Tag Archives: debt

BANKRUPTCY….Don’t be intimidated

bky intimidated pic

The stress of dealing with debt can be overwhelming. It can have a detrimental effect on every area of your life. It is important to understand that you are not alone. The economic downturn has affected individuals across our nation. If you live in Florida, and you are considering filing for bankruptcy protection, call our law firm today for guidance and advice on your best options.

While the term “bankruptcy” seems to have a negative connotation, it is actually a means for getting a handle on your debt. Instead of ignoring it or letting your situation get worse, bankruptcy allows you to take action and find solutions to your financial problems. Whether you have made financial mistakes or suffered misfortunes in your life, a Chapter 7 or Chapter 13 may be the only viable solution to your financial struggles. Most of our clients are forced to file for bankruptcy due to a negative event in their life that was out of their control. This includes circumstances such as divorce, loss of a job, a serious injury or illness, or simply not being able to make ends meet.

The bankruptcy laws were first created by the lawmakers as a safety net for the average consumer. The goal was to provide a way for an individual to wipe their financial slate clean and start over if they suffered a financial crisis in their life. As time has passed, more and more citizens are seeking to avail themselves of the bankruptcy process. You should not let the process intimidate you. You might be surprised at how many people in your life have already sought bankruptcy protection, you just didn’t know it!

If you are looking for a way to save your home, business, or simply a way to provide better for your family, contact Faro & Crowder today. The old stigma of filing for bankruptcy has faded, so take charge of your finances and seek help to obtain a fresh financial start. We will be by your side every step of the way making sure your best interests are protected.


Bankruptcy: The Good, The Bad & The Ugly

Deciding whether to file for bankruptcy protection is a difficult decision. There are numerous factors that must be considered and it is important for you to understand all the pros and cons of a Chapter 7 or Chapter 13 case. Although no two cases are the same, below are a few things you should be aware of before filing your bankruptcy petition.

Bankruptcy Attorney Melbourne, Florida

Bankruptcy: The Good, The Bad, and The Ugly

The Good When Filing Bankruptcy

  • All, or almost all, of your debts will be eliminated (discharged)
  • All collection activity (harassing calls, lawsuits, garnishments, etc.) against you will immediately stop
  • Bankruptcy is the most comprehensive means for dealing with your debt because all of your creditors are included
  • Depending on what chapter of bankruptcy file, you probably will be allowed to keep all of your assets
  • If you file a repayment plan, you can make your payments over a period of three to five years
  • You may be allowed to remove or “strip” inferior liens from your home
  • You emerge from bankruptcy with a fresh financial start and you can immediately begin rebuilding your credit score

The Bad When Filing Bankruptcy

  • Until you have had time to rebuild your credit and improve your credit score, you may have a difficult time qualifying for a mortgage or other loan after bankruptcy
  • You will need to learn from your financial mistakes because you cannot file another bankruptcy for several years
  • There is a small risk the trustee will seize your non-exempt assets to pay creditors

The Ugly When Filing Bankruptcy

  • Filing for bankruptcy protection will negatively impact your credit score, but in most cases, the debtor’s credit is already damaged by past due payments, lawsuits and other negative financial events

The above is a very brief outline of the consequences of filing for bankruptcy protection. Let us review your individual circumstances and provide you with an honest assessment of how filing a Chapter 7 or Chapter 13 would impact you.

Contact a Bankruptcy Attorney at Faro & Crowder, PA

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

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.

Common Ways Debt Collectors Violate the Law

debt collectors pic

If you have fallen behind on your bills, you are probably being contacted by debt collectors. The debt collection industry is known for using harassing tactics to persuade debtors into paying their debt. As a result, the Fair Debt Collection Practices Act (FDCPA) is a law that was passed prohibiting collection agents from using unfair, misleading or abusive practices to collect money from borrowers.

Under the FDCPA, a debt collector is anyone who routinely works to recover debts owed to others. Thus, the definition includes collection agencies, lawyers who regularly collect debts and debt-purchasers who try to collect delinquent accounts.

