Law Office of Paul L. Urich, P.A.Orlando Filing Bankruptcy Lawyer | Florida Chapter 7 & 132024-02-22T18:10:19Zhttps://www.urichlaw.com/feed/atom/WordPress/wp-content/uploads/sites/1103196/2019/04/apple-touch-icon-75x75.pngOn Behalf of Law Office of Paul L. Urich, P.A.https://www.urichlaw.com/?p=533692024-02-22T18:10:19Z2024-02-22T18:10:19Zstigma of bankruptcy and the idea that someone must have been irresponsible to end up in a situation where filing became necessary may hold some people back from filing. While some people may be judgmental, the stigma around bankruptcy is not as severe as people sometimes assume.
Most people won't know about a filing
Technically, news about bankruptcy filings and other court matters are part of the public record. Local newspapers often print information about those who have filed, just as they print details about divorces and marriages. The vast majority of people do not read the legal section of the newspaper, if they read a newspaper at all.
Most people who interact with a filer on a day-to-day basis may have no idea that someone decided to file for bankruptcy. Even parties that do have access to someone's credit report, such as employers and landlords, typically do not place much weight on bankruptcy. Particularly when someone has reestablished their credit after their filing, the long-term impact that bankruptcy has on their personal opportunities should be minimal.
People understand financial hardship
Even in scenarios where someone's bankruptcy could put them at a disadvantage, it is possible to work around the negative impact of a bankruptcy filing. Providing an explanation to a prospective employer or landlord about the reason behind the bankruptcy could help someone connect with opportunities that the record of their bankruptcy could otherwise affect.
Parties that perform background checks when evaluating applications often give individuals an opportunity to explain blemishes, particularly if some time has passed since the bankruptcy. The bankruptcy discharge only remains on someone's record for 10 years after a Chapter 7 filing or seven years after a Chapter 13 bankruptcy.
Someone who successfully files for bankruptcy can prevent creditor lawsuits and may be able to discharge many of their unsecured debts. Realizing that social stigma is not generally a major concern in a practical sense might benefit those to struggle financially but who worry about filing for bankruptcy.]]>On Behalf of Law Office of Paul L. Urich, P.A.https://www.urichlaw.com/?p=533562024-01-16T17:44:27Z2024-01-16T17:44:27ZBankruptcy before divorce
Since financial struggles often accumulate joint debts, filing for bankruptcy before divorce may allow a couple to discharge shared debts, providing a fresh start for both parties.
Bankruptcy can also streamline the asset division process when it’s time to file for divorce. By addressing financial issues first, couples may find it easier to divide their remaining assets during divorce proceedings. Furthermore, facing financial challenges together can foster cooperation. Successfully navigating bankruptcy may strengthen a couple’s ability to collaborate on divorce-related matters.
Divorce before bankruptcy
Initiating divorce proceedings before bankruptcy allows individuals to regain financial independence sooner, as some forms of bankruptcy take years to complete. For some, finalizing divorce before addressing financial matters also provides emotional closure, allowing individuals to focus more effectively on the financial challenges.
However, it’s crucial to acknowledge that untangling financial affairs after divorce may complicate asset division. This can lead to prolonged legal processes and potential disputes over asset ownership.
Filing for bankruptcy together before filing for divorce
One potential advantage of filing for bankruptcy together before spouses go their separate ways is the opportunity to address joint and individual debts efficiently. A joint bankruptcy petition would involve a couple filing one set of official bankruptcy paperwork that includes the financial information of both spouses.
Most divorcing couples choose to file for bankruptcy together because it’s more cost-efficient and minimizes challenges that must be addressed in divorce court.
That said, it’s crucial to remember that you’re not obligated to file for bankruptcy together if you’re a divorcing couple. Suppose one spouse needs bankruptcy protection more urgently than the other. Or suppose that domestic violence is an issue in the relationship. Filing for divorce first and then leaving the decision to file for bankruptcy up to the individual newly single former spouses is absolutely an option.
