Steps to Take to Start the Bankruptcy Process

If you are dealing with financial obligations that you cannot afford to pay, bankruptcy may be your best option for improving your situation. While many people are hesitant to file bankruptcy, there is no reason to be ashamed about doing so.

Filing bankruptcy can allow you to get a “clean slate” and live debt-free. However, because bankruptcy laws are so complex, filing for bankruptcy can be an intimidating and challenging process.

For many years, the bankruptcy attorneys at Loan Lawyers in Fort Lauderdale, FL have been helping individuals pursue bankruptcy so they can get a fresh financial start. Contact the experienced Loan Lawyers today to schedule a free, no-obligation review of your financial situation. We can provide free legal advice about the steps in the bankruptcy process.

If you need to start the bankruptcy process, Loan Lawyers recommends that you take the following steps:

Step 1: Find a Bankruptcy Attorney

It’s critical that you find an experienced bankruptcy lawyer who will have your best interest in mind and who will be forthright and honest about your best options – whether it’s bankruptcy or another route altogether. Make sure that you are comfortable with the bankruptcy attorney you select.

Step 2: Conduct a Bankruptcy Counseling Session

In the majority of bankruptcy cases, you will need to get credit counseling within 180 days before filing for bankruptcy protection. You must also complete a course on debt management before you are eligible to have your debts discharged.

The bankruptcy counseling session is intended to ensure you have exhausted all other options and decrease your chance of having to make another visit to the bankruptcy court in the coming years.

A pre-bankruptcy counseling session with an approved provider should include:

• A review of your finances
• Information on the alternatives to bankruptcy
• A plan for your personal budget

Credit counseling sessions typically last about 30 minutes and can be completed online, in-person, or over the phone. If you cannot afford to pay for the sessions, you may request a fee waiver before the session begins. Depending on where you live, a counseling session generally costs around $50.

Step 3: Complete a Petition and Paperwork

The bankruptcy petition consists of forms and schedules. If you are married, you must complete just one set of forms with information for both you and your spouse. Your particular court may require local forms.

Your bankruptcy lawyer will complete the paperwork on your behalf. Make sure you do not omit important information about your finances on your bankruptcy disclosures. This can result in your filing being delayed or even dismissed.

Step 4: Meet the Trustee

It’s the responsibility of the trustee to review your bankruptcy forms and investigate and verify your financial information. The trustee must make sure your bankruptcy claim is not fraudulent. Your trustee is also responsible for managing your assets, including collecting your property, converting your assets to cash, and distributing the proceeds to your creditors.

Step 5: Attend a Meeting of Creditors

The meeting of creditors is when the trustee and your creditors get a chance to ask you questions under oath about your petition and the documents you are required to provide to the trustee.

The meeting of creditors is basically a hearing used to verify that the information contained in your bankruptcy papers is complete and accurate. You will also be required to prove your identity by presenting two forms of identification. These steps in the process of filing for bankruptcy help prevent fraudulent filings from occurring.

How the Bankruptcy Attorneys at Loan Lawyers Can Help

At Loan Lawyers, we are experienced consumer rights attorneys ready to use our skills, knowledge, and resources to develop a comprehensive debt solution strategy for you. We are prepared is to take on your burdens, resolve your issues, and give you confidence in knowing you are on the path to a better future.

To schedule a free initial consultation, call now or reach out to us online.

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Has Your Bank Paused Mortgage Payments?

Has your mortgage loan servicer put you in a forbearance without you even asking?  If so, watch out.  You might have thought that you could breathe a sigh of relief without making mortgage payments for a few months, but they may be setting you up for failure and ultimately a foreclosure.

Several news outlets have reported that Wells Fargo put some mortgage loans into forbearance without any request from the homeowner.   This can, for many will, have a cascading effect of misfortunes.  First off, putting you into a forbearance without your request could serious damage your credit.

