For many Florida retirees, the days of being financially secure are gone. Many people go into retirement with a significant amount of credit card debt that is a strain to keep up with when they are only receiving a portion of what they used to earn through either a retirement account or Social Security. To make matters worse, credit card debt is often not the only debt that people carry with them into retirement. Many have mortgages, car loans and other financial obligations as well.
If you're facing foreclosure on your condo, the pressure probably started long before you were even in financial trouble. For many older condo communities, the effects of the 2008 recession never went away. These communities are faced with aging facilities in desperate need of repair, which, when coupled with declining cash reserves and stricter lending rules, have left many condo owners holding the bag in terms of supporting their facilities.
Research indicates that one out of every three Americans has saved for retirement, and approximately 62 percent have less than $1,000 in savings. The primary reason that most people here in Florida and elsewhere are unable to save money is due to their debts. Many people who are struggling to make ends meet also wait too long to find a debt relief option that will turn their finances around.
Many Florida residents are under the impression that only people who do not earn a substantial income, have a nice house or even a healthy retirement plan can experience financial hardship. Nothing could be further from the truth. Anyone can be overwhelmed by credit card debt and other debts to the point where they find themselves in financial distress.
When homeowners are in financial distress and begin to explore their debt relief options, they might become fearful that they will have to give up their homes. They might want to file for Chapter 7 bankruptcy, but are not sure how their homes will be affected. Fortunately, Florida has one of the highest homestead exemptions in the country, and in many cases, filers will not be required to liquidate what is ordinarily their largest asset.
Recent estimates indicate that as of March, borrowers owe approximately $1.35 trillion in student loans across the country. Many Florida residents are likely among the nearly 10 million people who are unable to repay these loans, which means that approximately 43 percent of all borrowers are either behind in their payments or are unable to make payments at all. To make matters worse, student loan debt relief through bankruptcy is unavailable for many borrowers.
Most major events require a background check or credit report before the deal is final. What you may not know is that the major credit reporting companies have a proven record of being wrong. If you're already struggling to pay your bills, that extra blight on your record could cost you a new apartment or better job, sinking you further into your own debt, and costing you more money along the way.
When Florida homeowners are unable to make their mortgage payments, they can begin to panic and look for a way to avoid losing their homes. It is this group of people that can easily become the target of loan modification schemes. Recently, two men were recently sentenced to prison for taking advantage of their victims' fears, and four others are awaiting sentencing.
When Florida residents who are in financial distress are being bombarded with phone calls, threats of litigation and wage garnishments, the stress can be overwhelming. Filing for Chapter 7 bankruptcy not only begins the process of eliminating many of an individual's debts, but also stops harassment by your creditors. Once the petition is filed, an automatic stay is put into place that halts all collection activity by creditors and provides filers with the breathing room they need to sort out their financial situation with the court's help.
After spending most of your career saving for retirement the idea of your hard earned money being taken away is devastating. Retirement accounts are essential to maintain the life you built, therefore the fear of creditors can keep some people from choosing to file bankruptcy. Believe it or not you are protected by the law, and you should not let this fear dictate your future.
Many Florida residents are no stranger to financial struggles. They might not feel as though their struggles are over once they decide to file for Chapter 7 bankruptcy, however. Finding an attorney can also be a challenge.
Florida residents who have decided to file bankruptcy might wonder whether they qualify to file for Chapter 7 or Chapter 13. Since 2005, the means test has been the primary indicator of which chapter an individual can file. The test is a two-step process that determines whether a filer has sufficient income to repay creditors.