Chapter 7 Bankruptcy Archives - Page 12 of 28 - Kingcade Garcia McMaken, P.A. Bankruptcy Attorneys

Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

The Top Ways to Avoid a Financial Crisis, according to a Bankruptcy Judge

Posted on February 7, 2019by Admin

No one wants to think about what he or she would do if faced with a major financial crisis. However, what if the unthinkable happens, and you find yourself facing a financial situation you never thought you would encounter? Some bankruptcies are precipitated by events that are beyond a person’s control – for example, a major health crisis, a job loss or divorce. But a number of causes are entirely within a person’s power to stop. After 12 years serving as a bankruptcy judge, the Hon. Margaret Cangilos-Ruiz, the chief judge for New York’s Northern District Bankruptcy Court says she has seen it all. In a recent interview with MarketWatch, she shared her insight on how people can avoid bankruptcy and setting foot in her courtroom.

Monitor Your Credit Cards

It can be very easy to rely on credit cards to make all of your daily purchases. However, when that bill comes in the mail, and you see just how much these small purchases add up to, the outstanding balance can be more than you predicted. It can also be tempting to only pay the minimum balance listed on the statement, promising yourself that you will be catch up on the payments eventually. A good rule of thumb is to never carry a credit card balance from month to month. If at all possible, it is best to pay the balance in full, but if this cannot happen, put together a plan to pay off the balance completely over time.

Not only should you not carry a large balance for too long on your credit cards, it also helps to pay them on time. As soon as you miss one or two payments, your card’s interest rates will skyrocket, making it even more difficult to pay down the balance. As soon as you receive the bill, make sure you do not put it aside and forget to pay it. You will be saving yourself hundreds of dollars in fees and penalties for the long run.

Monitor Your Credit Score / Report

It also helps to keep an eye on your credit score. A good credit score will make it easier for you to take out a loan in the future for big purchases, such as a home or a car. Also, you never know when you will hit a rough patch down the road and will need to take out a loan to help finance medical bills or pay off an unexpected expense. By periodically checking your credit report, you can keep track of your score and also make sure that no incorrect accounts or mistakes are on your credit report. It is best to discover these issues ahead of time and fix them before they become a bigger problem.

Practice Responsible Spending Habits

Paying off your credit card and creating a budget is one thing, but these cannot be possible without controlling your spending. One of the biggest ways to do this is to limit how much you spend on “non-necessary” items and differentiating between something you want and something you need. If there is a large item that you want, save up for that item and only purchase it when you have enough money to pay for that item. Keep an eye on the small purchases you make on a daily basis, as those do add up. Many consumers find success in allowing themselves to use a certain amount of cash every month on non-necessary expenses. Once the cash is gone, they are not able to purchase anything more of their “wanted” items. Resist the urge to rely on credit cards to pay for a cup of coffee or a new shirt after you go through your cash allowance for the month.

If you have questions on this topic or are in financial crisis and considering filing for bankruptcy, contact an experienced Miami bankruptcy attorney who can advise you of all of your options. As an experienced CPA as well as a proven bankruptcy lawyer, Timothy Kingcade knows how to help clients take full advantage of the bankruptcy laws to protect their assets and get successful results. Since 1996 Kingcade Garcia McMaken has been helping people from all walks of life build a better tomorrow. Our attorneys’ help thousands of people every year take advantage of their rights under bankruptcy protection to restart, rebuild and recover. The day you hire our firm, we will contact your creditors to stop the harassment. You can also find useful consumer information on the Kingcade Garcia McMaken website at www.miamibankruptcy.com.

Bankruptcy Law, Debt Relief, Timothy Kingcade Posts

Medical Debt Still the Leading Cause of Bankruptcy for Many Floridians

Posted on February 5, 2019by Admin

Medical debt is a major issue that burdens many Floridians. In fact, it is one of the top reasons that Americans in general struggle with debt they can never quite seem to conquer. For many of these individuals, bankruptcy is the only way out. However, the process of getting to that decision can be stressful.

As healthcare costs rise, many people are struggling to pay for their regular medical expenses incurred every year. Add one major medical crisis on top of those regular bills, and the expenses can get out of control quickly. With the repeal of Obamacare and the fact that individuals are no longer required to carry health insurance, the number of individuals filing for bankruptcy due to medical debt is expected to increase.

