Facing Foreclosure? Do Not Make These Mistakes

No one wants to hear that a lender is preparing to foreclose on their home. If you are in this position, or you have missed some mortgage payments and believe you will be soon, you know just how scary it is. You may even become angry and frustrated and not know what to do next. Even worse, the emotional aspect of the process may cause you to take certain steps that will only hurt you in the future.

Below are the top 10 mistakes to avoid when facing foreclosure so you can come out of the situation in the best position possible.

1. Ignoring Your Lender

   The worst thing you can do when facing foreclosure is to ignore your lender. Although you may feel frustrated or even angry with your lender, they are calling you and sending you letters because they would likely rather work with you to save your home rather than foreclose on it.

   Answer the phone when your lender calls and try to work out an agreement with them.

2. Not Considering Renegotiating Your Loan

   Again, your lender will only foreclose on your home as a last resort. The chances are very good that they want to work with you to determine an option that will let you stay in your home.

   They may be willing to renegotiate your mortgage loan so it is more affordable for you to pay. If an agreement can be arranged, you are then still responsible for not only paying the mortgage, but also the utilities, upkeep to the property, and taxes. Your lender does not want to be responsible for these expenses.

3. Not Considering All of Your Options

   When lenders are about to foreclose, you may think you are out of options and that you are going to lose your home. Although you may, depending on the situation, there are ways to avoid foreclosure and avoid the consequences that come with it, such as the hit your credit score will take.

   Speak to a foreclosure defense lawyer who can tell you about your options, including selling the home at a short sale, arranging a deed-in-lieu of foreclosure with the lender, or even filing for bankruptcy, which may delay the process.

4. Damaging the Property

   It is not uncommon for homeowners to become so angry once the foreclosure process starts that they take it out on the home. Some homeowners pour cement down the drains, strip the interior finishes, and even rip up the floorboards.

   It is crucial that you do not intentionally damage the property in any way. Your lender may file vandalism charges against you and you will likely be on the hook for paying for any damage you caused.

5. Failing to Maintain the Property

   So, you may not intentionally damage the property, but you may also not want to put a lot of work into maintaining the property. While you do not have to do any major renovations, you should maintain the property by mowing the lawn, pulling the weeds, and making small repairs when necessary. If you do not, it will be harder to sell the home and you do not want that, particularly if you are hoping for a short sale.

   Also, make sure you do not leave the home or turn off the utilities. You must ensure that the property stays in good condition, which means making sure mold does not grow throughout the home, and that animals such as raccoons do not get in. Additionally, in the end you may be able to keep your home and if you have not kept it properly maintained, you will have a much bigger job on your hands.

6. Not Saving Money

   If the lender is successful in foreclosing on your home, you will need money to find a new place to live. After a foreclosure though, your credit score will also be affected, which can make it more difficult to find a place to rent. Start saving money now so that you can pay security deposits, moving expenses, and costs of a storage unit, if necessary.

7. Failing to Create a Plan

   You may want to avoid foreclosure as long as possible and so, you try not to think about it. However, this too, is a big mistake. You need to create a plan which includes finding a new home, packing all of your belongings, and getting ready to move.

   If you do not take these actions, the sheriff may come to your home with a team of people that will place your belongings on the curb. This will only add to an already bad situation and will make things much worse.

8. Not Selling the Home

   You may not always be able to sell the home, but you should at least consider the possibility. For example, if you know you are behind on mortgage payments and do not think you can bring the loan up to date, you may want to sell the home to avoid foreclosure.

   If you owe more than what the home is worth, you can also speak to your lender about a short sale, which they may agree to, as this will allow them to recover at least a portion of the loan.

9. Failing to Understand the Legal Consequences

   Foreclosure is bad enough, but many homeowners do not realize that the process may not end there. If you still owe money on your home once the foreclosure process is over, the lender may still obtain a deficiency judgment against you.

   This judgment will hold you legally responsible for paying the rest of the loan, even though you no longer live in the home.

10. Not Speaking to a Fort Lauderdale Foreclosure Defense Lawyer

    The foreclosure process is long and complex, and it is difficult to understand the many details that will come up along the way if you have never been through it before.

    If you are facing foreclosure, our Florida foreclosure defense attorneys at Loan Lawyers are here to help. We will explain the entire process, negotiate with your lender, and give you the best chance of staying in your home. When you need legal help, call us at (954) 523-4357 or contact us online to schedule a free consultation.

The dedicated bankruptcy attorneys at Loan Lawyers have:

• helped over 5,000 South Florida homeowners and consumers with their debt problems
• saved over 2,000 homes from foreclosure
• eliminated more than $100,000,000 in mortgage principal and consumer debt
• recovered over $10,000,000 on behalf of our clients due to bank, loan servicer, and debt collector violations.

Contact us for a free consultation and find out more about our money-back guarantee on credit card debt buyer lawsuits, and how we may be able to help you.

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How COVID-19 Could Affect Your Credit Score?

