Can I Negotiate a Wage Garnishment?

Disclaimer: Loan Lawyers, LLC is licensed to practice law in the state of Florida. If you have a legal matter that you would like to discuss and you are NOT located in Florida, please contact your state’s Bar Association to get the information of a lawyer that can assist you in your home state. Thank you.

A wage garnishment is a court order obtained by a creditor to seize a portion of a debtor’s paycheck, bank account, or other assets to meet a debt obligation. If you are already struggling to pay your debts, the effects of wage garnishment can be especially hard on your finances. However, you may be able to negotiate the terms of wage garnishment or avoid it altogether. The team at Loan Lawyers is here to explain the options for negotiating, contesting, vacating, or ending a wage garnishment.

Is It Possible to Negotiate a Wage Garnishment in Florida?

It is sometimes possible to negotiate a wage garnishment directly with the creditor. Most creditors want to recoup as much of their debt as possible and may be willing to work out a deal. Build your argument before approaching the creditor. Collect evidence showing how detrimental the wage garnishment is to your financial stability or how you qualify for an exemption. In either case, the creditor may agree to a solution that doesn’t involve a garnishment, such as an adjustment payment plan or a settlement for a lump sum.

How to Get Rid of Wage Garnishment Completely

The court clerk must notify you when a creditor files a court order seeking to garnish your wages. You have the right to file an exemption within 20 days of receiving notice. If you file a claim of exemption, the creditor has 14 business days to file a response to your claim with the court. If the creditor doesn’t respond in time, the court can cancel the garnishment.

Some exemptions and other strategies that may allow you to contest or stop a wage garnishment include the following:

• Head of household exemption – Under Florida law, you may legally stop a wage garnishment if you qualify as a head of household. A head of household pays at least 50 percent of the living expenses for a child or other dependent.
• Exempted income – Certain types of income are exempt from wage garnishments, such as retirement benefits, veteran’s benefits, disability benefits, workers’ compensation, alimony, and child support.
• Federal protections – Under federal law, wage garnishments cannot exceed 25 percent of your disposable earnings or the amount of your weekly income over 30 times the federal minimum wage, whichever is less.
• Pay off the debt – This may not be an option for everyone. But if you can come up with the money to pay off the debt, you will eliminate the creditor’s need for wage garnishment. For example, you could ask family or friends for money, consolidate the debt with another loan, or sell an asset.
• Bankruptcy – If you do not qualify for any exemptions and cannot possibly pay back the debt or make ends meet while having your wages garnished, you should consider filing for bankruptcy. While bankruptcy comes with drawbacks, it would stop any wage garnishments. Depending on the type of bankruptcy you file, you may be able to structure a repayment plan, liquidate some assets, or discharge some debts.

RELATED: Wage Garnishment FAQs

Do You Need a Debt Lawyer to Investigate Your Wage Garnishment?

To best understand your legal options for dealing with wage garnishment, consult a knowledgeable debt settlement attorney at Loan Lawyers today. Our foreclosure defense, debt defense, and bankruptcy law firm has helped many Florida clients find a way through or out of wage garnishment. Contact us today for a free consultation.

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Is It Possible to Switch Between Bankruptcy Chapters in Florida?

Are you in Chapter 13 bankruptcy proceedings in Florida and wondering if you can switch to Chapter 7? Loan Lawyers is here to help. Chapter 7 bankruptcy allows individuals to get a fresh start by liquidating assets to cover some debts and discharging other debts. Chapter 13 bankruptcy creates a plan where the debtor can repay all or part of the debt owed to creditors over three or five years. Once all payments are complete, the remaining debt can be discharged.

Contact Loan Lawyers for a free consultation to learn more about whether you can switch between bankruptcy chapters in Florida, when and how that might be beneficial, and what’s required.

Can You Convert Your Chapter 13 Bankruptcy to Chapter 7 in Florida?

It is possible to convert from Chapter 13 bankruptcy to Chapter 7. To know if this is true in your particular situation, you should consult a bankruptcy attorney who can determine whether you are eligible and discuss the pros and cons of switching.