According to the Kaiser Family Foundation, it is estimated that 25 percent of all U.S. adults struggle to keep up with their medical bills. If your medical costs are getting out of hand and you find that you are not able to keep up with payments, what are your options? You should never simply ignore the bills and calls from collectors, hoping they will go away.

One option is to work with the medical provider on a possible payment plan to pay the debt off over time. Many providers are more than willing to work with someone so long as the individual contacts the company sooner rather than later. As soon as the account goes into default and a collection case is filed, it may be too little too late to work with them.

The problem is many of these individuals are not able to even communicate with the provider quickly because of their medical conditions which led to the debt to begin with. Many of them are already struggling in terms of health, which can make keeping up with financial matters extremely difficult.

If someone has an otherwise stellar credit score but suddenly falls ill and faces thousands of dollars in medical bills, it can be a major hit to the ego to decide that the situation calls for filing for bankruptcy. However, it often is the best decision to make. If the debt will likely be discharged in a bankruptcy case, it can be fruitless for someone to struggle paying the bills and delay the inevitable filing. While bankruptcy can put a mark on your credit, it can easily be fixed through positive financial habits and proper budgeting. The fear of what filing will do to your credit report should not keep you in a stressful financial situation, especially if you are already overwhelmed with a medical situation. A bankruptcy attorney can evaluate your situation and advise you on the best way to proceed, whether it be working directly with the medical provider or filing for bankruptcy.

How is Medical Debt Handled in Bankruptcy?

In bankruptcy, medical debt is treated the same as credit card debt. Medical bills are listed as general unsecured debt and can be easily wiped out in a Chapter 7 bankruptcy filing. Making the decision to file for bankruptcy is never an easy one. It can be difficult to get past some of the myths associated with filing for bankruptcy. Sometimes by waiting, an individual facing a lot of debt can find himself or herself in an even worse situation. Filing for bankruptcy can help protect valuable assets, including your home, pension, IRA and social security. It will put an end to wage garnishment and any lawsuit being filed to collect on the debt, thanks to the protections of the automatic stay.

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Those who have experienced illness or injury and found themselves overwhelmed with medical debt should contact an experienced Miami bankruptcy attorney. In bankruptcy, medical bills are considered general unsecured debts just like credit cards. This means that medical bills do not receive priority treatment and can easily be discharged in bankruptcy. Bankruptcy laws were created to help people resolve overwhelming debt and gain a fresh financial start. Bankruptcy attorney Timothy Kingcade knows how to help clients take full advantage of the bankruptcy laws to protect their assets and get successful results. Since 1996 Kingcade Garcia McMaken, P.A. has been helping people from all walks of life build a better tomorrow. Our attorneys’ help thousands of people every year take advantage of their rights under bankruptcy protection to restart, rebuild and recover. The day you hire our firm, we will contact your creditors to stop the harassment. You can also find useful consumer information on the Kingcade & Garcia website at www.miamibankruptcy.com.

Bankruptcy Law, Credit, Credit Card Debt, Debt Relief, Timothy Kingcade Posts

Do you have enough debt to file for bankruptcy?

Posted on January 30, 2019by Admin

One of the common misconceptions surrounding bankruptcy has to do with how much debt you must have to qualify for bankruptcy. Bankruptcy laws do not have a set minimum debt requirement for someone to be able to file for bankruptcy. Ultimately, it depends largely on the person’s financial circumstances, including the type of debt he or she has, as well as the person’s ability to pay back the debt, along with other factors.

When it comes to debt levels, how much debt you have is only one consideration made when determining whether you should proceed with a bankruptcy filing. Unlike a Chapter 7 bankruptcy case, a Chapter 13 bankruptcy does have a maximum debt amount for debtors considering this form of bankruptcy. Currently, you cannot hold more than $1,184,200 in secured debt or $394,725 in unsecured debt when filing a Chapter 13 bankruptcy case. These numbers do fluctuate depending on inflation and can change from year-to-year.

Filers are limited in how many times they can receive a bankruptcy discharge within a set amount of time. For example, if you filed for Chapter 7 bankruptcy and received a discharge, you must wait eight years before being able to file for Chapter 7 again. Therefore, if you do not have a significant amount of debt, you may want to consider whether you will anticipate needing to file in the future. Is it worth it to file for bankruptcy now on a smaller amount of debt and be barred from filing again, if needed? A bankruptcy attorney can talk through these options with you to help you make the best choice.