Secondly, what happens at the end of the forbearance period?  They may require you to make all missed payments during the forbearance in one lump sum.  Don’t have that money laying around?  Well, they will begin foreclosure proceedings at some point.   Trust us, no loan servicer has your best interest at heart.  You are not their client, you are their product.  Their clients are the big banks, the loan investors and their shareholders.  We have seen mortgage companies take advantage of people thousands of times over the years.  Do not think it won’t happen to you.

How Loan Lawyers Can Help?

If you have been put into a forbearance by Wells Fargo, or any other mortgage loan servicer, that you did not request, get legal help now before it snowballs into a much bigger problem.  If this has happened to you, we will give you a free consultation, and if we take your case, it will be handled on a contingency fee basis, meaning there will be no legal fees or costs unless there is a recovery.

Further, in many instances, the loan servicer will have to pay your legal fees and costs for you.  If you have been put into forbearance without requesting it, the bank is not doing you a favor.  Again, they may be setting up for trouble down the road.  Do not take this lightly.  Call us now for your free consultation at 1-888-FIGHT-13.

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Foreclosure Mediation FAQs

Florida is a judicial foreclosure state, meaning that all foreclosures must go through the court. This does not necessarily mean, though, that you have to go to trial when your lender is foreclosing on your home. You may have many options; one of the most popular is mediation.

Mediation is often highly misunderstood by those that have never been through it before. Below are the answers to some of the most frequently asked questions surrounding mediation so that if you are facing foreclosure and want to consider mediation, you will know what to expect.

How Does Mediation Work in Foreclosure Cases?

Mediation is a process in which you will meet with a mediator, the lender, and possibly your attorney to partake in negotiations. A mediator is a neutral third party that helps the two sides discuss their issues and come to an agreement, but the mediator does not make any decisions. The mediator is simply a facilitator who will encourage the two sides to reach an agreement more efficiently.

Where Do Foreclosure Mediation Meetings Take Place?

There are a number of places foreclosure meetings may be held. The two most common are either in the mediator’s office or in the courthouse. A foreclosure defense lawyer can arrange for the meeting to take place and direct you on where to go.

Is Mediation Worth It?

If you are facing foreclosure, you may already be exhausted about the fact that you cannot pay your mortgage, and you may wonder if mediation is worthwhile, or if it will only drag out the inevitable. It is important to understand that mediation can resolve a number of legal issues. Lenders do not want to own homes and foreclosing is a lengthy and expensive process for them. Due to this, they are often quite willing to work out a solution during mediation, and that solution may allow you to stay in your home.

How Much Does Mediation Cost?

The cost of mediation will vary depending on the mediator who is chosen to conduct the meetings. However, you will likely not have to pay for them if the mediation meetings are successful and you come to an agreement. In this scenario, the lender or mortgage servicer will pay the fees associated with mediation. If you are not successful during mediation though, and you end up going to trial anyway, the lender or mortgage servicer can ask the court to require you to pay them the fees they covered for mediation.

Will the Mediator Decide On My Case?

No. The role of the mediator is quite clear, and it is important to understand what that role entails. A mediator will talk to each side privately to determine what their goals are, and then bring all parties together to discuss the issues together and to enter into negotiations. Mediators do not make any decisions, judgments, or recommendations on the outcome of the case. They are there strictly to facilitate discussions and negotiations so the two sides can reach an agreement.

What Will the Mediator Tell the Judge?

Very little. Mediation meetings are confidential and the mediator will only tell the judge whether the case has been settled or not. Any discussions that took place during mediation are inadmissible if the case goes to trial. If mediation is unsuccessful and the foreclosure lawsuit goes forward, the mediator still has a responsibility to keep anything said during mediation discussions confidential.

Can I Bring Exhibits and Witnesses to Mediation?

No. It is important to remember throughout the process that mediation and trial are two very different things. During mediation, you will discuss the situation with the other side, your attorney, and the mediator, but there are no opening or closing arguments, witnesses, testimonies, objections, or exhibits. You can bring documents that explain your financial situation and why you have missed mortgage payments. You should submit any documents you want to bring to mediation to your lender or their attorney before mediation begins so they can review the documents beforehand.

