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Orlando Bankruptcy Law Blog

Determine whether or not to file for Chapter 7 bankruptcy

Health insurance costs in Florida and around the country are skyrocketing. In fact, many consumers are forced to be uninsured now because it is difficult to afford the monthly premiums. While premiums are often priced out of reach for many, the alternative is equally frightening. A serious accident or illness could quickly deplete the assets of an uninsured person and create a financial disaster. In fact, many people who file either Chapter 13 or Chapter 7 bankruptcy do so as a result of staggering medical bills.

Experts warn that more financial hardships may be looming due to the level of consumer debt. Other issues creating potential problems are the default rate on student loans and the sub-prime auto lending marketing. All these potential problems in the financial market may cause consumers to consider filing for bankruptcy should their circumstances become overwhelming. Determining whether or not to file for bankruptcy, then choosing what type to file, are important decisions.

Save more for retirement by reducing credit card debt

Many of those in the workforce in Florida and throughout the country often dream of the day they can quit their jobs and retire. However, a growing number of employees feel less confident about their future ability to leave the working world someday. In a recent survey by a national brokerage firm, the results showed that members of a particular demographic don't believe they will ever be able to fully retire. While there are many contributing factors, one reason often cited is mounting credit card debt.

According to the survey, 37 percent of employees born between 1965 and the late 1970s, members of Generation X, have stated that they can not afford to quit work one day. Over 40 percent indicated that they are behind in saving for their futures, while 17 percent said they are not investing anything at all. Financial experts strongly suggest that everyone consider the importance of saving for the future. With high credit card balances, it is difficult to put money aside for the future.

Start the new year by tackling credit card debt

Many Florida residents and others around the country often make New Year's Resolutions at the beginning of each year. These resolutions frequently involve financial goals. While some focus on saving more for their retirement or establishing an emergency fund, experts recommend one activity that can potentially have the greatest impact on a person's finances. Tackling credit card debt and having the cards work favorably is a valuable place to start in the new year or anytime.

Credit cards in and of themselves are not inherently bad. In fact, it can be convenient to make purchases with a single card and make one payment each month for them. Reward programs frequently make using the cards advantageous as the benefits accumulate. However, many consumers do not pay the full balances each month.

Company must pay $45 million for home foreclosure actions

The mortgage crisis that started roughly a decade ago created hardships for many Florida homeowners and others around the nation. Unfortunately, some companies that seemingly appeared to help consumers in their difficult situations created more problems for those involved. A national financial services corporation was recently ordered to pay $45 million as a settlement for their mortgage servicing and home foreclosure activities.

Every state except one in the country was involved in the settlement, as reported by the Multi-State Mortgage Committee and PHH, a company headquartered in another state that provided mortgage servicing to financial corporations around the world. The settlement covers activities by the company between Jan. 1, 2009 and Dec. 31, 2012. The company has also been ordered to change its mortgage servicing standards.

Medical bills could contribute to credit card debt in Florida

Having a considerable amount of debt that only seems to keep getting worse can be daunting for any Florida resident. They may wonder how they can get a handle on their finances while simultaneously accruing more and more credit card debt. Though credit cards can help bridge financial gaps in certain situations, they can also contribute to serious debt issues.

The average American household has somewhere between $15,000 and $16,000 in credit card debt. Some people may think that simple overspending or not taking the time to build savings plays a major role in this predicament. While it is true that those issues can be factors, another serious issue that can contribute to credit card debt is medical expenses.

Rebuilding credit after Chapter 7 bankruptcy is possible

Many Florida residents struggle for a considerable amount of time when it comes to finding the best way to handle their substantial debt. In the end, many people may choose to utilize Chapter 7 bankruptcy in hopes of getting their financial affairs under control. Though this process may prove exceedingly useful, it can also cause some setbacks in regard to credit scores.

Though credits scores are often lowered by bankruptcy filings, they do not have to remain low. There are several ways that individuals can work to immediately begin bettering their credit after completing bankruptcy. This means that even though a filing will remain on a credit report for up to 10 years, parties should not wait until this time to consider improving their credit.

Mistakes to avoid before filing for bankruptcy in Florida

Filing for bankruptcy can be a difficult process, both emotionally and logistically. Both Chapter 13 and Chapter 7 bankruptcies also tend to require complicated and thoughtful preparation.

Knowing some common mistakes to avoid before you begin can help you avoid disaster at a later point. As every situation is different, you should also have the help of a qualified attorney at all stages so that you can get advice specific to your needs.

How home ownership may affect credit card debt

Home ownership is a goal for many Florida residents and others throughout the nation. Financial advisers often tout the tax benefits of owning a home as a reason to purchase a residence rather than continuing to rent. However, recent statistics from a financial services website show that homeowners tend to accumulate more credit card debt than those who rent.

For years, experts have cited the benefits of buying a home. Some of these include the ability to write off mortgage interest and the opportunity to build equity. Yet, there are other costs associated with home ownership that may create financial difficulties. Property taxes and insurance must be paid routinely, in addition to costs for repairs and maintenance.

Get a mortgage after filing for Chapter 13 bankruptcy

Many Florida residents and others around the country have experienced financial hardships during the recent economic climate. Some consumers have elected to file for Chapter 13 bankruptcy in efforts to get their finances back under control. Many assume that someone filing for bankruptcy under Chapter 13 cannot buy a home. However, this assumption is being proved wrong more often today.

While some may have to wait a while after filing for Chapter 13 bankruptcy, it is possible to obtain a mortgage during the process. In fact, having the fresh start with finances is a positive move for many. Statistics show that those in financial stress who do not file for bankruptcy have credit scores that are lower than those who have filed.

Research takes look at recent loan modification efforts

Many Florida residents and others elsewhere in the country experienced financial hardships during the recent housing crisis. While concerns about losing their homes were prevalent during this time, several efforts were made by national government agencies to help curtail the losses. Government-sponsored enterprises, such as Fannie Mae and Freddie Mac, were asked to reduce loan principal balances, while other programs like the Home Affordable Modification Program were established. A national financial services company recently released a report that assessed the effectiveness of the various loan modification efforts.

The study reviewed how mortgage payment reductions affected defaults, among other scenarios. Roughly 450,000 consumers who had gone through a loan modification from July 2009 to June 2015 were surveyed. The data showed that defaults were reduced by 22 percent when consumers received a 10 percent reduction in their monthly payment.

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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