Deficiency lawsuits and how to make them go away

After Florida consumers see their homes foreclosed or their cars repossessed, they are often shocked when their creditors still come after them for the deficiency amounts that they owe. If you are being harassed by creditors for deficiencies owed on repossessed or foreclosed property, you might not know what to do about the situation.

Under the law, creditors are allowed to go after you until they receive everything that you owe to them even after they have seized their collateral. They might file deficiency lawsuits against you in court in order to collect. While there are debt modification programs and companies, many are not reliable, and none are protected by the government. If you try debt modification, you run the risk of the company taking your debt payments and disappearing.

Options you might want to consider include Chapter 7 or Chapter 13 bankruptcy. When you file for bankruptcy, the court issues an injunction against your creditors ordering them to stop all collection efforts. Bankruptcy can stop lawsuits, garnishments, annoying phone calls and other harassing behaviors immediately.

At our firm, our lawyers understand the stress that our clients face when they are being harassed by creditors. We work closely with each client to determine the approach that might work best for them. We help with filing the petitions and assist our clients with gathering their needed documents so that their schedules are completed correctly. After the bankruptcy cases are filed, we then work to help our clients complete them successfully so they can have fresh financial starts through discharges of their debts. If you would like to learn more about deficiency lawsuits and how to stop them, you might want to review our stop creditor lawsuits page.