Tag: Chapter 7 Miami bankruptcy attorney

Bankruptcy Law

What Happens When You File for Bankruptcy? 

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The bankruptcy process is meant to give consumers who are struggling financially a fresh start. However, many consumers hold off due to the fear of filing for bankruptcy, even if it is the best option. Bankruptcy cases have both positive aspects, as well as negative ones, that go along with beginning and successfully finalizing a case. It is important to understand how a bankruptcy case works before moving forward with filing so that the person filing knows what to expect.  

Automatic Stay 

One of the most positive aspects of proceeding with a consumer bankruptcy case is the automatic stay that accompanies the filing. As soon as a Chapter 7 or Chapter 13 bankruptcy case is initiated, an automatic stay of all collection efforts against the filer is issued. What this means is the consumer’s creditors are temporarily blocked from moving forward on collecting any outstanding debt. This stay also stops wage garnishments, foreclosures, or completion of legal collections cases. The purpose of the automatic stay is to give the consumer a chance to work with the bankruptcy trustee on determining how various debts should be handled. A creditor can file a request to continue collection even though an automatic stay has been issued, but they can only continue if the request is granted.  

Medical Debt

What Are the Options When You Can’t Pay Medical Debt?

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Medical debt presents a major problem for so many in South Florida. The cost of receiving medical care, even with health insurance, can push a financially stable person into debt. Escaping that debt can be a struggle. The coronavirus (COVID-19) pandemic has pushed countless consumers further into debt, and with a second wave of the virus likely, the problems could be far from over.

Medical debt is the leading cause of approximately two-thirds (2/3) of all consumer bankruptcies filed. According to a recent poll from U.S. News of approximately 1,500 Americans, just under 40 percent of them reported having serious trouble with managing their medical bills with at least one of these bills being sent to collections. Within this group, seven percent have been sued for collection of their medical debt. Six percent of them said they filed bankruptcy due to medical debt. 

Credit Card Debt

How to Negotiate Your Credit Card Debt

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When someone owes a large amount of money on credit cards, the possibility of ever paying down that balance can seem impossible. Simply making the minimum monthly payments can be a struggle, as well, especially during the current pandemic. However, credit card companies would rather work with the consumer directly in lieu of the account going into default, forcing them to pursue a collection on the amount owed. It is possible to negotiate directly with the credit card company on the amount owed in certain circumstances.  

During the coronavirus (COVID-19) crisis, certain credit card companies are working with consumers who are behind on payment. This assistance is temporary in nature but can include pausing payments, reducing interest rates, waving late fees, and putting a pause on interest charges.  

Debt Collection

How to Avoid Resetting the Clock on Old Debt

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Once a debt is past a certain age, collecting on that debt through legal channels is barred under Florida’s statute of limitation laws. However, if the person owing the debt is not careful, the debt can be reset, making the amount owed legally collectible once more. Knowing what to do to prevent that from happening is important for this reason.

Understanding the Statute of Limitations

Every state has a set of laws that governs how long a person or entity has to bring a legal claim on any given issue, including debt collection. If a claim is brought after that period has passed, the claim will likely be barred. When it comes to debt collection, this timeline is five years from the date the debt began for written contracts, including personal loans. If the debt is one with a revolving account, including credit card debt, the statute of limitations is four years.

Debt Relief

Debt Relief Services: Helpful or Harmful?

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Although filing for bankruptcy can provide considerable relief to those who are facing insurmountable debt, bankruptcy is not always the best choice for everyone. While some may not qualify for bankruptcy, others may wish to use an alternative solution to solve their debt problems. This is where debt relief programs come in, claiming to help consumers negotiate with their creditors and provide a solution to settle the debt.

However, is it safe to use a national debt relief organization to resolve your debts? While some report positive experiences with these companies, others (many others) have reported negative experiences that resulted in them spending more money in the long run. Also, many consumers have been taken advantage of by debt relief companies that ended up collecting fees without actually providing any debt relief services.