The FTC website provides some guidance in the types of tactics that are prohibited by the FDCPA, including:

  • Unfair practices. A debt collector must act fairly with you. This means that the collector cannot attempt to collect extra amounts of money that are not allowed by your contract or under the law. It also includes actions such as depositing a post-dated check early, threatening to seize your property when it cannot be done illegally, or contact you using a postcard.
  • Harassment. If a collector harasses by threatening violence, using profane language, or repeatedly calling you (especially at inconvenient times) to annoy you into paying the debt, it is a violation of the law.
  • Deceptive statements. Debt collectors are prohibited from lying to you about who they are, the total that you owe, or who they work for or represent. They cannot falsely claim that you are guilty of a crime. The paperwork they send you must be truthful. Also, a collector cannot provide false credit information about you to third-parties, including the credit reporting bureaus.

It is important to understand that even if you are pretty certain you owe the debt to the plaintiff, you are still entitled to be treated fairly and with respect. If you believe a debt collector is violating your rights and harassing you, we can help. Whatever you do, don’t ignore a collection lawsuit. If you are interested in learning more about how we can help you stop the harassment or fight a debt collection lawsuit, contact one of our seasoned bankruptcy attorneys to schedule your appointment.


Reasons You Should Use an Attorney to Deal with Your Debt

When you are struggling financially, you may think it is unwise to spend money to have an attorney assist you in obtaining debt relief. However, what you don’t know can hurt you. There are a wide variety of debt settlement companies that make lofty guarantees about eliminating your debt for you.

Watch Out For Scams and Fees

However, many are scam artists that are attempting to take advantage of you. Additionally, even legitimate debt relief companies charge you a fee that is a percentage of the total amount of debt that you owe, which in some cases can be thousands of dollars.

A bigger concern is that most debt relief companies do not provide any services until they are paid in full. During this time while you are saving up to pay them, your creditors are not getting paid and they may file collection lawsuits against you. If a lawsuit is filed, a debt settlement company cannot assist you and you will be left on your own.

Debt Relief Attorney Melbourne, Florida

Debt Relief Attorney serving Brevard County

If you work with a lawyer, a full range of services will be provided to you. An attorney will discover whether the applicable statute of limitations has expired. If the statute of limitations expires, the creditor cannot legally collect from you. However, if you make a payment to the creditor, it could restart or toll the statute of limitations. In other words, your payment could reactivate your liability to pay the debt. A debt consolidation agent that does not know the difference between the debts you are obligated to pay and expired debts could end up costing you a significant sum.

When you work with an attorney, he or she can help make the debt collector harassment stop. A lawyer can notify the debt collectors that you are being represented and that all contact with you should stop. A collector that violates the law can be held liable for violating your rights.

Finally, a debt collector who is aware that you are being represented by a debt relief attorney is more willing to negotiate with you because an attorney can help you file for bankruptcy protection. All debt collectors are fully aware that their chance of recovering anything from you in a bankruptcy case is slim, so your attorney is more likely to negotiate a successful settlement.

Contact a Bankruptcy Attorney at Faro & Crowder, Pa Today to Learn About Debt Relief

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.

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.

Should I Consolidate my Debt With Credit Card Balance Transfers?

Credit Card Balance Transfer pic

Many individuals who are struggling financially consider consolidating their debt by using a credit card balance transfer. This process allows the consumer to move one or more credit card balances to another card that offers a lower interest rate. It is important to investigate whether this type of balance transfer is actually a good deal.

Most credit card companies charge a costly fee to perform the transfer. This fee may be a minimum flat fee or a percentage of the total amount that is being transferred, or whichever is the greater of these. You should determine whether paying these fees is worth it compared to the amount you will save by obtaining the lower interest rate.

One problem with credit card balances is that the best time to do the transfer is when your credit is still in good shape. You must have a good credit score to qualify for a low interest rate (or even 0%), but most people don’t consider credit card balances until they are already behind on their bills. As a result, it can be difficult to qualify for an advantageous credit card balance transfer.

Another significant consideration in balance transfers is that you must have a credit limit large enough to accommodate your debt. If your credit limit is insufficient, you may only be able to transfer a portion of your debt. While this can still be helpful because you can transfer the debt with the highest interest rate, which can save you money.

Finally, in order for you to truly benefit from a credit card balance transfer, you must be committed to not incurring new debt. This can be difficult because once you transfer your debt, your credit limits will be re-established on those cards. If you start making charges on your cards and digging a deeper hole, it is unlikely that you will pay off the full amount transferred before the period of the low interest rate expires. You can end up in worse shape than before you made the credit card balance transfer.

