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Orlando Bankruptcy Law Blog

Jump in home foreclosure rates shows recovery not too strong

While the recession may technically be over and the economy and jobless rates are said to be improving, there are certain economic indicators that show there is still room for more recovery. One area of concern is the state of the housing market in Florida and other states. While the numbers are not bleak, there is still cause for concern when it comes to home foreclosure.

A recent report indicated that there over 116,000 properties that were currently in the midst of the home foreclosure process in August. This means the rate of foreclosure activity was noted to be up 7 percent compared to July. Although that was a monthly increase, it was still down from a year ago.

Credit card debt still plaguing some in Florida and beyond

At the onset of the recession, many people found credit card debt to be overwhelming and the source of many of their financial woes. As the recession waned, people learned more about how to effectively use credit cards and avoid unmanageable credit card debt. However, some in Florida and beyond found credit card debt to still be an issue while others are avoiding credit cards, which can be detrimental to their overall credit also.

A recent study revealed that roughly 20 percent of people could not maintain their monthly living expenses without the use of a credit card. Having to go without a credit card would essentially force them to live differently. It was also revealed that the average person has five to six credit cards in their possession and a level of unsecured debt that was around half of their annual income.

Beware of scams regarding home foreclosure in Florida

The recession created an atmosphere where people were forced to seek solutions to financial chaos and find ways to keep their homes. The home foreclosure rates in Florida and across the country jumped, and many people lost their homes in the process. Others found loan modifications and bankruptcy solutions to avoid home foreclosure. However, there were many others who were taken advantage of as scammers jumped at the chance to entice struggling home owners with a quick or easy fix to their financial woes.

Recently, two brothers faced criminal consequences for their role in a scam that cost homeowners millions. One of the brothers was just sentenced to 35 years in prison for his role in the scam. The brothers essentially stole the titles to homes, and one of them was convicted of mail fraud and other charges also.

What is the benefit of filing for Chapter 13 bankruptcy?

The thought of filing for bankruptcy can be overwhelming for some after they have realized they are struggling to handle debt. It can also be confusing as there are a lot of misconceptions about all types of bankruptcy, including Chapter 13 bankruptcy. In Florida, anyone thinking about filing bankruptcy may want to be clear about the facts and learn the benefits and potential downside of filing of filing Chapter 13 bankruptcy in particular.

One misconception that is important to be clear about is what kind of debt bankruptcy will discharge and how debt is handled in general. Some people mistakenly believe that filing for Chapter 13 bankruptcy will mean a discharge of debt. It actually means that the financial obligations are reorganized pursuant to a plan and paid off over a set period of time. That period of time may be three to five years.

How does bankruptcy affect home foreclosure?

The home foreclosure process can be confusing and unsettling. The timeline and options for keeping a home can be hard to understand and may leave homeowners feeling helpless and overwhelmed. Understanding how the bankruptcy process can affect a Florida home foreclosure is the first step to keeping a home or knowing what to expect.

Once the bankruptcy papers have been filed, creditors are informed right away. All collection attempts must stop immediately. This can mean a home scheduled for a foreclosure sale can be saved for a little more time. The postponing of a sale may last around three to four months. However, there is no guarantee of that timeline.

It is important to know the facts when seeking debt relief

Whenever you are consider filing for bankruptcy, you may wonder what assets you get to keep and what may be liquidated to pay off debts. Filing bankruptcy as a means of debt relief can help Florida residents hold on to assets they need, but you must understand the process in order to ensure assets are not repossessed. Having misinformation about bankruptcy and debt relief can result in a continuance of financial woes.

If assets, such as boats, cars or other vehicles, are in the process of being repossessed, bankruptcy can halt that process and allow you to keep the vehicles. However, it is important to understand that this is a temporary stoppage and the debt is still there. Bankruptcy can give you the time needed to get current with payments and a timeline will be devised.

Credit card debt can be confusing when filing for bankruptcy

The recent economic situation of the last few years has left many people wondering what their options are. While most people may understand the basics of filing for bankruptcy in Florida, they may be confused about how debt is divided and handled during the process. It is important for Florida residents to understand and seek current information about how to deal with credit card debt when going through the bankruptcy process.

Bankruptcy is a great way to discharge overwhelming debt and avoid losing your home and vehicles. However, credit card debt can be discharged as well under the right circumstances. For many people, this kind of debt is a primary source of concern and is simply unmanageable. Without dealing with credit card effectively, if can be impossible to get a fresh financial start.

Is there a way to avoid home foreclosure?

Whenever someone has problems with finances, the possibility of a home foreclosure can make the situation all the more stressful. If mortgage payments are not able to be made on time and in full, the home foreclosure process may be started. It is important for all Florida homeowners to understand how the process works and also how they may be able to avoid home foreclosure altogether.

The first step to avoiding home foreclosure is to acknowledge the problem and answer all mail related to late mortgage payments. Contacting the lender as soon as it becomes evident that there are problems making payments can open the door to having the lending company help find solutions. Before dealing with the lender directly or working out some kind of deal for payments, a homeowner should investigate their rights.

Preparedness for bankruptcy can stop harassment by your creditors

The thought of filing for bankruptcy can be overwhelming and extremely confusing for anyone. If you are considering filing for bankruptcy in Florida, the quicker you do so, and the more prepared you are for the process, the quicker you may be able to stop harassment by your creditors. As with any legal process in Florida, the more information available to you before it is needed, the better you may feel about the process overall.

When deciding to file for bankruptcy, it is important to know what you may need to bring to an initial consultation. The essence of bankruptcy and the legal process is proving you can’t pay your bills as they are. Bringing in any and all collection letters is a great start. You should also bring billing statements, mortgage information and car payment information.

Credit card debt a problem in Florida and the South

Debt, including credit card debt, has long plagued nearly every region of the country since the onset of the recession. The recession meant that debt took over and left many people in Florida and elsewhere with no other options but to file for bankruptcy or lose their homes. While the credit card debt problem has rippled across every region, the South -- including Florida -- has been harder hit by the amount of debt with which the average person has to deal.

On average, it is reported that 35 percent of people are behind in some kind of debt payments. The debts included in the average relate to non-mortgage debt. This includes credit cards, medical bills and other debts that are past due and in the collection process.

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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