With the prolonged economic recession, many people are burdened with debt. As lay-offs continue among big and small companies, people face an increased possibility of losing their jobs. Higher interest rates, salary cuts and job retrenchments exacerbate the debt problem. Filing for bankruptcy is usually the last resort in solving the debt crisis. But before taking that step, there may be other things you can do.
First, review all your expenses, not just the major fixed expenses like mortgage and lease payments but also the minor, incidental expenses like your morning cup of coffee, your massage sessions or pedicures. These may be small and irregular but when you add them up, they come up to quite a sizable amount of money.
Next do something about your credit card debts. The most obvious thing to do would be to spend less on credit and keep up with at least the minimum payments due each month. Also, most people have more than one card. Consider transferring part of your balance from the card with the higher interest rate to the other one with the lower interest rate.
Finally, do not hesitate to negotiate with your creditors for a lower interest rate or extended payment period, both of which would reduce your monthly expenses and ease your debt situation. Here’s a tip – when you mention that you are likely to file for bankruptcy, some creditors may be more willing to reduce their interest rates or give you more favorable terms because they would want to avoid having their debt discharged in bankruptcy.
Now assuming you have taken every step you possibly could to alleviate as much of your debt problem and still find yourself mired in insurmountable debt then it is time to consider filing for bankruptcy. The question then is when you should do so. Every person’s situation is different so it pays to consult a bankruptcy lawyer to decide when the best time would be.
For example, if you have charged a lot of expenses to your credit cards recently, it may not be a good time to file for bankruptcy just yet. This is because the bankruptcy trustee might decide that your recent credit card debts are exempt from discharge which means you have to pay them in full. The worst outcome is the bankruptcy trustee dismisses your case if you have racked up your credit card debts just so that they can be discharged by the bankruptcy. Likewise, if you expect your debts to pile up soon, it might not be the best time to file for bankruptcy.
You can discuss all this with an experienced bankruptcy lawyer who will help you save money and discharge as much of your debt as possible through bankruptcy. Call us at (813) 200 4133 for a free consultation on how bankruptcy can benefit you.
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Filed under Chapter 7 (Tampa) by on Dec 30th, 2011. Comment. 
Is a Deed in Lieu of Foreclosure for You?
Foreclosures are rampant these days due to the economic recession. If you have defaulted on your mortgage and foreclosure seems inevitable, is there any option left? Yes, there is. You can file for a Deed in Lieu of Foreclosure (DILF). A DILF means you voluntarily surrender your property back to the lender and vacate the premises. This will save you the hassle of going through the foreclosure process and might be less detrimental to your credit score.
A DILF is usually initiated by the borrower. The lender may or may not agree to the DILF. A lender may reject a DILF proposal because accepting it might entail giving up on certain rights under a foreclosure like mortgage insurance claims. On the other hand, going ahead with the foreclosure would inevitably incur foreclosure expenses and may run the risk of property damage in the process of foreclosure. So these factors might cause the lender to agree to a DILF.
In any case, before agreeing to a DILF, the lender will ask the borrower to arrange and pay for an appraisal of the property and perform a title search. The search is to see if any other interested party has placed a lien on the property. In some situations, the lender may set aside the DILF if it discovers later that there were other liens against the property because the lender may not be interested in a DILF if the property lacks equity.
For the borrower, there are also pros and cons in a DILF. The pros are that you will not have to endure the embarrassment of a foreclosure. It is also usually a quick and straightforward process that does not entail lots of negotiation, unlike a short sale or loan modification. You could be over and done with your mortgage through a DILF in a matter of weeks.
On the other hand, although in theory your credit score should not be as adversely affected in a DILF as in a foreclosure, there is no guarantee. This is because when a DILF is granted, the borrower has already defaulted on the mortgage, which causes some credit damage. But unlike a foreclosure, a DILF should not affect your credit score that badly because the mortgage debt is resolved much faster with less missed payments.
The other con is that under a DILF, you the borrower would forfeit all your rights to the property, including whatever surplus there may be in the sale of it. In a foreclosure situation, if the property is sold at a price that is much higher than the amount of loan outstanding, the borrower may receive a portion of the sale price, something you would not enjoy if you go the route of a DILF.
Finally, a DILF would also require that the borrower pay the deficiency balance on the property, or the difference between the loan balance on the property and what the lender sold the property for. The lender has the right to waive the deficiency balance requirement and may choose to do so. But then you the borrower would have to pay taxes on the deficiency forgiveness.