Do I Have to Testify?

Again, mediation meetings are not a trial, nor are they an official court hearing. Mediation is only a negotiation process, even if you are using a courthouse conference room to do it. Usually, lenders are present via speakerphone. You should listen and take part in the discussion when appropriate, but this is not official testimony.

Can the Mediator Advise on My Case?

You may think that because there is a mediator present, you do not have to work with a foreclosure defense lawyer. This is not true. The mediator is a neutral third party who is only there to foster discussion and compromise. They cannot provide you with legal advice, although they may point out issues with each side’s arguments and discuss the costs and downfalls of entering into litigation compared with agreeing on a settlement.

What Options Will Be Discussed During Mediation?

If your lender has started the foreclosure process, you may think you are out of options. This is also untrue. During mediation, you and the lender or mortgage servicer may reach an agreement on a loan modification, forbearance plan, a short sale, or a deed-in-lieu of foreclosure.

What if We Do Not Settle?

Although many foreclosure cases settle during mediation, this is not always the case. If you and your lender cannot agree on a settlement, several things may happen. The attorneys for both sides may agree to continue negotiations at a later date, the mediator may schedule a follow-up mediation, or you may be able to keep working with the lender’s loss mitigation department. Your attorney will advise on which option is best for you.

Do I Need a Florida Foreclosure Defense Lawyer?

Regardless of whether people use mediation or not during their foreclosure case, they often enter the process alone, which is a mistake. A Fort Lauderdale foreclosure defense lawyer will ensure that your rights are protected and can guide you through whichever process you choose. If you are facing foreclosure, our knowledgeable attorneys at Loan Lawyers will do all of this and more. Call us today at (954) 523-4357 or contact us online to learn more.

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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How to Answer a Debt Collection Summons

No one ever wants to face a debt collection lawsuit. Unfortunately, if you have gotten very behind on your debt, this is an action the debt collector may take. If they are successful with their case, the court may allow them to garnish your wages, or take other steps to collect on the debt. Once the debt collector has started the proceedings, they will file a complaint with the court and you will be served with a summons. Ignoring the summons and not answering the lawsuit is one of the most surefire ways to ensure that you will lose your case. So, it is important that you do answer the summons, and that you understand how to do that.

What Is the Deadline for Answering a Debt Collection Summons?

After receiving the summons, you must act quickly. You only have 20 days to file your answer, or the debt collector will likely seek a default judgment against you, which would mean they automatically win their case. The 20 days starts the day after you are served with the summons, and you need to count every day, including weekends.

Address Each Issue in the Complaint

Along with receiving the summons, you will also receive a copy of the complaint the debt collector filed with the court. This complaint will outline every issue the debt collector wishes to resolve through a lawsuit. You must address each of these issues, which is often somewhat intimidating for people who have never faced a debt collection lawsuit before. The issues will be outlined in the complaint in numbered paragraphs, and it is each of these paragraphs that you should answer. You can do this by answering “Agree,” “Disagree,” or “I do not know.”

In many cases, lawyers advise that you disagree with everything in the complaint. When you do this, you are permitted to outline why you disagree with the statements. Disagreeing with each issue outlined in the complaint forces the debt collector to prove that point in their case.

Florida does have a template for a Florida Answer Form, but it may not allow you to provide all of the information you need, particularly if you want to explain your disagreement. A debt defense lawyer can help you draft the answer so it fully explains your arguments, and so that your response is filed properly.

Include Your Defenses

Just like explaining why you disagree with the complaints, you can also include different defenses within your answer.

