Creditor - Secured Category Archives — Page 7 of 7 — Jacksonville Bankruptcy Lawyer Blog Published by Jacksonville, Florida Bankruptcy Attorneys

Published on: July 26, 2011

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

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

Florida Bankrupcty and Homestead Exemptions

By David M. Goldman

A Florida homestead exemption dictates how much of the equity in your home you may keep away from creditors. This means that any equity you have above that amount must be paid to creditors. The federal homestead exemption amount is $21,165.00. The Florida homestead exemption amount is unlimited under certain circumstances. This means that in Florida, you can have any amount of equity in your home and your creditors cannot take it. This is great news for those in the Jacksonville area who are overwhelmed by their debt and are needing to file for bankruptcy. Contact a Orange Park bankruptcy attorney today to discuss how to keep your home by filing for bankruptcy.

Published on: July 15, 2011

I Am Two Years Into My Chapter 13 Plan and Want To Get Married. Will This Affect My Bankruptcy in Florida?

By David M. Goldman

When someone files a Chapter 13 bankruptcy, they must repay some of their debts over a three to five year time period. These payments are dictated by a Plan that is filed with and confirmed by the court. The Plan is based on your income and your debts. If you get married two years into your Plan payments, the marriage might affect your bankruptcy. You might have to count the new income in your bankruptcy. Your new spouse will not be liable for your old debts and the bankruptcy will not appear on their credit report. However, your Plan payment amount might change.

Every circumstance is different. Contact a Clay County bankruptcy attorney today to determine if your upcoming nuptials will impact the amount you must pay your creditors through your Chapter 13 Plan.

Published on: June 30, 2011

Florida Bankrupcy Lawyer: Free Online Bankruptcy Forms: Why Should I Hire an Attorney?

By David M. Goldman

There are certain websites that will allow you to print out legal forms, often telling you that doing so can save you thousands on legal fees. While such claims might sound promising, you should know that it is very rare for a pro se individual (that is, someone acting without an attorney) to successfully file bankruptcy.

You’re probably thinking, “Of course a blog written by a Jacksonville Bankruptcy Lawyer would recommend I hire a lawyer.” That’s a fair thought. However, that doesn’t take away from the real difficulties that come with filing for Florida Bankruptcy Lawyer , nor does it relinquish the potential damages that can occur if you do not file correctly.

Further, each person who files for bankruptcy is expected to be familiar with the United States Bankruptcy Code and the Federal Rules of Bankruptcy Procedure. You must also be familiar with the local rules of the court in which your case is filed. Failure to follow these rules can result in dismissal of your case “with prejudice.” For example, if you fail to file a required document on time (or never file it), your creditor(s) might be granted rights to your property without your knowledge. This could result in loss of property, and your time to object will have passed. This is just one of the many negative aspects of not using a qualified attorney.

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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 3, 2011

A Creditor Has Put a Lien On My Homestead. Should I File Bankruptcy?

By David M. Goldman

According to Florida Statute 222, there are only 3 reasons that a lien can be put on your homestead: 1. a mortgage 2. unpaid taxes 3. a contractor’s lien (you contracted for work to be done on your homestead and did not pay). Although this is the law, very often a creditor may put an improper lien on your homestead. To remove the lien, simply file and record a Notice of Homestead with the circuit court in the county in which the property is located. The Notice of Homestead you should use is listed in Florida Statute 222.01. The clerk will mail the Notice to the creditor via certified mail. After 45 days, the lien will disappear.

Although this process removes the lien from your homestead, it does not dissolve your liability to pay the debt so a bankruptcy might still be in your best interest. Speak with a Jacksonville bankruptcy attorney today to assess your specific situation.

Published on: May 9, 2011

Can a credit card company put a lien on my house?

By David M. Goldman

Not unless your debt was secured by the house. Most credit card debt is unsecured debt. A creditor cannot take your house for an unpaid unsecured debt. If a creditor comes to you later and asks you to sign something that puts your house or car up for collateral for your current credit card debt, DO NOT sign it before speaking with a Jacksonville consumer law attorney first to know your legal rights and the consequences of signing such an agreement.

Published on: May 5, 2011

I have two properties, one is my residence and one is a rental property. Can I keep one and not the other?

By David M. Goldman

Yes it is possible with a Florida bankruptcy to keep one property but not the other. When a bankruptcy is filed, you have the option to keep or surrender secured collateral, including real property. So you can decide, with the help of your Jacksonville bankruptcy attorney, for each property that you own what would be in your financial best interest: to surrender the property to the creditor or to retain the property and continue payments. But be mindful that in Florida, you can only take one homestead exemption in bankruptcy.

If you are behind on your payments, this can be cured. You can pay the arrearages that you owe through your Chapter 13 Plan. Talk with a Jacksonville bankruptcy lawyer to decide if keeping both a homestead and rental property would be in your financial best interest.