Creditor Harassment

Published on: August 14, 2011

Deed in Lieu or Foreclosure — Which is more Beneficial?

First of all, as far as your credit score goes, banks usually report a deed in lieu as a foreclosure. In other words, a deed in lieu will probably have the same effect on your credit score as a regular foreclosure. Further, even if a bank has a deed in lieu, they will likely require you to sign a note saying you will pay them any amount left over if the sale of your home is less than what you owe.

You’re probably wondering: What is the advantage of a deed in lieu over a foreclosure? For most people, there isn’t one. If you accept the foreclosure, you should ensure your agreement states you will not owe any amount on a potential deficiency sale. Both deeds in lieu and foreclosures will look the same on your credit score, so bankruptcy is also another consideration here.

If you are thinking of filing bankruptcy, contact a Jacksonville Bankruptcy Attorney today. If your home is facing foreclosure, contact a Florida Foreclosure Defense Attorney to further discuss your options.

Published on: August 12, 2011

How Often Can a Person File Bankruptcy?

By David M. Goldman

The answer to this question depends on what type of bankruptcy you qualify for. You cannot receive a discharge in a Chapter 7 bankruptcy if you have received a discharge in a Chapter 7 in the past 8 years or if you have filed a Chapter 13 within the past 6 years. On the other hand, if you received a discharge in a Chapter 13, you can file a Chapter 13 again in 2 years.

However, you do not want to abuse this process, as there task forces in place to seek out those who do so. Contact a Jacksonville bankruptcy attorney today to see if filing for bankruptcy is beneficial for your situation.

Published on: August 10, 2011

Can You Go to Jail for Being in Debt?

By David M. Goldman

If you’ve ever seen (or read) Master in Commander, you may recall that the central character was attempting to flee debtor’s prison. Debtor’s prison was very common for many years, and the question is often asked: can the government put you in jail for owing money to a private party? The answer is no. The United States used to have a Federal prison for unpaid debts; however, it was abolished in 1833. Some states still allow debt collectors to seek arrest warrants for debtors in default, but Florida is not one of those states. Further, the US constitution prevents incarcerating someone simply for owing a debt.

However, if you owe a debt to the state or federal government, you may find yourself in jail. The recent economic downturn has caused thousands of Floridians to owe court fees, and some of them are being jailed — not for owing a debt, but for “failing to follow a court order”.

Defaulting on a debt is rarely a good thing. If you have mounting debt and are unsure of what to do, contact a Jacksonville Bankruptcy Attorney to discuss whether bankruptcy is a good option.

Published on: August 8, 2011

Should You File Bankruptcy Before or After Divorce?

By David M. Goldman

If you and your spouse are still facing piling debt, you may be thinking about bankruptcy. However, since money issues are often the cause of divorce, you may also be thinking about splitting up as well. This dilemma leads to the question: Should you file bankruptcy now, or wait until after you split?

First, you should know that it is possible to file bankruptcy separately even if you are still married. This is often best for couples who know they are about to split and don’t think they can work well together during their joint bankruptcy. The rules differ for spouses who are still cohabitating as opposed to those who have separated, so *talk with an attorney to figure out what’s best for you.

However, if you and your spouse believe you can work together during the bankruptcy, it might make sense to file bankruptcy before your divorce. Only married couples can file jointly, and it helps keep down numerous costs. Filing bankruptcy prior to the divorce may effect alimony payments and other divisions of assets during the divorce process. Keep in mind, however, it is not always possible to discharge certain spousal payments such as alimony or child support payments in divorce. To find out which situation will be best for you, call a Jacksonville Bankruptcy Attorney.

Published on: July 31, 2011

How Does Wage Garnishment Work in Florida?

By David M. Goldman

In Jacksonville, Florida, a creditor such as a credit card company cannot garnish your wages without a court order. The company must go to court and obtain a “writ of garnishment” before they even have authority to garnish your wages. They may then contact your employer, who will be required to comply with the court order and garnish a portion of your wages in order to pay your creditor(s). Further, a creditor can obtain a writ of garnishment that lasts until the judgment is satisfied, or until otherwise provided by court order.

Wage garnishment is generally considered a “last resort” in Florida, as it is difficult for the garnishee to continue paying bills and putting food on the table. If you are in such a situation, you should call a qualified Jacksonville Bankrupcty Attorney to discuss your options. There are often ways to legally stop a garnishment that is going to or already in place.

Published on: July 30, 2011

Can a Creditor Freeze My Account?