For many Americans, maintaining a high credit score is almost as important as keeping money in the bank. However, COVID-19 has greatly affected the finances of millions of people in the country and now many are wondering how the pandemic will affect their credit score. There are three main ways the pandemic will affect credit scores throughout the country. It is important to know what these are and what the credit reporting bureaus, such as TransUnion and Equifax, take into consideration when determining your score. This is the only way to ensure that COVID-19 will have as little impact on your credit score as possible.

Factors that Influence Your Credit Score

It is crucial to know how the credit reporting bureaus determine your score so that you can take certain steps to build it, and avoid other actions that will hurt it.

The five factors the bureau consider include:

• Payment history: The more payments you make on time, the better it is for your credit score.
• Credit utilization: The reporting bureaus will consider how much overall credit you have, and how much you are using. You should only try to use a minimum of 30 percent of your overall credit limit.
• Credit history: The bureaus will also consider how long you have had credit, and how long you have been in good standing.
• Credit mix: Having different types of credit, such as a combination of credit cards and loans, shows that you have good debt management skills and can handle a number of different types of credit.
• Credit inquiries: The more you apply for additional credit, the more it hurts your credit score.

The above factors are listed in order of importance, so it is most important that you make all of your payments on time, and then work on the others.

Discontinuing Payments Will Affect Your Score

COVID-19 has resulted in millions of people being furloughed or laid off. Businesses have had to shutter their doors all around the country and while some are starting to reopen, for others, the pandemic forced them to close for good. With many households experiencing a sudden loss of income, it is natural to want to lose even more money by paying your debts. However, it is of critical importance that you continue making as many payments as you can, so your credit score is not lowered.

It is easy to understand if you cannot make your payments during this extremely difficult time and when that is the case, you must speak to your creditor to try to come to an agreement. Many lenders are allowing borrowers to defer their payments for six months. If you cannot come to an agreement with your creditor, you should continue to try to make at least the minimum payment to avoid a higher interest rate and late fees.

Relying on Credit will Hurt Your Score

Without money coming into the household, you may be tempted to rely on your available credit to cover your daily expenses. Of course, doing will only make your interest charges add up, and will increase your credit utilization ratio. Both of those things will affect your credit score in a negative way, and it also serves as a warning sign to creditors that you rely too heavily on credit in order to get by.

Instead of relying on credit, think about other savings you may have. Do you have an emergency fund? Now is the time to use it. Were you planning for a vacation or other major purchase before the pandemic hit? Now may be the time to dip into those savings so you can rely less on credit. Even though this means postponing your plans or goals, it will save you from debt that will only continue to accrue interest and that will cost much more in the end.

Asking for More Credit Will Impact Your Score

It is understandable that during these trying times, you may apply for more credit. Without any money coming in, you may even think this is the only option. However, when creditors and the reporting bureaus see that you are applying for several different loans or credit cards, it sends the message that you are experiencing financial difficulties, and that you may not be able to pay back the debt if your application is accepted.

If you have already maxed out your other credit cards, it is of critical importance that you do not apply for more credit, particularly from more than one creditor. This sends an even bigger warning sign to creditors that you will likely be unable to repay the debt.

Instead of taking out different loans and credit cards, again look into savings or investments that you may be able to tap into to get you through these challenging times. If you have an existing card, you should also look into balance transfer opportunities that may free up credit on one card so you can use it without having to apply for more credit. You may also consider drawing from your retirement fund, but this should only be a last resort. You will probably have to pay a penalty that is fairly steep for withdrawing the funds early, and you also still need that fund for your retirement years.

Our Fort Lauderdale Debt Defense Lawyers Are Here to Help

It is natural that at a time like this, you may wrap up excessive debt on your credit cards and perhaps a creditor has even started taking legal action against you. When that is the case, our Florida debt defense attorneys are here to help. At Loan Lawyers, we know debt lawsuits can seem intimidating, but we also know the defenses that are available and how to use them to give you the best chance of a positive outcome. If a creditor has filed a lawsuit against you, call us today at (954) 523-4357 or contact us online to schedule a free consultation with one of our knowledgeable attorneys.

The dedicated bankruptcy attorneys at Loan Lawyers have:

• helped over 5,000 South Florida homeowners and consumers with their debt problems
• saved over 2,000 homes from foreclosure
• eliminated more than $100,000,000 in mortgage principal and consumer debt
• recovered over $10,000,000 on behalf of our clients due to bank, loan servicer, and debt collector violations.

Contact us for a free consultation and find out more about our money-back guarantee on credit card debt buyer lawsuits, and how we may be able to help you.

The post How COVID-19 Could Affect Your Credit Score? appeared first on Loan Lawyers.

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A Basic Look at Foreclosures as Delinquencies Soar Around the Country

Just as 2008 was starting to become a distant memory for many and the number of foreclosures around the country and right here in Florida were starting to drop, the coronavirus hit. Predictions were made right from the start about the impact the virus would have on the economy, and the housing market. Now, those predictions are starting to come true.