Before you try to handle your debt by using a credit card balance transfer, call us to learn more about other available options. 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.


How Chapter 13 is Better than Chapter 7

Hopefully you have read our blog titled “How Chapter 7 is Better than Chapter 13,” to learn more about the advantages of a Chapter 7 filing. This blog will focus on the many benefits of a Chapter 13 case.

Chapter 13 Bankruptcy Brevard County

Debt Consolidation in Chapter 13 Bankruptcy

A Chapter 13 filing is a reorganization process which allows you flexibility in how to deal with your debt. A Chapter 13 debtor creates a repayment plan that sets forth how you intend to pay your creditors, either fully or partially. You make one monthly payment to the Chapter 13 trustee who then pays your creditors as set forth in your plan.

Unsecured Debts

Your unsecured debts will be included in your Chapter 13 repayment plan and you are required to pay a percentage of them (0 to 100%), depending on your finances. In most cases, the debtor only pays a very small percentage of the unsecured debts owed, including credit card and medical bills.

Secured Debts

If you are delinquent on your mortgage or car loan payments, you can make small payments through your Chapter 13 plan and get caught-up on your secured loans. Since your plan lasts three to five years, the smaller monthly payments can be applied to the past due amounts.

Lien Stripping in Chapter 13 Bankruptcy

You may be able to eliminate a second or third mortgage in a Chapter 13 filing by using the lien stripping process. To learn more, please read our blog titled Stripping Off Junior Mortgages in Bankruptcy.”

Contact a Brevard County Bankruptcy Attorney at Faro & Crowder, PA

If you are interested in learning more about how a bankruptcy filing will impact your debt, contact Faro Crowder, PA to schedule an appointment. We are located in Melbourne, Florida on Sarno Road and serve residents and businesses of the Space Coast and Brevard County.

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.

How Chapter 7 is Better than Chapter 13

 

Many people come to our office seeking debt relief, but they don’t know where to begin. There are pros and cons to both Chapter 7 and Chapter 13 bankruptcy filings, so it is important to understand them. Be sure to read our next blog titled “How Chapter 13 is Better than Chapter 7.” This blog will focus on the many benefits of a Chapter 7 case.

Ch 7 better than Ch 13 pic

The Process is Faster

A typical Chapter 7 filing takes four to five months to complete, while a Chapter 13 lasts three to five years. This can be extremely beneficial if you have a large amount of debt to discharge because you can obtain your fresh start quicker and begin rebuilding your credit faster.

Eliminate Unsecured Debts

A significant benefit of the Chapter 7 process is that you can discharge medical bills, credit card debt and most loans that do not have assets pledged as collateral to the lender. This is often the majority of an individual’s debt.

Keep Your Assets

While the Chapter 7 procedure is commonly referred to as a “liquidation” case, most debtors don’t actually lose possession of their property in their filing. The law provides you with a wide variety of exemptions that safeguard valuable assets from being used or sold to pay your creditors. Common examples of exempted property includes your home, vehicle, 401k account, clothing and common household belongings. The reality is that the majority of Chapter 7 debtors are allowed to fully discharge their debts without losing any of their assets.

More Affordable

Because the Chapter 7 process does not last as long as the Chapter 13 process, it generally costs you less to file.

Contact a Brevard County Bankruptcy Attorney at Faro & Crowder, PA

If you are interested in learning more about how a bankruptcy filing will impact your debt, contact Faro Crowder, PA to schedule an appointment. We are located in Melbourne, Florida on Sarno Road and serve residents and businesses of the Space Coast and Brevard County.

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.

Marriage or Bankruptcy – Which Should Come First?

If you are drowning in debt and planning to get married soon, you should not only discuss your finances with your fiancé, but also with one of our experienced lawyers. We can help you determine the best timing for the filing of your bankruptcy and your marriage.

Bky or Marriage pic

When you file a Chapter 7 or Chapter 13 case, you can discharge or eliminate the majority (if not all) of your debt. This includes credit card bills, medical debt, and a wide variety of other types of debt. Thus, filing a case before you get married can help you start your life together with a fresh financial start. It is important to understand that if your credit score is already low due to your delinquent accounts, filing for bankruptcy will probably not have a significant impact on your score.

After you have completed your bankruptcy case and discharged your debt, you can immediately start working to rebuild your credit score. Many of our clients are surprised to learn that with time and hard work, they are able to improve their credit score quicker than they expected.