The most common defenses in debt collection lawsuits include:

• The debt is not on your account: Plain and simple, in order for a debt collector to be successful with their lawsuit, you must be responsible for the debt. If a different account number appears on the documents, the debt is not yours.
• The contract was canceled: In certain cases, a debt contract may have already been canceled and when that is the case, you do not owe the creditor anything.
• The statute of limitations has passed: Florida places a statute of limitations on debt at six years from the date of the contract’s payment dates. In many cases, if the statute of limitations has passed, the debt collector does not have a valid lawsuit. However, certain caveats apply to this defense. For example, if you have recently made a payment on the debt, that may extend the statute of limitations, and so this may not serve as a valid defense.
• The debt has been completely or partially paid: If you have already paid the debt, the debt collector cannot seek those payments again in court. This happens more often than people think because debt collectors are humans, too, and sometimes make mistakes. They may not have posted a payment to your account and believe that you still owe those funds. When raising this defense, you must be able to prove that you made the payments with bank statements and other documentation.
• You co-signed a loan and were not told of your rights: Co-signing a loan makes you responsible for the payments if the applicant falls into default on the debt. Co-signers have a lot of responsibility, but they also have rights. If you were not told of your rights, or your rights were infringed upon, that can serve as a valid defense in a debt collection lawsuit.

Any of these defenses, or others that a debt defense lawyer thinks are appropriate, can be included within your answer. It is important to understand that in most cases, being unable to repay the debt is not typically a defense.

File the Answer and Serve the Plaintiff

Filing the answer and serving the plaintiff may sound fairly straightforward, but there is a specific process you must follow. Start by making several copies of your answer. Mail one copy to the court and one copy to the plaintiff’s attorney, preferably by certified mail so you can guarantee the answer is received by both parties, and can prove it later, if necessary. In most cases, you will find the address for both the courthouse and the plaintiff’s lawyer. If you are working with a debt defense lawyer, they will handle filing the papers with the court and will also serve the plaintiff, making the process much easier for you.

Our Florida Debt Defense Lawyers Can Help with Your Lawsuit

If you have been served a summons and complaint by a debt collector, it is tempting to ignore it and hope it goes away. It will not. To protect your rights, it is imperative that you answer the complaint and our Fort Lauderdale debt defense lawyers can help. At Loan Lawyers, we have the necessary experience to review the facts of your case, and we will discuss with you any potential defenses you may have in your case. If you have received notice that a debt collector has taken legal action against you, call us today at (954) 523-4357 or contact us online to schedule a free consultation so we can get started on your case.

For more information about credit card or debt defense, click here to check our website.

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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Debunking the 10 Biggest Foreclosure Myths

Just as the housing market in Florida was starting to recover from the 2008 recession, the pandemic hit, leaving many people furloughed and laid off from their jobs. Sadly, this means that thousands of people are unable to pay their mortgages and, even though certain lenders are offering different options, such options just will not be enough for all homeowners.

With so many people being unable to make their mortgage payments and potentially facing foreclosure, it is important that all homeowners understand the myths behind the process.

1. The Main Reason for Foreclosure Is Financial Irresponsibility

It is easy to think that if someone cannot pay their mortgage, it is because they made some poor financial decisions. This could not be further from the truth. As the pandemic has shown, sometimes extenuating circumstances arise that are out of the homeowner’s control.

Truthfully, homeowners have already shown that they are financially responsible by being approved for a mortgage in the first place. As such, if the home ends up in foreclosure, it is unlikely that financial irresponsibility is the reason.

2. The Foreclosure Process Starts After One Missed Payment

No homeowner ever wants to miss a mortgage payment, as it can make it much more challenging to bring the loan up to date. Some homeowners, though, think that their lender will start the foreclosure process after they miss just one payment, and that is not true. In most cases, lenders will wait until a homeowner has missed three monthly payments on their mortgage before they start the foreclosure process.

3. Lenders Want to Foreclose

Lenders will send notices and try to contact the homeowner repeatedly before starting the foreclosure process. Due to this, many people think that lenders are eager to foreclose. That is untrue. The foreclosure process is a long and costly one for lenders, and they would much rather keep homeowners in the property and continue to receive regular mortgage payments from them.

Lenders are usually quite willing to work with homeowners to ensure that payments happens and will only use foreclosure as a last resort.

4. Nothing Can Stop Foreclosure Once Homeowners Miss Mortgage Payments

Again, lenders do not want to foreclose and they usually want to work with homeowners to come up with a solution. Homeowners, though, have options even if the lender does start the foreclosure process.