In April, the number of mortgage delinquencies around the country soared by 1.6 million. It was the largest monthly increase in history. To put that in perspective, during the same month, the national delinquency rate increased to 6.45 percent, double the 3.06 percent rate in March of this year. The increase is also almost three times more than the previous record set during the peak of the financial crisis in 2008. Inarguably, more homeowners are facing foreclosure. As they do, it may be a good time for a refresher on how foreclosures work in Florida.

What is Foreclosure?

Most people understand that foreclosure means they will lose their home, but there is a lot more to it. When a lender forecloses on the home, they seize the property from the homeowner in order to satisfy the mortgage debt. Lending institutions will typically start the process once a homeowner is three months behind on their mortgage payments. Once a homeowner has lost their home to foreclosure, the deed is transferred to the lender or to a new purchaser that obtained the home during a foreclosure sale.

What Is the Legal Foreclosure Process in Florida?

Florida is a judicial foreclosure state, which means that in order to foreclose on a home, the lender must file a lawsuit against the borrower and take them to court. There, a judge will issue a judgment in the favor of either the lender or borrower. However, the legal process actually begins before the lawsuit is filed.

Typically, the lender will first send the borrower notice of their delinquent mortgage payments. If a homeowner does not bring the loan up to date, the lender may then accelerate the note. This means that the lender can ask for all payments relating to the note. At this point, it is not uncommon for borrowers to be unable to pay the entire balance of the note.

When that is the case, the lender will then file a summons and complaint against the borrower. This will officially begin the lawsuit process. Borrowers have a certain amount of time to respond to the complaint and if they do not, a judge will likely issue a default judgment against them. After that default judgment is issued, the lender can then proceed with foreclosing on the home.

Will You Automatically Lose Your Home to Foreclosure?

Whether or not you will lose your home to foreclosure will depend on whether you answer the complaint. If you do not and a default judgment is issued against you, it typically means you will lose your home. If you speak to a foreclosure defense lawyer who can help you answer the summons, raise affirmative defenses, file discovery demands, and make motions, there is a very good chance that you will not lose your home.

A foreclosure defense lawyer can also review with you the many options available. You may consider a short sale, a deed-in-lieu of foreclosure, or bankruptcy. With these options, you may still lose your home eventually. However, it can slow the process, giving you more time to prepare, and keep a foreclosure off of your credit history. A foreclosure will remain on your credit report for seven years, so that is an important distinction.

What Happens After Foreclosure?

Although the thought of losing your home is unbearable, you may find it is even more frightening to consider the unknown, and what might happen afterward. If the lender is successful during foreclosure proceedings, the property is sold at auction and the title is transferred back to the lender. Many people think this is the point at which they have to leave their homes, and that is sometimes true. The lender may send you a notice that you must vacate the property within a certain amount of time. However, this does not always happen.

In some cases, the new owner may agree to rent the property to you under Florida’s Landlord-Tenant Act. To do this, the lender must agree to the rental agreement. If they do not, they can still send notice that you must evict the property.

Is My Mortgage Debt Cleared After Foreclosure?

It depends. If the property is sold at a foreclosure auction or in a short sale, the proceeds from the sale are likely not enough to fully cover your mortgage debt. When that is the case, the lender can pursue a deficiency judgment against you. The deficiency judgment will ask for the remaining amount of the mortgage that you owe.

However, you can stop the lender from pursuing a deficiency judgment. When working with a foreclosure defense lawyer, they can negotiate with the lender. During negotiations, your lawyer can include a provision in any agreement, such as a short sale agreement, that the lender waives their right to a deficiency judgment.

Is it Necessary to Work with a Florida Foreclosure Defense Lawyer?

Florida law does not require that you work with a lawyer during the foreclosure process. However, all homeowners facing foreclosure should speak to an attorney that can help with their case. Many homeowners, in fear of foreclosure, have never been through the process before and do not understand the many defenses available in these cases.

At Loan Lawyers, our Fort Lauderdale foreclosure defense attorneys know how to defend against the lender and give you the best chance of remaining in your home. Even if foreclosure is inevitable, we know how to place you in the best position after the foreclosure process so you can move ahead with your life. If you are facing foreclosure, call us today at (954) 523-4357 or contact us online to schedule a free initial consultation and to learn more about how we can help.

The dedicated bankruptcy attorneys at Loan Lawyers have:

• helped over 5,000 South Florida homeowners and consumers with their debt problems
• saved over 2,000 homes from foreclosure
• eliminated more than $100,000,000 in mortgage principal and consumer debt
• recovered over $10,000,000 on behalf of our clients due to bank, loan servicer, and debt collector violations

Contact us for a free consultation and find out more about our money-back guarantee on credit card debt buyer lawsuits, and how we may be able to help you.