If you don’t want to enter your marriage with the burden of your debt on your shoulders, contact us to discuss how a Chapter 7 or Chapter 13 can help you. We understand that planning for your wedding day is important, but let us assist you with planning for your financial future and get your marriage off to a solid start!

Contact a Brevard County Bankruptcy Attorney at Faro & Crowder, PA

If you are interested in learning more about how a bankruptcy filing will impact your debt, contact Faro Crowder, PA to schedule an appointment. We are located in Melbourne, Florida on Sarno Road and serve residents and businesses of the Space Coast and Brevard County.

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.

How will I be Impacted by my Ex-Spouse’s Bankruptcy?

Ex-Spouse Bky pic

What happens if your ex-spouse files a bankruptcy case? Will it impact you? The answer is “it depends.” It is important to have one of our bankruptcy lawyers review your individual circumstances to help you understand how you might be affected, but below is some general guidance.

As soon as your ex-spouse files his or her Chapter 7 or Chapter 13 case, the automatic stay goes into effect and protects him or her from any collection efforts by creditors. Your ex-spouse will likely be permitted to discharge or eliminate the majority (if not all) of his or her debt – including the debt your ex agree to pay in the divorce agreement. This may result in you being liable for some of the marital debt that was not assigned to you in the divorce order because your name is still on the loan documents. It should also be noted that if your state uses community property laws, it can impact how your ex-spouse’s bankruptcy filing impacts you.

You may be wondering if your divorce decree protects you. The divorce order is a contract between you and your ex-spouse. In other words, your creditors usually are not bound by the terms of the divorce decree, unless your creditor or lender agreed to the terms of it and removed you from liability for the financial obligation Thus, what was owed by you and your ex-spouse prior to the divorce can still be owed by both of you after the divorce, regardless of what the divorce decree provides. Once the creditors are unable to take collection action against your ex-spouse, they will likely start trying to collect from you.

If your ex-spouse informs you that he or she intends to file a personal bankruptcy and you have a significant amount of joint debt, you may want to consider filing your own Chapter 7 or Chapter 13 case.

Contact a Brevard County Bankruptcy Attorney at Faro & Crowder, PA

If you are interested in learning more about how a bankruptcy filing will impact your debt, contact Faro Crowder, PA to schedule an appointment. We are located in Melbourne, Florida on Sarno Road and serve residents and businesses of the Space Coast and Brevard County.

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.

DUI Debt in Bankruptcy

Attorney serving Satellite Beach, Florida

Faro & Crowder, PA

When you file for bankruptcy protection, your primary goal is typically to discharge or eliminate your debt. However, it is important to understand that there are certain types of debt that the law excludes from being discharged. Pursuant to 11 U.S.C. §523(a)(9), one type of debt that is not eligible for discharge is one arising from the “death or personal injury caused by the debtor’s operation of a motor vehicle, vessel, or aircraft if such operation was unlawful because the debtor was intoxicated from using alcohol, a drug, or another substance.”

In other words, if you were driving under the influence of drugs or alcohol and you caused a wreck, any debt you owe to the victims of the accident cannot be discharged. In most cases, you cannot eliminate restitution damages or monetary penalties imposed by the court.

It is possible that an insurance company seeking to recover subrogation damages will file can objection to your discharge pursuant to 11 U.S.C. §523. Debts resulting from the “willful and malicious injury by the debtor to another entity or to the property of another entity” are excluded from discharge under section 523(a)(6).

You should also be aware that the bankruptcy courts follow the state law of the jurisdiction where your criminal prosecution was held. This means that the results of the blood alcohol limit of the state where you got your DUI will apply, not the state where you file your bankruptcy case. This prevents debtors from “forum shopping” and filing their bankruptcy case in a jurisdiction with a higher blood alcohol level in an attempt to escape liability.

If you have DUI-related debt and you are considering filing a Chapter 7 of Chapter 13 case, it is essential to obtain legal help. One of our personal bankruptcy attorneys can review all of your debts and help you understand how each of them will be handled in your filing.

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 offices are located in Melbourne, Florida but we proudly serve individuals, families and businesses located in Palm Bay, Viera, Cocoa, West Melbourne, Cocoa Beach, Satellite Beach and the Space Coast.


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