For example, after you file for bankruptcy, you must wait a specific period before you can file again. The duration of the waiting period depends upon the type of bankruptcy you previously filed. If you have a prior bankruptcy, your attorney will tell you whether you’re outside the waiting period and could convert to a Chapter 7.

To convert, you must file a Notice of Conversion with the court and pay a conversion fee. An attorney can help you with this process.

Benefits of Switching Bankruptcy Chapters

Switching to Chapter 7 bankruptcy might be beneficial to you if:

• You cannot maintain the Chapter 13 bankruptcy payment plan.
• You have experienced a significant loss of income.
• You no longer wish to keep an asset that your Chapter 13 bankruptcy plan was designed to save.

Do You Qualify for Chapter 7 Bankruptcy?

Before deciding to convert to Chapter 7 bankruptcy, you must ensure you qualify. First, you must pass a means test demonstrating your income falls below Florida’s median family income for your household size. If your income exceeds that amount, you might still be able to qualify after a detailed analysis of your income and expenses.

When the Court Might Force You to Convert to Chapter 7 in Florida

The court could order you to convert to Chapter 7 bankruptcy “for cause.” If the court believes you are trying to manipulate the bankruptcy system, it could force you to enter Chapter 7 bankruptcy and liquidate nonexempt assets to pay back creditors. For example, this may happen if it appears that you are hiding assets or lying on forms.

Contact Loan Lawyers Today for Help Switching Bankruptcy Chapters

If you are having trouble keeping up with a Chapter 13 bankruptcy repayment plan, Loan Lawyers can help you explore whether converting to Chapter 7 bankruptcy would be a good option for you. Our bankruptcy attorneys aim to find the best financial solution for each client and will never pressure you. Contact us today to schedule a free consultation.

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Does a Voluntary Repossession Affect Your Credit?

Loan Lawyers, LLC is licensed to practice law in the state of Florida. If you have a legal matter that you would like to discuss and you are NOT located in Florida, please contact your state’s Bar Association to get the information of a lawyer that can assist you in your home state. Thank you.

If you fall behind on your car payments and cannot catch up, you can give your car back to your lender. Lenders call this voluntary repossession, and it can potentially give you some financial breathing room. But before you turn your car over to the bank, you need to consider all the potential consequences. To learn more about voluntary repossession in Florida, contact a skilled car repossession lawyer at Loan Lawyers today.

Can Voluntary Repossession Have an Impact on Your Credit?

One reason many people consider voluntary repossession is to protect their credit score. Unfortunately, giving your car to your lender is unlikely to protect your credit. Many lenders consider a voluntary repossession the same as an involuntary repossession, leading to a negative mark on your credit report.

How Much Does a Voluntary Repossession Affect Your Credit?

Estimates vary, but you can expect a voluntary repossession to lower your credit score by 50-150 points. How big of a drop you will see depends on factors such as your prior credit history and how many payments you made before the repossession. A large drop in your credit score can severely impact your ability to obtain future loans for a car, home, or other large purchases. Some lenders may not give you credit after your score drops, or you may have to accept a loan with a high-interest rate.

How Long Does a Voluntary Repossession Stay On Your Credit?

According to Experian, one of the three main credit reporting agencies, a voluntary repossession is considered a loan default. Loan defaults lead to derogatory marks on your credit report that can last up to seven years. You may be able to remove a derogatory mark from your credit report by paying the balance you still owe on your loan or working out an arrangement with your lender.

Pros and Cons of Voluntary Repossession

There are pros and cons to surrendering your car to your lender if you fall behind on your payments. The benefits of voluntary repossession include the following:

• A better repossession experience — Involuntary repossessions upset many people because they often happen at inconvenient times. A voluntary repossession allows you to choose when you turn over your car, giving you time to make plans.
• Lower repossession expenses — If a lender repossesses your car, you may owe additional fees on top of your loan balance. Voluntarily turning over your car means you do not have to pay repossession costs.
• Less stress on you — For better or worse, turning over your car to your lender means you do not have to worry about the car any longer. You may still owe a balance and have other problems to worry about. But you do not have to worry about maintaining your car or when the bank will take it.

