Business Bankruptcy Options

Just as most people will face ups and downs with their personal finances, the same is true for most businesses. In certain circumstances, businesses might benefit from filing for bankruptcy in the same way that an individual might. Filing for bankruptcy is often a valuable tool for reorganizing debt and keeping creditors at bay while the business works to regain its financial footing.

While both individuals and companies can file for bankruptcy, there are different steps involved and the stakes are often higher for businesses. You’ll want help from an attorney with specific experience guiding business owners through the bankruptcy process.

If you own a business and are considering filing for bankruptcy, the bankruptcy attorneys at Loan Lawyers can provide the guidance you’re looking for. We have more than a decade of experience helping people and businesses in Florida with bankruptcy filings, debt defense, foreclosure cases, and related issues. We’re proud to have helped thousands of people and businesses find their way back to a firmer financial footing. Their success stories are the reason we fight so hard for our clients.

Get a free case review today by calling our office in Fort Lauderdale or by filling out our contact form. We can discuss your particular circumstances and whether any of the following bankruptcy options are right for you.

Chapter 13: Adjustment of Debts for Individuals with Regular Income

Chapter 13 is typically used by individuals and not businesses, but there are businesses that may qualify for this type of bankruptcy filing. In particular, Chapter 13 bankruptcy is available for sole proprietorships because sole proprietorships are legally indistinguishable from their owners.

As is the case with personal bankruptcies, a business typically files for Chapter 13 bankruptcy instead of using some other method because the goal is a reorganization, not the liquidation of any remaining assets. Your business will file a repayment plan with your local bankruptcy court outlining how you will pay back your creditors. The amount you will be required to pay back under your repayment plan will depend on how much income you’re making, how much money you owe, and what other assets you have available.

An advantage of Chapter 13 bankruptcy is that you might be able to keep your business operational during the process. You have up to five years to pay off your debt, which can give you additional time to regain your financial footing.

Another advantage of Chapter 13 bankruptcy compared to other types of bankruptcy is that there are more asset exemptions available, allowing you to potentially hold on to more of your property. This can be quite attractive if you’re the sole proprietor of a business, as it makes it easier to do things like keep your house and your car when you file for bankruptcy.

However, if your sole proprietorship requires you to keep a lot of items, products, or equipment on hand, it can be difficult to pay for all those goods while still meeting the terms of your debt repayment plan. And missing just one payment can force you to start the whole process all over, along with having to potentially pay additional penalties and interest. For this reason, think carefully about filing for Chapter 13 bankruptcy if your business is eligible to do so.

Chapter 7: Liquidation Business Bankruptcy

It’s more common for businesses to file for bankruptcy under Chapter 7 than under Chapter 13, but it’s still fairly rare. This is because a Chapter 7 Bankruptcy, also known as liquidation bankruptcy, requires you to sell most of your assets to pay back your creditors. You will also likely be forced to close your business if you file for Chapter 7 bankruptcy.

A Chapter 7 bankruptcy filing for a business is fairly similar to a Chapter 7 filing for an individual or household. Once your business files for bankruptcy, the bankruptcy court will issue an automatic stay barring your creditors from taking any further action against you. You will then need to sell your non-exempt assets (“liquidate” is the official legal term), then use that money to pay back your creditors to the best of your ability. You can keep assets that are in the bankruptcy code’s list of exemptions.

After you’ve liquidated your non-exempt assets and repaid your creditors, the bankruptcy court will discharge your debts. However, as a Chapter 7 bankruptcy generally requires you to shutter your business in exchange for wiping out your debts, this will be the end of the road for your business. The exception is for sole proprietorships, as long as certain conditions are met.

While a Chapter 7 bankruptcy can be a viable option for some businesses, especially sole proprietorships, there are some potential risks if you choose to go this route. If you’re going to be forced to close your business down anyway by filing for Chapter 7 bankruptcy, you can probably do that on your own and avoid the court costs, attorney’s fees, and other expenses that come with the bankruptcy process. Business owners can also often get better prices for their assets than if those same assets were sold by the bankruptcy trustee. Finally, if your business is a partnership, filing for Chapter 7 bankruptcy may end up putting the personal assets of the various partners at risk of liquidation.

