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Fort Lauderdale Bankruptcy Law Blog

Delinquent payments big or small cause huge issues

There are many reasons why people fall behind on bills, and many of them are no fault of borrowers. Unfortunately, however, creditors throughout the state of Florida and beyond are typically unconcerned about why people fail to pay off debts or how small those debts actually are. Understanding how and why delinquent payments can impact people’s credit ratings is important to preventing serious credit issues in the future.

A major problem for many people is that they are not familiar with the information listed on their credit reports, and therefore do not know when negative actions appear. Everything from unpaid credit cards to medical expenses can appear on a credit report, and sometimes a credit rating may reflect inaccurate information. A person’s payment history is the most significant factor in determining his or her credit score, so it’s worth checking that one’s credit report is accurate and ding-free.

An introduction to Chapter 13 bankruptcy

Many Florida residents understand that they need help to address serious financial challenges, but they may not always know what kind of assistance for legal options they are entitled to. Filing for bankruptcy is one option that has proven to be very successful for countless Americans throughout the years, but different forms of bankruptcy can be more helpful to people under specific circumstances.

Chapter 13 bankruptcy differs from Chapter 7 bankruptcy in several ways, one of them being that a trust fund is established in order to pay off creditors. A person known as a trustee is charged with managing the trust, and enforces the terms of the bankruptcy plan by distributing trust funds to the appropriate parties. People that file for Chapter 13 agree to pay into the trust fund and follow the terms of the bankruptcy agreement, while being released of some of their liability as debtors.

Florida undermines personal bankruptcy protections

Filing for bankruptcy gives people the opportunity to dispel large amounts of personal debt. The process also ensures that filers are not pursued for those debt liabilities once the bankruptcy is complete. Therefore, creditors that continue to go after borrowers for debts already discharged in bankruptcy can be accused of breaking Florida bankruptcy law policies.

In response to the national recession and subsequent high unemployment rate in the state, Florida barrowed over $3 billion in federal funds to cover unemployment claims. As a result, major changes were made to the state’s unemployment program to account for the state’s debt. Governor Rick Scott, along with legislatures, increased eligibility requirements and eliminated some unemployment benefits. Beyond that, aggressive efforts were taken to recoup overpayments, which included enforcing wage garnishments and using collection agencies.

Could student loans be dispelled through personal bankruptcy?

Millions of Americans are struggling with major financial issues, and unpaid student loan debt is a major part of the problem for many. Making the decision to attend a Florida university is often based at least partly on the prospect of improving one’s ultimate earning potential, but too many college graduates are learning the hard way that employment factors and staggering student loan costs are keeping them financially strained.

The chairman of the Senate panel on education is introducing a piece of legislation that many are regarding as a glimpse at a larger, more sweeping policy on federal higher education. In addition to holding higher education establishments accountable for the employment and dropout rates of their students, the proposed bill would make college more affordable and allow some student loans to be discharged through Chapter 13 and Chapter 7 bankruptcy.

The facts about inheriting financial challenges

Adults with aging parents are often confronted with a number of financial and emotional difficulties, as adult children may have to take on the role of caregiver as well as manage their parents’ personal affairs. The situation can become even more difficult when elderly parents have accumulated unpaid bills and/or a considerable amount of personal debt. Here are a few key concepts that Florida families should keep in mind when approaching the debts of a recently deceased parent.

Creditors will typically pursue a deceased person’s estate to recuperate moneys owed. As a result, the amount of inheritance that a son or daughter receives can be affected by the debt collection process. However, adult children are not normally held directly responsible for repaying their parent’s debts after they pass away. For instance, adult children should not be subjected to harassment from collection agencies and are not liable for their deceased parent’s outstanding credit card debts unless their name is on them.

Why filing for bankruptcy in FL is so important to one man

Legal troubles can quickly result in financial difficulties, as individuals are often forced to commit a great deal of their financial resources to defending themselves in court over an extended period of time. It’s for that reason that the opportunity to file for Chapter 13 or Chapter 7 bankruptcy in the state of Florida is taken so seriously by some of those confronted with the prospect of conviction.

