How can the Alvarez Law Firm help with bankruptcy?
Financial problems can cause extreme frustration and stress, and in today’s economy, affect individuals and families from all walks of life. As an experienced Orlando Florida Bankruptcy attorney, I understand the burden of financial strain that our clients experience. My firm understands each client has different needs, and my priority is to address each client’s specific debt-relief goals. Every client is important to me, and I take pride in partnering with my clients and educating them on how the bankruptcy process will affect them and their set of circumstances. I am approachable and I am here to assist you.
How do I know when to file?
Typically, the most difficult part of the bankruptcy process is deciding whether or not to file. Bankruptcy can be a stressful and emotionally draining process, but finding a good lawyer that will take the time to explain the process and what to expect in a bankruptcy is key. A person can be considered “bankrupt” when their expenses exceed their income and they are experiencing financial hardship. What most people do not understand is that once you file for bankruptcy, the U.S. Bankruptcy court has the authority to perform a financial analysis of all your financial transactions.
What is Chapter 7 bankruptcy?
Chapter 7 cases are commonly referred to as straight bankruptcy or liquidation cases, and may be filed by an individual, corporation, or a partnership. A Chapter 7 bankruptcy case does not involve the filing of a plan of repayment as in Chapter 13. Instead, the bankruptcy trustee gathers and sells the debtor’s nonexempt assets and uses the proceeds of such assets to pay holders of claims (creditors) in accordance with the provisions of the Bankruptcy Code. Part of the debtor’s property may be subject to liens and mortgages that pledge the property to other creditors. In addition, the Bankruptcy Code will allow the debtor to keep certain “exempt” property; but a trustee will liquidate the debtor’s remaining assets. Accordingly, potential debtors should realize that the filing of a petition under Chapter 7 may result in the loss of property.
What is Chapter 13 bankruptcy?
A Chapter 13 bankruptcy is also called a wage earner’s plan. It enables individuals with regular income to develop a plan to repay all or part of their debts. Under this chapter, debtors propose a repayment plan to make installments to creditors over three to five years. Chapter 13 permits individuals to keep their property by repaying creditors out of their future income. It is not available to corporations or partnerships. After completion of payments under the plan, Chapter 13 debtors receive a discharge of most debts.
How does a chapter 13 affect the procedure for foreclosure?
Foreclosure is the legal proceeding in which a bank or other secured creditor sells or repossesses a parcel of real property (immovable property) due to the owner’s failure to comply with an agreement between the lender and borrower called a “mortgage” or “deed of trust”. Commonly, the violation of the mortgage is a default in payment of a promissory note, secured by a lien on the property. When the process is complete, it is typically said that “the lender has foreclosed its mortgage or lien”. A Foreclosure by Sale ends in the posting of a sign advertising the auction of your home on the sale date.
The only ways to stop a foreclosure are full payment of the arrearage, or the filing of a Chapter 13 bankruptcy. Full Payment: If you are able to obtain and tender the full amount of your arrearage, including fees and costs, you can stop the foreclosure of a standard residential mortgage. Most people lack the money to make full payment. This process stops the foreclosure and allows you to repay your arrearage over a three-to-five year period. The arrearage is paid through a court-appointed official, while you resume your regular monthly payments to the bank in order to keep your home. A Chapter 13 can be filed at any time prior to the law day or sale date, and it is often the only avenue to save your home.
In the Middle District of Florida the Bankruptcy court has adapted a modification process that can be requested through a bankruptcy case.
The Court acknowledged that acquiring a modification from your lender was a complicated and long drawn out matter. In an effort to facilitate and streamline this process the Court now provides a modification through the bankruptcy case through a process called the Mortgage Modification Mediation Portal. In this process you can petition the court to require the lender to expedite a modification. Approximately 80 percent of these requests materialize into a modification. This process has been recognized as a viable option for homeowners who wish to retain their homestead property.
Every client is important to me, and I take pride in partnering with my clients and educating them on how the bankruptcy process will affect them and their set of circumstances. I want each client to leave my office feeling comfortable in knowing their legal options. I am here to assist you.