Chapter 11: Business Reorganization

By far the most common method businesses use to file for bankruptcy protection is Chapter 11. In fact, most businesses that are not sole proprietorships are required to use Chapter 11 instead of Chapter 7 or Chapter 13.

Like Chapter 13 bankruptcy cases, filing for bankruptcy under Chapter 11 allows businesses to reorganize their debts and come up with a payment plan instead of simply liquidating whatever assets they have left. This gives the business a chance to restructure and find a way back to profitability without having to fully shut down.

When a business files for Chapter 11 bankruptcy, the bankruptcy court will automatically block their creditors from taking any further legal action against the debtor as the business owners figure out the best way forward. The court will appoint a trustee to oversee the bankruptcy while the owners maintain day-to-day control over it.

The debtor must submit a highly-detailed three- to five-year repayment plan to the bankruptcy court and their creditors. As part of a repayment plan, a business can sell some of its assets, terminate existing leases and contracts, and take other steps to partially pay back their creditors. If the plan is approved and the business makes all of its payments, their remaining debts will be discharged.

One of the major hurdles when it comes to filing for Chapter 11 bankruptcy is the time and expense involved. The process can take years to complete. There are many steps and fees along the way. If your business does not have considerable assets, the costs of going through bankruptcy may outweigh the benefits of having some of your debts wiped out.

However, there’s a relatively new option available for smaller businesses that offers many of the same benefits as filing for Chapter 11 bankruptcy. In late 2019, Congress passed the Small Business Reorganization Act, which went into effect in February 2020. Among other things, this law added a new subchapter to Chapter 11 of the federal Bankruptcy Code. This new method of filing for bankruptcy is known as Chapter 11, Subchapter V.

This type of small business bankruptcy is often better suited for businesses with more limited assets. The small business bankruptcy process under subchapter V allows you to pursue reorganization without having a committee of creditors to be appointed or for your creditors to approve your repayment plan. There is also a streamlined process to complete the bankruptcy process. These simplifications cut down on the time and work required to get your reorganization plan approved. Lastly, Subchapter V shortens the whole bankruptcy process by imposing a 90-day deadline to get your repayment plan approved once you file. A shorter bankruptcy process overall means you will save a great deal in attorneys’ fees, court costs, and other expenses.

Contact a Bankruptcy Lawyer Today

There are many options available to businesses facing bankruptcy. Each option comes with its own set of requirements, advantages, and disadvantages. If you’re facing bankruptcy, you can’t afford to make a mistake when you’re trying to figure out how to save your business. Choosing the wrong bankruptcy option or making an error during the filing process could be quite costly.

Fortunately, you don’t have to navigate the bankruptcy process alone. The business bankruptcy attorneys at Loan Lawyers stay up-to-date on all the latest bankruptcy laws and regulations. We have the knowledge and experience to guide you through the process to make it as simple and painless as possible. Call us today or visit our contact page to get a free initial consultation.

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Is Migration to South Florida Creating a Bubble? Probably Not.

The year 2006 was almost 15 years ago but for homeowners in Florida, it sometimes seems like it was just yesterday. It was at that time the entire country experienced one of the biggest real estate housing bubbles in history. While a booming real estate market is often the sign of a good economy, it spelled trouble for those in South Florida. The Great Recession sent an alarming number of homeowners in Florida into foreclosure and that still has many residents on alert any time there is a significant increase in the housing economy.

South Florida has always been an attractive place to move to for other Americans, but the pandemic has only made the option more attractive for many. Now, places such as Miami, Fort Lauderdale, and West Palm Beach are becoming crowded and real estate agents are just trying to keep up. In these parts of the state, home sales have more than doubled, and the trend has some wondering if that really is indicative of a good economy or if it’s just the beginning of another disaster. Fortunately, it is likely the former.