There are many defenses available in foreclosure cases, including if the lender foreclosing does not hold the title or the note. A foreclosure defense lawyer can advise on the options homeowners have, and represent them throughout the process.

5. Homeowners Should Draw from Retirement Savings to Make Mortgage Payments

When homeowners realize that they will miss a mortgage payment, they often take drastic steps, such as drawing from their retirement savings.

Although it is important to cut back spending and look for ways to earn more income, drawing from retirement savings is not the best option. Prior to this point, homeowners should seek the help they desperately need, and that will still ensure their future is protected.

6. Buyers of Homes in Foreclosure Take Advantage of the Homeowner

It is true that there are some unscrupulous buyers and investors out there that will try to take advantage of the situation, and the homeowner. However, this is not always the case.

In fact, buyers can actually help homeowners who are facing foreclosure. Buyers will often approach a homeowner and agree to buy the home before the foreclosure process starts. This arrangement is beneficial for the homeowner because it will prevent the foreclosure from showing up on their credit report. It also benefits the buyer because they can often buy the home for lower than market value.

7. Homeowners Can Walk Away Once the Bank Forecloses

Although homeowners will have to leave the home if the bank is successful in foreclosing on the property, it does not necessarily mean that they are free and clear. If money is still owed on the mortgage after the home is sold, the bank can seek a deficiency judgment in court.

If a judge decides in the lender’s favor, they will issue an order requiring the homeowner to pay the deficient amount. A foreclosure defense lawyer can help a homeowner avoid this by properly drafting any agreement the homeowner enters into with the lender.

8. A Bankruptcy Will Stop a Foreclosure

There is some truth behind this myth. After a person files for bankruptcy, a judge will issue an automatic stay. This stops the foreclosure process and prohibits creditors and lenders from contacting you. However, it is also important to know that lenders can ask the judge to lift the stay so they can continue with the foreclosure process. Some judges will allow this, while others will not.

Homeowners who file a Chapter 7 bankruptcy may stall the foreclosure process, but they will likely still lose their home. A Chapter 13 bankruptcy can help homeowners keep their home because a bankruptcy trustee will create a repayment plan that allows individuals to make delinquent mortgage payments over a certain period of time.

9. Homeowners Must Leave Their Home After Receiving a Foreclosure Notice

Receiving a foreclosure notice is definitely scary, particularly when homeowners think that they must immediately leave their home. Fortunately, this is not true. Once a lender starts the foreclosure process, homeowners usually have at least one month before they have to leave their home. Others have even longer than that, particularly if they have a valid defense to the foreclosure lawsuit.

10. Homeowners Do Not Need a Florida Foreclosure Defense Lawyer

The foreclosure process is a legal one and, as such, homeowners should always speak to a Fort Lauderdale foreclosure defense lawyer who can help. At Loan Lawyers, our attorneys can advise on the foreclosure process, and the defenses that are available that can help keep you in your home. If you are in fear of foreclosure, call us today at (954) 523-4357 or contact us online to schedule a free consultation and to learn more about how our experience can help you.

For more information about foreclosure defense click here to visit our website.

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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Tips for Using Your Credit Cards Wisely

Credit cards are a large part of a person’s financial life, and they can help individuals take control of their credit. Unfortunately, too many people do not use them properly and soon find themselves suffocating in debt. To avoid falling into financial hardship, anyone who owns and uses a credit card should know some important tips about how to use them wisely.

1. Choose Wisely

Consumers have a wide variety of choices today when it comes to the type of credit card they may select. Carefully consider whether you want one that has a low interest rate, a zero-percent balance transfer rate, or travel rewards. Then find a card that meets your criteria.

2. Understand the Fine Print

Before even being approved for your card, you will likely receive the terms and conditions of the card. It is crucial to thoroughly read through this, as this document explains the pricing of your card and associated fees.

