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Orlando Bankruptcy Law Blog

Tips to know if you are on the verge of home foreclosure

The home foreclosure process is often shrouded in mystery and fear. For those in Florida who have struggled to keep up financially and who may now be on the verge of home foreclosure, there are certain tips and pieces of advice to follow. Each home foreclosure is different, but if you are aware of the law and have the right guidance, you can feel prepared to deal with what may lie. Being aware of your options can help you feel confident in your decision.

One thing to always do is respond to any court summons that you get. Responding and communicating is the only way to know exactly what is unfolding. Another tip is to not just jump at the chance for a short sale as a quick or easy way out. There are tax implications and you will want to be aware of other options first.

Chapter 7 bankruptcy advice not to be ignored

There are very strict laws and regulations surrounding the bankruptcy process. There are also just as many myths and a massive amount of misinformation surrounding them. Anyone in Florida who is considering filing for Chapter 7 bankruptcy may benefit from knowing what not to do as much as understanding what a person should do when filing a petition.

One important piece of advice for someone who is about to file for bankruptcy is to not go out and rack up more debt. Your spending habits will be analyzed, and if you run up new debt after having started the process, this action can be seen as fraudulent activity. These actions can even lead to a bankruptcy case being tossed out of court and debts remaining as they are.

Divorce may make Chapter 7 bankruptcy more complicated

For many people, divorce and bankruptcy may be the most stressful and overwhelming times they ever encounter. When both are or could occur at the same time, Florida couples may be even more overwhelmed and confused about their future. It is important to know how a divorce may affect the process of filing Chapter 7 bankruptcy.

When Chapter 7 bankruptcy is filed and approved, certain debts are discharged. However, those in the midst of divorce should be aware that child support and alimony are not debts that can be discharged like credit card or other debts. Before filing and knowing a divorce is imminent, it is important to know how debt will be divided and what can be discharged.

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.

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Paul Urich
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