Some negative effects of voluntary repossession of a car include the following:

• Lower credit score — You will likely see your credit score drop after you give your car to your lender, which could impact your financial future.
• You may still owe a balance on your loan — You might need to pay back your lender even after giving them your car, though typically just the remaining balance not covered by the car’s resale. An outstanding loan balance can cause significant financial stress.
• You no longer have your car — You may have ways to get where you need to go after surrendering your car. But these options will likely be less convenient than driving yourself.

Talk to an Experienced Car Repossession Lawyer in Florida Today

The Florida foreclosure defense, debt defense, and bankruptcy attorneys at Loan Lawyers can help you decide whether to voluntarily repossess your car. We will protect your rights and help you find the best way forward from this challenging situation. Call us today or visit our contact page for a free consultation.

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Can a Loan Modification Stop Foreclosure?

Loan Lawyers, LLC is licensed to practice law in the state of Florida. If you have a legal matter that you would like to discuss, and you are NOT located in Florida, please contact your state’s Bar Association to get the information of a lawyer that can assist you in your home state. Thank you.

Homeowners who can no longer afford their mortgage payments have options for stopping foreclosure and keeping their homes. Depending on the circumstances, a homeowner may consider applying for a loan modification with their lender to avoid or stop a mortgage foreclosure. But how exactly does a loan modification prevent a homeowner from losing their property to foreclosure? Learn from our Florida loan modification attorneys below.

What Is Loan Modification?

In a loan modification, a lender and borrower agree to change the terms of a loan. Loan modification often happens when a borrower can no longer afford payments under the loan’s current terms. Altering the terms of the loan can provide temporary relief from payments or reduce the monthly payment amount to a more affordable level.

Examples of terms that can be modified include:

• Modifying the type of loan, such as changing from an adjustable-rate mortgage to a fixed-rate mortgage
• Reducing the interest rate
• Extending the loan term
• Pausing payments for a certain period
• Recapitalizing the loan to fold in missed payments
• Reducing the amount owed on the loan, typically by having the lender agree to forgive a portion of the balance

Who Can Use Loan Modification?

Loan modification frequently is used by homeowners who can no longer make their mortgage payments. A homeowner who has defaulted on their mortgage may use loan modification to avoid foreclosure. Lenders tend to grant loan modification to borrowers who have suffered some form of financial hardship but will resume making payments soon or can afford lower payments.

Circumstances where borrowers may seek loan modification include:

• Loss of a job with a reasonable chance of securing new employment soon
• Sudden illness or temporary disability that results in missed time from work or substantial medical bills
• Loss of income due to the death of a financially contributing family member
• Separation or divorce
• Increases in housing or living costs, such as an increase in property taxes

Advantages and Disadvantages of Loan Modification

The advantages of seeking loan modification during foreclosure include the following:

• You can keep your home by pausing payments if you experience temporary financial difficulty or reducing mortgage payments to a more affordable level.
• Loan modification can help you resolve missed payments or a default on your mortgage.
• You may avoid damage to your credit rating that foreclosure would cause.

However, there are disadvantages of loan modification as a way to stop foreclosure, such as the following:

• Most types of loan modification result in you paying more money throughout the loan than you would under the original terms.
• You may have to pay fees as part of the loan modification process.
• You can incur tax liability if the lender forgives part of the mortgage.
• There may be an impact on your credit score if the loan modification is reported to the credit bureaus as a debt settlement.

Talk to an Experienced Foreclosure Defense Lawyer About Modifying Your Loan

If you are facing mortgage foreclosure, a skilled foreclosure defense lawyer can help you learn more about how options such as loan modification can help you keep your home. Contact Loan Lawyers today for a free, confidential consultation with our foreclosure defense, debt defense, and bankruptcy law firm to discuss how we can help you find the best solution to resolve your foreclosure.

