Tag Archives: Chapter 13

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.


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.


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.

What you need to know about Credit Card Debt in Bankruptcy

credit card in bky pic

Credit card debt is one of the most common factors that contribute to individuals filing for bankruptcy protection. If you are overwhelmed by your credit card bills, filing a Chapter 7 or Chapter 13 may be the solution. In a typical Chapter 7, the majority (if not all) of your credit card debt will be discharged or eliminated. In a typical Chapter 13, you will pay a percentage (typically a very low percentage, if anything at all) of what is owed on your unsecured debts.

It is important to understand, however, that there are exceptions to the general rule. Pursuant to 11 U.S.C. §523(a), there are a few exceptions to the rule of dischargeability. The two most common types of credit card debt to be excluded from discharge, include:

  • Credit obtained by lying. When a debtor puts false information on his or her credit application in order to qualify for the credit card, the lender can seek to have all of the purchases made on the credit card to be non-dischargeable. If the court agrees with your lender, you will remain liable to pay the debt even after your bankruptcy case has concluded. The most common occurrences of lying to obtain credit include significantly over-estimating income or under-estimating debt.
  • Fraudulent purchases. Many people incorrectly believe that they can make purchases on their credit card in the days leading up to their bankruptcy filing and discharge the debt. Any charges that are incurred by fraud or false representations can be held to be non-dischargeable. If the court holds that you used your credit card to buy items with no intent to pay for them, you will remain liable to pay the debt. Additionally, if a debtor buys frivolous items, maxes out the limit on the credit card, or even drastically increases credit card use just prior to filing bankruptcy, the creditor can challenge the dischargeability of the debt.

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.


Filing Bankruptcy Can Help with Foreclosure

Although the housing market appears to be on the rebound, there are still many homeowners that are struggling to pay their mortgage payments. If you have fallen behind on your mortgage loan and you believe that a foreclosure is in your near future, you should consider filing for bankruptcy protection under Chapter 7 or Chapter 13.

Foreclosure Defense Brevard County

Chapter 7 Bankruptcy Services Brevard County

Bankruptcy can be an effective tool for individuals who are trying to avoid a foreclosure action.

Individuals who file bankruptcy most commonly file under Chapter 7 or Chapter 13. Each type of case offers its own advantages and disadvantages. One of our seasoned bankruptcy attorneys can review your unique circumstances and assist you with determining which type of filing you qualify for or will be most beneficial for you.

Chapter 7 | Liquidation Bankruptcy

Chapter 7 is often referred to as the “liquidation” bankruptcy because your non-exempt property can be sold by the trustee to pay your creditors. The reality, however, is that most Chapter 7 debtors have very few (if any) non-exempt assets and they keep all of their assets.

While a Chapter 7 filing does not completely stop the foreclosure process, it can buy you some additional time in your house. During this time, we can help you try to negotiate with your mortgage lender too. In order to proceed with the foreclosure, your creditor must seek relief from the automatic stay from the bankruptcy court.

If the court grants the motion and your home is foreclosed, your Chapter 7 filing will discharge or eliminate any amount you still owe under the mortgage after the foreclosure sale. This can save you from owing thousands of dollars.

Brevard County Foreclosure Defense

Foreclosure and Bankruptcy Attorney serving Brevard County

Chapter 13 | Reorganization Bankruptcy

A Chapter 13 debtor must submit a plan of reorganization which sets forth how the creditors will be paid, fully or partially. Your repayment plan will last a term of three to five years, depending on your individual circumstances.

During this time, you can make small payments under the plan that are applied to the mortgage loan delinquency. When your Chapter 13 case is over, you will be current on your mortgage loan. While your Chapter 13 case is pending and you are making your plan payments, the foreclosure process is halted.

Speak with an experienced Foreclosure Defense Attorney at Faro & Crowder, PA 321-784-8158

Don’t lose your home in a foreclosure. We offer a free initial consult for foreclosure defense or bankruptcy.  Contact us to discuss your different options for saving your home and whether filing bankruptcy is the solution.

