An all too common experience nowadays with the deteriorating state of the economy is foreclosure. Once you fall behind in your mortgage payments, you can just about predict that foreclosure would be around the corner if you do not do anything about it. Once foreclosure proceedings have begun, it is difficult to deal with so the best thing to do is avoid it. But the question is, how?
The first thing you should do is contact your bank and explain your financial quandary to them. Your banker will likely be able to help you work out a revised mortgage plan. There is also the option of mortgage forbearance where your mortgage payments are postponed up to 12 months. This gives you the breathing space to settle your debt problems in the meantime.
The other thing you could do is negotiate a loan modification with your banker. A loan modification is where the terms of the original mortgage is changed so that it is more affordable to you. If you are genuine and explain your current financial situation, most bankers would be willing to offer you a loan modification. In this way, you can prevent your home from being auctioned in a foreclosure.
If you have taken the above actions but you still find that it is not enough to improve your debt situation, or your banker is not willing to help you then you are left with one final option to avoid foreclosure. It is to file for bankruptcy.
If your banker has not initiated foreclosure proceedings yet, you can file for bankruptcy and the moment you do, your banker will be issued an automatic stay notification which means he cannot continue with any foreclosure action. Any banker that ignores the automatic stay and continues to pursue collection efforts on you can be sued in court. In addition, your home will be federally exempt from any debt restructuring, so your banker cannot force you to sell it in an effort to collect on their debts. Bankruptcy is your right under the law so you should exercise this option to save your home from foreclosure.
In tomorrow’s article, I will share on more specific ways bankruptcy can save your home from foreclosure.
If you want to find out more about how bankruptcy can help you avoid foreclosure, call us at (813) 200 4133 for a free consultation.
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Filed under Chapter 7 (Tampa) by on Jan 10th, 2012. Comment. 
Are you drowning in debt like so many people are these days? Does it feel like you always have “too much month at the end of the money” every month? You can either soldier on and try to change your fortunes in this tough economy or take the easier route – file for bankruptcy.
How does bankruptcy put you on the road to financial recovery? There are 2 forms of bankruptcy for individuals (as opposed to companies, municipalities, governments etc) and they are called Chapter 7 and Chapter 13 bankruptcy (following the sections in the bankruptcy code that govern them). Each of these bankruptcies work in different ways and both bring benefits.
The most obvious benefit is that bankruptcy wipes you financial slate clean of all your debts. Under Chapter 7 bankruptcy (called liquidation bankruptcy), your non-exempt assets are liquidated and the proceeds are used to pay off your debts. After all non-exempt assets are sold off, the rest of the debts are forgiven so that you can have a fresh start financially.
Under Chapter 13 bankruptcy you are given a schedule to repay your debts over a maximum of 5 years. This gives you some breathing space to finish paying off your debts over time. So whether you file for Chapter 7 or Chapter 13 bankruptcy, your debt problems will soon be a thing of the past.
Another benefit of bankruptcy is Automatic Stay. Automatic stay is a court-ordered prohibition imposed on all your creditors disallowing them to communicate with you in any form while you are under bankruptcy protection. This means an end to all harassment, badgering and hounding from hardline creditors. Automatic stay comes into effect immediately upon the confirmation of your bankruptcy.
In addition, choosing bankruptcy saves you time as it cuts the recovery curve in dealing with your debts. We all know the vicious cycle of debt and repayment that never seems to end because your debts keep increasing even though you try to pay as much as you can each month. All the money you pay is like throwing it into the Black Hole of Calcutta, it never seems to fill it. But bankruptcy can put an end to this vicious cycle and allow you to save not just money but time as well.
Finally, when you file for bankruptcy, you get advice on how to manage your financial affairs through the bankruptcy from your bankruptcy attorney and bankruptcy trustee. Your bankruptcy attorney is your most valuable ally in your fight against debts and your bankruptcy trustee is your arbiter between you and your creditors.
So if you are considering filing for bankruptcy, call us at (813) 200 4133 for a free consultation. Our team of experienced bankruptcy attorneys are at your service.