Bankruptcy looks at the different types of debts you carry and whether these debts can be discharged. Certain debts are considered non-dischargeable, including priority tax debts, student loans in most cases, child support, spousal support, and any obligations arising from a personal injury case caused by wrong actions, which can include drunk driving. For instance, if most of your debt is in student loans, a bankruptcy may not be your best option, while a person who carries mostly credit card and medical debt will find bankruptcy beneficial.

If you are filing for Chapter 7 bankruptcy in Florida, you can use Florida bankruptcy exemptions to protect your property. In addition, residents are provided unlimited exemptions for homestead, annuities, and the cash surrender value of a life insurance policy. Florida has one of the most generous homestead exemptions in the country.

Even if you do not have a large amount of debt, if you are being sued or the matter is being referred to collections, it may be best to file for bankruptcy now instead of later. As soon as you file for bankruptcy, an automatic stay will be issued, putting a stop to all collection actions. If you wait too long, and a judgment is issued on the debt, resulting in wage garnishment, it may be too little too late. It is for this reason that it is important you meet with an experienced bankruptcy attorney to talk about your financial situation and whether bankruptcy is right for you.

Bankruptcy Law, Credit, Credit Card Debt, Debt Relief, Timothy Kingcade Posts

IRS Will Pay Tax Refunds During Government Shutdown

Posted on January 8, 2019by Admin

The government shutdown has taxpayers nervous about what it will mean for their tax refund. However, a statement made today by the acting director of the White House Office of Management and Budget, Russel Vought, said the Internal Revenue Service (IRS) will issue refunds even during the government shutdown.

It had been speculated that the IRS would accept tax returns, but refunds would be delayed until the government was fully functioning again. This situation is exactly what happened during previous shutdown contingency plans. However, the administration assured taxpayers that would not be the case this time around. It is a decision that may reduce political pressure on Congress and President Trump to reach a deal to reopen the federal government.

Last tax season, the average tax refund was estimated at $2,899. If you are struggling with debt, a tax refund can be your ticket to a fresh financial start and pay for the costs of bankruptcy.

Data from the Administrative Office of the U.S. Courts shows that Chapter 7 bankruptcy filings in March were 26 to 34 percent higher during March, and 15 to 25 percent higher during April from 2013 through 2016.

How do you know if bankruptcy is right for you? Consumers should strongly consider Chapter 7 if any of the following are true:

Problem debts, such as credit cards, medical bills or other high-interest loans, account for more than 50 percent of your annual income;
You are using credit to pay for everyday expenses;
Your credit cards are maxed out with no end in sight;
Your wages are being garnished;
You are being sued by debt collectors;
You are in danger of losing your home.

In the 2018 tax filing season, 18.3 million people claimed $12.6 billion in tax refunds within the first week of filing season alone. This “season,” normally begins at the end of January or early February, considering employers are required to mail W-2s by the end of January.

During shutdowns in years past, the IRS had stated that refunds could not be issued during a shutdown due to the agency’s interpretation of the Antideficiency Act. This act governed what type of work was allowable during a shutdown, which normally only included government work that was necessary to protect life and property. Previously, IRS work was not considered one of those categories.

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Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

Robocall Harassment Suit Results in $9 Million Judgment

Posted on November 20, 2018by Admin

Robocalls seem to have become a common nuisance for many Americans. While it may seem like you have no choice but to deal with these annoying phone calls, for many who were dealing with robocalls from a debt-collection company in California, they have received justice in a recent settlement.

The settlement involves IQor Holdings and its subsidiary, Allied Interstate. Allied Interstate is alleged to have harassed consumers in 18 California counties with thousands of robocalls. The lawsuit was originally filed by the Riverside County District Attorney’s Office. Later, Santa Clara, San Diego and Los Angeles counties joined, and these counties were then followed by Solano, Sonoma, Santa Cruz and San Mateo counties.

Out of this $9 million, $1 million will go towards covering the government’s attorney’s fees and legal expenses. The rest of the settlement will be divided appropriately between the counties listed in the lawsuit. The largest four counties will each receive $1.6 million, and the rest will be divided among the other counties.

Allied Interstate refused to admit any wrongdoing and insisted in a statement that the calls mentioned in the lawsuit involved calls dating back to 2011 and that technology had evolved based on interpretations of the law. The company maintained that the calls were within legal requirements and that their new policies have been adjusted in accordance with the law.