Name (required)

Email (required)

Phone Number (required)

Briefly Describe Your Legal Concern

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

We are a debt relief agency. We help people file for bankruptcy under the bankruptcy code.

Converting a Chapter 7 to a Chapter 13

Ch 7 to Ch 13 pic

When you file a Chapter 13 bankruptcy case, you are committing to a payment plan that will last at least three years. If you should experience an unforeseen financial change which negatively impacts your ability to make your plan payments, you should contact us to discuss whether you are eligible to convert to a Chapter 7 case.

If you qualify for conversion, the procedure for converting your Chapter 13 to a Chapter 7 is fairly straightforward. We will prepare and file the Notification of Conversion, pay the required fee and, the majority of the time, your case is converted to a Chapter 7 within a few days.

The court will appoint a Chapter 7 trustee to supervise your case. You will have a new meeting of creditors scheduled as required by 11 U.S.C. §341. There are a few additional documents that must be filed in order to meet the requirements for a Chapter 7 filing. For instance, you must file a Statement of Intent which sets forth what you intend to do with your secured loans. This means you must state whether you will surrender the asset pledged as collateral or keep it and continue to pay for it. You may also be required to amend your schedules and statement of financial affairs to tell the court about the financial changes that have taken place since you filed your Chapter 13 case and the date you converted to a Chapter 7.

If you are currently struggling in your Chapter 13 and you need help, contact us to discuss converting to a Chapter 7 and avoiding having your bankruptcy case dismissed by the court. Call the attorneys at Faro & Crowder today to learn more about the conversion process and how it can benefit you.


Can You Afford to File for Bankruptcy?


When you are barely making ends meet and you are considering filing a personal bankruptcy, you are likely concerned with how much a Chapter 7 or Chapter 13 will cost you. We understand that it can be stressful to come up with the money to file for relief from your debt, but working with the “right” lawyer is crucial to having success in your bankruptcy case.

Afford to File For Bankruptcy | Melbourne and Palm Bay, Florida

Bankruptcy Lawyer Brevard County

Afford to File For Bankruptcy

Having an attorney in your bankruptcy case can actually save you money and help ensure that you keep possession of as many assets as possible. It is common for individuals who are facing money struggles to be tempted to retain the cheapest lawyer they can find, but you sometimes get what you pay for. In other words, you don’t want to hire an attorney that is inexperienced or unreliable to handle your case.

Hiring a Bankruptcy Petition Preparer

In an effort to save money, many individuals also consider hiring a bankruptcy petition preparer to assist with their bankruptcy filing. Although a bankruptcy petition preparer’s fees may be less, the only help you will receive is assistance with completing the paperwork needed to file your case. A bankruptcy petition preparer is not allowed to give you legal advice or to otherwise represent you as your case proceeds. This means that if any complications arise in your filing, you’re on your own.

Preparing Financially for a Bankruptcy Filing

Bankruptcy lawyers understand your financial struggles, so the fees they charge are typically reasonable. This is particularly true when you compare their fee to the thousands of dollars your attorney can help you discharge in your filing! Additionally, many bankruptcy law firms will assist you in finding a way to afford your filing. Consider the following:

  • To prepare for your bankruptcy, start putting aside small amounts each month. Planning your filing allows you to save the money you need to afford it.
  • Talk to friends and family members about making monetary gifts to assist you. It is essential that they understand they are giving (not loaning) the money because the debt will likely be discharged in your filing. If you desire, you can always voluntarily repay them after your bankruptcy has concluded.
  • Consider taking a loan from your retirement plan. It is important to understand the potential tax consequences of doing this. You should also read our blog titled “Is my 401K Safe in Bankruptcy?”
  • Discuss other options with your bankruptcy lawyer, including establishing a payment plan.