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Filed under Chapter 7 (Tampa) by on Dec 26th, 2011. Comment.
I know what it’s like having to grapple with crushing debt, not knowing what to do next, whether to file for bankruptcy or try to borrow some more money, wondering when the next phone call from a creditor will come, not even opening your mail because you already know what the envelope contains. I know of hundreds of people facing the same dilemma as you. My heart sincerely feels for you and that’s why I have made it a lifetime mission to help those in financial difficulties.
One barrier to filing for bankruptcy is the notion that filing for bankruptcy is like raising the white flag of surrender. It means you have lost the battle to keep yourself financially afloat or you are giving up on your responsibility over your finances and surrendering it to the bankruptcy court. Nothing could be further from the truth. Filing for bankruptcy actually means you are taking the bold step to take charge of your debt problems and doing something to stop it. It is you saying, “Enough!” and taking steps to arrest the slide.
So if you are in any of these situations, it’s time to seriously consider filing for bankruptcy:
1. You have hired debt management companies to look into your finances and help you solve your debt problems but with little or no success. This might be for you as an individual or your business. Debt management companies will advise you on debt reducing and debt consolidation methods to ease your debt burden. But sometimes, the strategies do not work as well as you need them to.
2. Your creditors are hot on your heels and getting more persistent by the day. You are getting more notices in the mail, more phone calls, more text messages, more emails etc. And the trend is getting increasingly more disturbing to you and your family. You are not sure when any of your creditors may get mean and send debt collectors knocking on your door.
3. You are suffering mentally, emotionally and even physically. You cannot sleep well at nights, your peace is disrupted, you get headaches, and your health is impaired. You are constantly anxious and worried and your debt problems are constantly on your mind virtually 24-7.
If any of these scenarios describe you, you should think about filing for bankruptcy. This is your right under the law. Bankruptcy protects you from constant harassment of creditors and debt collectors. The moment you file for bankruptcy, your creditors cannot contact you anymore. Imagine the relief! For once, when the phone rings, you will have no fear of picking it up. When you hear a knock on the door you don’t have to hide anymore.
Depending on your situation, there are a few types of bankruptcies you can file for. They are all named according to the relevant section of the bankruptcy code that govern them. These are:
• Chapter 7 bankruptcy – for individuals to clear off unsecured debts by liquidating disposable assets.
• Chapter 9 bankruptcy – for municipal governments that are in debt
• Chapter 11 bankruptcy – for business owners to reorganize business debt but this may also be applicable to individuals of high income and net worth
• Chapter 12 bankruptcy – for family farmers and fishermen to reorganize debts
• Chapter 13 bankruptcy – for individuals to reorganize their debts through a payment plan
• Chapter 15 bankruptcy – for foreign debtors to pay off their US debts
If you wish to file for bankruptcy, we can help. Call us at (813) 200 4133 for a free consultation.
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Filed under Chapter 7 (Tampa) by on Dec 9th, 2011. Comment.
With the recession showing no signs of abating very soon, many people continue to tighten their belts and grit their teeth to try to endure these tough times. Are you one of them? In my business as a lawyer, I make it a point to fight for justice and it pains me to see hardworking folks like you having to struggle for a living just because interest rates have skyrocketed. And worse still, it disturbs me to see you being hounded by debt collectors and creditors who are only thinking of their cash flow and couldn’t care less about you and your family.
That’s why I set up this blog. It is to give you information to fight back and take control of your finances. One of the things most people do to overcome their debt problems is to borrow more money. After all, they are already working multiple jobs and yet it is insufficient to cover their loan repayments. But is this the best move to make?
To help you decide whether you should sign on the dotted line on another loan agreement, consider these factors:
1. Is there room to negotiate on your existing loans?
Instead of borrowing a fresh loan, you should firstly look into negotiating better terms for your existing loans. You could negotiate an extension to the repayment term or ask for lower interest rates in exchange for collateral etc. Talk to the officer from your financial institution. They would much rather recoup a lesser repayment from you than have to sue you for the money if you cannot repay at all.