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How to Build an Emergency Fund

The coronavirus has caused the finances of millions to take a hit. Over the past few months, as people have been laid off or furloughed, they have been turning more and more to their credit cards. Today, 47 percent of Americans carry credit card debt, and 40 percent of borrowers can only make the minimum payment, if that. That means their credit score is taking a hit, and they are paying much more for their debt than they should.

Although the situation may seem inevitable in times like these, there are ways to avoid overwhelming credit debt, in case an emergency strikes again. By creating an emergency fund now, you can prepare yourself for anything that may come up in the future.

Purpose of an Emergency Fund

As its name suggests, an emergency fund is intended to cover emergencies in which you need more cash flow. Common emergencies include unforeseen medical expenses, car repairs, repair or replacement of home appliances, and unemployment.

Regardless of the reason, emergency funds are important for times when you need a financial buffer and want to avoid credit cards and high-interest loans; many people who are in debt think they need to pay these first before starting their emergency fund. An emergency fund is especially important for people in debt because it can prevent them from taking out even more.

How Much to Save in an Emergency Fund

Of course, it is easy to think that you should put as much as possible into your emergency fund, so you can cover bigger emergencies or multiple emergencies. However, you also do not want to get into a situation in which you are putting too much into your fund, and then having to withdraw from it for daily expenses. Remember, you want to start your emergency fund and then not touch it.

A study has shown that the majority of Americans could not cover more than $1,000 in unexpected debt. So, is that enough to cover the cost of an emergency? While the answer to that depends on your own financial situation, the truth is that $1,000 is not enough for most people. According to experts, an emergency fund should be able to cover up to three to six months of expenses. This amount could help you cover daily expenses if you lost your job, which is the costliest emergency.

Stowing away three to six months of expenses sounds overwhelming to many people. It is important to focus on starting an emergency fund, and not how much is in there at the very beginning. Even $100 can help kickstart your fund, so you can grow it in the future.

How to Create an Emergency Fund

To work effectively, you should essentially plan your emergency fund ahead of time, before simply going to the bank and opening up an account. The following steps can help you plan and build your emergency fund.

• Determine how much you want to save: You can do this by calculating your expenses over three months. Begin there and if you reach that goal, you can continue building on it until you have enough to cover six months of expenses.
• Set a monthly goal: Setting a goal will help you create the habit of placing money into your emergency fund every month and make it seem more manageable. When setting this goal, determine how much you can actually afford to stow away every month, so you do not end up dipping into the account.
• Count the change: One way to save big without going broke is to place your change into a jar. When the jar is full, place all of that money into the emergency fund to give it a quick but substantial boost. For people who do not use cash, there are apps for your smartphone that take your change from debit/credit transactions and puts it into a savings account or invests it.
• Arrange for automatic transfers: It is easier to move money into your emergency fund if you never even see it. If you already receive your paycheck through direct deposit, your employer can likely break up your paycheck into separate checking and savings accounts. If you do not have a direct deposit set up, or your employer is unwilling to do it, you can set it up with your bank to transfer a portion of your paycheck to a savings account.
• Make use of your tax refund: Tax refunds are exciting to get and it is tempting to spend it on something nice for yourself, or even just use it to cover daily expenses. If you can, though, your refund can be a great addition to your emergency fund and the opportunity only comes along once a year. You can also set it up on your tax return to have any refund deposited directly into your emergency fund account.

Once you have your emergency fund plan established, you can then go to your financial institution of choice and create an account. Check-in on the fund regularly to determine if you are saving enough, or if you already have enough in the account, and adjust as necessary.

Also remember that when choosing the type of account you want to hold your emergency fund in, you should choose wisely. Emergencies happen quickly and so, you want to make sure you have access to the account when you need it. However, you also want to make sure that you choose a high-yield savings account. These accounts will help you accrue more interest, so you can build your emergency fund even faster.

Still Struggling with Debt? Our Fort Lauderdale Debt Defense Lawyers Can Help

Sometimes, emergency funds and trying to avoid using credit cards is not enough. If you are struggling with debt and a creditor or debt collector has taken legal action against you, it is important to know that there are defenses available. At Loan Lawyers, our Florida debt defense lawyers know how to use these and build a strong case to stop harassing phone calls, or even get your debt discharged. When you are facing a debt lawsuit, call us at (954) 523-4357 or contact us online to schedule a free consultation so we can review your case.

The dedicated bankruptcy attorneys at Loan Lawyers have:

• helped over 5,000 South Florida homeowners and consumers with their debt problems
• saved over 2,000 homes from foreclosure
• eliminated more than $100,000,000 in mortgage principal and consumer debt
• recovered over $10,000,000 on behalf of our clients due to bank, loan servicer, and debt collector violations.

Contact us for a free consultation and find out more about our money-back guarantee on credit card debt buyer lawsuits, and how we may be able to help you.

The post How to Build an Emergency Fund appeared first on Loan Lawyers.