Remember, the small amount you pay your bankruptcy attorney is worth every penny when you discharge the majority of your debt and obtain a second chance with your financial future.

Contact a Melbourne Bankruptcy Attorney at Faro & Crowder, PA

The decision to hire an attorney is an important one and should not be based on advertising alone. At Faro & Crowder, PA, we believe our reputation and track record speak for themselves, but we welcome you to ask our other clients about their experience working with us. Contact our office today to schedule your free initial bankruptcy or foreclosure defense consultation.

Assessing Your Debt

 Assessing Your Debt - Brevard County Bankruptcy

Consider your debt relief options – Brevard County Bankruptcy Attorneys

If you are struggling financially and living paycheck to paycheck, it is time to consider your debt relief options. Filing a Chapter 7 or Chapter 13 bankruptcy can be the first step to taking control of your debt and getting your financial life back on track. The first step in making this decision is to objectively assess your debt.

What exactly does this mean? The Internet has several different websites that can assist you with the process. Most offer a “debt quiz” that gives you questions to answer regarding your financial status. By answering yes or no to these questions, the website may provide you with suggestions on how to improve your finances. But remember, this is very generalized advice and it is not legal advice, so it should be only used as a means for helping you assess your debt.

There are also websites that provide a debt calculator, which can be helpful because it permits you to enter the amount of your debt and the applicable interest rates. A debt calculator allows you to see how your debt will continue to increase over time. Again, these websites may offer generalized advice on ways you can pay your debt off.

The most vital action you can take is to be honest with yourself about your debt. If you are facing a temporary setback due to the loss of a job or divorce that you can overcome, then it makes sense to live by a budget until you have gotten back on track. However, if you are facing overwhelming debt and you believe there is no way you will ever recover from it, you should confer with a personal bankruptcy attorney.

No website or DIY book can replace the advice and guidance of an experienced lawyer. Let one of our attorneys review your individual finances and help you understand all of your debt relief options. Discharging your debt and obtaining a fresh financial start is often the best decision for our clients. In fact, many of them tell us they wish they hadn’t waited so long!

Contact Faro & Crowder, PA today for your FREE initial bankruptcy consultation

Stop living under the weight of your debt. Let us help. Contact Faro & Crowder, PA, today to schedule your initial consultation. Our office is located in Melbourne, but we proudly serve individuals and businesses across the State of Florida.


The Debts Your Bankruptcy will NOT Discharge

debts not discharged pic

One of the primary benefits of filing a personal bankruptcy is the elimination of debt. In a typical filing, the debtor is granted a discharge order as soon as his or her bankruptcy case has been successfully completed. The court clerk where you filed your case mails a copy of your discharge order to all of your creditors and other interested parties. However, it is important to understand that there are certain debts that are not eligible for discharge.

The majority of consumer debts qualify to be discharged in bankruptcy. This means that when you receive your discharge order, your liability to pay the debts has been cancelled. You are no longer obligated to pay the debt and the creditor or collector is prohibited from taking action to collect it from you. However, below are examples of the types of debts that are excluded under the law from being discharged:

  • Child support and spousal support payments
  • Certain taxes
  • Most student loans
  • Debts that were incurred by fraud, embezzlement or larceny
  • Debts related to personal injury resulting from willful or malicious conduct
  • Debts that were not properly listed or included in your bankruptcy case
  • Fines or penalties owed to government entities
  • Certain homeowner’s association fees or condominium fees
  • Monetary judgments against you for personal injury or wrongful death caused by your intoxication

If you are considering filing a Chapter 7 or Chapter 13 case, it is essential that you confer with a bankruptcy attorney regarding your individual debts. We can review your financial situation and help you understand how a bankruptcy filing will benefit you and how your debt will be impacted, including informing you of any debts that you may remain liable to pay after your case has concluded. To learn more, contact us today to schedule your initial consultation.


Contact Us For A Free Consultation






css.php