Creditor Harassment

Published on: July 23, 2011

Jacksonville Beach Bankruptcy: Bankruptcy Filing Rates Drops Six Percent

Four times each year, various agencies across the country conduct extensive surveys and collect data in order to get a snapshot of how the nation’s economy looks. After the first quarter of 2011, the American Bankruptcy Institute and the National Bankruptcy Research Center are reporting good news: the number of filings in the first three months of 2011 dropped from this time last year.

There were 363,215 bankruptcy filings after the first quarter of 2010. After the first quarter of 2011, however, there were 340,012. That’s a drop of 6%, which analysts see as a positive sign that the economy might be recovering – if only slightly.

However, others are pointing to the fact that credit is more difficult to come by, meaning people aren’t as able to accumulate unmanageable debt and file for bankruptcy. Others speculate that the reduction is due to the backlog of foreclosures in Florida, which has allowed people to stay in their homes for longer than they otherwise would have. This allows them to avoid bankruptcy – at least for now. Whatever the case may be, the numbers are encouraging.

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Published on: June 29, 2011

Jacksonville Bankrupcy Lawyer: What is a "Creditors" or "341" Meeting?

By David M. Goldman

The 341 Meeting is one of the first hearings that happens in a Chapter 7 Bankruptcy or Chapter 13 Bankruptcy. The 341 Meeting is a meeting with the judge and trustee where you will be asked a series of questions pertaining to your Jacksonville Bankruptcy petition. You must attend the 341 Meeting. If someone told you that you need not attend, they are probably misinformed.

This is an important part of all Jacksonville Bankruptcy proceedings and it is very important that you attend this meeting. At the 341 meeting, you’ll answer several questions. The questions may differ slightly, but generally the court will ask you to explain how your debt situation evolved, what actions you’ve taken with your property, and the status of other financial information. You must answer these questions truthfully if you want your bankruptcy petition to be successful.

With a Bankruptcy in Jacksonville, The 341 meeting takes place at the federal courthouse and can be intimidating if you do not know what to expect. You may want to get to the courthouse early in order to watch some other 341 hearings before yours; this will let you become comfortable with the environment and the questions that you might be asked. Not all 341 proceedings are the same (each debtor has different creditors who may or may not attend); however, if you feel uncomfortable, you have the right to a Bankruptcy Lawyer at your 341 hearing.

Published on: June 25, 2011

Stripping Second Mortgages in Chapter 13 Bankruptcy in Florida

By David M. Goldman

During the prime years of the housing boom (i.e., before 2007), many people took out a second mortgage. Some were using the cash from these mortgages to pay for things like tuition or medical bills, while others were buying vacations and new cars. No matter what these homeowners used the cash for, many of them now have something in common: 38% of borrowers with more than one mortgage are now underwater on their loans.

This is largely due to the enormous loss of equity that resulted from the housing crises that has rocked the economy for the past two years. Home prices have fallen 34% since the height of the housing bubble in 2006, which not only has an enormous weight on the recovering economy, but negatively affects underwater homeowners’ abilities to secure lines of credit.

Overall, there are about 10.9 million homeowners currently underwater. This is down from 11.1 million in 2010, but this is due primarily to completed foreclosures. Fortunately, there is a way to eliminate certain second mortgages; however, it requires filing bankruptcy to do so. In what is referred to as “lien stripping”, a Chapter 13 Bankruptcy can allow you to “strip” away additional mortgages (or possibly other liens) if your home is worth less than your primary mortgage. Though it requires filing bankruptcy, this may make sense in many situations. Will a Bankruptcy help you? We can help you analyze whether there would be a benefit. Alternatively, if you are not interested in filing bankruptcy or are otherwise facing foreclosure, you should contact a Jacksonville Foreclosure Defense Lawyer.

Published on: June 24, 2011

Personal Debt in the United States

By David M. Goldman

In 2008, personal debt was higher than the United State’s Goss Domestic Product (GDP). The Federal Reserve of New York released figures in May 2011 showing that household debt rose $33 billion from March 2010 to March 2011. Personal debt now sits at $11.5 trillion.

These startling numbers shouldn’t come as a surprise to many, unless one is considering the magnitude of how much $11.5 trillion actually is . People simply took on too much debt from the pre-housing market and financial boom and bust. As a consequence, consumers are more frightened and less able to spend with debts looming overhead. This formula makes one thing certain; that the economy will take longer to fix, especially as the wheels are just beginning to turn.

Getting out of personal debt is a gradual process and the best practice is to continue to pay your bills and to save as much as possible. If you face problems with creditors or lenders, you may benefit by contacting a Jacksonville Bankruptcy Attorney. The US economy might not follow suit right away, but if consumers focus on clearing their personal debt the Nation-wide benefits are sure to follow.

Published on: June 2, 2011

Is It Possible For Me To File Bankruptcy Without My Husband Filing?

By David M. Goldman

Yes it is possible for one spouse to file bankruptcy and the other not to file. This may beneficial in some cases, such as when the bulk of the debt is in one spouse’s name only. Be advised, however, that if the non-filing spouse is a co-debtor on a secured debt, the non-filing spouse will still be liable for such debt. Also, the spouse’s income must be disclosed and considered in the bankruptcy. Deciding if both spouses or just one spouse should file bankruptcy involves an in-depth legal analysis and should not be taken lightly. A Jacksonville bankruptcy attorney can advise you if filing with one spouse only is the best legal strategy for you.

Published on: May 3, 2011

What is the Fair Debt Collection Practices Act?

By David M. Goldman

The Fair Debt Collection Practices Act (FDCPA) is an Act that Congress passed in response to a growing number of abusive collection practices used by collection agencies. The FDCPA provides guidelines that creditors must follow when trying to collect debts from consumers. This Act applies to debt collectors. A debt collector is defined as any person who regularly collects debts that are owed to others. This act also applies to attorney collectors but in-house collections are not covered.

If the collection department from your favorite store is contacting you regarding your credit card with them, they are not restricted by the FDCPA, but they are governed by the Florida Consumer Collection Practices Act. However, if that same store used an outside collection agency, that agency is governed by the FDCPA.

Some restrictions that the FDCPA puts on debt collectors are:

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