There is no one-size-fits-all solution when it comes to filing for bankruptcy and divorce. The decision of how to address these two critical processes should be informed by the unique circumstances of each individual or couple. Communication, cooperation and legal counsel are vital in making informed choices that align with one’s financial and emotional well-being accordingly.]]>On Behalf of Law Office of Paul L. Urich, P.A.https://www.urichlaw.com/?p=533542023-12-28T14:36:49Z2023-12-28T14:36:49ZThe post-holiday reality
Once the holiday euphoria fades, many are left to grapple with the aftermath of overspending. Credit card statements arrive like unwelcome ghosts of Christmas past, haunting with high balances and accumulating interest. For many, the beginning of the year often brings with it not only resolutions but also the realization of the financial strain caused by holiday spending. This is the time when credit card debt becomes a daunting reality.
Consider establishing a holiday budget to help ensure this doesn’t become your reality each New Year’s Eve. Allocate funds for gifts, decorations and celebratory meals. This proactive approach can prevent impulsive spending and set the tone for a financially responsible season. You can also consider channeling your creativity into homemade gifts. Not only do these carry a personal touch, but they also come with a friendlier price tag. Furthermore, DIY presents can be just as cherished as store-bought ones.
Understanding the nuances of credit card interest rates is also paramount. Equip yourself with the knowledge to make informed financial decisions, avoiding the pitfalls of accumulating high-interest debt.
Tackling credit card debt
For those already grappling with credit card debt, consider consolidating balances onto a card with a lower interest rate. This strategic move can ease the financial burden, providing a more manageable path to debt repayment. In times of financial strain, communication is key. Reach out to creditors proactively, explaining your situation and exploring potential options. Many creditors are willing to negotiate terms to facilitate debt repayment.
If the holiday debt seems too overwhelming, consider speaking with a skilled attorney about whether filing for bankruptcy might be a good option. Especially if holiday debt is not your only significant debt-related burden, this may be a viable way forward.
As the holiday season is ending, you can strive to embrace the festive spirit without succumbing to the financial stress that often accompanies it. By taking thoughtful steps in regard to your current and future approaches, you can revel in the joy of giving without compromising your financial well-being.]]>On Behalf of Law Office of Paul L. Urich, P.A.https://www.urichlaw.com/?p=533442023-10-04T20:16:05Z2023-10-06T20:07:27ZMeans test, part one
The test contains two steps. The first part is determining if your income is too high to qualify for Chapter 7. This involves comparing your household income for the past six months with Florida's median household income. If your income falls below the state median, you can file for Chapter 7. If it's above the median, you still have a chance to get approved, but it's more a complicated procedure.
Proving you lack disposable income
Part two requires you to show that, despite your relatively high income, your expenses are too high to leave you with enough disposable income to pay off your credit cards or other debts. Your receipts and billing statements for groceries, medical copays and insurance premiums, auto payments and so on can show that you need Chapter 7 liquidation to deal with your overwhelming debts. The court will compare your expenses with both local and national cost standards and decide if you qualify.
Not the only way to handle debt problems
If you qualify for Chapter 7, you likely will have to give up many of your assets, such as your home. This is worth it for many people, but if you have the means and want to keep your home, Chapter 13 bankruptcy could be the better option for getting your debt under control. Knowing the benefits and drawbacks of each form of bankruptcy, along with other possible options for restructuring or reducing your debt load, is essential before you can make the right choice.]]>On Behalf of Law Office of Paul L. Urich, P.A.https://www.urichlaw.com/?p=533352023-10-03T19:35:56Z2023-10-04T19:30:28Zput the loan into default. This means the creditor will start collection efforts against you or sell the debt to a debt collection agency. Either of them could sue you to ask the court for an order to garnish your wages. This means your employer must withhold a portion of your earnings and send it to the creditor. In some cases, such as federal student loans in default, the creditor does not even need a court order to start garnishing your wages.
Can they take my whole paycheck?
