Orlando Bankruptcy Lawyer Blog

Credit card debt and other money problems are prime factors leading to many divorces as spouses struggle financially in a poor economy. Some couples turn to bankruptcy as a solution to their money problems. But that can be a daunting step that leaves people with a low credit score after a divorce, when finding financial stability feels extremely important.

The financial situation following a divorce may be even more crushing to individuals than debt problems were during their marriage. Even without bankruptcy, exes will often discover that their former spouse put them in extreme debt and failed to pay bills on time. Or someone will have a low credit score simply because she never has opened her own line of credit. These are all reasons why it can be important to focus on one's credit score after divorce.

Was your house foreclosed in error? Regulators ordered hundreds of thousands of mortgage foreclosures to be reviewed for errors, so many that the backlog is now more than several months.

The delay insults injured parties for a second time, who are waiting to receive potential damages from aggressive home foreclosure tactics. Many Florida homeowners have been fighting in the past few years to correct this injustice that cost them their homes.

Chapter 7 bankruptcy: it can be a chilling idea to those hesitant to ask for help. Some high profile people choose this path to redemption when their lives, and then finances, spin out of control.

Recently, a very successful sports management figure (the man who reportedly inspired the character from "Jerry Maguire") declared bankruptcy after years of fighting alcoholism and the business debts that his addiction contributed to. His cautionary tale teaches two lessons: focus on the important when things are going well and find a way to amend the costly errors.

In case you haven't heard, renting is the new buying. With more and more houses being lost to foreclosure, fewer Americans capable of qualifying for new mortgages and many who do may be wary of investing in a new home that might be difficult to sell down the road.

With foreclosure rates staying high, and many of those homes sitting empty, the Obama administration, Fannie Mae and Freddie Mac are reportedly hoping for a different solution. The new program allows management companies to buy large quantities of homes that have been foreclosed upon and rent them out.

U.S. residents may be saddled with too much credit card debt, but the way they are spending money today, you wouldn't know it.

According to recent financial reports, outstanding U.S. consumer credit rose by $20.37 billion during November of 2011. That's the biggest gain in a month since way back in November of 2001, according to a Reuters story.

In our last post, we explored some of the forms of creditor harassment that some people have had to face and many collectors have been forced to dish out. Many of the practices are illegal, and there is one major reason why creditors engage in harassing behavior. Desperation.

So how does this desperation get so bad that it leads so many into creditor harassment? Selling debts. Consumers' debts will be sold to various parties at various times. Chances are, if someone keeps calling you about the credit card that was closed three years ago it isn't the bank that issued it.

When most people sign up for a credit card they do so intending on making timely payments. But things happen. Job loss. Shifting priorities. People find themselves facing more and more credit card debt and getting more and more collection calls. In part one of this series, we'll explore how far some collectors are willing to go, and in part two we'll examine why.

A Newsweek report shares some collectors' stories of their work in the industry. They report that if a person can't pay their bill the second they call many collectors are not afraid to hit below the belt. In fact many collectors and former collectors have revealed that their managers encouraged them to do "whatever it takes" -- whether it is legally considered creditor harassment or not. Some violations include repeated calling to the point of harassing after a debtor has hung up, revealing information about debts to family members and neighbors and even threatening immigrants with deportation.

Tough times can fall on anyone. No one knows that better than a formerly successful rapper who has found himself deeply in debt and is now in the midst of a Chapter 7 bankruptcy. Chapter 7 bankruptcy involves the liquidation of assets in order to pay off creditors as much as possible, although some assets such as a modest home and vehicle are excluded from liquidation.

In order to file, one must pass a means test and prove their income is below the median income for their state. As a result, most bills, including credit card bills and medical bills are forgiven, leaving the filer with a fresh start. Although the Chapter 7 filing takes time, the filing alone stops creditor harassment and prevents devastating events such as foreclosure or eviction.