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Debtor does not have to pay creditors in Chapter 13

Florida residents with overwhelming financial obligations may think that Chapter 7 is the only way that they can get out of debt. In reality, Chapter 7 liquidation bankruptcy is just one option for those who have more debt than they can afford to repay. Chapter 13 bankruptcy can allow a debtor to repay some or all of the owed obligations without a need for the trustee to sell off non-exempt assets.

A person must have regular income in order to obtain debt relief under Chapter 13. During the Chapter 13 bankruptcy process, a debtor develops a plan to pay back a portion of the obligations over a period of three to five years. There is no minimum repayment amount other than the requirement that creditors get at least as much as they would have under Chapter 7. Chapter 13 also allows the debtor to repay legal fees over the three-to-five year period.

Ending deficiency lawsuits filed by creditors

If you have recently gone through a repossession or a foreclosure in Florida, you may believe that your creditor will not come after you any further. Unfortunately, if you owe a deficiency above the value of the car that was repossessed or the home that was foreclosed, the law allows your creditors to file deficiency lawsuits against you.

Even when creditors are in possession of the property that their interest was secured against, they may still try to secure payment from you for every dime you owe. While it is possible to file for a debt modification, many of the providers are fly-by-night operations, and debt modification programs are far more expensive than instead choosing to file for protection under the bankruptcy code.

Husband and wife forced to keep old car in Chapter 13 case

Floridians who are considering filing for Chapter 13 bankruptcy protection may want to take note of a recent case decided in the U.S. Bankruptcy Court for the Eastern District of North Carolina. In the case, the debtors were not allowed to surrender their 15-year-old vehicle with high miles to the secured lender.

The husband and wife had purchased a 2001 car with 144,000 miles on it five months before filing for Chapter 13 bankruptcy. The secured lender had perfected its secured interest in the car. Not long after the couple filed for Chapter 13 bankruptcy, the car started having mechanical issues. When the state would not pass it for its inspection, the couple were unable to register the car and were unable to drive it.

Why Do So Many Baseball Players Go Bankrupt?

Many baseball players' professional careers begin in Fort Lauderdale--and end in bankruptcy. To fans, this is unbelievable. We wonder how players could have squandered their salaries. Yet it happens all the time. Jose Canseco made $45 million in his career and later declared bankruptcy. Curt Schilling made $112 million and went broke. And it happens quickly. A report on mlb.com estimates that 70 percent of foreign-born Latino players face serious money problems within four years of retiring.

In some cases, players simply waste their money on expensive cars and homes. However, this is by no means the norm. Many are bilked out of their earnings by untrustworthy financial advisers at reputable firms. Others spend their savings on family and friends. "If there's one consistency [with these players]," one researcher noted, "it was, 'I couldn't say no to family.' So you've got some really difficult human situations. Compassion situations."

Yet even after they lose their money, players continue to make financial missteps. Often they give up their assets--even though they don't have to.

Understanding debt management and bankruptcy

Many Florida residents are struggling with unmanageable amounts of debt. They may be using credit cards to pay the minimums on yet other credit cards, have debt collectors calling them, be on the verge of eviction and other issues. A person who is in this type of situation may benefit by filing for bankruptcy protection.

Bankruptcy is available in order to help people to get a fresh start. When people are simply unable to pay their bills, it may be an option to consider. They need to know the type of bankruptcy that would work best for them. Chapter 7 bankruptcy is a liquidation proceeding. In this type of bankruptcy, the person's non-exempt assets are liquidated in order to repay creditors. Since a large number of assets are exempt under Florida law, many people are able to keep most or all of what they own. At the end, most of the debtor's unsecured debts are discharged, meaning that creditors can take no further action in order to try to collect them.

Keeping debt collectors honest

When Florida residents charge items on a credit card, it is their responsibility to pay off what is owed. It is also the responsibility of debt collectors to make sure that obligations are repaid in a timely manner. While most people believe that debt collection agencies are legitimate businesses, their methods of getting the money are what come under scrutiny. Those who are receiving phone calls or letter from debt collectors have tactics at their disposal to ensure that they are treated properly.

First, when debtors know their rights, it makes it harder for a debt collector to use threats or other illegal tactics to compel payment. If a debt collector is rude or acting in an illegal manner, it is important to document when this occurs. Without documentation, it may be difficult or impossible to prove that harassment took place.

Student loan debt refief scams proliferate

Many recent Florida college graduates are attempting to deal with their burden of student loan debt, and they are sometimes finding themselves preyed upon by unethical companies that promise debt relief but deliver only more economic harm. These organizations skirt the law, sometimes straying into fraud in their attempt to take advantage of needy consumers.

These firms habitually lure customers in with targeted ads on search engines. They use government logos and other misleading information to masquerade as an official site. One of their most common techniques is to promise enormous reductions in the student loan debt through the utilization of their exclusive techniques. They attempt to obscure the fact that the best way to handle debt relief is through the Department of Education, which provides the service for free. Instead, they dun the unsuspecting customer with any number of up-front fees and service charges. These services the debt relief company promises can be easily obtained at no cost to the debtor, but these firms charge exorbitant prices and offer conflicting information in an attempt to baffle the consumer.

Can I use a credit card to pay for my bankruptcy legal fees?

Filing bankruptcy represents a fresh start, wiping out or reorganizing long-overdue debts. High-interest credit card balances are the most common and burdensome for those struggling to make ends meet.

Selecting the right attorney should represent a first step towards a solution, not a continuation of the problems that plagued you for years.

What to do before filing for bankruptcy

For Florida residents who cannot repay their debts, bankruptcy can be a way to get a financial fresh start. One of the first things they should do is to make sure that they have explored all of their other options such as credit counseling and debt consolidation.

After they have determined that filing for bankruptcy is a viable option, they should look at what type. Most individuals choose either a Chapter 7 bankruptcy or a Chapter 13 bankruptcy. A Chapter 7 bankruptcy will allow a debtor to discharge most unsecured debt, but it requires a liquidation of non-exempt assets. Chapter 13 is a type of restructuring where obligations are repaid over a period of three to five years pursuant to a court-approved plan. There are different eligibility requirements for each chapter.

Why millennials shouldn't count on bankruptcy for student debt

According to a report by the Federal Reserve Bank of New York, Americans owe more in student loan debt than all the credit card debt combined. That is a huge financial epidemic. One that is felt heavily by millennials, many of whom are facing the harsh reality of the job market. While credit card debt and other types of personal debt can sometimes (but first a debtor must qualify) be discharged through Chapter 7 bankruptcy, this is not true for all types of debt. Millennials may think this is an easy fix for their student loan problem. However there is just one problem.

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