Why Are So Many People Moving to South Florida?

Anyone who lives in South Florida knows of the many benefits this beautiful part of the country brings. The Sunshine State offers gorgeous weather all year long, the culture and lifestyle are attractive to many, and there is no state income tax. The pandemic has only accelerated the move for families, small business owners, and other companies.

The pandemic in particular, drove people to Florida. In the first quarter of 2021, there was a reduction in residential home sales of 6,095 from the first quarter of last year, according to the ISG Miami report. These stats show that people are flocking to South Florida in droves, and they are scooping up any available real estate when they do.

Before determining whether the current growth is creating an unmanageable bubble, it is important to consider the two demographics that have been moving to South Florida during the pandemic. The first group is made up of renters who fled their home states during the pandemic. These new residents came from states such as California, New York, and Illinois, at a time when harsh weather and increasing coronavirus case numbers no longer made those areas as desirable. The second demographic is made up of individuals seeking relief from both state and federal taxes.

The pandemic also taught many people that they could work from home, and that they want to keep doing so long after the pandemic is behind them. This realization resulted in many people pulling the trigger on that move to Florida they always wanted to do. Now, as the demand for single-family homes grows even larger, inventory is dwindling while vaccinations increase every day, and that has led to a new interest in both commercial real estate and condos. The question is, are we in another bubble?

Renewed Interest in South Florida Properties Probably Not a Bubble

A hot real estate market is always good, and business opportunities are also on the rise in South Florida. Still, for many, the fear is very real that it is a bubble and that we are on the verge of another collapse. Fortunately, that is probably not the case. When comparing the current market to that of 2006, there are a few key differences that support the sustainability of the current demand.

Prior to the housing market collapse of 2008, the real estate market in America, including throughout South Florida, was largely driven by foreign investors. That is not the case today, and people are no longer just looking to buy a vacation property in the state, either.

Today, people are looking to make Florida their permanent residence. When people move here from other states, they move their entire lives, enroll their children in our schools, set up businesses and yes, purchase homes. While the foreign investors of two decades ago drove the tourism market, today’s buyers are building businesses and helping to fuel the economy as a whole. The impact of new migration to Florida is significant, and beneficial, to those who already live here.

The fact that people are coming to Florida in droves in an effort to avoid state taxes is also a boon to residents of the Sunshine State. Tax law is unlikely to see significant changes in the next five years, which will encourage new residents to stay and deepen their roots. This also means the future is likely more sustainable than it was just prior to the Great Recession.

The current economic growth in South Florida is also encouraging, and that also is not likely to go away any time soon. Miami Mayor Francis Suarez has said that South Florida is set to become the next Silicon Valley, and that very well could be true. The current influx of new residents has led to a diverse creation of jobs from healthcare to tech and education. The demand for school has also gone up, which also increases the demand for jobs.

There is little doubt that the economy in South Florida continues to expand, and the attractiveness of the area will continue to drive people here for several years to come. Fortunately, this is not 2006 and it is not 2008, either. Unlike Florida’s past history, this growth is very positive and more importantly, it is sustainable.

Our Foreclosure Defense Lawyers in South Florida Can Help if You Fear Losing Your Home

It is true that the current environment in the Sunshine State is not likely going to collapse, but our South Florida foreclosure defense lawyers also know too many people still face the prospect of losing their homes. If you are facing foreclosure, our skilled attorneys at Loan Lawyers can advise on your case, the defenses available, and will give you the best chance of saving your home. Call us today at 954-807-1361 or contact us online to schedule a free consultation.

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How You Should Not Spend Your Stimulus Check in Florida

Floridians have slowly started receiving their stimulus checks, just like so many other Americans. These checks are coming at a time when many people are also receiving their tax refunds, which will definitely bring some relief to many families that have been struggling throughout the pandemic. The first thought people may have when they receive this influx of cash is what they should do with it.

