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Do you have too much debt? Chapter 7 Bankruptcy might be an option.

Many Americans simply have more debt than they can afford to repay.

Despite what you hear, it is rarely due to irresponsibility.  No one sets out to accumulate $7,000 in credit card debt, but a temporary job loss, sudden illness or other financial emergency can quickly drain savings and force people to charge normal living expenses.

Chapter 7 Bankruptcy Attorneys proudly serving Palm Bay, Melbourne and Brevard County

Bankruptcy Attorneys serving Palm Bay, Florida

Chapter 7 Bankruptcy options – Palm Bay and Melbourne, Florida

When coupled with student loans, signature loans, payday loans and other unsecured loans, consumer debt in America tops $3 trillion. Since most people can expect negligible wage growth and have little savings, credit card debt can easily push a family over its own fiscal cliff.

Even if the debt was not your fault, the bills are still due and something must be done. If paying the bills is not an option, Chapter 7 Bankruptcy may be the answer.

Learn more about Chapter 7 Bankruptcy

In just a few short months, Chapter 7 Bankruptcy can wipe out most unsecured debts including credit cards and medical bills. All that time, your creditors may not take any action against you unless they get special permission from the Bankruptcy Court. After the bankruptcy is over, you still get to keep your house, retirement account, and other valuable exempt assets.

Contact Faro & Crowder, PA today to learn about your Bankruptcy Options

We represent individuals, families, and businesses in Palm Bay, Melbourne, the Space Coast and Brevard County, Florida.  Contact us at our office in Melbourne, Florida to learn more about debt-elimination programs.  We offer a free initial consult for bankruptcy to help you learn about your debt relief options and moving forward.


Can I file Bankruptcy if I am Unemployed?

Filing Bankruptcy while Unemployed | Attorney proudly serving Viera, Florida

If you have recently lost your job or you have been unemployed for a while, you are probably delinquent on your bills and debt collectors are harassing you. If you have considered filing for bankruptcy protection but you are concerned that you won’t qualify if you don’t have a job, it is important to understand that now may be the ideal time for you to file a case.

Bankruptcy Viera Florida, Bankruptcy Attorney serving Viera

Bankruptcy Attorney serving Viera, Florida

Every individual’s situation is unique, so it is essential to have an experienced attorney review your circumstances to determine the best strategy for you to take. While you are unemployed, you may be “judgment proof.” This means that you do not have any non-exempt assets or funds that a creditor can attack in collecting the debt from you. As a result, your creditors may not be taking any collection actions against you.

The Means Test | Bankruptcy Viera

However, while you do not have a job you will likely pass the means test and qualify for a Chapter 7 filing. The means test is a mathematical formula used by the bankruptcy court to ensure that you are not abusing the bankruptcy process in attempting to discharge your debt. The means test looks at your income from the prior six months to determine whether or not you have the ability to repay your creditors. If you have been unemployed for several months and show no income during that time, you may be eligible for a Chapter 7 filing when you otherwise would not qualify.

Your future income may be considered by the trustee even if you pass the means test. In other words, if the trustee thinks you are capable of paying your creditors, he or she has the ability to object to your discharge of debt. However, if you are not receiving any income, there is a very small likelihood that the trustee will file this type of objection.

If you are unemployed and read to obtain relief from your overwhelming debt, let us help. We can review your individual finances and determine whether or not a bankruptcy filing or other form of debt relief would benefit you.

Contact Faro & Crowder, PA to learn about your Bankruptcy Options in Viera, Florida

If you have questions about filing for bankruptcy protection, we have the answers. Call us today to schedule your initial consultation. Our office is located in Melbourne, but we proudly serve individuals, families and businesses across the State of Florida.  We also offer free initial consultations for foreclosure defense and defense against debt collection.