However, this case was the eleventh one filed against the company in over ten years. Before the most recent settlement, the largest payout was $1.75 million, paid to the Federal Trade Commission. In 2017, the company also paid $500,000 in a settlement brought by five other states.

The company is also required to provide training to its employees about regulations regarding debt collection calls. In addition, the company is required to keep records of calls and complaints and conduct third-party annual audits for the next five years.

This lawsuit does not represent an isolated instance. Callers are contacted every day from robocalls. According to data from YouMail, a robocall blocking service, in the month of August 2018, consumers were bombarded with over 148.8 million automated messages daily. These figures break down further to 1.6 calls every second for an average of 13 calls per person per month. Many people get even more than these numbers indicate.

You do have rights if you are one of the Americans being harassed by repeated robocalls. One can hope that this lawsuit will send a warning to other companies doing the same, but in the event it does not, these calls should be reported to the FTC and your local law enforcement.

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Debt Relief, Student Loans, Timothy Kingcade Posts

Disabled Veterans Eligible for Student Loan Forgiveness Still Paying

Posted on November 19, 2018by Admin

Many disabled veterans who are eligible for student loan forgiveness are still paying on their debt, according to a recent Freedom of Information Act (FOIA) request filed by the Veterans Education Success. The nonprofit group filed this FOIA request on behalf of veterans in June 2018.

According to the FOIA information, the U.S. Department of Education is still seeking repayment on over $1 billion in federal student loan debt from tens of thousands of veterans who are severely disabled and have been determined to be unable to work, thus making them eligible for student loan forgiveness. Borrowers were reportedly notified of their potential eligibility in the mail and received a Total and Permanent Disability Discharge application.

Specifically, the Department of Education has identified approximately 40,000 veterans who could have their student loan debt cancelled due to a total and permanent disability discharge. Out of that number, 25,000 of these veterans are already in default on their student loans.

Some critics of the administration believe it is because the current leadership in the Department of Education is more interested in protecting the for-profit institutions out there than students, veterans and other individuals who arguably need the protection more.

Going through a default on your student loans is an extremely stressful process, and when the person defaulting on the obligation is unable to work, already living in poverty and likely suffering from physical and emotional conditions that are debilitating, the stress is compounded even more. A default can seriously hurt that person’s credit score and can also result in the government garnishing that person’s tax refunds and a portion of their Social Security benefits. If the person is already on a limited income, this can be devastating.

The Veterans Education Success and Vietnam Veterans of American are both asking that the Department of Education automatically discharge the debt for these veterans. The current requirement is that the disabled veteran must apply to have the debt cancelled. If he or she is not aware of this program, the Department will not identify that person as someone who is eligible, which is a likely reason for the high number of defaults.

A new tax code includes a provision that waives federal income taxes on any debt that includes forgiven student loan debt for disabled taxpayers. Disabled veterans would fall under this category. If you are a disabled veteran who is interested in learning more about student loan forgiveness, you are encouraged to visit disabilitydischarge.com. If you receive any information on student loan forgiveness for a fee, do not follow this information as it is likely a scam. This service is free and is provided by organizations, such as Veterans Education Success. To learn more email help@veteranseducationsuccess.org.

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For borrowers who are struggling with student loan debt, relief options are available. Many student loan borrowers are unaware that they have rights and repayment options available to them, such as postponement of loan payments, reduction of payments or even a complete discharge of the debt. There are ways to file for bankruptcy with student loan debt. It is important you contact an experienced Miami bankruptcy attorney who can advise you of all your options. As an experienced CPA as well as a proven bankruptcy lawyer, Timothy Kingcade knows how to help clients take full advantage of the bankruptcy laws to protect their assets and get successful results. Since 1996 Kingcade Garcia McMaken has been helping people from all walks of life build a better tomorrow. Our attorneys help thousands of people every year take advantage of their rights under bankruptcy protection to restart, rebuild and recover. The day you hire our firm, we will contact your creditors to stop the harassment. You can also find useful consumer information on the Kingcade Garcia McMaken website at www.miamibankruptcy.com.