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Filed under Chapter 7 (Tampa) by on Dec 13th, 2011. Comment.
Third Quarter Bankruptcy Numbers in Alabany Decline
According to the Albany office of the US Bankruptcy court, third-quarter bankruptcy filings in the greater Capital Region fell by 18% year-on-year from July to September. These are levels not seen since 2007. Year to-date filings are also by about 16% from 2010 and 2009. Furthermore, the number of jobs in the area has not significantly increased, so the lower number of bankruptcy filings has bucked the trend, given the ongoing economic recession.
Notably, new Chapter 13 filings have significantly declined, most probably due to the often long drawn foreclosure processes. Chapter 13 bankruptcy is a scheduled debt repayment plan governed by the bankruptcy court. The bankruptcy court now makes it obligatory for banks to hold settlement negotiations with homeowners to work out a way to avoid foreclosure. But some attorneys believe these meetings merely postpone the inevitable, putting Chapter 13 further out of reach for those who need help.
Chapter 13 allows a homeowner to keep his or her property as long as the debtor keeps to a repayment schedule for the debt. But if they are too far off the schedule, the problem becomes harder to solve. One lawyer said, “(Settlement negotiations between banks and debtors) never seem to work; they just delay the foreclosure process. People used to come to me when they were eight months behind on their mortgage. Now they are 30 months behind.”
Many attorneys believe there will be a wave of new bankruptcies when foreclosures now idling in the system are released.
Nationally, the number of US consumer bankruptcy filings for the year to date is at about 10% below 2010. According the American Bankruptcy Institute, in September alone, consumer bankruptcies dropped 17% nationwide. If the trend continues, we should see less bankruptcy filings in 2011 than in 2010.
Samuel Gerdano, executive director of the Institute said, “The trend of declining filings has been consistent with consumers continuing to reign in their spending, household debt and an overall pull-back in consumer credit. Total consumer filings for 2011 will be less than 2010.”
If you or your business are struggling financially, consider filing for bankruptcy protection. It could give you the new financial start in life you yearn for. Call us at (813) 200 4133 for a free consultation.
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Filed under Chapter 7 (Tampa) by on Oct 14th, 2011. Comment.
Temple Beth Shalom in Corona, California filed for Chapter 11 bankruptcy protection August 2 in an effort to avoid foreclosure of their new synagogue. It is uncertain whether the Temple at California Avenue that belongs to Beth Shalom congregation will remain open or be compelled to vacate the premises.
Temple secretary Sam Miller said the synagogues financial problems stem from the economic recession and a lower than expected growth in number of members. “Before the economy crashed, we would have been in excellent shape. There would have been no problem at all,” Miller said. “We just didn’t get new members as we anticipated. The economy caused people to put their wallets in their back pockets.”
The Temple has seen membership dwindle after several members left the 75 member congregation while others stopped paying their membership dues after hearing that the synagogue might be liquidated. Miller commented, “It’s a very upsetting thing for the membership. We have two members that I’ve talked to right now that are probably leaving because of this. We have a lot of other people that are upset”.
One of the synagogue’s members, Constantine “Dino” Petrovic gave a picture of things when he said, “We had a number of programs at the temple where we would arbitrarily reach out and do random acts of kindness and help the community, but all of that has been cut off because the funding has been cut off. The school hours were cut in half. We lost one of the teachers because we weren’t able to pay. The Hebrew school is two days instead of five.” He added that this has caused low morale among the congregation during the High Holy Days.
Some congregation members were skeptical of whether the synagogue had the financial means to build its $1.5 million temple that included the temple sanctuary, school, office, library and kitchen in a 4,500-square-foot building that opened in April, 2009. “They thought it was risky. It turned out that they were right but for the wrong reasons, the economy crashed,” Miller said. “We got into trouble on this.”
The building project came about when the congregation outgrew its previous building on West 9th and South Sheridan streets. The age of the dingy building was a turn-off to new potential members, so the board sold the property in 2000.
When the new temple was launched, membership doubled but it was not as much as anticipated and by August 2009, were in financial distress. The congregation that originally formed in 1968, is trying to fend off foreclosure with California Bank & Trust, which holds the loan balance of $1.6 million. The bank is trying to push through with the foreclosure.