Weighing the Pros and Cons of Filing Bankruptcy

Before Filing Bankruptcy: Weigh All of Your Debt Relief Options

Before you jump into a personal bankruptcy filing, it is important to carefully weigh all of your debt relief options. There are pros and cons to filing a bankruptcy and you must understand both the good and the bad consequences of your decision to file a Chapter 7 or Chapter 13. Although each bankruptcy case is unique and you should have one of our experienced bankruptcy attorneys review your individual finances, the following are a few of the advantages and disadvantages of a personal bankruptcy:

Brevard County Florida Bankruptcy Attorney

Bankruptcy Attorney serving Rockledge, Florida

Pros:

A personal bankruptcy is the most comprehensive means for dealing with your debt. All of your creditors must be included in your filing, so when you receive your discharge order, it truly provides you with a fresh financial start. Additional benefits include:

  • The majority (if not all) of your debts will be eliminated and you are no longer legally obligated to pay them.
  • The automatic stay goes into effect as soon as your bankruptcy petition is filed, which means that all collection activity against you will stop.
  • In many cases and depending on which chapter you file under, you probably will be able to keep possession of all of your assets.
  • If you file a Chapter 13 and you must repay all or a portion of your creditors, you can create a manageable repayment plan and spread out your payments over three to five years.
  • You may qualify to remove inferior mortgage liens from your home. This means that the inferior mortgage will be treated as an unsecured debt which is typically paid mere pennies on the dollar owed.
  • As soon as you obtain your discharge of debt, you can immediately begin working to rebuild positive credit.

Cons:

Nobody wants to have to file for bankruptcy protection. However, due to our economy and the vast number of people that have had to file a Chapter 7 or Chapter 13 case, it is not as embarrassing as it once was. Other negatives regarding bankruptcy include:

  • Your credit score will be negatively impacted. For many debtors who have already damaged their credit rating with late payments, collection lawsuits, garnishments, foreclosures or asset seizures, the effect on their score is not significant.
  • Having a bankruptcy notation on your credit report can make it harder for you to qualify for a mortgage loan until your credit score improves
  • Depending on what type of bankruptcy case you file and your individual situation, there may be a small risk that some of your assets will be used to pay creditors
  • In order to take advantage of your fresh start, you must live on a budget and change any irresponsible spending behaviors
  • Once you have filed a bankruptcy and received a discharge, you cannot file for bankruptcy relief again for several years

Contact Faro & Crowder, PA to schedule your Bankruptcy Consultation

To learn more about the consequences of filing for bankruptcy protection, contact Faro & Crowder to schedule an appointment. Our office is located in Melbourne, but we proudly serve businesses across Brevard County including Palm Bay, West Melbourne, Titusville, Cocoa, Cocoa Beach and Satellite Beach.


Understanding the Benefits of the Automatic Stay

Automatic Stay

Bankruptcy Attorney serving Satellite Beach

If you are tired of being harassed by relentless debt collectors and you are wondering how filing for bankruptcy can help, the answer is a protection afforded to debtors called the “automatic stay.” As soon as you file your personal Chapter 7 or Chapter 13 petition, the stay immediately goes into effect and prohibits further collection activity against you. This means that all telephone calls, demand letters, lawsuits, garnishments and other similar forms of collection tactics must immediately stop.

There are some exceptions to the automatic stay, so it is important to confer with a bankruptcy attorney regarding what matters will not be halted by your filing. Some of the more common examples of matters that can continue even though you filed for bankruptcy include certain family court matters, criminal court proceedings, and tax audits.

If you have a creditor that has a secured debt (a loan where you pledged an asset as collateral for the lender), it is important to understand that the creditor has the right to file a motion and ask the court to lift the stay as it applies to that lender’s specific debt. There are certain requirements that must be met for the court to grant this type of motion. If the court grants the creditor’s motion, the stay is lifted as to that creditor and the debt at issue. This means that the creditor can proceed with certain actions against you and/or the asset pledged as collateral. For example, if you fail to pay your car loan and you do not have insurance coverage on it, the bankruptcy court may permit your lender to repossess the vehicle.

Although the bankruptcy laws were designed to primarily protect debtors, they also set forth many safeguards for creditors as well. If you are concerned with how the automatic stay will apply to your debt and the collection actions being taken against you, contact us today.

If you have questions about filing for bankruptcy protection, we have the answers. Call us today to schedule your initial consultation. Our office is located in Melbourne, but we proudly serve individuals and businesses across the State of Florida.


