Author: John Mufson

Do Millennials Need More Debt Relief Than Previous Generations?

Posted on by John Mufson

The average person in Florida might be hard-pressed to find a news article that shines a positive light on the millennial generation. Frequently criticized for supposedly taking down the napkin and chain restaurant industries, articles often shine a light on the difficult financial situation that many millennials find themselves in. While it might be true that some of the young adults in this generation are in need of debt relief, many are doing just fine.

Millennials range in age from late 20s to their 30s; and their spending habits reflect their age. That is not necessarily a bad thing, though. According to an expert in personal finance with NerdWallet, millennials are on track to be in the same financial position as baby boomers in a few decades. This seems to contradict what many people love to believe about millennials, which is that they are irresponsible with their finances.

What may come as even more of a surprise is that millennials’ financial priorities are largely the same as those of their baby boomer parents. In a survey that asked adults what they would do with an extra $1,000, the majority of both generations prioritized saving and investing. One surprise was the baby boomer attitude toward traveling. In this survey, 7% said they would spend the money to travel while only 3% of millennials would use the money for that purpose.

While it is good news that adults of all generations have their financial priorities in order, having good spending habits does not necessarily prevent anyone from going into debt. Additionally, millennials are not shielded from needing debt relief just by virtue of being young. Rather than spending years trying to climb out of impossibly steep debts, some young adults in Florida might find a better outcome from pursuing personal bankruptcy.

With student loans becoming an increasingly hot button topic as a pressing financial concern and burden for the financial livelihood of millennials, more people are seeking ways to find a debt solution in Delray Beach.

It is important that if you are a young person—or of any age—seeking debt plan or debt program in Delray Beach, that you contact a professional. The Law Office of John E. Mufson has been helping people in South Florida get debt relief for more than 25 years. Call us today at (561) 272-1003 for a free consultation.

What Debt Does Bankruptcy Not Discharge?

Posted on by John Mufson

When filing for bankruptcy, one of the most common things people look forward to having is the majority of their unmanageable debt dismissed or discharged. Sadly, this isn’t a reality for every person who experiences bankruptcy.

Not at all debt is qualified for discharge during bankruptcy. Regardless of which chapter of bankruptcy you file for, there are some types of debt which will not be cleared or covered by the acquittal of your case. Knowing these in advance can help prepare you for the best possible outcome during the bankruptcy process—and prevent unpleasant surprises later!

What Debt Does Bankruptcy Not Cover?

Some debts cannot ever be discharged during bankruptcy, regardless of any other circumstances. These are consistent from state to state and include legal obligations such as child support and alimony. Other types of debts that can never be dismissed by a bankruptcy discharge include restitution owed for legal infractions (penalties owed for breaking the law), wrongful death penalty costs, and certain types of tax debt.

If you owe condo, coop, or HOA fees—or have retirement-related debt—you will continue to be responsible for these payments during and after a bankruptcy. Likewise, if you refuse to list or ‘schedule’ a debt as part of your bankruptcy filing, there is no way that it can be dismissed as part of a bankruptcy discharge unless that creditor had prior and specific knowledge of your bankruptcy filing and is willing to release your debt as part of it.

Other types of debts are simply difficult to discharge. Student loan debt is famous for being difficult to discharge. Proving long-term and ongoing financial hardship that will make repaying this debt impossible or improbable is typically the only way to get this type of debt released—and this is a difficult task, even for an experienced legal professional. More lenient policies are making it easier to get student debt discharged than it has been in the past, but it remains a tricky proposition in regard to bankruptcy.

In some cases, creditors can even appeal the automatic stay process that keeps them from pursuing compensation of debts owed during your bankruptcy. This means that the protection that bankruptcy would typically afford you would be compromised at the order of the court, and these creditors would be allowed to pursue repayment of your debt regardless of your active bankruptcy case. This can leave you and your creditor stuck in a seemingly endless loop of appealing to the courts to explain why you deserve relief from the other’s actions. This makes determining what debt does bankruptcy not cover nearly impossible—and the process of bankruptcy itself far more stressful than it needs to be!

