Debt Settlement

Published on: July 25, 2011

How a Bankruptcy “Stay” Works

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.

Published on: July 24, 2011

Jacksonville Bankrupcty Lawyer: Are There State Law Exemptions in Bankruptcies?

By David M. Goldman

Exemptions dictate what property of yours that you may keep when you file bankruptcy. Most people are surprised to learn that in most cases, the exemptions used in bankruptcy come from state law, not federal law. This is because states are allowed to opt-out of federal law exemptions and make up their own. Florida has done this. There are residency requirements however, to be able to use Florida’s exemptions. Just because you are a resident of Florida when you file for bankruptcy does not mean that you can use Florida’s exemptions. The law dictates that your bankruptcy exemptions are determined by the state in which you have been domiciled for the 730 days prior to filing your case. If you have lived in multiple states during this time, figuring out what state’s exemption laws apply to you can be tricky. A Jacksonville bankruptcy attorney will be able to help do this correctly. If you do not get your exemptions right, the trustee will object in your case.

Published on: July 23, 2011

Jacksonville Beach Bankruptcy: Bankruptcy Filing Rates Drops Six Percent

By David M. Goldman

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: 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 22, 2011

Jacksonville Bankruptcy: Strategic Defaults: Will They Work for my Student Loans?

By David M. Goldman

You’ve probably heard of people using a “strategic default” on their home mortgages in Florida. This means the homeowner stops making payments because the value of the home is less — often substantially less — than the amount remaining on the mortgage. This often makes financial sense; but can it work for something like student loans?

The short answer: no. The obvious point is that student loans are much different than home loans, in that the market for the products (i.e., a home vs. your degree) is much different. Despite this, some people think that ceasing payments on a student loan will prompt the lender (generally the Government) to negotiate a settlement. This is rarely — if ever — a wise choice.

Interest on your loan continues to accrue even if you have stopped paying. After a few years, this interest can amount to thousands of dollars in fees that you might not otherwise have accumulated. Further, even if the government decides to settle with you for a smaller amount, that amount will likely be somewhere around 90% of what you originally owed. Since you’ve accumulated that additional interest, that settlement might not be less at all.

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