Florida law limits how much of your salary a creditor can garnish to 25 percent of your disposable income or the amount by which your income exceeds 30 times the federal minimum wage of $7.25 per hour, whichever is less. Still, most of us would struggle to afford losing a quarter of our paychecks or even a lesser percentage.
Putting a halt to garnishment
Fortunately, there is an alternative to paying off your debts this way. Filing for Chapter 7 or Chapter 13 bankruptcy puts an automatic stay -- essentially, a pause -- on all garnishments and related litigation. The stay lasts as long as your bankruptcy case does. So, if you follow bankruptcy to completion, any existing or pending garnishment orders would become moot. You would receive the entire amount you earned during bankruptcy and afterward.
This is just one of the benefits of filing for consumer bankruptcy protection, but bankruptcy is not appropriate for every family struggling with debt. Talk with a bankruptcy attorney to learn what your options are.]]>On Behalf of Law Office of Paul L. Urich, P.A.https://www.urichlaw.com/?p=533212023-09-30T21:12:35Z2023-10-02T20:52:18Znew personal loan while in the midst of Chapter 13 bankruptcy, though it usually is trickier than normal. First, in Florida, you likely will have to get the bankruptcy trustee's approval for a loan. While the trustee is typically understanding when you need to borrow money for a necessity like housing or a car, they will probably insist that you borrow modestly -- think a used car instead of a new Corvette. But if you can show that you must take out the loan to continue making your monthly bankruptcy payments -- e.g., you need a vehicle to get to work -- the trustee will likely approve.
Borrowing money with a low credit score
Your credit score probably will present another challenge. Filing for bankruptcy will cause your score to take a big hit, and it lasts on your credit history for years. Most lenders require a credit score of at least 600, but if yours is currently below that, there are lenders out there who work with borrowers in your position. However, you will have to agree to a higher interest rate and other less favorable terms than the average borrower. The fact that you are working and earning an income should help, though.
Help getting the court's approval
The process of getting the trustee's approval is complicated and involves a lot of paperwork. Your bankruptcy attorney can help you handle this correctly so you can get the loan you need.]]>On Behalf of Law Office of Paul L. Urich, P.A.https://www.urichlaw.com/?p=533262023-10-02T16:05:46Z2023-10-02T16:05:46ZWhy is my monthly bill rising?
Unlike an auto loan or (most) mortgages, the interest rate on a credit card balance is not locked in at a certain percentage. Such interest rates generally are high to begin with, even if you started out with a relatively low introductory rate. Now, the high prime rate has hiked the average interest rate on credit cards to 22 percent, up from 16 percent in February 2022.
Therefore, if your balance is high enough, you could be facing hundreds or thousands of dollars more per month just in interest payments. Your plans to pay off your credit cards within the next few years could be hitting a major speed bump.
Find out how to get out of the credit card debt cycle
Fortunately, if your credit card debts have become overwhelming, you don't have to figure out a solution by yourself. You could have several options for reducing or eliminating your debt and restoring yourself to financial stability. A conversation with a bankruptcy attorney can lay out your options.]]>On Behalf of Law Office of Paul L. Urich, P.A.https://www.urichlaw.com/?p=526332023-05-04T09:05:16Z2023-05-09T19:04:26ZWith an automatic stay
As soon as someone submits paperwork to the courts to initiate the bankruptcy process, the courts extend the protection of an automatic stay. The state prevents collection activity and allows someone to seek the dismissal of pending lawsuits. Any upcoming foreclosure proceedings would likely be subject to the automatic stay, giving someone an opportunity to prepare a response or improve their circumstances. Someone can buy enough time with a bankruptcy filing to properly respond and protect their home.
With an improved budget
When someone files for Chapter 13 bankruptcy, they can renegotiate their debts with their creditors, which allows them to potentially modify their mortgage in a favorable manner. Even if their lender does not cooperate with that process, renegotiating monthly obligations for a creditor repayment plan can make their finances predictable and help them prioritize their mortgage each month. The discharge of someone's debts after the end of the bankruptcy process will also make it much easier for them to consistently pay their mortgage on time.