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Defenses to Commercial Foreclosure

Learning that a lender wants to foreclose on your commercial property is very scary. If the lender is successful in foreclosing on the property, it will not only greatly impact your business, but your family, too. Fortunately, there are many valid defenses to commercial foreclosures in Florida, but it is important that you act quickly and work with a commercial foreclosure defense lawyer. An experienced lawyer will understand the defenses to raise during every step of the foreclosure process.

 

Failure to Comply with Pre-Suit Letter Requirements

Many commercial mortgages require the lender to send a pre-suit letter before filing the foreclosure complaint. This letter may be sent once you are 30 days behind on your mortgage payments. The letter will notify you that you have failed to comply with the terms and conditions of the mortgage, also known as defaulting on the loan.

The letter must inform you of how you can bring your loan back into good standing. Pre-suit letters must also be addressed and mailed to the business. When there is a personal guarantee involved, a copy of the letter must be addressed and mailed to you, as well. If the lender does not comply with these pre-suit letter requirements, that can serve as a defense to foreclosure.

Improper Service

Once the lender has filed the complaint with the clerk of the court, they will attempt to serve you personally, as well as your business. Your business should have already designated a registered agent that can accept service.

The individual service will occur when the process server gives you the complaint. This can happen at either your home or at your business. The server may also choose substitution service, which means they have given the complaint to a relative that lives in your home. Service by publication is another option in which the complaint is published in a county newspaper.

Lenders often attempt service by publication because it does not give you a chance to defend yourself against the complaint. In order to do this though, lenders must take due diligence and attempt to serve you personally. When they do not, this can serve as foreclosure defense. Additionally, when the lender tries service by substitution, they must ensure that the person they serve with the complaint has the authority to accept it. When they do not, that can also provide a foreclosure defense. Lastly, you must also be served personally. Leaving the complaint at your front door or in your mailbox is not legal.

Affidavit in Opposition to the Motion

In most cases, the lender will file a motion for summary judgment. This is invaluable to the lender because it will allow them to secure a sale date, which saves them time and money by avoiding a trial. Witness testimony is prohibited at summary judgment hearings, and evidence is only presented through the pleadings that have been filed with the court. Lenders typically argue at this point that there are no questions about the facts and law of the case.

An affidavit in opposition to the motion can provide a defense at this point. An affidavit will question the facts of the case and can prevent the summary judgment from proceeding. This is crucial because if the lender is awarded a summary judgment they can not only sell your property but also seize business assets and attempt to collect personally on the debt still owed.

While the affidavit in opposition to the motion will raise questions about the facts of a case, an answer and affirmative defenses can raise questions about the law. This can also prevent a summary judgment from proceeding.

Mediation

During mediation, you, the lender, as well as attorneys for both sides, will meet with a mediator. A mediator is a neutral and objective third party who will attempt to resolve the dispute. Mediators only try to foster compromise and they do not provide legal advice. It is for this reason that it is important to work with a bankruptcy attorney that will ensure your rights are upheld and that any agreement reached is fair.

During mediation, your lawyer will negotiate with the lender to reduce the total amount you owe, and to create a reasonable payment plan. This will allow you to keep the property and avoid foreclosure.

Defenses Against 24-Hour Eviction

If you cannot defend against the foreclosure and the lender wins their case, the property will be auctioned. Ownership of the property is transferred through a certificate of title, after which the new owner will file for a writ of possession. Often, business owners do not know about the writ of possession until they are given 24 hours notice to evict the property.

This is very troubling for business owners. 24 hours is not a lot of time to move everything off the property, and that eviction notice includes weekends and holidays, meaning there is little that can be done to stop it. Still, it is important to work with a bankruptcy lawyer at this point. A foreclosure defense lawyer can contact the new owner to negotiate an extension on the time to vacate the premises, a short payoff, or cash for keys. Although these will not help you keep the property, it can make the transfer easier and give you the time you need to vacate the premises.

Our Florida Commercial Foreclosure Defense Lawyers Can Help You

Losing your commercial property to foreclosure can be devastating for you and your business, but it is important to remember that there are defenses nearly every step of the way. If you are in fear of foreclosure, our Fort Lauderdale commercial foreclosure defense lawyers are here to help.

At Loan Lawyers, we understand the defenses that are available in commercial foreclosure cases and we will use them effectively to give you the best chance of remaining on the property. We also have the necessary experience to negotiate with the lender to secure an agreement that is fair and reasonable. When you need help with a commercial foreclosure, call us at (954) 807-1361 or contact us online to schedule a free consultation.

Loan Lawyers has helped over 5,000 South Florida homeowners and consumers with their debt problems, we have saved over 2,000 homes from foreclosure, eliminated more than $100,000,000 in mortgage principal and consumer debt, and have recovered over $10,000,000 on behalf of our clients due to bank, loan servicer, and debt collector violations. Contact us for a free consultation to see how we may be able to help you.

