credit card debt in bankruptcy

If you are in the unfortunate situation of being unable to pay off your credit cards, you may have a solution in bankruptcy. Credit card debt in bankruptcy is a very common solution for people struggling with debt. Everyone case is different, so you’ll need to speak with an experienced bankruptcy attorney to determine the best course of action for yourself. For many, bankruptcy is the best solution when credit card debt is out of control.  You may be able to wipe out credit debt without even paying a portion of what is owed. For more information on credit cards in bankruptcy, contact a bankruptcy law firm in Tampa to schedule a consultation.

Credit Card Debt in Bankruptcy as Unsecured Loans

Credit card debt in bankruptcy is almost always treated as an unsecured debt in Chapter 7.  See bankruptcy law 11 U.S.C. § 109(e).  Unsecured debts are loans which are not secured by collateral.  Collateral is something used to establish trust for a loan; the typical example is when one uses a home as collateral for a mortgage.  Because there is no collateral needed for most credit cards, the debt is treated as unsecured in Chapter 7.  Unsecured debts, such as credit cards in bankruptcy are typically discharged without having to pay even a portion of the debt in a Chapter 7 case.

Discharge of Credit Cards in Bankruptcy

If a debt is discharged in bankruptcy the borrower (debtor) will be released from personal liability on the debt. See bankruptcy law 11 U.S.C § 727. Further, the discharge prohibits a creditor from taking any collection action against the borrower. Therefore, if your credit card debt is discharged, the debt owed will be wiped out. However, there are many nuances of bankruptcy law which can prevent a discharge of certain debts. Therefore, it is important to seek counsel from a bankruptcy law firm in Tampa before filing a petition for Chapter 7. There may be potential pitfalls to bankruptcy you would not be aware of without competent legal counsel.

Bankruptcy Law Firm in Tampa

At Florida Law Advisers, P.A. we understand that credit card debt in bankruptcy can be a very confusing and intimidating process.  That is why we work so hard to make the case as easy as possible for our clients. When you hire Florida Law Advisers, P.A., you get  an experienced bankruptcy lawyer in Tampa by your side throughout every phase of the bankruptcy process. We will help ensure your rights are protected, keep you well-informed every step of the way, and help you receive the utmost protection bankruptcy can offer. To schedule a free consultation with a bankruptcy lawyer in Tampa call us today at 800 990 7763.

bankruptcy automatic stay

Designed by law to protect creditors, the bankruptcy automatic stay is one of the biggest benefits to consumers within the Bankruptcy Code.  This protection  ensures creditors cannot contact a consumer once bankruptcy has been filed. This includes preventing creditors from calling, sending letters, and other collection attempts. The bankruptcy automatic stay even stops garnishments and foreclosure sales. For more information about the stay or bankruptcy contact a bankruptcy lawyer in Tampa to schedule a consultation

Policy of the Bankruptcy Automatic Stay

Likely based on the legal tradition that represented parties cannot be contacted directly by the opposing party, bankruptcy law ensures that only a judge, or The Court, can lift the automatic stay. Thus, the entire time a legitimate bankruptcy proceeding is going on, your debtors can no longer call your phone, send you bills or notices, or otherwise contact you regarding your outstanding debt. Further, the automatic stay should remain in effect throughout the case. Only if a creditor obtains relief from the stay by a judge can collection actions resume.

Benefits of the Bankruptcy Automatic Stay

The benefit of the automatic stay is what entices many consumers to file for bankruptcy. For instance, if your home is scheduled for a foreclosure sale the bankruptcy automatic stay will cancel the sale. Additionally, the bankruptcy automatic stay can put an immediate end to bank and wage garnishments. However, filing for bankruptcy is an important decision and one that should not be undertaken without consulting an attorney. You’ll need to determine which chapter of the bankruptcy code is appropriate for you. Additionally, you should consider whether filing for bankruptcy will put any of your assets at risk.

Bankruptcy Law Firm

At Florida Law Advisers, P.A., we understand how important the bankruptcy automatic stay is and can help you.  We work hard to make the process as easy as possible for our clients. When you hire Florida Law Advisers, P.A., you have an experienced bankruptcy lawyer by your side throughout every phase of the bankruptcy process. We will help ensure your rights are protected and help you receive the utmost relief bankruptcy can offer. To schedule a free consultation with a Tampa bankruptcy lawyer at our firm call, email, or fill out an online inquiry on our website today.

HOA Foreclosure

High student loans, housing costs, and medical expenses have caused many Americans to struggle financially. Luckily, there are options to help alleviate the burden and get a fresh start. Many of the options available to consumers will even stop a HOA foreclosure sale. If you are considering relief through bankruptcy or facing the possibility of foreclosure, it is important to speak with an experienced bankruptcy attorney to determine the best course action for you. To schedule a free consultation with a bankruptcy attorney in Tampa call us at 800 990 7763.