After being approved, the credit card issuer will also send you a contract, which is a much longer document that outlines the rules for using your card. You must read through this agreement as well, so you understand what obligations you are expected to meet.

3. Open Your Credit Card Statement

Your credit card company will send you a statement every month detailing what transactions you have made, your minimum monthly payment, and your overall balance. You may think that you already know all of this information and so, you do not open the statement. It is imperative that you do though, and that you read through it.

It may list charges you did not make, or other errors that you can only correct if you know about them. Learning about them early is important so you are not paying for things that you shouldn’t have to.

4. Understand the Fees

Credit cards come with many different types of fees attached to them. Some have an annual fee that charges you just for having the card. Others have balance transfer fees, which only apply to specific transactions.

It is crucial to understand what fees you are being charged and how much they cost, so you can reduce the amount you pay for your card.

5. Understand Your Rights

As a credit card holder, you have certain rights. For example, the date your payment is due must be the same date every month, and the credit card company must send you the statement at least 21 days before the payment is due.

If you do get behind on payments, the Florida Consumer Collection Practices Act and the federal Fair Debt Collection Practices Act prohibit certain behaviors by creditors. Both of these acts prohibit debt collectors from calling you at certain times of the day and limit the number of times they can contact you.

6. Repay As Much As You Can

Even though your credit card statement will only ask you to make a small minimum monthly payment, you should pay as much as you can. Ideally, you should pay off your entire balance in full each month. This way you can avoid paying interest on the remaining amount that still needs to be paid off.

When you cannot pay the entire balance off, you should try to pay as much as you can to avoid those interest charges and keep the cost of your card down.

7. Focus on One Card at a Time

If you have racked up debt on multiple credit cards, you may think that paying a little down on each one every month is the best way to get rid of your debt. This, however, is not true. Instead, any time you have extra money or want to pay off money on your credit cards, focus on just one at a time.

This will free up credit in case you need it in the future, and help you avoid interest charges on at least one card. When deciding which card to start with, choose the one that has the highest interest rate.

8. Avoid Cash Advances

Using your credit card to take out a cash advance is the most expensive type of credit card transaction you can make. The interest on that transaction will start accruing right away, so no matter when you pay it back, you will be further in debt. Always use your credit card to make purchases instead of using it to take out cash. It will save you money in the long run.

9. Do Not Carry Too Many Cards

Once you have too many credit cards, it will become impossible to manage them. You will have too many due dates to keep up with, and you may find that the payments are becoming unmanageable.

There is no set amount for how many credit cards are ‘too many’ for one person, as it varies with each person’s financial situation. However, if you are finding that you are already having trouble managing multiple cards, it is a sign that you have too many.

10. Continue to Look for Better Deals

One of the biggest advantages of carrying a credit card is that it can increase your credit score, which may mean that over time you will qualify for a better deal.

Credit card companies are also releasing new credit cards all the time in order to offer better deals to customers and bring in more profits. You should always be looking for a credit card that will do more for you and potentially save you money, particularly as your credit score starts to improve.

A Florida Debt Defense Lawyer Can Help if a Creditor Takes Action

Debt collectors will only allow unpaid debt to go on for so long before they take legal action to recover it. If a debt collection company has taken legal action against you, it is important to know that there are defenses available. At Loan Lawyers, our Fort Lauderdale debt defense lawyers know what those defenses are and how to use them effectively to give you the best chance of a positive outcome. When a debt lawsuit has been filed against you, call us at (954) 523-4357 or contact us online to schedule a free consultation to learn more about how we can help.

For more information about credit card or debt defense click here to visit our website

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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5 Ways Bankruptcy Will Affect You

Most people understand that when they file for bankruptcy, they will have their debts discharged and will no longer be responsible for them. Although being free of debt is one impact that bankruptcy will have–and the reason why most people file–there are others as well.

It is important to understand the full impact that filing for bankruptcy will have on your life, so you do not face any surprises once your bankruptcy case is final. While there are many ways a bankruptcy will affect your life, below are the top five impacts you will feel.