Your Credit Rating after a Negative Event

Credit Report Search

Bankruptcy Attorney serving Cocoa Beach, Florida

One of the main concerns people have when they are facing bankruptcy or another negative financial event is whether or not they will ever be able to own a home again. You may have heard that it is not possible to buy a home after you have experienced an adverse financial event, such as a foreclosure or bankruptcy, but this typically is not true. Before you give up hope consider the following:

  • It takes time. You may not be eligible to qualify for a mortgage immediately, but give it time. For example, if you completed a Chapter 13 bankruptcy and you have good credit afterward, you may be able to get a home loan after one year. However, after a foreclosure, you will need to wait seven years before you qualify for a conventional loan that can be sold to Fannie Mae or Freddie Mac. There are also several time frames between these two. The point is, don’t assume that filing for bankruptcy will prevent you from every owning a home again. It will take time and hard work, but you might be surprised at how quickly you can qualify for a mortgage again.
  • Work on your credit score. After a bankruptcy, foreclosure or short sale, it is important that you work on improving your credit score. This means making payments on time and showing financial responsibility. Additionally, you should review your credit report on a regular basis to ensure it is correct. If you discover any errors, you should immediately have them corrected.
  • Plan ahead. It is essential to understand what the consequences are of filing for bankruptcy protection or foreclosure or short sale of your home. A seasoned attorney can help you understand what to expect and to assist you in obtaining the necessary financing when you are ready to buy a new home.

If you have questions regarding how a foreclosure, bankruptcy or short sale will impact your ability to buy a new home in the future, contact Faro & Crowder today.

Don’t delay any longer. Call us today to schedule your initial consultation. Our office is located in Melbourne, but we proudly serve individuals and businesses across the State of Florida.


Protecting your Privacy in Bankruptcy

Identity theft is a very real problem in our country and it is crucial that you take every precaution to protect your private information. This is true even when you are filing for debt relief. When you seek financial protection in bankruptcy, the court requires to make full financial disclosure. Thus, your disclosures could provide an unscrupulous party with all the information they need to steal your identity and wreak havoc on your life. Fortunately, there are many protections in place that prevent this from happening.

Privacy in Bankruptcy

Bankruptcy Attorney serving Cocoa Beach, Florida

Pursuant to Bankruptcy Rule 9037, debtors can protect their personal information by redacting or editing their filings to prevent disclosure of confidential data. Bankruptcy Rule 9037 provides:

Unless the court orders otherwise, in an electronic or paper filing made with the court that contains an individual’s social-security number, taxpayer-identification number, or birth date, the name of an individual, other than the debtor, known to be and identified as a minor, or a financial-account number, a party or nonparty making the filing may include only:

(1) the last four digits of the social-security number and taxpayer-identification number;

(2) the year of the individual’s birth;

(3) the minor’s initials; and

(4) the last four digits of the financial-account number.

If you fail to redact your private information or you otherwise do not comply with Rule 9037, the court will deem that you waived your right to the protections it affords. Additionally, all of your creditors should make reasonable efforts to safeguard your privacy. If one of your creditors wrongfully discloses a debtor’s confidential information, the debtor should take immediate action and demand that the creditor correct the error. If your private information has been disclosed, we can request that the court seal the document in order to protect your identifying data.

If you are concerned about identity theft and your bankruptcy filing, contact us to learn more. As seasoned bankruptcy lawyers, we will take every precaution available to ensure that your private information is protected.

The legal team at Faro & Crowder is ready to help. Our office is located in Melbourne, but we proudly serve businesses across the State of Florida.

Mistakes to Avoid When Preparing for Bankruptcy

If you are considering filing a Chapter 7 or Chapter 13 case, it is essential to understand that there are a few actions you should avoid in order to ensure that your case goes smoothly.

Preparing for Bankruptcy | Melbourne Florida Bankruptcy Attorney

Mistakes to Avoid when Preparing for Bankruptcy

Preparing for Bankruptcy

Below are a few of the most common mistakes made by debtors that you will want to avoid:

Continuing to Make Charges on Credit Cards

In the months leading up to your bankruptcy filing, you should stop making charges on your credit cards. Any charges that are deemed to be for “luxury goods or services” on your credit card that totals in excess of $600 within the ninety (90) days prior to your case being filed, will be assumed to be non-dischargeable.

