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.

When you file a petition for either Chapter 7 or Chapter 13 bankruptcy, the bankruptcy court will issue a stay. This is an injunction that prevents your creditors from engaging in any further collection activities, including lawsuits, judgments and garnishments. With a Chapter 7 bankruptcy, your unsecured debts may be discharged at the end of a successful bankruptcy case. Chapter 13 operates differently. It involves a repayment plan lasting between three and five years, and it can allow you to keep more property if you qualify to file under this chapter.

Our lawyers understand how stressful and overwhelming it can be for people who are dealing with unmanageable debt, creditor harassment and filed civil lawsuits. We analyze each of our clients’ individual financial situations in order to make recommendations about the most appropriate approach to their debts. We advise our clients about whether a Chapter 7 liquidation is more appropriate or if they might want to consider a reorganization under Chapter 13. To learn more about stopping creditor harassment, you can read more on our webpage on stopping creditor lawsuits.