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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.


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.


Defenses to Collection Lawsuits

If you are one of the thousands of consumers that is facing overwhelming credit card debt, it may be time to consider filing a personal bankruptcy case. Filing a Chapter 7 or Chapter 13 can allow you to eliminate or discharge your credit card debt and obtain a fresh financial start. However, if filing for bankruptcy protection is not an option for you and collection lawsuits are being filed against you, it is important to confer with an experienced attorney regarding the defenses that may be available to you. Below are a few defenses to a collection lawsuit that might be available to you:

Bankruptcy Attorney serving Cocoa, Florida

Bankruptcy Attorney serving Cocoa, Florida

  • Improper service. If you are not validly served with the summons and complaint, you have an effective defense (if timely alleged).
  • Statute of Limitations. The plaintiff seeking a monetary judgment against you must file the lawsuit by a certain deadline or it is time barred. You have a defense if the debt has gone “stale” and the creditor has lost its right to sue you to collect it.
  • Improper plaintiff. The party suing you must have the right to sue you. In other words, the plaintiff must be owner of your debt. This means that if your account was sold to a collection agent and the original creditor failed to properly transfer the documentation evidencing your debt, it may be possible to get the suit against you dismissed.
  • Wrong defendant. If you can prove that you did not incur the debt and that it does not belong to you, the court may dismiss the lawsuit.
  • Debt discharged. If you filed a prior personal Chapter 7 or Chapter 13 case and included the debt in your filing, proving the debt was discharged will prevent the creditor from proceeding with the lawsuit against you to collect it.
  • Identity theft. If the debt was incurred as a result of you being the victim of identity fraud, it is a valid defense to the lawsuit.
  • Accounting errors. You may have a partial or full defense if the plaintiff failed to correctly credit your account with payments or made some other accounting errors.
  • Unlawful debt collection. If the plaintiff used illegal debt collection practices against you, we can help you allege a counterclaim in the lawsuit. This means that you file a claim against the plaintiff seeking money damages which can be used to offset the amount you owe the plaintiff.

If you are interested in learning whether one or more of the above defenses are available to you, please contact us to schedule an appointment. Our office is located in Melbourne, but we proudly serve individuals and businesses across the State of Florida.


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.


How to know if Debt Collectors are Violating the Law

Debt Collection Violation Law

Defense Against Debt Collection Attorneys serving Palm Bay

The debt collection industry is well-known for its harassing tactics used to persuade consumers to pay their debts. As a result, an important set of laws called the Fair Debt Collection Practices Act (FDCPA) was passed to provide consumers with a variety of protections from creditors using deceptive or abusive practices in their collection efforts.

Under the FDCPA, a debt collector is defined as an individual or entity that regularly collects debts owed to others. Collection agencies, lawyers who routinely collect debts and debt-purchasers may all be included in this definition.

According to the FTC website there are a wide variety of actions that are prohibited, including the following:

  • Unfair practices. A debt collector must act fairly and legally when attempting to collect a debt from you. Examples of prohibited unfair practices include attempts to collect additional amounts that are not permitted by law or contract, depositing post-dated checks early, threatening to seize your property when it cannot be done legally, or contacting the consumer regarding the debt by postcard or other public means.
  • Harassment. A debt collector is prohibited from threatening violence, using profane language or repeatedly calling you in an effort to annoy you into making a payment. Also, a collector cannot threaten to add you to a published list of people who have refused to pay their debts.
  • False statements. A debt collector is prohibited from lying about who they are or who they work for. They must tell you the truth regarding the amount that you owe and actions they will take against you. It is unlawful for the collector to claim that you have committed a crime by not paying your debt. The documents that a debt collector sends to you must also be true and correct. Any information provided by the collector to a third-party, such as a credit reporting bureau, must be true.

Dealing with debt collectors can be stressful. If you believe you are being illegally harassed or you are ready to take action to handle your debt, let us help. We can review your individual financial situation and help you understand all of the debt relief options available to you.

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.


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