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7 Things to Know Before Filing Bankruptcy

Struggling with debt is extremely difficult and when you feel that you are in too deep and that you cannot pay it off, you may consider filing for bankruptcy. Although it is a last resort, bankruptcy can bring relief from the financial pressure you are feeling and can stop the constant calls from different creditors. However, filing for bankruptcy is still a big step and the process is complex. Before you file, there are seven important things to know about the process and about how you will fare once your bankruptcy case is over.

 

1. Bankruptcy Is a Long Process

Many people assume that bankruptcy courts operate similarly to small claims court, which only takes one day for a case to be finalized. Unfortunately, the process takes much longer than that. The bankruptcy courts vastly differ from small claims courts, even though each deals with debts owed by borrowers.

Chapter 7 is the most common type of bankruptcy filed by individuals and the process typically takes between four and six months. If you are filing for Chapter 13 bankruptcy, the process is even longer. During a Chapter 13 bankruptcy, your debts are restructured in a manner that helps you pay them off over an extended period of time. Your case is not considered over until the end of that repayment plan after you have paid back all or most of the debt. This typically takes three to five years.

2. Bankruptcy Is a Public Affair

Many people do not even like discussing their salary with friends and family, never mind having their entire financial life on display. Unfortunately, that is exactly what happens during bankruptcy. Bankruptcy records are public, which means anyone that wants to view them can. During the bankruptcy process, you will also have to file the bankruptcy schedules, which is an enormous amount of paperwork that itemizes your debts, income, assets, expenses, and your most recent financial transactions. These schedules also become public record.

Additionally, you are also required to attend a meeting of the creditors during the bankruptcy process. The meeting is held in a public room and the creditors you owe can ask you questions. The bankruptcy trustee assigned to your case will also ask some in-depth questions that will require you to provide details about your financial life that, up until this point, have remained private.

3. You Must Remain Completely Honest at All Times

Even though you may find the meeting of the creditors and other aspects of the bankruptcy process embarrassing, you must remain completely honest at all times. If you do not disclose all of the information or are dishonest about it, the bankruptcy court will not discharge your debt. Even worse, you may face charges of bankruptcy fraud, which is a serious federal offense that carries harsh consequences for individuals that are convicted.

4. The Process Is Complex

Many people assume that filing for bankruptcy is as easy as simply filling out a form. Unfortunately, it is much more complicated than that. Although there are forms to fill out, the questions within those forms are not a simple matter of answering questions. Rather, the forms bear more resemblance to the forms you use for your tax return.

The most important, and the most complex, forms to fill out during bankruptcy are Schedules A through J, along with the Statement of Financial Affairs. It is crucial to work with a bankruptcy attorney who can help you understand these forms before you fill them out, and that can help ensure you have all the necessary information.

5. Bankruptcy Only Protects You

It may seem like common sense to consider that only your debts are discharged during the bankruptcy process. However, many people are surprised to learn that while they are no longer responsible for certain debts, those debts are not completely discharged. This occurs most commonly when there is a co-signer on a loan. For example, if you and one other person are named on the mortgage for your home and you file for bankruptcy, you are no longer responsible for the mortgage debt. Still, if the other person named on the mortgage defaults on the loan, the lender can still attempt to collect the debt from that person.

6. Bankruptcy Will Hurt Your Credit for Years

You may understand that filing for bankruptcy will affect your credit score, but so many people are unaware of just how long this consequence lasts. Bankruptcy will remain on your credit report for seven years, which will make it more challenging to secure a loan or credit.

It is vital though, that during this time, you try to improve your credit score. This may seem impossible, due to the fact that there is nothing you can do to remove the bankruptcy from your credit report. Fortunately, there are many creditors that will allow you to take out a loan or that will offer you a credit card. These tools can help you rebuild your credit, but you must carefully scrutinize the terms of any debt. Most creditors that make these offers do so in order to charge very high-interest rates and if you accept one of these, it could hurt you in the long run.

It is also important to remember that while bankruptcy will remain on your credit report for seven years, your credit will likely start to rebound after just two years.

7. Our Florida Bankruptcy Lawyers Can Help with Your Case

Bankruptcy can bring much relief from creditor calls and the stress of knowing how much debt you carry. However, the process is extremely complex and one small mistake could ruin your chances of having your debt discharged. At Loan Lawyers, our Fort Lauderdale bankruptcy lawyers are here to help. We will advise on the law as it pertains to your case, help you navigate the system, and give you the best chance of a positive outcome. If you are struggling, call us today at (954) 807-1361 or contact us online to schedule a free consultation so we can discuss your case.

Visit our bankruptcy page for more information.

Loan Lawyers has helped over 5,000 South Florida homeowners and consumers with their debt problems, we have saved over 2,000 homes from foreclosure, eliminated more than $100,000,000 in mortgage principal and consumer debt, and have recovered over $10,000,000 on behalf of our clients due to bank, loan servicer, and debt collector violations. Contact us for a free consultation to see how we may be able to help you.