The temple owes the city of Corona $43,203 through a redevelopment loan. In addition it owes $38,802.96 for 52 cemetery plots. Among their assets is a timeshare in Mexico worth $15,800.
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Filed under Chapter 7 (Tampa) by on Oct 5th, 2011. Comment.
If you are facing financial difficulties in this economic recession, it may be time to consider filing for bankruptcy. Bankruptcy filing is a way to eliminate debt and get a fresh start worth considering. In 2010, 110,304 Floridians filed for bankruptcy, placing Florida in 13th spot in the country for per capita bankruptcy filings.
On the flip side, bankruptcy does have its long-term repercussions like a black mark on your credit score. So it might not be the panacea for all financial ills for everyone. If you are considering filing for bankruptcy, here are a few pointers to help you decide if this is a suitable move for you.
Firstly, review if your debts exceed (or are starting to exceed) your assets. If so, then you should seriously consider filing for bankruptcy. However, it also depends on what type of debts you have. If you have debts that cannot be wiped out by bankruptcy, then it’s pointless filing for bankruptcy. One such example is a student loan. But on the other hand, there are other debts that are particularly suited for bankruptcy to deal with, such as credit card loans or medical bills. At times, high credit card debts make it virtually impossible for you to catch up with your payments without filing for bankruptcy.
Secondly, if you have already tried other means of settling your debts without success, then you should think about the bankruptcy option. For example, you may have tried soliciting the help of a credit counseling organization. But if credit counseling has been failed and efforts to negotiate directly with your creditors have also failed, bankruptcy may be a viable option for you.
Thirdly, look at what your creditors have been doing to pursue their dues. If the incessant collection efforts like phone calls, notices, letters and such have been increasing and driving you up the wall, then you might think of filing for bankruptcy. If you get visits from debt collectors or there is a possibility your salary might be garnished, your home be foreclosed or worse you might be facing a lawsuit, then you should consider bankruptcy. Any or all of these occurrences might signal the real need for a bankruptcy filing.
Last but not least, consider how you are coping with your financial distress and all that comes along with it. Do you feel it is worth going through all the stress of trying to pay off your debts by your own efforts? If you have come to the end of your resources, you should consider the bankruptcy route.
If you wish to file for bankruptcy, or just want to talk to a professional about this, call us at (813) 200 4133 for a free consultation.cial difficulties in this economic recession, it may be time to consider filing for bankruptcy. Bankruptcy filing is a way to eliminate debt and get a fresh start worth considering. In 2010, 110,304 Floridians filed for bankruptcy, placing Florida in 13th spot in the country for per capita bankruptcy filings.
On the flip side, bankruptcy does have its long-term repercussions like a black mark on your credit score. So it might not be the panacea for all financial ills for everyone. If you are considering filing for bankruptcy, here are a few pointers to help you decide if this is a suitable move for you.
Firstly, review if your debts exceed (or are starting to exceed) your assets. If so, then you should seriously consider filing for bankruptcy. However, it also depends on what type of debts you have. If you have debts that cannot be wiped out by bankruptcy, then it’s pointless filing for bankruptcy. One such example is a student loan. But on the other hand, there are other debts that are particularly suited for bankruptcy to deal with, such as credit card loans or medical bills. At times, high credit card debts make it virtually impossible for you to catch up with your payments without filing for bankruptcy.
Secondly, if you have already tried other means of settling your debts without success, then you should think about the bankruptcy option. For example, you may have tried soliciting the help of a credit counseling organization. But if credit counseling has been failed and efforts to negotiate directly with your creditors have also failed, bankruptcy may be a viable option for you.
Thirdly, look at what your creditors have been doing to pursue their dues. If the incessant collection efforts like phone calls, notices, letters and such have been increasing and driving you up the wall, then you might think of filing for bankruptcy. If you get visits from debt collectors or there is a possibility your salary might be garnished, your home be foreclosed or worse you might be facing a lawsuit, then you should consider bankruptcy. Any or all of these occurrences might signal the real need for a bankruptcy filing.
Last but not least, consider how you are coping with your financial distress and all that comes along with it. Do you feel it is worth going through all the stress of trying to pay off your debts by your own efforts? If you have come to the end of your resources, you should consider the bankruptcy route.
If you wish to file for bankruptcy, or just want to talk to a professional about this, call us at (813) 200 4133 for a free consultation.
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Filed under Chapter 7 (Tampa) by on Sep 19th, 2011. Comment.