However, while you probably have many thoughts of what you want to do with the newfound cash, you should also consider what you should not do with it. If you can avoid the biggest mistakes made with stimulus checks and tax refunds, you may be able to avoid financial struggle for you and your family down the road. Below are some of the top ways you should not spend your stimulus check, and some of them may surprise you.

1. Avoid Ongoing Expenses

It is not uncommon for people to buy big-ticket items when they suddenly have more cash. Families may purchase something such as a big-screen TV just for fun, or individuals may make necessary purchases, including refrigerators and washing machines. Regardless of the item, it is critical that you ask yourself if you really need it, or if you just want it and it seems like an opportune time to make the purchase. If you do not need it, reconsider your decision to buy it.

Even when you do need to make a big-ticket purchase, carefully consider how you do it. Many retailers will offer a payment plan so you do not have to make the payment in one lump sum, but you can spread it over several months, or sometimes even years. Retailers also know that it is at this time of year when people feel as though their pockets are lined a little more heavily and so, they are more likely to make a big purchase.

Retailers use this knowledge to attach big fees and high interest rates to payment plans, knowing that shoppers are going to be a little less prudent. They may even try to convince you to make additional big purchases. If you need a big-ticket essential item, try to pay for it outright, or at least put a deposit on it that is as much as you can afford right now. This will help you avoid ongoing expenses, and ensure your stimulus check is spent wisely.

Also look for other ongoing expenses that you may be able to avoid. As the pandemic pushed more people into their homes and onto their couches, the demand for streaming services has greatly increased. Before you think about using your stimulus check to purchase a streaming service, consider that as an expense you will pay for in the future, as well. Do this with every item you are considering purchasing and ask yourself if it will become a recurring expense. If it will, you may want to spend your stimulus check on something else.

2. Focus on Savings, Not Investments

Many people use investments as a way to save money, and it is not typically a bad idea since you can get your money to work for you. However, you may want to think twice about putting your stimulus check into the stock market or another type of investment, particularly if you do not yet have as much as you would like in savings.

Too many people learned just how important an emergency fund is during the pandemic, because they were left without one. At a time when unemployment was rampant, businesses were closing, and people started facing eviction or foreclosure, they wished they had an emergency fund to fall back on.

It is important to ensure this does not happen to you, particularly if you have been in that situation once already. If you do not yet have any savings, or do not have enough in savings, start putting your money away before you place it into an investment. While a good investment can help you financially over time, it is never a guarantee. A savings account that you control is, so create one before becoming an investor.

3. Consider Paying Down Debt

Notice that this does not say “Pay Down All of Your Debt,” because you really need to consider your debt and then consider which you are going to pay down, or if you are going to pay it down at all. That may sound crazy, since paying down your debt can help you avoid consequences such as lawsuits, wage garnishment, and more. However, now is a very unique time and paying down your debt may not actually be the wisest choice.

The pandemic has caused many people to suffer financial hardship, and there are many programs that have been created that may help if you are suffering from a large amount of debt. Creditors are also starting to offer more flexibility with repayment plans and are even forgiving significant portions of debt.

Before you spend your entire stimulus check on paying back debt, at least consider negotiating with your creditors. You may find they are more willing to work with you, and that you may not have to repay the entire amount. That can help you keep a portion of your stimulus check so you can use it for other essentials you need at this time.

Our Debt Defense Lawyers in Florida Can Help if You Are Being Sued

While some creditors and debt collectors are starting to become more flexible during this difficult time, many are still aggressively pursuing the debt they are owed. If a debt collector has taken legal action against you, or you fear they are about to, our debt defense lawyers in South Florida are here to help. At Loan Lawyers, we know the defenses available in these lawsuits and will use them to give you the best chance of a favorable outcome. Call us today at 954-807-1361 or fill out our online form to schedule a free consultation.

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Is a loan modification right for you after your forbearance plan has ended?

