Category Archives: Bankruptcy

Financial Emergencies Solved by Filing Bankruptcy

Learn about your options when filing a Bankruptcy in Brevard County

An important benefit of filing for bankruptcy protection is that the automatic stay goes into effect immediately upon the filing of your petition. The stay prevents creditors from continuing any collection efforts against you while your case is pending. Thus, all harassing telephone calls, demand letters and collection lawsuits against you must stop. For somebody who has been harassed by collectors for a long time, this can provide significant relief.

Have a financial emergency? Speak with a Bankruptcy Attorney to learn about your options.

Bankruptcy Attorney serving Melbourne and Palm Bay

Below are a few of the types of emergencies that the automatic stay can help a debtor handle:

Foreclosure

If you have fallen behind on your mortgage payments and your lender is threatening a foreclosure action, filing a personal bankruptcy can immediately (but temporarily) halt the proceedings. At a minimum, it will buy you additional time to remain in your home. It will also allow you extra time to try to negotiate a settlement or a deed-in-lieu of foreclosure with your mortgage lender. Finally, it permits us to help you avoid negative tax consequences.

Utilities

If you have missed payments on your electric, gas, telephone service, or other utilities, the automatic stay can prohibit your services from being disconnected for at least twenty (20) days. This may not seem very important, but when it is extremely hot or freezing cold outside, having electricity to run your air conditioner or heater is significant. While delinquent utility bills are not a sufficient reason to file for bankruptcy protection, they typically are a sign that you have other financial problems as well.

Garnishments

If a debt collector has obtained a judgment against you, it is likely that you have garnishments pending against your bank account and/or wages. The automatic stay stops all garnishments. Additionally, you may be able to eliminate or discharge the underlying debt linked to the garnishment action.

Evictions

If you rent your home and you have fallen behind on payments to your landlord, filing for bankruptcy can provide you some relief from an eviction action. However, if your landlord has already been awarded a judgment against you, the automatic stay will not halt the eviction process. However, if your landlord has not obtained a judgment, the bankruptcy filing will provide us time to negotiate with your landlord.

The above are only a few examples of the financial emergencies that a bankruptcy filing can assist you with. We can review your individual situation and help determine if filing a Chapter 7 or Chapter 13 is the best debt relief strategy for you.

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If you live in the Palm Bay or the Melbourne area and 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 conveniently located on Sarno Road in Melbourne.  We offer free initial consultations for bankruptcy and foreclosure defense.


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.

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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.

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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.

Can I file Bankruptcy if I am Unemployed?

Filing Bankruptcy While Unemployed

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.

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Bankruptcy Attorney serving Brevard County

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

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 Brevard County, FL

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.

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.

What Collection Activity Does a Bankruptcy Stop?

The automatic stay is a powerful benefit of filing a bankruptcy case. As soon as the stay is effective, your creditors are prohibited from taking further collection actions against you.

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As a result, a bankruptcy filing can be helpful when you are facing financial emergencies, including:

  • Foreclosure. The foreclosure process is a collection activity halted by your bankruptcy filing. At a minimum, your filing can buy you some time to negotiate with your mortgage lender or at least remain in your home for a few additional months.
  • Collection lawsuits. If a creditor, such as your credit card company, has filed a lawsuit against you, your bankruptcy filing will halt the litigation. In many cases, the debt underlying the collection lawsuit can be discharged in your filing.
  • Garnishment. Garnishments against your wages or your bank account will immediately halt when your Chapter 7 or Chapter 13 case is filed. You may also be able to discharge or eliminate the debt linked to the garnishment action, which means you are no longer liable to pay it.
  • Eviction. Depending on whether your landlord has obtained a judgment for possession against you, the eviction process may be halted by your bankruptcy filing.

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.

Understanding the Benefits of the Automatic Stay

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.

Automatic Stay

Bankruptcy Attorney serving Melbourne, FL

Automatic Stay Exceptions

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.

Creditors with Secured Debt

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.

Questions About the Automatic Stay?

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.

Contact an Attorney at Faro & Crowder, Pa 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.

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

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:

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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.


Your Credit Rating after a Negative Event

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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.

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