By David M. Goldman

Yes, a creditor can freeze or take money out of your bank account if they have a judgment against you from the court. (If your delinquent debt is for unpaid taxes or child support, sometimes the creditor can take out money from your bank account without a judgment.) If you have a joint account and the other person on your account has the judgment, the creditor can also seize the funds from your account. It is up to you to prove at a hearing that these funds taken from the account are yours, and not the joint account holders. A Jacksonville attorney can help you do this properly.

A creditor can take this money from your account with no warning in most cases. They must notify you in writing the next day that they have taken the money, but by that time the damage is already done. Your bank must also notify you after the funds are taken.

A Jacksonville consumer law attorney can quite possibly get this money back for you, however. Oftentimes certain money is exempt from the creditor’s grasp, but you must have a hearing to prove it. Social security income and veterans benefits income are exempt from being taken. Also, certain retirement income and disability income are exempt. There is other exempt monies as well. Contact our Jacksonville lawyer today to see if the money taken from your account is exempt and learn how our legal team can help you get it back.

Published on: July 28, 2011

A Creditor Has a Judgment Against Me. Can the Creditor Garnish My Wages?

By David M. Goldman

First let me say that you should contact a Jacksonville consumer law attorney before the creditor gets a judgment against you. Only by addressing the complaint or lawsuit timely do you have a chance to avoid a judgment.

If a judgment has already been entered against you, a Jacksonville attorney may still be able to help you from getting your wages garnished. There are laws regarding what monies may be garnished and from whom. For example, the wages of the head of a family cannot be garnished unless that person’s net wages are more than $500 per week AND that person has agreed in writing to allow their wages to be garnished. Someone is a “head of the family” if they reside in Florida and provide more than one-half of the support of a dependent. If you do not qualify as a head of the family, you still might have protection against wage garnishment. Contact a Jacksonville attorney who specialized in wage garnishment today if you might be at risk of wage garnishment to protect your rights.

Published on: July 26, 2011

Can a Creditor Throw Me in Jail for Not Paying My Debt in Florida?

By David M. Goldman

In many countries around the world, if you cannot pay your debt, you can be thrown in jail. The United States is not one of those countries. In the U.S., you cannot be thrown in jail for defaulting on your financial obligations. (An exception is child support obligations or when you are ordered to do so by a court- you are not actaully put in jail for failing to pay the debt, but for being in contempt of court for not following the judges order)

A creditor can, however, take you to court and get a judgment against you. It is very important if a creditor files suit against you to contact a Florida Bankrupcty attorney to discuss your case. If you do not properly and timely answer the creditor’s complaint, the creditor can get a default judgment against you, even if you dispute the validity of the debt. After getting a default against you, the creditor may be able to garnish your pay. A Jacksonville consumer law attorney can help you defend your suit and even negotiate with the creditor. Call 904-685-1200 today for a free consultation.

Published on: July 25, 2011

Jacksonville Bankrupcty Lawyer: How Long Does the Automatic Stay Last in Bankruptcy?

By David M. Goldman

When you file for bankruptcy in Jacksonville or Florida, an automatic stay goes into effect immediately. (Unless there has been aprevious bankruptcy, then you have to ask the Judge for one). This halts virtually all legal actions and collection actions against you or if they continue and a stay in in place they can be undone in most cases. This can really bring relief to those with creditors calling all day long. This also means that any foreclosure or garnishment action is halted, and a creditor cannot repossess your car, or the court cannot sell your home. So if you are behind on payments and think your collateral may be subject to repossession, a Florida bankruptcy can help to protect your assets while you figure out your next step.

If you think that getting a fresh start by filing for bankruptcy might help your situation, contact a Jacksonville bankruptcy attorney today at 904-685-1200 to assess your needs.

Published on: July 25, 2011

How a Bankruptcy “Stay” Works

By David M. Goldman

Bankruptcy was meant as a legal tool used to get people a fresh start when they are too deep in debt. If you are currently facing debts and your creditors are bearing down on you, filing bankruptcy could provide some immediate relief. For example, if your credit card company is threatening to sue you for past-due payment or the bank is foreclosing on your home, a filing of bankruptcy will automatically place a “stay” on your creditors from collecting the debt for a period of time. During this time, your creditors cannot take action against you to recover this debt unless they petition the court and the court grants them permission — not a common outcome. If you are thinking about filing bankruptcy, contact a Jacksonville Bankruptcy Attorney today to find out your options for your specific situation.