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Difference Between Debt Consolidation and Debt Settlement

Loan Lawyers, LLC is licensed to practice law in Florida. If you have a legal matter that you would like to discuss and you are NOT located in Florida, please get in touch with your state’s Bar Association to get the information of a lawyer that can assist you in your home state. Thank you.

If you are struggling to pay off debt, you may have heard about debt consolidation and debt settlement — two financial strategies to manage your debt. While these methods may sound similar, they function differently and are often used to resolve specific issues. 

Contact Loan Lawyers for a free consultation with a debt defense lawyer to learn more about debt consolidation vs. debt settlement.

What Is the Difference Between Debt Consolidation and Debt Settlement?

There are a few key differences between these two methods of debt management. First, debt consolidation combines debts from multiple creditors into a single debt that may have a better interest rate and more manageable terms for the debtor. Debt can be consolidated through a balance-transfer credit card, personal loan, home equity loan, or debt consolidation loan. This method may offer advantageous terms, such as a lower interest rate that allows the debtor to save money. It can also help the debtor pay off debt sooner and reduce the payments they must make.

Debt settlement involves purposefully withholding payment from a creditor for a period, typically two or three years. The debtor then attempts to settle the debt with a much lower lump-sum amount. They may try to negotiate debt resettlement or hire a for-profit company to help. However, it can be risky in either case.

Pros and Cons of Debt Consolidation vs. Debt Settlement

There are advantages and disadvantages to each debt management strategy. The pros of debt consolidation are:

• Fewer payments to manage
• Lower monthly payments due to a lower interest rate or extended payment schedule
• Credit may improve if the credit utilization ratio is reduced

The cons of debt consolidation include the following: 

• Original debt is not eliminated but extended over time
• Bad credit may prevent a debtor from getting a lower interest rate 
• There may be fees involved
• The pros of debt settlement are:
• Opportunity to settle for a much lower amount, saving significant money
• Possibility to settle relatively quickly

However, there are cons of debt settlement, such as: 

• No guarantee that a creditor will agree to settle
• Accrual of late fees and interest charges while payments are being withheld 
• Potential damage to a debtor’s credit score
• Possibility of being scammed by debt settlement companies

Debt Consolidation vs. Debt Settlement: Which Is Better for You?

You should consider several factors when determining which financial strategy is better for you. The main issues to take into account include the following: 

• How much debt do you owe
• Whether you are delinquent and, if so, how far behind you are
• Your credit score
• Your ideal timeline for paying down debt

An experienced debt relief attorney can evaluate your financial situation, explain your options, and help you choose the best strategy for your case. 

Contact Loan Lawyers Today for a Free Consultation

If you struggle to manage your debt, contact Loan Lawyers today for a free consultation. Our foreclosure defense, debt defense, and bankruptcy law firm can help you find the best solution for your case. We work directly with each client on a personalized, detailed approach to solving debt problems.

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HOA Foreclosure vs. Bank Foreclosure

Loan Lawyers, LLC is licensed to practice law in the state of Florida. If you have a legal matter that you would like to discuss and you are NOT located in Florida, please contact your state’s Bar Association to get the information of a lawyer that can assist you in your home state. Thank you.

The word “foreclosure” understandably triggers fear and anxiety in most homeowners. As a homeowner, you should understand how one initiated by a homeowner association (HOA) differs from traditional bank foreclosure.

The team at Loan Lawyers wants to provide homeowners facing foreclosure with practical and straightforward information about the process of homeowner association foreclosures. To learn more, contact Loan Lawyers today for a free consultation.

Why Do HOA and Bank Foreclosures Happen?

Foreclosure occurs when a lender takes back property from a borrower who can no longer make mortgage payments. When someone cannot afford to pay their mortgage, the lender is not getting back the money on the loan they provided. If the lender can foreclose on the property, it can take ownership of the house and sell it to recover money.

Under federal law, a homeowner must generally be more than 120 days past due on their mortgage payments before a lender can file for foreclosure. However, the homeowner’s HOA can begin foreclosure if they stop paying HOA fees.

What Are the Main Differences Between an HOA Foreclosure and Bank Foreclosure?