A luxury good or service may be anything that is not reasonably required for the maintenance of your household. It is important to also understand that the $600 amount is not for a single charge to your credit card that exceeds $600, but the total amount of your charges incurred within the 90 day time limit.

As a result, it is very important for you to cease all use of your credit cards as you prepare for your bankruptcy filing.

Repaying Family Members

If you have borrowed money from a relative, you may want to pay them back before you file for debt relief. However, this can cause trouble in your case. All debtors are required to disclose any payments in excess of $600 that have been paid to any creditors (including friends and family) within the six (6) months prior to the filing.

The court will look back at payments made within the one (1) year prior to the filing for payments made to “insiders” such as your relatives. If you have repaid a debt to an insider, it will be deemed a “preferential payment.” In other words, you preferred one of your creditors over your other creditors, which is prohibited by bankruptcy law.

If there is a preferential payment, the trustee will demand that your relative refund the money back to the trustee for the benefit of your bankruptcy estate. Failure by your loved one to refund the money could result in the trustee filing a lawsuit against him or her to recoup the funds.

Transferring Assets

It is common for people to think they can protect their assets from being included in the bankruptcy filing by transferring them into another person’s name.

However, the trustee will conduct an investigation for all transfers of property (which includes sales and gifts) that the debtor made within the two (2) years prior to the bankruptcy filing.

Thus, it is essential that you discuss with your lawyer all assets that you want to keep in order to determine if they are protected by an exemption under the law.

Contact Faro & Crowder for a Free Initial Bankruptcy Consultation

If you are interested in learning more about how a bankruptcy filing will impact your debt, contact Faro Crowder, PA to schedule an appointment. Our office is located in Melbourne, Florida.

Services Areas

We provide services throughout Central Florida including: Melbourne, Titusville, Palm Bay, Merritt Island, Cocoa, Cocoa Beach, Satellite Beach, West Melbourne, Cape Canaveral, Viera and Eau Gallie.

Get In Touch with Faro & Crowder, PA

Faro & Crowder, PA
Phone: 321-784-8158
Address:
1801 N. Sarno Road, Suite 01
Melbourne, FL 32935
Email: info@farolaw.com

The information on this blog or any blog is not intended as, and should not be taken as, legal advice.

Will Filing Bankruptcy Stop ALL Lawsuits?

Bankruptcy Attorney Melbourne Florida

Personal Bankruptcy – Brevard County

If you have lawsuits filed against you, it may be time to consider filing a personal bankruptcy case. A personal bankruptcy case can be an effective way to eliminate certain collection lawsuits. However, it is important to understand that not all types of litigation are halted or eliminated in a Chapter 7 or Chapter 13. Below are a few examples of suits that are not stopped by your filing:

Family law matters

When you are involved in a case that involves a determination of child support, spousal support, or the establishment of paternity, your bankruptcy filing usually will not stop the family law court from proceeding with its case.

Criminal proceedings

Filing for bankruptcy protection cannot halt a criminal proceeding. However, if the charges against you include a debt that is related to your criminal charges, that portion of the case against you may be halted by the automatic stay.

Tax proceedings

The law provides that the Internal Revenue Service (IRS) has the ability to continue pursuing certain audits, issuing tax deficiency notices, demanding tax returns, or issuing tax assessments against a debtor in bankruptcy. The automatic stay will prevent the IRS from issuing tax liens, repossessing property, or seizing your income will your bankruptcy case is pending.

Pension loans

A debtor is allowed to have funds withheld from his or her wages to repay a loan from certain types of pensions.

If you are planning to file a bankruptcy case and you have lawsuits or forms of legal proceedings filed or pending against you, contact us to discuss what will or will not be affected by the automatic stay. We can review all of the cases pending against you and make sure you understand what your bankruptcy filing will mean in each matter. We can also confer with the other parties involved if necessary so everyone is on the same page regarding your case.