Our office has been inundated with calls from homeowners who are concerned and even panicking because their CARES Act forbearance is coming to an end, or has already come to an end, but they do not know the next steps.  The reality is that millions of homeowners across America are behind on their mortgages and in forbearance.  While we would like to believe that all loan servicers are there to help and really have homeowners’ best interest at heart, the reality is that they do not.  Their job is to be as profitable as possible to make as much money as they can for their shareholders and officers.  That means they are not generally going to overstaff their office to make sure they can handle the influx of people needing assistance.   They will hire the bare minimum to get by.  Further, there is only so much the federal government can do. They cannot force servicers to give everyone modifications or write off past due balances.  Homeowners need to know what can be done and who to turn to.

A loan modification is a great solution for many struggling homeowners.  The modification may bring a lower interest rate and longer terms, which may result in a reduction in the monthly payment amount.  However, modification can be tricky and it’s important to have the right law firm on your side who can guide you through the process.  Just because you are behind on payments does not mean that you will automatically qualify for a loan modification. For example, if you have no income or limited income that is not enough to support a loan modification, your modification will be denied.  A modification needs to be done right the first time.  So determining the right time to file a modification request is vital.  On the flip side, if you have too much income, that could also be a problem.

Modification is also not the only solution. Some loan servicers have agreed to defer the missed payments to the end of the loan, so all that needs to be done is resume making regular payments again and those missed payments will not be coming due until the loan is paid off.  There could also be a repayment plan where the missed payments are spread out over time to catch up.  There is also an option for a Chapter 13 bankruptcy that will give a homeowner five years to catch up on their missed payments.

At Loan Lawyers, we have substantial experience in all of these areas and have saved thousands of homes in Florida.  If you find yourself in the position where you are behind on mortgage payments for any reason, call us no wot chat about your situation with an attorney.  We can help you create a plan that suits your needs and puts you in the best position to try to save your home.  Call us now at 1-888-FIGHT-13 for your FREE consultation.

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How to Pay Off Your Medical Debt in South Florida

Medical debt is one of the main reasons why people file for bankruptcy or withdraw savings from their retirement accounts. People may develop an unexpected condition that requires extensive medical treatment. The cost of that treatment can make it difficult to pay for everyday expenses at the same time. Even routine health care comes with certain costs, and those expenses can quickly add up.

Medical debt is like any other type of debt. While it is necessary, it is also very difficult for many people to pay back. If the debt is not paid back promptly, a person may face lawsuits that could result in wage garnishment and other negative consequences. According to the Centers for Medicare and Medicaid Services (CMS), hospitals are now required to post their prices, which can help people avoid excessive medical debt. However, if you find that you already have a significant amount of medical debt in South Florida, below are some tips that can help you pay it off.

Check Your Bill for Mistakes

Too many people simply accept that the number on their medical bills is the price they must pay, but that is not always the case. Hospitals sometimes make mistakes, so it is important to ask for an itemized bill that covers all of the care you received. Check to ensure you were not double-billed, that the service you received was properly coded, and that your insurance information was entered properly. If you find you were charged for a service covered by your insurance, contact your insurer to find out why you did not receive coverage. You can likely submit an appeal or file a complaint with the Florida Office of Insurance Regulation.

Ask About Financial Aid

Under federal law, non-profit hospitals are required to offer financial assistance programs, as well as information about how to apply for aid. Hospitals, though, have the discretion to determine the eligibility criteria for these programs. If you qualify for financial aid through the hospital, you could receive a discount if you are below the federal poverty level, which could reduce your bill and make it easier to pay.

Negotiate with the Hospital Billing Department

Many people know that they can negotiate with a debt collector or even a creditor, yet they do not think to do it with their medical bills. Over half of patients that negotiated their medical bills were successful, according to a Consumer Reports survey conducted in 2018. There are several ways you can negotiate your medical bills. These include:

• Offer to pay a lump sum with a discounted amount: For example, tell the hospital billing department that you can pay the entire bill today if you receive a 25 percent discount.
• Compare costs with the listed price: Now that hospitals are required to post their prices, it makes it easier to determine if you have been overcharged for the treatment you received. If you have been charged too much, you can use it as leverage during negotiations.
• Be honest: Your negotiations will be more successful if you are honest about why you need help. For example, if you have recently lost your job, explain that to the billing department and they will be more likely to work with you.