Coronavirus, COVID-19, Financial Advice

When You Should Use Your Emergency Fund

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Financial experts recommend that consumers put away a little money every paycheck towards an “emergency fund.”  This money is meant to cover the ‘unexpected expense,’ whether that be a car repair, medical bill, or essential home repair. With the current coronavirus (COVID-19) pandemic and many people losing their jobs, it may be time to utilize your emergency fund.

Financial Hardship

One of the most common circumstances where a person would utilize their emergency fund is in response to financial hardship. The stimulus funds offered by the CARES Act helped for a short period of time, and many landlords, mortgage holders, credit card companies and other creditors have been willing to work with individuals who are struggling to pay their bills as a result of this crisis. However, even with that help, a person may still need to take some money from their emergency savings to pay for bills that need paid. Once your income returns, then begin replenishing the money taken from savings.

Coronavirus, COVID-19, student loan debt

Tips for Keeping Student Loan Debt Under Control During Covid-19

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Student loan debt was already a financial burden for many Americans, but the COVID-19 crisis has made it worse. It helps to understand what options are available for borrowers who are struggling to keep up with their student loan debt during this time of crisis.   

Federal Assistance and Forbearance

In March 2020, Congress passed the Coronavirus Aid, Relief and Economic Security (CARES) Act in light of the growing pandemic. The CARES Act includes certain provisions that lighten the burden carried by student loan borrowers. As of March 13, 2020, most federal student loans were put on administrative forbearance which means no payments were due, beginning March 13, 2020 and ending September 30, 2020.

Bankruptcy Law, Coronavirus, COVID-19, Debt Relief

How Has the Coronavirus Affected Bankruptcy Filings?

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Even though unemployment filings have skyrocketed, and countless businesses have been struggling during the coronavirus pandemic, bankruptcy courts have not been flooded with new cases- yet.

When compared to bankruptcy filings in April 2019, there were 47 percent fewer consumer bankruptcy filings in April 2020, according to the American Bankruptcy Institute (ABI).

Debt Relief, Medical Debt

How Coronavirus (COVID-19) Testing Could Trigger Medical Debt

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The coronavirus has many people worrying about what will happen if they contract the virus. Now that the virus has spread to parts of the U.S., Americans are concerned about whether they should get tested for the coronavirus if they experience flu-like symptoms. Since this virus is relatively new and not completely understood, its testing may not be covered by private health insurance. Out-of-pocket medical costs can cost patients thousands of dollars, if the testing is not covered under their health insurance plan.

Florida businessman, Osmel Martinez Azcue reported experiencing flu-like symptoms after he returned from a trip to China in January. When he began experiencing the symptoms, Azcue went to the hospital to be tested for the virus. One of the tests he was offered at the hospital was a CT scan, which is one of the best methods used to detect the virus. He first went with the simple flu test to rule out the possibility that he was suffering from the common flu, which fortunately is what it turned out to be.  For him, the CT scan was not necessary.

Bankruptcy Law, Debt Collection, Debt Relief

Student Loan Tax Refund Garnishment and What Borrowers Need to Know

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Many student loan borrowers struggle to keep up with their federal student loan payments upon graduation, but defaulting on student loans can end up resulting in the loan servicer garnishing the borrower’s state and federal tax refunds. Here’s what borrower’s need to know about tax refund garnishment.

The Treasury Offset Program, established in 1986, overseen by the Bureau of Fiscal Service, gives departments within the federal government the ability to ask the Internal Revenue Service (IRS) to garnish tax refunds to collect on defaulted debt owed toward either state or federal government entities. This action is known as a tax offset. A tax offset does not mean that the borrower will lose all his or her refund. The government can choose to seize the entire refund or a portion of the refund, depending on how much debt is owed. If part of the refund pays off the debt owed, including fees and interest charges, whatever is left of the refund will then be forwarded to the borrower.