Those who want to protect what they have invested in their homes but who recognize that they can no longer balance their monthly budget might benefit from considering personal bankruptcy in addition to other financial solutions. Seeking legal guidance and filing for bankruptcy at the right time could potentially help someone avoid foreclosure and other aggressive collection efforts.]]>On Behalf of Law Office of Paul L. Urich, P.A.https://www.urichlaw.com/?p=526352023-05-05T14:42:03Z2023-05-05T14:42:03ZAre you struggling with overwhelming debt? Perhaps you are also considering filing for bankruptcy? You may wonder if Chapter 7 bankruptcy is the right choice. Chapter 7 bankruptcy is a lawful process that permits individuals to discharge most of their unsecured debt, like medical bills and credit card debt, and start fresh.
However, it’s not the right solution for everyone. Like any other legal or financial decision, the process has a lot to consider. This article highlights everything you should know about Chapter 7 bankruptcy to help you make an informed decision.
It’s excellent for debt discharge
Chapter 7 bankruptcy can discharge most unsecured debts, including credit card balances, medical bills, personal loans and payday loans. This means you’ll no longer be responsible for paying these debts back, and your creditors will be prohibited from trying to collect them from you. Unlike Chapter 13 bankruptcy, which requires an individual to repay some or all of debts over three to five years, Chapter 7 bankruptcy doesn’t involve a repayment plan.
It offers you a fresh start
The Chapter 7 bankruptcy policy can provide you with a fresh start financially. However, you should know that bankruptcy can damage your credit score and remain on your credit record for up to 10 years – although most people sufficiently recover from the damaged credit in just one or two years.Once your debt is discharged, you can start rebuilding your credit and finances without overwhelming debt – and the odds are good that will lead to faster credit recovery than your current situation.
It may involve asset liquidation
The Chapter 7 bankruptcy policy may not be your best choice if you own many valuable assets. This is because it involves liquidating your non-exempt assets to pay back your creditors. Non-exempt assets can include property, vehicles and valuable personal belongings.Furthermore, not every person is eligible for Chapter 7 bankruptcy. You’ll need to pass a means test to determine if your income is low enough to qualify. If you have too high income, you may be titled to file for Chapter 13 bankruptcy instead.Chapter 7 bankruptcy can be a powerful tool for individuals struggling with overwhelming debt. If you are considering bankruptcy, you are better off carefully weighing the pros and cons to determine the best action for your financial situation.]]>On Behalf of Law Office of Paul L. Urich, P.A.https://www.urichlaw.com/?p=526302023-05-04T08:58:17Z2023-05-04T08:58:17ZThere are many exemptions available
The most important thing to keep in mind is that there are a lot of different exemptions you can use. The goal is to help you get back on your feet so that you can stabilize your finances and thrive moving forward. For this reason, you may have exemptions available for assets including your home, your furniture, family heirlooms and much more. Essentially, you will only risk the liquidation of assets that you don’t need. That which you do need should stay with you.
An example of this could be if you have a pickup truck that you use for work as a contractor. You need the truck to move your tools from job to job. You plan to continue working after you file for bankruptcy, and you’re just hoping that the bankruptcy will eliminate some debt and make things more affordable. In a case like this, your pickup truck will likely be exempt, along with the tools that you use for work. But say you have a second vehicle. It’s a sports car, which cost $100,000, and you only use it to go to the track on the weekends. You’d (most likely) have to liquidate that type of asset.
Considering your options
More than 90% of individuals who use Chapter 7 bankruptcy get to retain all of their assets. You won’t have to worry about losing what you need and – very likely – won’t need to worry about losing anything at all if you file for Chapter 7 bankruptcy protection.
If you’ve been putting off bankruptcy because you were worried about losing everything you own, don’t be. Take the time to look into how the process works and all of the different legal options that you have available and seek legal guidance to make truly informed decisions as you seek to resolve your debt.]]>