If the amount of medical debt you have racked up is substantial, or the hospital has already threatened to take legal action, you should work with a debt defense lawyer in South Florida that can negotiate on your behalf.

Ask About an Interest-Free Repayment Plan

Hospitals are sometimes willing to allow patients to divide their debt into a manageable payment plan that is interest-free, and they do not even always require a credit check. It is important to note though, that if the hospital does agree to a payment plan, they may not offer the same type of discount they would have if you paid the amount in one lump sum. Hospital repayment plans also typically only last for one or two years, although some offer longer periods, which can break up the payments even more.

It is crucial to not agree to any type of repayment plan if you do not think you can afford the payments. Medical providers are just like other businesses and if you do not make payments on time, they may send the account to a debt collector. The debt collector may then take legal action which could result in wage garnishment and other negative consequences.

Pay with a 0% APR Credit Card

If you have good credit, you may qualify for a credit card with a zero percent annual percentage rate (APR). Most of these offers last for approximately 18 months. After that time, the interest rate on the credit card may jump to anywhere between 16 and 19 percent, so it is important to be aware of that fact, too. There are also credit cards designed specifically for medical bills. Still, like arranging a repayment plan with the hospital billing department, it is important to only use a credit card if you know you can make at least the minimum payments. Otherwise, you could again face legal action.

Take Out a Personal Loan

When you take out a personal loan, you can use it for virtually anything you want, including your medical expenses. The advantage of a personal loan is that you always know the interest rate you are paying, and the payment is a fixed amount, which may make it easier to budget. The biggest disadvantage of personal loans is that they are difficult for many to obtain and are typically reserved for borrowers with very good credit.

Facing Legal Action Over Medical Bills? Our Debt Defense Lawyers in South Florida Can Help

If you cannot pay your medical debt and a hospital or debt collector has taken action against you, our South Florida debt defense lawyers can help with your case. At Loan Lawyers, we know how to fight against debt collection lawsuits to give you the best chance of a successful outcome. Call us today at 954-807-1361 or contact us online to schedule a free consultation.

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How Much Does Filing for Bankruptcy Cost in Fort Lauderdale?

If you are thinking about filing for bankruptcy in Florida, you have fallen into financial hardship. However, filing for bankruptcy is not a free process, so you should be aware of the costs involved. Not only is there a filing fee, but you will also have to pay credit counseling fees, court fees, and probably attorneys’ fees. So, if you are filing for bankruptcy, how much will it cost you?

The answer is that it will depend on the type of bankruptcy for which you are filing, as well as the Fort Lauderdale bankruptcy lawyer you choose. Even though no one can tell you exactly how much it will cost you to file bankruptcy, below are some guidelines you can follow.

What Is Chapter 7 and Chapter 13 Bankruptcy?

Again, the type of bankruptcy you are filing will largely determine how much it will cost you, so it is important to know about the two main types of bankruptcy. Chapter 7 bankruptcy will discharge most of your debt, your assets will be seized and sold off to help pay off your creditors, and all debt collection efforts must stop.

A Chapter 13 bankruptcy does not completely discharge your debt; instead, a repayment plan is created. The repayment plan will likely extend between three and five years and your assets are not seized. This distinction makes Chapter 13 bankruptcy a good choice for those that have assets they want to protect, such as a home. You are still protected from legal action if you file a Chapter 13 bankruptcy.

Cost of Filing Bankruptcy

Both a Chapter 7 and a Chapter 13 bankruptcy have filing costs. As of 2021, it costs $245 to file Chapter 7 bankruptcy and $235 to file Chapter 13 bankruptcy. You will also have to pay an administrative fee of $78 and, if you are filing Chapter 7, you will also have to pay a $15 trustee fee. The trustee will meet with your creditors and liquidate your assets.