Bankruptcy Law, Credit, Credit Card Debt, Debt Relief, Timothy Kingcade Posts

New FICO Program Aims to Help Consumers Improve Credit Scores

Posted on November 15, 2018by Admin

Consumers are always looking for new ways to improve their credit scores. Lenders and other financial institutions use these scores to determine whether a consumer is a risk when it comes to receiving a loan or credit so it is important that the scores reflect a consumer’s positive financial behavior. Currently, several different credit scores are available to financial institutions and lenders based on consumer behavior, but now there is one more as FICO launches its “opt-in” credit score.

FICO is the largest and arguably best-known company that provides software to calculate a person’s credit score. Originally known as Fair, Issac and Company, FICO has now become a fixture for consumer lending in the U.S, and a consumer’s FICO score is often seen as a major factor in determining a consumer’s fiscal responsibility.

The traditional way of improving a credit score has been for the consumer to exercise good financial behavior, such as paying bills on time, keeping a low balance on their credit card accounts, and avoiding spending over their given card’s limit. While this behavior is still encouraged, FICO is offering a new way to incorporate good financial data into a consumer’s FICO credit score.

This new score is being referred to as the Ultra FICO Score. It is a product created in partnership with two other financial institutions, Finicity and Experian, and allows the consumer to give these companies permission to have electronic access to certain financial information that will help boost their credit scores. This access can include data from the consumer’s bank accounts to show how long these accounts have been open, provide proof that the consumer has savings and show frequency of activity in these accounts.

For consumers who have credit scores in the upper 500s to lower 600s, it is hoped that the Ultra FICO program will help these individuals rebuild their credit, especially if they are struggling after a significant crisis in their lives. This program is expected to launch at the start of 2019. However, the access to the pilot program will be limited until approximately mid-2019.

Bankruptcy Law

Bankruptcy and Retirement: How to Assess Your Risk

Posted on October 10, 2018by Admin

Many Americans work their whole lives in the hopes of achieving the American Dream: retiring comfortably and living out their last years in rest and relaxation. However, if you are living with debt and nearing retirement, the dream can seem far off. In recent years, seniors have seen a rise in personal debt.

A study published by the Consumer Bankruptcy Project shows a trend regarding bankruptcy and retirement. It showed that more older Americans are filing bankruptcy before entering retirement. The data showed that bankruptcy rates went down for individuals between the ages of 18 and 54 between the years 1991 to 2016. However, the percentage of individuals between the ages of 65 and 74 tripled. The rates went up four times for individuals over the age of 75.

Seniors are realizing that they can protect valuable assets through bankruptcy. Retirement income and savings are out of reach and protected under federal law, including: 401(k)’s, pensions, social security payments, qualified profit-sharing plans, and individual retirement accounts worth up to $1.245 million are all exempt from creditors during bankruptcy.

Rising healthcare costs have attributed to many of the filings. Chapter 7 bankruptcy wipes out medical debt and there is no limit to the amount of medical debt you can discharge in Chapter 7 bankruptcy. According to the Bureau of Labor Statistics, the average person who is the ages of 65 and over spends more than $6,620 annually on healthcare. One recommendation to help save for unexpected healthcare costs is a Health Savings Account (HSA). Contributions to an HSA are pre-tax, and there are no tax penalties made on withdrawals, so long as they are for qualified medical expenses.

Another recommendation for retirement planning is to make what are known as catch-up contributions to your retirement accounts, if you are able to. You are allowed to make extra contributions to 401(k) or IRA plans after the age of 50. The current annual amount allowed is an extra $5,000 for 401(k) plans and $1,000 for IRAs for the 2018 tax year.

As you reach retirement age, plans do change, which means the budget you created for retirement may need adjusting. It is important that you work closely with a financial advisor to keep up with the cost of living and make appropriate changes in your investments in preparation for retirement.

Bankruptcy Law, Credit, Credit Card Debt, Debt Relief, Timothy Kingcade Posts

Online Auto Lender Faces Scrutiny over Lending Practices

Posted on October 5, 2018by Admin

If you have been struggling to pay your bills and need money quickly, it can be tempting to take out a loan against your car to get the cash. There are many online companies that exist for this exact purpose.

One company, Marlin Financial, has been the focus of recent scrutiny regarding these types of loans. A recent Tampa Bay Times story exposed the laws that Marlin Financial has been accused of breaking, leaving customers with more debt than they originally anticipated. The story featured 20 Marlin Financial customers, as well as former employees, who were approved loans that the company was not legally authorized to make.

In fact, the company’s debt cancellation policy resulted in interest rates that were well over the state limits. The company also deliberately failed to give their customers a chance to take personal belongings that were inside repossessed cars after these belongings were reported.