2. Do not apply for the maximum amount of loan
Suppose you feel you need another loan. The very least you should do to safeguard yourself is to apply only for only the amount you need and not max out the loan limit. This would protect you in the event that interest rates are raised in future. If a conservative amount of loan is still not enough for your needs, then you should file for bankruptcy instead.
3. Make sure your loan repayments do not exceed 25% of your gross income
Suppose you are able to get a loan from a friend or relative for which you do not need to pay interest. Still, you should not bite off more than you can chew. You owe it to your friend or relative to repay your loan within the agreed time frame. To give you the best chance of doing so, you should ensure your total loan repayments (including your existing loans) do not exceed 25% of your gross income. That is the general rule for all financial institutions and you should apply it to yourself also. If your total repayments already exceed 25% of your gross income, then you should not apply for another loan and instead, you should seriously consider filing for bankruptcy.
If it is not wise to apply for another loan, what are the benefits of filing for bankruptcy, then?
There are many but let me briefly put forth a few:
1. Bankruptcy enables you to repay your debts over a scheduled payment plan
2. You can have certain unsecured debts forgiven after repaying all you are able to repay
3. Your creditors are prohibited from contacting you the moment your bankruptcy filing goes through
4. Bankruptcy protects certain assets that the bankruptcy court declares cannot be liquidated
If you wish to file for bankruptcy, call us for a free consultation at (813) 200 4133 and we will help you plan a strategy for you to overcome your debts, whether they are individual or corporate ones.
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Filed under Chapter 7 (Tampa) by on Dec 8th, 2011. Comment.
The Head of the European Commission, Jose Manuel Barrosso is not optimistic about the future of Spain, Portugal and Greece. In view of these countries’ enormous debt problems, Barrosso warned that unless stern measures are taken to address the problem, the repercussions may be apocalyptic. The countries might slide back to dictatorship rule and democracy will be no more. That was what Barrosso, a former Prime Minister of Portugal, revealed at an extraordinary briefing with the Trade Union Chiefs (TUC).
In the meantime, European Union (EU) chiefs have begun talks aimed at arranging for the bailout of Spain which is anticipated to run into hundreds of billions of pounds. Greece has already accepted a bailout package amounting to £650 billion. John Monks, the head of the European TUC, expressed his personal shock at Barrosso’s prediction. According to Monks, Barrosso sees no other alternative except for these countries to embrace austerity measures, however painful they might be.
If Spain, Portugal and Greece fail to adopt austerity measures, then there is a very real possibility of a takeover by the militaries which might then usher in a dictatorship. Bearing in mind the recent riots and popular uprisings in Athens and Malaga and elsewhere, a military coup is not too far-fetched a notion in these three countries. They do have a history of military uprisings and themselves only became democracies in the 1970’s.
Greece has already had its share of street protests as interest rates and taxes soared and public spending was drastically cut. Similarly, Portugal and Spain have announced austerity measures to avoid defaulting on their national debts. Likewise, other European countries that have had similar incidents of riots and protests include Hungary, Italy and Romania where public sector employees’ salaries are to be cut by 25%.
Mr Barroso’s warning exposes the concern of the EU that that the economic crisis could also lead to the collapse of the beleaguered euro and the unraveling of the EU itself.
On the other hand, Mr. Monks feels that the austerity measures themselves could push the EU back to the 1930s during the time of the Great Depression. He revealed that union chiefs throughout the EU are preparing for a coordinated ‘Day of Action’ to protest the cuts on September 29.
Meanwhile, EU leaders are meeting to discuss a rescue package for Spain. It is expected to come up to at least £100 billion to start with, although this figure could very well balloon as the economic crisis deepens.
Even huge countries can suffer financial calamities, what more ordinary citizens and companies? If you or your company are faced with financial problems, consider filing for bankruptcy. It is your right under the law to seek bankruptcy protection from your creditors. Bankruptcy gives you the chance to start anew financially. Call us at (813) 200 4133 for a free consultation or visit http://tampabankruptcy.pro.
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Filed under Chapter 7 (Tampa) by on Sep 1st, 2010. Comment.