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What to Expect During the Commercial Foreclosure Process

Florida is a judicial foreclosure state, meaning that if a lender wants to foreclose on a property, they must file a lawsuit and secure a judgment from the court. This holds true for commercial properties as well. All foreclosures have certain potential complications, but commercial foreclosures are particularly complex. If you are in fear of foreclosure on your commercial property, there are some things you must know.

Loan Lawyers has helped over 5,000 South Florida homeowners and consumers with their debt problems, we have saved over 2,000 homes from foreclosure, eliminated more than $100,000,000 in mortgage principal and consumer debt, and have recovered over $10,000,000 on behalf of our clients due to bank, loan servicer, and debt collector violations. Contact us for a free consultation to see how we may be able to help you.

Remedies for Distressed Loans

Once a loan becomes distressed, usually by falling into default, the lender and the borrower have options. Some of these require the lender to file a lawsuit, but not all of them do. A lender may demand that the borrower makes payments on their mortgage loan without filing a lawsuit, or they may exercise any self-help rights they have to the collateral.

Lenders and borrowers also sometimes enter into a consensual agreement that does not require the approval of the court. Loan modifications and deeds-in-lieu of foreclosure are two of these options, just as they are in cases following residential foreclosure.

Lenders may sometimes feel that all of these options carry more risk than they do benefits. When that is the case, they may choose to proceed with a judicial foreclosure. In these cases, it is important to know what to expect.

Commencing a Foreclosure Action

When a lender has decided to foreclose on a property, they must provide borrowers or guarantors with a notice of default. The original loan documents will outline how lenders are required to do this. When the property in question is income-producing, the lender may also make a demand for rents. In these cases, a lender may choose to notify the tenants that rent payments should be redirected to them.

Commercial mortgage loans typically consist of a note that includes many different types of property. These may include:

• The obligation of the debt
• A mortgage granting a lien on a property
• Security instruments that grant a lien on personal property
• The lender’s rights, such as the assignments of rents, contracts, and permits
• Personal guarantees regarding the payment of the debt
• Documents outlining additional collateral, such as reserve accounts and letters of credit

In the event that a lender wants to proceed with a foreclosure, they are not required to file separate actions for real and personal property. The lender may proceed with a single action for all collateral given for the loan. Lenders can also request a deficiency judgment for any amount still owing on the mortgage.

Litigation Involving Commercial Foreclosure

Lawsuits involving commercial foreclosures work very similarly to those involving a residential foreclosure. The lender or mortgage note holder will file a complaint against you and you will have 20 days to answer the complaint.

When you answer the complaint, you have the opportunity to raise any defense to the foreclosure. Many people do not understand that there are several defenses to a commercial foreclosure, or they are unsure of whether one is applicable to their case. This is one reason why it is so crucial to work with a foreclosure defense lawyer. A lawyer will review the case and may find a defense, such as if the person that filed the lawsuit does not currently hold the mortgage note.

Federal law also requires mortgage loan servicers to apply payments and charges to a mortgage loan appropriately. If they fail to do so, it may appear as though the loan is in default even when it is not. As such, it may be proven that you have made proper payments, which can also provide a valid defense.

If you do not have a defense to the foreclosure, which happens all too often when property owners do not work with an attorney, the lender may petition the court for a summary final judgment on the foreclosure on the basis of motions or affidavits filed. This is very dangerous because a hearing date will be set and the judge may issue an order in the lender’s favor, which would result in the lender proceeding with the foreclosure.

In the event that you do have a valid defense to the foreclosure, a trial will be scheduled in front of a judge alone with no jury. Lenders typically do not typically want to proceed with a trial, as they are quite costly and time-consuming, particularly if you have a valid defense for your case.

Commercial Foreclosures and Deficiency Judgments

If you lose your foreclosure case, the property is then typically sold in a foreclosure sale 35 days after the final judgment of foreclosure. The proceeds from a foreclosure sale are likely not going to be enough to fully cover the amount still owed on the mortgage. In these cases, lenders often seek a deficiency judgment to recover the remaining amount on the loan.

Deficiency judgments can be tens of thousands of dollars and, after losing their commercial property, many borrowers simply cannot afford to make the payment on these judgments. When you have a valid defense and come to an agreement with the lender, you can also include a provision within that agreement that the lender will not seek a deficiency judgment. Always speak to a foreclosure defense lawyer that can ensure these provisions are included, and that you are protected now and in the future.

Our Florida Foreclosure Defense Lawyers Are Here to Help

Although the above is a basic outline of how the commercial foreclosure process works, it is extremely complex. This is particularly true when the property produces income. If you own a commercial property and are facing foreclosure, our Fort Lauderdale foreclosure defense lawyers are here to help. At Loan Lawyers, we have extensive experience with the many defenses available in foreclosure cases and we will use them to give you the best chance of retaining your property.

Call us today at (954) 807-1361 or contact us online to schedule a free consultation and to learn more about how we can help with your case.

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Can You Stop a Wage Garnishment in Florida?