HOA Florda Foreclosure Process

Typically, if a homeowner is behind on their mortgage payment for 90 days the lender will file for foreclosure in Court. Florida is a judicial foreclosure state, that means the bank must go to court and receive approval from a judge before foreclosing on a home located in Florida. See Florida Statute 702.01. The court process can move quickly if action is not taken to prevent the foreclosure. If foreclosure proceedings have begun, contact a foreclosure defense attorney right away. There may be legal defenses that can be used to prevent the foreclosure of your home. Additionally, there may be other options available, such as deed in lieu of foreclosure, loan modification, or short sale. For more information about each of these options contact a foreclosure defense lawyer in your area.

Homeowners Association Foreclosure Process

Banks are not the only institutions that seek to foreclose on homes in Florida. Thousands of foreclosure cases are filed by homeowner’s associations in Florida each year. HOA’s are very aggressive, in some cases seeking foreclosure when the homeowner is only a few dollars behind on their bill. Further, it is not uncommon to have a balance of only $100 increase to over $5,000 after the HOA adds their late fees, interest, and attorney fees. Fortunately, there are options that can help prevent an HOA foreclosure sale.

Similar to banks, the homeowner’s association will need to file a foreclosure case in court and receive approval from a judge before the home is foreclosed. See Florida Statute 720.3085. During the court process, the homeowner will have an opportunity to raise defenses and challenge the foreclosure. To learn more about the possible legal defenses to foreclosure by an HOA contact a Tampa foreclosure defense lawyer in your area.

How To Stop HOA Foreclosure

Additionally, filing for Chapter 13 bankruptcy can help stop a foreclosure filed by either an HOA or mortgage lender. A Chapter 13 bankruptcy filing could allow you to avoid foreclosure all together by working out a repayment plan over a span of three to five (3-5) years for the arrearage, otherwise known as back-due payments.  Essentially, the homeowner will have a 60-month loan to repay the back-due HOA fees. In mortgage foreclosure cases, the homeowner may be able to modify the loan to reduce the balance, lower the interest rate, and extend the term for repayment. For more information about a specific case or payment plan contact a bankruptcy lawyer to schedule a consultation

Tampa Bankruptcy and Foreclosure Defense Law Firm:

If you are thinking about filing for bankruptcy or are being threatened with foreclosure contact Florida Law Advisers, P.A. Our bankruptcy attorneys in Tampa are experienced in both bankruptcy and HOA foreclosure defense. Every case is different, our vast experience allows us to cater our services to each client’s individual needs. All of our initial consultations are free and convenient payment plans are always available. Regardless, if you need help with bankruptcy or foreclosure defense we will provide you competent legal advice you can trust. Call us now at 800 990 7763 to speak with a lawyer, we are available to answer your calls 24/7.

how long will bankruptcy stay on a credit report

A common question is how long will bankruptcy stay on a credit report? After a bankruptcy is complete and you receive the Chapter 7 or Chapter 13 discharge, the bankruptcy may last on your credit report for a few years. If you completed a Chapter 13 repayment plan, it may remain on the credit report for 7 years. Chapter 7 bankruptcy will stay on your credit report for up to 10 years. See MyFico.com. For information on Chapter 7 or Chapter 13, click here to speak with a bankruptcy attorney in Tampa.

Filing bankruptcy does not necessarily mean your credit score will take a dive. In my cases, bankruptcy will actually help improve a person’s credit score. Bankruptcy is intended to give people a fresh start. In bankruptcy, debt gets discharged, which releases the borrower from all personality on the debt. Further, creditors will be prohibited from taking any collection activity on a debt that has been discharged in bankruptcy. The discharge of debt can help increase the credit score because there will be a lot less debt owed after the bankruptcy case is completed. Please keep in mind, each case is different and you should consult with a Tampa bankruptcy lawyer for information on how bankruptcy may affect your individual situation.

Getting New Loans After Bankruptcy

You should be able to apply for credit cards after you receive your discharge in bankruptcy. A great place to start rebuilding your credit is with a secured credit card. This is a credit card where you make a deposit into a savings account and then you receive a line a credit for that amount. For example, if you make a deposit of $800 into the savings account and you have a secured credit card that has a $40 annual fee, your line of credit will be $760.

Retail credit cards, such as department store cards, are also a great way to start rebuilding your credit. Often, it is much easier to obtain a credit card from a retail store than it is from a bank after filing bankruptcy. Retail stores like gas stations and department stores are primarily in business to sell their products, not issue credit. With a credit card they can sell you more of their products. Therefore, many of their credit cards are easier to qualify for than other types of credit cards.