Prior to the beginning of his trial over accusations of insider trading, one man understood that Goldman, Sachs, the investment bank would cover his legal expenses as long as he was cleared of all charges. Because the individual was a bank board member, Goldman is obligated to pay for his legal services through the entirety of his case; though, if his appeals bid fails and his conviction stands, the man will be forced to reimburse Goldman for around $50 million in legal fees.

One manís Chapter 7 didn't tell whole story

The process of filing for bankruptcy can be long and complicated in some cases. In fact, anyone considering bankruptcy in Miami, Florida, is advised to first consult with an experienced bankruptcy law attorney in order to determine whether Chapter 7 bankruptcy is the best option for them, as well as guarantee that the process is completed correctly. One case illustrates how failing to fully disclose the facts about one’s financial situation can seriously impact your personal bankruptcy case.

In order to proceed with filing for Chapter 7 bankruptcy, an individual is required to accurately cite the full extent of his or her debts. A list of assets is compiled and made available to the public. Failing to fully disclose one’s property can equate to bankruptcy fraud in some cases, potentially resulting in imprisonment and/or hundreds of thousands of dollars in federal penalties. One prominent restaurant investor is now having to answer for his Chapter 7 bankruptcy claims, since it has come to light that he failed to note owning a portion of several restaurants.

Bankruptcy: the true cost of medical bills

For the countless Miami, Florida, residents contending with substantial medical-related debts, the gravity of the issue is well understood. In fact, it’s no surprise to many Americans that financial challenges stemming from unmanageable medical bills account for a huge percentage of Chapter 7 bankruptcy cases filed every year. That is why seeking the advice of a trusted bankruptcy law attorney in the face of insurmountable credit card debt and medical costs can go a long way to ensure one’s financial security and peace of mind.

According to the CDC, the increased effectiveness of prescription medications in treating many chronic medical conditions like diabetes and hypertension is contributing to the financial difficulties of millions of people across the country. Almost 30 percent of individuals that participated in one recent study admitted to opting out of taking their medication because they couldn’t afford it. Interestingly, a little more than 20 percent people with medical coverage made the same admission. It is also estimated that the vast majority bankruptcy filings are a result medical debt, according to another report.

Debt relief scheme forces families into foreclosure

Personal debt and serious financial challenges can be extremely difficult to manage on a practical and emotional level. For the thousands of people across the state of Florida and the entire country confronted with issues such as harassment from collection agencies, the need to eliminate debt quickly becomes desperate in many cases. Unfortunately, the eagerness of people to address their financial issues fast is exploited by illegal operations out to take advantage of families in their most vulnerable state. One incident of a family being driven into foreclosure by a scam serves as a sobering reminder that individuals should always seek the sound legal counsel a trusted bankruptcy attorney before committing themselves to any debt relief plan.

The man responsible for forcing his victims into foreclosure has been tried and sentenced for wire and bank fraud. Not only will he be forced to pay over $300,000 in damages but he also faces a five-year prison sentence for illegally operating as a mortgage company.

Late-stage mortgages resulting in major financial challenges

In order to understand the nature and full implications of the financial challenges faced by millions of Americans throughout the state of Florida and beyond, it’s important to look at the economic trends and factors of the past and present. For older Americans currently facing foreclosure and/or personal bankruptcy, the findings of several recent studies point to reasons why so many are now having such a hard time staying afloat after retirement.

According to recent information provided by the Census, fewer and fewer young people are choosing to buy homes, while the recession failed to deter the majority of older Americans. That is not to say, however, that senior citizens across the country are not accumulating substantial amounts of personal debt as a result of homeownership. According to the Consumer Financial Protection Bureau, one of the reasons that retirement-age Americans continue to maintain mortgages is that it has become increasingly common in recent years to borrow against home equity in the face of financial difficulties. Beyond that, a significant number of home loans were refinanced in the past decade.

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