Central Florida’s Top Law Firm for Filing Chapter 13 Bankrupty
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Orlando Chapter 13 (Reorganization) Attorney
The most important thing about a chapter 13 case is that it will allow you to keep valuable property especially your home and car which might otherwise be lost, if you can make the payments which the bankruptcy law requires to be made to your creditors. In most cases, these payments will be at least as much as your regular monthly payments on your mortgage or car loan, with some extra payment to get caught up on the amount you have fallen behind.
You should consider filing a chapter 13 in Orlando plan if you:
- Own your home and are in danger of losing it because of money problems.
- Are behind on debt payments, but can catch up if given some time.
- Have valuable property which is not exempt, but you can afford to pay creditors from your income over time.
- You have a second mortgage that may be eliminated if your house is worth less than what you owe on your first mortgage.
You will need to have enough income during your chapter 13 case to pay for your necessities and to keep up with the required payments as they come due.
A recent survey on government web sites purporting to offer advice and information to consumers facing foreclosure found that most of these web sites do not mention bankruptcy at all, despite the fact that Chapter 13 bankruptcy can get consumers caught up with their payments and even eliminate 2nd mortgages on ‘underwater’ homes.
These results shouldn’t surprise you. After all, banks don’t want you to file bankruptcy. Lenders hate it when borrowers file for bankruptcy because it puts you, the consumer, in the driver’s seat, giving you rights that the bank is now forced to deal with. Unfortunately, most people don’t know that an Orlando Chapter 13 bankruptcy can cancel out (known as ‘stripping the lien’) your 2nd mortgage as long as the appraised value of your home is lower than what you owe on the 1st mortgage. Allow me to explain.
Thousands of residents in Orlando, Kissimmee, Sanford, and all parts in between, are now ‘underwater’ on their home mortgages, and they are looking for a way out. If you have decided to walk away from your home because you feel you have no other options, schedule a FREE consultation with me first. What if you could effectively wipe out $50,000 / $100,000 or $200,000 of what you owe on your mortgage? Wouldn’t it be much easier to save your home if you only had a 1st mortgage and no other payments? Also, when the market turns around, think of all the equity you could build back up years from now? Chapter 13 bankruptcy in Orlando Federal Middle District may help you do just that.
With declining real estate prices in the greater Orlando area, homeowners who have taken out a 2nd mortgage on their homes are facing financial difficulties that can be particularly hard to deal with. In most cases, a 2nd mortgage drastically reduces your home’s equity, often leaving no equity at all! But I’m here to tell you, there is hope!
In the case of 2nd mortgages, if the value of the property falls below the loan amount of the 1st mortgage, current bankruptcy law allows judges to eliminate the 2nd mortgage. If the courts remove this 2nd mortgage, this is known as ‘stripping the lien’.
Chapter 13 Lien Stripping Example:
Why File Chapter 13?
Clients that come to our offices in Orlando and Kissimmee sometimes are not eligible for a Chapter 7, so a Chapter 13 may be more beneficial. We go through all the options and talk about the pros and cons of both. Chapter 13 cases are a specialty of ours. We file them for a variety of clients for a variety of reasons. Many clients wonder what the advantages are of filing Chapter 13 bankruptcy if they will be required to repay their creditors? Here are some reasons why filing for Chapter 13 is an optimal choice for certain clients.
- Keep valuable property. If you are behind on your mortgage payments, Chapter 13 will allow you to gradually get caught up on your payments and save your home from foreclosure. We may also be able to obtain a loan modification for you.
- Interest rate. In the non-bankruptcy world, interest on credit cards can run as high as 23%! When creditors receive their interest on claims in bankruptcy, there is no accrual of interest! Everything stops in its tracks! For example, if you have close to $40,000 in credit card debt, paying off the debt in 5 years will allow the credit card issuer to get $28,000 in interest alone. Through a Chapter 13 bankruptcy, you may end up paying back zero to creditors if it is determined you do not have any disposable income to pay creditors.
- Some of your Creditors May Lose Out. Only the creditors who file a timely proof of claim will share in the Chapter 13 bankruptcy payments. Clients will receive a full discharge of debt owed to creditors who do file a proof of claim in a Chapter 13 bankruptcy case.
- No Debt Collector Calls. Say goodbye to creditor calls. During a bankruptcy, nobody is allowed to communicate with you or contact you in any way. They have to go through us before they can get to you.
- Ability to Strip Second Mortgages. If your first mortgage is more than your property is worth, we may be able to eliminate the second mortgage form your house. Now that is major. Ask us about it.
- We Can Modify Your Student Loans. June of 2019, our local federal district passed a new procedure named the new Student Loan Modification program for the Middle District of Orlando. Just think, finally, your student loan can be modified, and it is only available in a Chapter 13.
- Reduced Stress. Consolidating all creditors in a single proceeding and having the law protect you in a court ordered repayment plan will reduce any further stress involved with creditors and collection attempts. Chapter 13 will allow you to send one monthly check to the bankruptcy trustee. Depending on what is negotiated with creditors, these payments are oftentimes lower than the original debt.
Filing Chapter 13 in Orlando
Usually there are two options for consumers for an Orlando Personal Bankruptcy: Chapter 7 or Chapter 13. There are many differences between the two types of bankruptcies. If consumers have a consistent source of income, here are several reasons why filing Chapter 13 in Orlando may be beneficial:
- You can dismiss the case at any time or even convert it to a Chapter 7.
- You can refinance or sell a house during the plan.
- You can stretch out your payments for a car or other secured debt.
- You can modify a plan if income changes or you decide to give up a house or a car.
- There are more debts that can be discharged – including some divorce payments and damages for malicious and willful acts.
- You can cure a tax problem or a Domestic Support Obligation (child support or alimony) over 60 months.
- A Chapter 13 will save a house from foreclosure as long as you can make the payments.
- You can challenge the costs added to your mortgage by the lender.
- You can strip a wholly unsecured 2nd mortgage.
- You won’t lose non-exempt property.
- Amount owed on your car can be devalued to current value if you’ve owned it for more that 910 days.
- Trustees want the plan to succeed and will work with you to get it confirmed.
- Depending upon your income, a Chapter 7 case can be challenged by the US Trustee, but a Chapter 13 cannot be challenged.
During your FREE CONSULTATION, an Orlando bankruptcy lawyer like me will help you breakdown all the misconceptions of filing Chapter 13 and Chapter 7 in Orlando and discuss the pros and cons of both bankruptcy options. We will then work together to determine which bankruptcy type may be most beneficial for you, taking into consideration your specific set of circumstances. This consultation is FREE. All I ask is that you allow me the opportunity to provide you with the information you need to make an informed decision.