Contact Faro & Crowder, PA for a free initial Bankruptcy consultation

The above are just a few examples of the types of legal proceedings that are not halted by the automatic stay. If you are interested in learning more about how a bankruptcy filing will impact your debt or the lawsuits pending against you, contact Faro Crowder, PA to schedule an appointment.  Our office is located in Melbourne, Florida.  We serve all of Brevard County and the Space Coast with Bankruptcy and Debt Relief services.

Tips for Finding the “Right” Bankruptcy Attorney

right atty pic

If you are past due on your bills and creditors are harassing you night and day, filing for bankruptcy is a good option to consider. One of the most important decisions you can make in filing a Chapter 7 or Chapter 13 case is selecting the “right” attorney to represent you. Below are a few tips on how you can find the lawyer that is the best to handle your case:

  • Investigation. There are numerous sources available for researching a lawyer or law firm. The internet has a variety of websites that allow you to not only verify an attorney’s credentials, but also to see how other clients have ranked them. For example, Martindale.com, Avvo and the applicable state bar association websites can be searched to discover if the attorney is in good standing and how he or she has been rated by his or her peers. You should also read the lawyer’s own website to determine how much of his or her practice is focused on bankruptcy. It is a red flag if the attorney’s website does not list bankruptcy as a primary area of practice. You should find it comforting if the lawyer has written blogs or articles regarding bankruptcy topics. This is evidence that the lawyer is familiar with bankruptcy law and has the ability and willingness to explain it to others.
  • Referrals. Ask your family, friends and co-workers for recommendations on good lawyers. If somebody you trust refers an attorney, it is a good starting place. Don’t just take the other person’s word for it though. You should always meet with the lawyer and see if you “click” before retaining him or her to represent you.
  • Consultations. Once you have narrowed down the list of potential lawyers you believe will be a good fit for you, see if they offer a free initial consultation. If so, take advantage of the opportunity to meet with the attorney in person. It is important to retain somebody that you trust and feel comfortable working with on your case.

Choosing the right attorney to handle your bankruptcy filing can be the difference between successfully discharging thousands of dollars and wasting your time and money! A little of time and effort to ensure you are working with the right attorney is worth it in the long run.

The legal team at Faro & Crowder is ready to help. Our office is located in Melbourne, but we proudly serve businesses across the State of Florida.

Have Credit Card Debt? Debt Forgiveness vs. Bankruptcy

debt forgiveness v bky pic

Many individuals contact us because they are drowning in debt and don’t know which debt relief option is the best for them. We commonly get questions regarding having debt “written-off” by lenders and how it impacts them. Typically, a lender will write-off your debt (also referred to as charging-off your debt) if you have been delinquent on your payments for a long period of time. In fact, many companies have an internal accounting procedure that automatically performs this function because it permits the lender to deduct the loss as an expense. What does it mean to you? If your debt is written-off, it is important to understand that you are still liable to pay it.

For example, if your credit card company writes-off your debt, it can still continue its collection activity against you. The original lender can attempt to collect it from you or, more commonly, your delinquent account will be sold to a collection agency or a debt-buyer. When a debt-buyer purchases your debt, it is for a substantially lower amount than what is owed. Because your account was purchased at a discount, the collector may be willing to spend the money to file a collection lawsuit against you. If you fail to respond to the lawsuit (which the collector is hoping will occur), a default judgment will be entered against you. Once the collector has a judgment, it can file a garnishment of your bank account and/or wages, as well as take advantage of other collection tactics.

If you are considering filing a Chapter 7 or Chapter 13 bankruptcy, you should be sure to include your debts that have been written-off. As soon as your bankruptcy petition is filed, the automatic stay goes into effect and all collection activity against you must cease. This includes the harassing telephone calls, lawsuits, garnishments and other similar efforts.

If you are hesitant to file for bankruptcy and you have collection lawsuits pending against you, it is important to contact us for help. Do not ignore the lawsuits because they will not just disappear! We can file an answer on your behalf and prevent a default judgment from being granted by the court against you. You may have several defenses available to you as well. We can use this time to negotiate with your creditor and attempt to reach a settlement for a significantly lower amount that what you owe.

Don’t delay any longer. Call us today to schedule your initial consultation. Our office is located in Melbourne, but we proudly serve individuals and businesses across the State of Florida.

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