revealed data that shows that those who went through the home foreclosure process during the recession may be less likely to become homeowners again anytime soon.

Over 9 million homeowners dealt with home foreclosure or were forced to sell a home because of financial difficulties between 2006 and 2014. Of those people, less than 3 million are currently homeowners or have plans to become homeowners in the next eight years. For many, ineligibility has prevented the chance for homeownership after economic hardship.

Credit card debt stigma can make problem worse

There are many types of debt and many reasons why people accumulate debt, and that debt can compound and lead to more financial problems, many of which become increasingly difficult to overcome and eventually lead to bankruptcy. However, one type of debt seems to carry more of a stigma and is often made worse by silence. That type of debt is credit card debt, which is currently overwhelming many Florida families.

Many people sympathize with and support options to modify or alleviate mortgage debt and the like. However, credit card debt is often regarded differently, and people are shown to be hesitant about revealing the exact amount. By many, this form of debt is seen as a character flaw and a sign that a person is incapable of living within his or her means. It has been noted that some are even hesitant to ask for a reduction in interest rates.

Widow unaware of home foreclosure protection

When a spouse dies, the attending financial responsibilities and lack of knowledge about basic rights and protections can lead to confusion. Even worse, it can lead to financial disaster and possibly home foreclosure. For one widow, not understanding or being aware of protections her husband had put in place almost lost her home to foreclosure. Any Florida widows or widowers who are unsure of what protections may be in place for them or who may be unfamiliar with how home foreclosure works may want to follow the story.

The woman at the center of the story lost her husband in 2003. She continued to pay her mortgage after his death. However, she was told in 2013 she was on the verge of losing her home. One reason cited was because it was not her husband's primary residence. Her attorney decided to dig deeper.

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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