While the above filing fees are fairly standard and apply to most cases, you may incur additional fees as well. For example, if you have to file for Chapter 7 bankruptcy after starting the process for Chapter 13 bankruptcy, that comes with an additional cost. Or, if you have to reopen a bankruptcy case, that will also have a price. If you make a payment that is returned due to insufficient funds, you will also have to pay a fee.

Waivers and Installments

Generally speaking, you must pay the filing fee for bankruptcy at the time you file your petition with the court. However, you can ask for the fees to be waived. To do this successfully, you must be unable to pay the fees, even if they are divided in a repayment plan. You must also earn an income that places you less than 150 percent of the poverty line. If you can afford to pay the fees in a payment plan, you can also arrange that at the time you file your petition.

The Cost of Credit Counseling

Anyone who files for bankruptcy is required to take a credit counseling course that has been approved by the court. This is to ensure that you learn better money management skills so you do not end up filing for bankruptcy again. While these courses are very helpful, they also have a small fee attached to them. The cost of these courses is generally not more than $50 and again, you may be eligible for these costs to be waived or you may be able to pay a reduced rate.

Attorney Fees in Fort Lauderdale

Attorney fees can vary drastically, but it is always advised that you work with a Fort Lauderdale bankruptcy lawyer. A lawyer that has the necessary experience with bankruptcy cases will know the laws and federal procedure you can expect in your case. They will explain these laws and rules and how they apply to your case, and will give you the best chance of success.

If you file on your own, one little mistake could result in your case being dismissed, so you are still liable for your debts and debt collectors can still call you. It is just as important to know that when you file bankruptcy on your own, the judges and other court employees cannot provide you with legal advice. You should also always work with a bankruptcy lawyer who offers free consultations so you do not have to pay for a service you may not use if you choose a different lawyer.

Additional Costs

While the above are costs that most people have to pay when they file for bankruptcy, there are others that may come up in your case, too. The trustee or creditors in your case may challenge certain aspects of it, which can add to the overall cost.

Common challenges are as follows:

• Means test challenges
• Objections over exemptions
• Objections over discharge or whether a certain debt is eligible for a discharge
• Objections to Confirmation, and
• Motions to Dismiss.

If these challenges are raised during your case, you will have to prepare a solid defense against them, which will add to the cost. This is also another reason to make sure you are working with a Fort Lauderdale bankruptcy lawyer.

Do Not Let the Cost Scare You Off

While there is a cost to filing for bankruptcy, the cost alone should not deter you from doing something that is necessary for your financial future. Bankruptcy should only be used as a last resort, but it is one that can provide immense relief. When working with an attorney, your attorney can advise on the best ways to minimize the cost of bankruptcy and give you the best chance of success so you only have to go through the process once.

Let Our Bankruptcy Lawyers in Fort Lauderdale Help with Your Case

If you are considering bankruptcy, do not file your petition alone. At Loan Lawyers, our experienced Fort Lauderdale bankruptcy lawyers can guide you through the process, making it as quick and easy for you as possible. Call us today at 954-807-1361 or fill out our online form to schedule a free consultation.

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What Are Your Options in South Florida if You Can Afford to Start Paying Your Mortgage Again?

This year has come with challenges Floridians have never seen before, and that is saying something considering the Sunshine State was one of the hardest hit during the Great Recession. Many homeowners are facing foreclosure; for some, the process has already started. You may qualify for forbearance if your mortgage is government-backed. While the original 360-day program for these mortgages has expired, the program has seen recent expansions, and even more are currently being proposed.

The government has currently expanded the moratorium on foreclosures for government-backed mortgages until June. The Consumer Financial Protection Bureau has also proposed a new rule that would prohibit foreclosures from happening until January of 2022. Millions of people in South Florida have already benefited from forbearance and government programs. At the same time, the economy is also starting to reopen and people are once again going back to work and earning an income again, which means they are also better able to repay their mortgage. It is not always that simple, though. If you have not paid your mortgage for several months, how do you start repaying what you owe? Below are a few options available.