There are distinct differences between an HOA foreclosure and a bank foreclosure. A bank foreclosure typically occurs when a homeowner fails to make monthly mortgage payments. After 120 days, a lender may begin foreclosure to take ownership of the property and sell it to recover losses.

HOA foreclosures are different because they involve a homeowner association. An HOA collects dues or fees from homeowners to maintain communal areas like parks, lawns, and pools. If a homeowner fails to pay these fees, an HOA can choose to recover what it is owed by placing a lien on the home. A lien prevents the homeowner from selling or refinancing the property.

The HOA can take steps to begin the foreclosure process. However, HOA auctions only seek to sell the property for enough money to recover the outstanding lien. An HOA foreclosure has nothing to do with a homeowner’s mortgage. When someone buys an HOA foreclosure, they may be surprised to find an outstanding mortgage is still attached to the property.

What Should I Do After Being Served with a Foreclosure Lawsuit?

If you have been served with a foreclosure lawsuit, you should immediately contact an experienced attorney who can advise you on your options. A foreclosure defense lawyer can find a solution that works for you and your lender or HOA. Navigating the foreclosure process alone rarely works out in a homeowner’s favor, so hiring an attorney is in your best interest.

Contact the Consumer Debt Defense Attorneys at Loan Lawyers for Help

Loan Lawyers is a foreclosure defense, debt defense, and bankruptcy law firm committed to protecting clients’ rights. If you are being foreclosed on, contact the consumer debt defense attorneys at Loan Lawyers today for a free consultation.

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Legal Rights Before a Foreclosure

Loan Lawyers, LLC is licensed to practice law in the state of Florida. If you have a legal matter that you would like to discuss and you are NOT located in Florida, please contact your state’s Bar Association to get the information of a lawyer that can assist you in your home state. Thank you.

If you are facing foreclosure in Florida, you might be feeling overwhelmed and wondering what to do next. The Florida foreclosure attorneys at Loan Lawyers can help you understand your options and establish a strong legal strategy to defend your mortgage rights and home. To learn more about your homeowner rights in foreclosure, contact Loan Lawyers today for a free consultation.

Breach Letter

During the pre-foreclosure stage in Florida, your lender must send you a notice known as a breach letter. This notice is meant to inform you that you are past due on your mortgage payments and the lender will begin foreclosure if you don’t correct the default. Breach letters should also contain information about your various options for avoiding foreclosure.

Notice of the Foreclosure

Homeowners in Florida are also entitled to notice of a pending foreclosure if they cannot correct the default. Florida is a judicial foreclosure state, which means lenders must get court approval before beginning foreclosure proceedings. If your lender gets approval from the court for judicial foreclosure, your notice should come in the form of an official complaint and court summons in the mail.

After your lender starts a judicial foreclosure in Florida, you have 20 days to file a response in court. If you do not respond by the deadline, your lender might ask the court to grant a default judgment. A default judgment would allow your lender to proceed with the foreclosure of your home.

Reinstating Your Mortgage

Most Florida home mortgages have conditions allowing borrowers to reinstate their mortgages. This lets borrowers stop the foreclosure by paying off all past-due amounts and fees. Many mortgage contracts allow borrowers to reinstate their mortgages until a specific deadline, usually when the court renders a judgment.

After a successful reinstatement, the lender stops foreclosure proceedings. The borrower then resumes their regular mortgage payments.

Redeeming Your Home

Another way to save your home from foreclosure is by redeeming the property, which is different from reinstating a mortgage. When you redeem a home, you must pay off the entire mortgage and any late fees or interest you owe your lender.

As you might imagine, few homeowners who default on their mortgages have the financial ability to pay off their debts all at once. If redeeming your home is an option, remember that you must redeem the home before your court-ordered foreclosure redemption period expires or your lender files a certificate of sale.

Contact the Foreclosure Defense Attorneys at Loan Lawyers

You shouldn’t have to defend your homeowner rights on your own. If you want to challenge your foreclosure, contact the foreclosure defense team at Loan Lawyers today. We can address your concerns and review your case for free when you contact us for an initial consultation session.

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