Foreclosure Defense
Our team of attorneys and legal professionals will assist you through your legal entanglements with care and professionalism.
WhatsNew:
Dealing With This Economy
December 3, 2011
We have been busy at the firm helping our clients deal with this difficult economy. We have had some success recently filing Chapter 11's for a few individuals with multiple properties. A recent court ruling from the Middle District of Florida eliminated a major challenge to this type of bankruptcy. We have seen a drop in the number of Chapter 7 cases compared to last year but have been advised by the foreclosure attorneys that the next waive of foreclosures in coming soon. We expect to see a corresponding increase in Chapter 7 filings. Let us know if we can help you with your financial issues.
CurrentNews:
American Airlines Files Chapter 11
December 2, 2011
The parent company of American Airlines filed for bankruptcy protection in late November, seeking relief from crushing debt caused by high fuel prices and expensive labor contracts that its competitors shed years ago. For most travelers, though, flights will operate normally and the airline will honor tickets and take reservations. American said its frequent-flier program would be unaffected.
Recent Events:
The Local Bankruptcy Scene
November 28, 2011
In the Southern District of Florida, our firm has seen an increase in the unwillingness of Chapter 7 trustees to forgo the collection of potential funds. In Florida, an individual's exemptions in bankruptcy are guided by reference to state-not federal-law. An individual is entitled to certain exemptions of personal and real property. Generally, if an individual was over their exemption limit, i.e. having certain property not entitled to exemption, trustees would generally forfeit their right as administrator of the bankruptcy estate to sell the non-exempt asset if the asset was of little value or considered "unsellable." However, our firm has observed a recent uptick in the willingness of the trustee to sell non-exempt assets worth little, seemingly because trustees do not want to lose out on the potential collection of funds. Often, the sale generates funds in an amount that does little more than pay for trustee and professional fees. If you are considering filing for bankruptcy protection, it is imperative to consult with a bankruptcy attorney who can explain your options and offer pre-bankruptcy planning to avoid these common pitfalls.
Mortgage Foreclosure Solutions
Strategies for Dealing With Foreclosure
Many people today are finding themselves facing foreclosure. We can offer several strategies for dealing with a foreclosure. A Chapter 7 bankruptcy may allow you significant time in the home with an ultimate discharge of any obligation under all mortgages. A Chapter 13 provides an opportunity to reinstate a mortgage over five years. In certain cases a Chapter 13 may allow the home owner to strip off a second mortgage. Chapter 11 may be a good option for those who don't qualify for a Chapter 13. See our separate discussions on Bankruptcy Planning and Involuntary Bankruptcies.
Foreclosure Defense
We can assist you in defending a foreclosure action. Contact us if you have been served with a foreclosure lawsuit. Make sure you do not allow a default to be entered. We can defend and make sure the lender complies with all legal requirements. A Chapter 7 filed before, during or after the foreclosure lawsuit will discharge any obligation on the mortgage.
Chapter 13
A Chapter 13 bankruptcy, or "wage earner reorganization" is available only to individuals with regular income. It requires that the debtor file a plan providing for payment to creditors over a period of up to five years. The benefits of a Chapter 13 include the ability to reinstate a home mortgage that is in default, stop IRS collection efforts while payments are made, the ability to retain non-exempt real estate and personal assets, and a broader form of discharge.
Chapter 13 may be a good choice for individuals with home mortgage problems. It allows significant time to reinstate a mortgage in default. It may allow individuals to retain investment properties and other assets that might be lost in a Chapter 7. It may be the only choice for those with too much income to qualify for a Chapter 7. Call us if you would like to discuss whether a Chapter 13 is right for you.
Dischargeability of Second Mortgages in Chapter 13
Most individuals are unaware that they may be able to discharge second and third mortgages in Chapter 13. If your home appraises for an amount less than your first mortgage balance you may be able to strip off all inferior mortgages in a Chapter 13. The second (and possibly third and forth) mortgage is considered unsecured and treated like a credit card. The lender is paid pro rata along with the other unsecured creditors and at the end of the plan the mortgage is stripped off the property. Call us to see if you qualify. We do not charge for an initial consultation.
This article is not intended as a substitute for competent legal or accounting representation, but merely as a guide to help you decide whether you need the services of a licensed attorney or CPA.