You may also be eligible for a mortgage in as little as 12 months after filing for bankruptcy. For more information on the waiting period to qualify for a mortgage after bankruptcy click here. The facts of each case will dictate how long bankruptcy will stay on a credit report. You should see the counsel of an experienced bankruptcy lawyer in Tampa for specific information about your case

Review Your Credit Report

It is also important after receiving your discharge that you review your credit report on a semi-annual basis. The Fair Credit Reporting Act makes it so every person can receive one free credit report every 12 months at www.annualcreditreport.com. See 15 U.S.C. § 1681. Be careful of using another website for this service because it most likely will require a fee or come with hidden conditions.

When reviewing your credit report, there are two types of errors that you could come across: (1) information was added to your report that does not belong to you; and (2) an agency sent the report of a different person, even though the information is accurate. If you see a bankruptcy on your credit report that you did not file, you should file a dispute.  You must do this by initiating a dispute with the consumer reporting agency and directly with the creditor.

Bankruptcy Law Firm

At Florida Law Advisers, P.A., we understand that filing for bankruptcy can be a very confusing and intimidating process.  That is why we work so hard to make the process as easy as possible for our clients. When you hire Florida Law Advisers, P.A., you have an experienced bankruptcy attorney in Tampa by your side throughout every phase of the bankruptcy process. We will help ensure your rights are protected and help you receive the utmost relief bankruptcy can offer. To schedule a free consultation with a bankruptcy lawyer in Tampa call 800 990 7763 .

What Happens to Child support and Alimony in Bankruptcy

In bankruptcy, debts will be treated differently based on their classification. Child support and alimony in bankruptcy receive nearly the greatest level of protection under Florida’s bankruptcy laws. Although child support is considered “unsecured debt,” which is typically dischargeable, the Bankruptcy Code provides special treatment for this domestic obligation. See bankruptcy law 11 U.S.C. § 507(a). However, there may still be options to reduce the amount of child support. To find out more about your case contact an attorney in your area. A Tampa bankruptcy attorney can help describe some of the options that may be available to reduce your amount of child support.

CHILD SUPPORT AND ALIMONY IN BANKRUPTCY

Child support and alimony will the first of the unsecured claims to be paid among all your other unsecured creditors. Keep in mind that child support and alimony obligations cannot be discharged through either Chapter 7 or 13 bankruptcy. See bankruptcy laws 11 U.S.C. § 727 & 1328. You will be required to continue payments to your former spouse during your bankruptcy case, and after your discharge.

PROTECTING THE CHILD SUPPORT AND ALIMONY YOU RECEIVE

If you are an individual who receives child support and/or alimony, you will be able to protect that income with the “support” federal exemption afforded to you by the Bankruptcy law. See 11 U.S.C. § 522. The entire amount that you receive from your former spouse will be protected, meaning that the trustee cannot take that income away from you. For information about a specific case or set of circumstances you should contact a bankruptcy law firm in Tampa to schedule a consultation with a bankruptcy lawyer.

AUTOMATIC STAY PROTECTION

Child support and alimony will also receive protection under the “automatic stay” that takes place once you file bankruptcy. This takes effect immediately in order to preserve the property of the estate. See bankruptcy law 11 U.S.C. § 362. However, if you have a judicial lien against you for failure to pay your child support or alimony obligations prior to you filing bankruptcy, the automatic stay will not apply to that judicial lien and you will be responsible to pay that lien amount. Again, this lien amount will not be discharged in either Chapter 7 or 13. For more information on discharge of debts in bankruptcy click here.

CHAPTER 13 BANKRUPTCY FOR CHILD SUPPORT & ALIMONY

Additionally, if you are behind on your child support and/or alimony obligations, filing Chapter 13 may help.  In fact, you would be required to pay any outstanding child support or alimony payments in full through the life of your Chapter 13 repayment plan in order to receive discharge. The benefit of having your child support/alimony obligations paid through your Chapter 13 plan is that it could potentially reduce the amount that you would have to pay back to other unsecured creditors and increase the amount of credit card or medical debt that would be discharged at the end of your Chapter 13 plan.

 

Bankruptcy Law Firm in Tampa

Bankruptcy law can be very confusing and intimidating. If you are considering seeking bankruptcy protection you should contact a bankruptcy law firm in Tampa for legal advice. The bankruptcy attorneys at our firm have years of experience helping people obtain a fresh start. We have many options available that can help you successfully manage your debt and regain your financial health. Regardless, if you need help with Chapter 13 or Chapter 7 we provide competent legal advice you can trust. To see which options may be available, contact us to today to schedule a free, consultation.