1. Personal Discharge

The most positive impact declaring bankruptcy will have on your life, and the one most people think of when they consider bankruptcy, is the personal discharge of your debts. A discharge occurs when a judge issues a permanent order that prevents creditors from collecting on debts you incurred in the past.

Credit card debt is one of the most common types of debt discharged in bankruptcy. Generally speaking, the courts believe that the credit card companies can afford to absorb one person’s debt and that it will not put them out of business. On the other hand, the courts also believe that individuals are able to be more productive if they are not in an immense amount of debt.

However, while credit card debt and other debt may be discharged in bankruptcy, there are some debts you will still be considered responsible for. These include alimony payments, child support obligations, and current tax liabilities. Still, if you have these types of debt, a Chapter 13 bankruptcy can help you restructure your debt so it is easier to pay off.

2. Automatic Stay

Once you file for bankruptcy, a judge will issue an automatic stay. The automatic stay protects you from creditors calling seeking to collect on their debt while your bankruptcy case is ongoing. An automatic stay also prohibits creditors from sending you collection notices in the mail.

Generally speaking, an automatic stay will remain in place until your bankruptcy case is over, but there are times when it can be lifted. If you are going through a divorce at the same time as your bankruptcy case is proceeding, that can affect what the automatic stay will protect. Additionally, an automatic stay on your home may be lifted if your debt on the property is greater than its value.

3. Your Credit Score

Filing for bankruptcy and getting your debt discharged by a court will certainly cause your credit score to take a hit. It is important to remember that even when your debt is discharged, the debts will remain on your credit history. That, combined with a Chapter 7 or Chapter 13 bankruptcy, will tell creditors that you are a risky borrower. In turn, you will likely have a hard time applying for loans and additional credit cards.

Although this is somewhat discouraging to consider, it is important to remember that bankruptcy is still often the right answer. A bankruptcy on your credit report will cause your score to sink, but so will drowning in debt. You must consider whether it is worthwhile to allow your credit score to drop temporarily so you can start rebuilding it now, or whether you can pay off your debts, which will help rebuild it.

4. Privacy

Bankruptcy records are public records, which means employers and anyone else that wants to dig into your financial history can find it and learn of the debt discharge. For some people, this is enough to keep them from filing for bankruptcy. However, there are many reasons why this public filing should not stop you from filing for bankruptcy.

The courts recognize that you still deserve some degree of privacy, even if you have filed for bankruptcy. For this reason, only the last four digits of your Social Security number will be shown on court documents, and the names of any minors will only be shown by their initials. Any other identification numbers will also only list the last four numbers.

Those reasons aside though, it is important to remember that very few people will go digging through public records trying to find information about you. Although certain employers may conduct these searches, such as when you are applying for a job in a financial position, there is little chance that your friends and family will conduct that type of search. As such, you can still keep your bankruptcy case fairly private.

5. Loss of Property

The bankruptcy courts do think that you will be more successful and more productive if you are not drowning in debt. However, the courts also realize that when you file for bankruptcy, you should pay back as much of your debts as possible. Due to this, if you have valuable property, such as a luxury sports car, the court may order that it be sold with the proceeds going to your creditors to try and pay off your debt. Still, not all property is subject to being sold and there are several exemptions that could help you keep your property.

Also, even when certain types of property are considered non-exempt, it still may not be worthwhile for the bankruptcy trustee to try and sell it. For example, if you have a car that is worth $800 but it will cost the trustee $1,000 to auction the car off, the trustee will likely determine that it is not worthwhile to sell that particular piece of property and will allow you to keep it.

Our Florida Bankruptcy Lawyers Can Help with Your Case

It is true that filing for bankruptcy will have several different impacts on your life, with some being good and others being fairly negative. At Loan Lawyers, our Fort Lauderdale bankruptcy attorneys know how to minimize the negative effects and maximize the positive. If you are considering filing for bankruptcy, do not go it alone. Call us at (954) 523-4357 or contact us online to schedule a free consultation and to learn more about how we can help with your case.

For more information about bankruptcy, click here to visit our website

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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