Reinstatement

Reinstatement is one of the most straightforward ways to repay your mortgage, but it is also often one of the most impractical. If you choose to reinstate your mortgage, you simply pay back all of the payments you have missed at one time. For homeowners who have only missed a few payments and have received stimulus checks that may cover that amount, reinstatement may be an option. It may be possible for others to reinstate their mortgage if they have help from family members or have other sources of income that may allow them to make those repayments.

Repayment Plans

Repayment plans sound a lot like reinstatement, but there is a difference. It is important for homeowners who took advantage of forbearance and the moratorium to remember that they are still responsible for making the mortgage payments they missed. The difference between reinstatement and a repayment plan is that with the plan, the missed payments are not due all at once.

Instead, homeowners will start to pay their regular mortgage payments every month. Along with that payment though, they will also make a portion of the missed payments. This is not necessarily an entire month of payments they have missed, but a portion of them. The repayment plan will remain in effect until all of the missed payments have been paid. This could be a great option for homeowners in South Florida that have started to return to work, but still cannot afford to reinstate their mortgage fully because they have gotten so behind on other expenses and loans during the past year.

Like most options to bring a mortgage back in good standing, a repayment plan will require a lender’s approval. The lender will also determine how much of each payment will be repaid every month, although if the homeowner works with a foreclosure defense lawyer and can provide evidence of a fair and affordable amount, there is a greater likelihood that the lender will approve the plan.

Payment Deferral

Payment deferral refers to postponing scheduled payments for a specific period of time. A deferral can allow for as many as 12 months of missed payments to be deferred, or postponed, to the end of the term of the mortgage. The missed payments do not incur any late fees or additional interest so it better helps homeowners get back on their feet when other options, such as repayment plans, are not feasible.

When homeowners are eligible for a mortgage payment deferral, they typically return to making their regular mortgage payments, and the maturity date, remaining term, and interest rate do not change. The payments that were deferred are then due once the home is resold. However, homeowners who refinance their mortgages or sell their homes are responsible for making deferred payments at that time. Contrary to what many people think, a mortgage deferral does not make a homeowner ineligible for future relief if it is needed. Deferral is merely meant as a way for homeowners to avoid foreclosure when they cannot make payments on their mortgage.

A Loan Modification

For many homeowners in South Florida, the best way to keep a home is through a loan modification. A loan modification allows homeowners to negotiate any of the terms of their loan and to secure terms that are more favorable for them. Through a loan modification, homeowners can change any term of their loan, including the interest rate, the length of the loan, and even the principal amount owed.

Unlike forbearance agreements or even deferred payments, loan modifications are more appropriate for homeowners who will deal with financial struggles for a longer period of time. A loan modification is also not a brand new mortgage, as a refinanced mortgage is. Unlike refinancing, loan modifications are sometimes possible even after a homeowner has fallen into foreclosure on their home. If a homeowner is approved for a loan modification, the terms of the mortgage are permanently changed.

Many people wonder why a lender would approve a loan modification, and the reason is simple. Lenders do not want to foreclose on homes. Doing so is incredibly expensive and time-consuming for them and they would much rather work with homeowners. Still, homeowners must qualify for a loan modification. Homeowners must prove they are experiencing financial hardship, have continued income, have no equity in the home or demonstrate a decline of the home’s value, and have a history of late payments.

Our Foreclosure Defense Lawyers in South Florida Can Help with Your Case

As a homeowner, you have many options if you are struggling to pay your mortgage, but you should not go through it alone. At Loan Lawyers, our South Florida foreclosure defense attorneys can negotiate with the lender on your behalf and give you the best chance of a successful outcome. Call us today at 954-807-1361 or contact us online to schedule a free consultation with a Florida foreclosure defense lawyer.

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