Wage garnishment occurs when a collection company or creditor starts legal action to take some of your wages, money held in your bank account, or other assets you own. When creditors are successful with their case, they will contact your employer and ask them to deduct a certain amount of money from your check every week and to forward it to the creditor.

Garnishments are extremely upsetting for borrowers. They typically happen very suddenly and, due to the fact that the writ of garnishment is ongoing, the garnishment may continue until the entire debt is paid. Although this sounds overwhelming, there is good news: there are many steps you can take to stop a wage garnishment or to prevent it from happening in the first place.

Notification of Wage Garnishment

In many cases, you will know that a creditor or debt collector is attempting to garnish your wages because they must obtain a court order that allows them to collect the debt.

However, there are some instances in which you may not know until your wages are already being garnished. These include unpaid income taxes, student loans, and unpaid child support obligations.

Once a creditor has obtained a judgment to garnish your wages, they have 20 years to do so. This is substantially longer than the statute of limitations on collecting debt, which is only five years.

Exemptions that May Stop a Wage Garnishment

If the creditor or your employer has notified you of a wage garnishment, it is important to act as quickly as possible. The time from the judgment until your wages are garnished may be very short. It is important to speak to a debt defense lawyer who can advise on whether you qualify for an exemption.

Qualifying as a head of household may mean that you are legally entitled to this exemption. To qualify under this exemption, you must show that you provide at least 50 percent of the living expenses for a dependent. Contrary to what many people think, dependents do not only include children, but also aunts, uncles, parents, and even former spouses who are receiving alimony. It is important to note that the head of household exemption only applies to wages, so it may not protect tax refunds from being garnished.

Other exemptions may also protect you from wage garnishment. Creditors and debt collectors, for example, are not allowed to garnish certain benefits including workers’ compensation, veterans’ benefits, life insurance benefits, disability benefits, and Social Security benefits.

Vacating a Judgment

In some instances, you may also be able to vacate a judgment. The most common reason for doing this is when the creditor or debt collector did not properly serve you with the lawsuit. If you can get the judgment vacated, the court order allowing the creditor or debt collector to garnish your wages is considered null and void. The courts will not always vacate a judgment, so it is always important to speak with a debt defense lawyer to determine if this is an option.

Incorrect Garnishment Judgment

You can also contest the garnishment judgment if you believe that it was made in error. This may be possible when you have already paid the debt, if the debt never belonged to you, or if the debt was included in a bankruptcy case and then discharged through the bankruptcy court.

Bankruptcy

For some who are struggling with a great amount of debt, filing for bankruptcy may be an option. Immediately after you file for Chapter 7 or Chapter 13 bankruptcy, the judge will grant you an automatic stay. An automatic stay means that no creditors or debt collectors can contact you in an effort to recover the debt. Although this protects you no matter the type of bankruptcy you file, what happens after your bankruptcy case is over will.

If you file Chapter 7 bankruptcy and are successful, there is a good chance that the debt pertaining to a wage garnishment will be discharged and you will no longer be obligated to pay it. That means your wages cannot be garnished.

However, if you file Chapter 13 bankruptcy and are successful with your case, you are still legally responsible for your debts. However, your debts may be restructured into a new and manageable repayment plan, so this can still protect your wages from being garnished. If you fail to make payments under the new plan, the creditor may then have to file another lawsuit against you so they can garnish your wages.

How Much of Your Wages Can Be Garnished?

Even if you do not have a valid defense against wage garnishment, it is important to understand what rights creditors and debt collectors have, and what they cannot do. Federal law states that garnishments cannot exceed more than 25 percent of a borrower’s disposable income. This limit applies to all garnishments, so even if three creditors want to garnish your wages, the total amount garnished cannot exceed 25 percent of your disposable income.

There is an exception to this law, though. If your disposable income is greater than 30 times the federal minimum wages per week, a creditor can garnish 25 percent of your disposable income or 30 times the federal minimum wages per week, whichever is the lower amount. It is important to know exactly how many of your wages are being garnished, and if the garnishment complies with the law.

Our Florida Debt Defense Lawyers Can Help with Your Wage Garnishment Case

Learning that your wages have been garnished, or that they are about to be, is extremely upsetting. At Loan Lawyers, our Fort Lauderdale debt defense attorneys can help. We understand the laws creditors must follow, as well as the defenses available in these cases. If your wages have been garnished, or you fear a creditor is about to take action, call us at (954) 807-1361 to schedule a free consultation.

For more information about credit card or debt defense please contact us.

Loan Lawyers has helped over 5,000 South Florida homeowners and consumers with their debt problems, we have saved over 2,000 homes from foreclosure, eliminated more than $100,000,000 in mortgage principal and consumer debt, and have recovered over $10,000,000 on behalf of our clients due to bank, loan servicer, and debt collector violations. Contact us for a free consultation and find out more about our money-back guarantee on credit card debt buyer lawsuits, and how we may be able to help you.

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