Marlin Financial now finds itself part of a consumer protection investigation by the Florida Attorney General’s office. One such violation the company is accused of making is the law that requires lenders to tell the car owners where their cars are being held and give them the chance to come and get their personal belongings in the car.

The company is also accused of not listing the fees for their loans as annual percentage rates, which is required by federal law.

Another violation, and arguably the most significant one, centers on Marlin Financial’s business practices and the policies that their customers purchased through their company. Deep within the fine print, the company requires their customers to either elect to purchase their debt cancellation product or decline the purchase. Unless the customers truly understand what this mean, he or she is likely signing on the dotted line with no clue what this could mean for his or her legal rights later.

Customers reported that when trying to decline the option, they were not able to complete the online transaction. Only by clicking “accept” for the debt cancellation policy were they able to successfully complete their application. Legally, debt cancellation should only be optional and viewed as an add-on product, but customers reported that it was essentially required for them to purchase the product.

Purchasing the debt cancellation add-on option ended up costing the borrowers 125 percent of their loan owed, which basically doubles the amount owed. Normally an add-on like debt cancellation is also done through a separate company from the original lender, but Marlin Financial offers an in-house option, which basically means the customers are paying the same company twice for the money lent.

The Florida state agency that licenses lenders like Marlin Financial, the Florida Office of Financial Regulation has received 12 total complaints within the last four years against the company while the Florida Attorney General has received 19. The Better Business Bureau has received a total of 32 complaints in this same period. The Florida Attorney General has opened an investigation into Marlin Financial’s business practices, which is ongoing.

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Bankruptcy Law, Credit, Debt Relief, Foreclosures, Timothy Kingcade Posts

If you are facing foreclosure, Bankruptcy can help.

Posted on September 12, 2018by Admin

Every month, there are a number of Americans who fall behind on their mortgage payments. Some homeowners are able to work out loan modifications with their lenders, but many are not. It may seem counter-intuitive, but when someone is facing foreclosure and is in the middle of a major financial crisis, bankruptcy can be a viable option to help save that person’s home. Ultimately, it depends on your specific financial situation and the type of bankruptcy you file – but bankruptcy can be used as a tool to help keep your home.

The Power of the Automatic Stay

If your home is already set for a foreclosure sale, you may be asking, “how can I make it stop?” Filing for bankruptcy can put a stop to the process or at the very least postpone it. As soon as a petition for bankruptcy is filed, the court issues an order called an “automatic stay,” which puts an immediate halt to all collection activities that were happening to the homeowner before the petition was filed. This automatic stay also applies to foreclosure cases. Creditors (including your mortgage lender) must immediately cease collection attempts. Even if the mortgage lender has the home scheduled for a foreclosure sale, the sale will be postponed during a pending bankruptcy.

How a Chapter 7 Bankruptcy can Help:

Chapter 7 bankruptcy cancels all the debt secured by the home, including mortgages and home equity loans. This type of bankruptcy also goes a step further, thanks to a new law, Chapter 7 also forgives the homeowner for tax liability for losses the mortgage or home-improvement lender incurs because of the homeowner’s default.

How a Chapter 13 Bankruptcy can Help:

If you want to stay in your home and do whatever possible to get caught up on past-due mortgage payments, a Chapter 13 bankruptcy may be the best option. A Chapter 13 bankruptcy is also known as a reorganization bankruptcy. It allows you, as the bankruptcy filer, to work with the bankruptcy trustee to create a repayment plan to catch up on qualifying payments. Chapter 13 bankruptcy plans normally last anywhere between three to five years.

Florida’s Bankruptcy Exemptions

Florida has one of the most generous homestead exemptions in the country and allows homeowners to claim an unlimited value of their primary residence (if the property is not larger than half an acre in a municipality or 160 acres in a non-municipality). To use Florida’s exemptions, you must have resided in Florida for at least 730 days before filing your bankruptcy petition.

Although bankruptcy and foreclosure can be damaging to your credit, sometimes filing for bankruptcy can be the start of rebuilding your credit because it allows you to obtain a fresh start. Foreclosure not only damages your credit, but you are left with the mortgage debt, which will likely result in creditors not considering you for future mortgages. If you find yourself facing foreclosure and are concerned about your financial future, remember that filing for bankruptcy may help save your home.