Jump to Navigation
When you've done all you can you may be able to get A Fresh Start

Orlando Bankruptcy Law Blog

What Chapter 7 bankruptcy will and will not do

Bankruptcy in general is often shrouded in mystery and misinformation. Despite that fact that Chapter 7 bankruptcy became more common during the recession, it is still very serious business and it is vital to know truths from misinformation. Florida residents on the verge of filing bankruptcy need to understand what Chapter 7 bankruptcy will and will not do to their credit, bills and possessions.

First of all, Chapter 7 bankruptcy will let you discharge certain types of debts. Credit card debt can be discharged through the process. Bankruptcy will also give a filer extra breathing room, because, once an individual files, creditors have to stop the harassment. Filing bankruptcy will also affect anyone who co-signs a loan for a filer. That person will take on the liability for the debt.

Credit card debt can be dealt with several ways

Most Americans carry some amount of credit card debt at any given time. However, some Florida families may find that their credit card debt is getting to be unmanageable and they need help dealing with that debt. While different solutions may work for different families, it is important for all Florida families to understand that there may be a variety of options for dealing with credit card debt, regardless of how unmanageable it may become.

Chapter 7 bankruptcy may be the best option for those who have found that credit card debt and other debt has completely paralyzed their finances overall. If approved for Chapter 7 bankruptcy, the credit card debt can be discharged. This essentially means it can be wiped out and credit card companies accept that the person filing bankruptcy is not responsible for paying that debt back.

Why an attorney can be a good choice for help with debt relief

Debt is a serious issues for many American families. Florida families in particular have struggled in recent years, leaving them looking for ways to deal with overwhelming debt and find viable debt relief solutions. One popular solution has been to utilize a credit counseling agency for debt relief; however, there are many reasons why the assistance and guidance of an attorney may be more beneficial.

A credit counseling agency may help in some cases, but some have been discovered to be fraudulent or, at least, less than honest. Often, these agencies do not make concerted efforts to let clients know all of the available options and which options may be best suited to their situations. Also, people who are struggling may discover they can achieve the same outcomes by negotiating with creditors themselves or with the help of attorneys.

Home sold despite pending loan modification

The loan modification process undoubtedly takes time and can be a confusing process for some struggling homeowners. While Florida homeowners await approvals of loan modification applications, the struggle to keep up with mortgages can persist and make the financial distress even greater with each passing day. For one couple, the wait on a pending application for a loan modification resulted in possible foreclosure of that home.

The couple in the midst of the problem are a World War II veteran and his wife of over 60 years. The elderly couple realized they were falling behind on their mortgage payments and took steps to quickly fix the issue. While their application for a loan modification was pending, they started receiving foreclosure notices. Then they were told the home was sold without the couple's knowledge.

Despite improvements, home foreclosure still issue in Florida

Florida had the unfortunate distinction of leading the nation in home foreclosure rates in the United States for years. While there have been improvements in the numbers, southern Florida is still making news for ranking high in the nation for metropolitan areas in the country affected by home foreclosure. However, despite the high ranking, the marked decline is good news for some in Florida as homeowners find ways to keep their homes.

Overall, the southwestern part of the Sunshine State has areas that ranked 37th and 50th for foreclosure rates out of 401 metro areas. For the last month of the summer, foreclosures were measured at 2.6 percent. That rate was 4.57 a year ago. The rate for the entire country also dipped to 1.25 percent. The rate of homeowners 90 days delinquent in mortgages also dropped compared to last year, both in Florida and the United States overall.

How to know credit card debt is too much and what to do

While the national average for credit card debt might currently be over $16,000, that average may be manageable for some families and woefully overwhelming for others. Some Florida families may be completely unaware of how to tell when their level of credit card debt constitutes too much debt and has become unmanageable. Other families may reach that conclusion but not realize what options they may have for controlling that credit card debt.

There are key warning signs that credit card debt has reached an uncomfortable level. One sign is that more than 70 percent of one's available credit has been used. Another sign of troubling debt is if credit cards are the used for common or minor purchases. If it is the only way to pay for gas or groceries, or the like, the financial reality may not be good.

Chapter 13 may be best debt repayment plan for you

Not every tough financial time requires extremely drastic measures. Some financial difficulties may be temporary and may be helped through filing for Chapter 13 bankruptcy. Before discounting bankruptcy altogether, learn how Chapter 13 bankruptcy can work as an effective debt repayment plan for struggling Florida families.

One benefit of Chapter 13 bankruptcy is that you can keep assets. While other types require a type of liquidation, you can keep your home and make economic progress at the same time. This type of bankruptcy is essentially rooted in the promise to repay that back debt over a period of time and you can keep the assets while you do it.

Don't fall for home foreclosure myths in Florida

Despite all the media attention brought to the home foreclosure process after the recession, the actual process and after effects can still be shrouded in mystery and misinformation. Being on the verge of a home foreclosure, or investigating ways to keep a home in Florida while facing home foreclosure, is a possibility that can be stressful enough for any family. Myths and false information about the process can make it even more stressful. One myth to debunk is that homeowners in foreclosure cannot vote.

Regardless of what stage a home foreclosure is in, the homeowner can still vote in elections. Back in colonial times, land holdings had to be properly documented in order to vote. However, that's not true today. 

Bankruptcy may be better alternative than mortgage modification

When a homeowner is in trouble financially, meeting a mortgage obligation each and every month may suddenly become a struggle. One of the first things Florida homeowners may want to do is contact their lender and plead for a mortgage modification. While this may work for some, it can be a temporary fix and not economically sound in the long-run. Before deciding to seek a mortgage modification, it may be best to understand other options on the table, such as bankruptcy or perhaps stripping a second mortgage.

One option to consider is Chapter 7 bankruptcy. It can lead to the discharging of some debts, such as credit card debts. This can reduce debt overall for a family and give them the extra money needed to catch up on a mortgage. This alone could eliminate the need for any kind of mortgage modification.

Don't take my car! How to handle the threat of repossession

Debt has a way of sneaking up on people. In the early stages, the problem may register only once a month as you make the minimum payments on your bills.

Next thing you know, you're late with a payment and you get a call from a creditor. This causes stress, but perhaps not enough to change your habits or seek professional debt help.

Do You Have A Case?

Bold labels are required.

Contact Information

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

A Member of the FindLaw Network
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

Get directions