Debts Worth Arguing Over

Some debts are discharged unless the creditor successfully argues that they should not be. Being informed of these can help prepare you for the chance that your creditors will pursue payment of these debts. These debts may include:

  • Debts belonging to creditors not listed on your bankruptcy paperwork
  • Fraud-related debts
  • Debts related to willful or malicious acts
  • Debt incurred from larceny, embezzlement, breach of fiduciary duty, etc.
  • These guidelines also apply to debts incurred from the purchase of luxury items or services, with specific regulations. For purchases of more than $725, they must have been made within 90 days of filing. Cash advances of over $1000 taken out within 70 days of filing also fall under these guidelines.

No Absolute Right to Discharge

What debt does bankruptcy not cover? If you don’t follow the rules, the answer could be all of it. After all, there is no absolute right to discharge of a bankruptcy. Too many people enter the bankruptcy process believing that they can behave any way they see fit and receive a discharge and walk out of court with all of their debts left behind.

Failing to follow the rules of your state and the national bankruptcy law can result in an objection on the part of the bankruptcy trustee to discharge your debt. How can you stay within the lines and play by the rules? It helps to know them.

Here’s what to do if you’re hoping for an uncomplicated discharge:

  • Provide all request documentation, including tax documents in a timely manner
  • Do not hide, transfer, or destroy assets, records, books, documents, or otherwise try to commit fraud or hinder any investigation into your finances related to your bankruptcy case
  • Ensure that all of your assets can be accounted for
  • Show up for all requested or required court appearances and be honest and forthcoming with those you speak with regarding your bankruptcy
  • Complete a financial management course during your bankruptcy to ensure mastery of financial concepts and a better outlook for your financial future
  • Be sure that you don’t file for bankruptcy too soon after previously doing so, as this may cause your case to be rejected for discharge automatically.
  • In some cases, you can follow all the rules to the letter and still find out that there are perfectly legal reasons why your creditors are capable of standing in the way of your discharge. When this happens it can be devastating. However, with the right counsel and some research on your side, you can expect to move through a bankruptcy with relatively little stress.

It is important to always discuss the details of your case with a local legal professional who specializes in bankruptcy and related issues. Bankruptcy law firms in Delray Beach can be upfront with you about your options for debt relief. If filing for bankruptcy is the plan best for you, our legal team at The Law Office of John E. Mufson will take the time to fully explain your options so that you’re truly confident in the decisions you’re making. Call us today at (561) 272-1003 for a free consultation.

How Can I Get Out of Debt Without Losing Everything I Own?

Posted on by John Mufson

If you’re thinking about filing for bankruptcy, it’s nothing to be ashamed about. In fact, the average American has about $38,000 on average in personal debt excluding home mortgages. The truth is that it happens to people from all walks of life. Sometimes bills pile up and it just becomes impossible to make ends meet. At The Law Office of John E. Mufson, we know how tough it can be to manage your bills, credit card debt, student loans, medical expenses and just the daily cost of living in our materialistic society. If you owe far more than you make, if you’re fed up with calls from creditors or if you’re constantly worrying about your medical bills and inability to pay back your student loans, don’t despair, help is available. Call on a professional bankruptcy law firm in Delray Beach like The Law Office of John E. Mufson. We have a great success record and we’re considered one of the best bankruptcy law firms in Delray Beach.

How does bankruptcy work exactly?

Filing the paperwork for bankruptcy can be tedious and complicated, which is why it’s vital to engage the legal guidance and support of an experienced bankruptcy law firm in Delray Beach. The skilled bankruptcy attorneys at the Law Office of John E. Mufson can discuss all of your options when it comes to filing for bankruptcy and the best options to choose from.  

What are my bankruptcy options?

There are a few different types of bankruptcies and one may be a better choice for individuals and another may be a better choice for business owners. These are considered the most sensible bankruptcy options: 

Chapter 7 is a type of bankruptcy that an individual can file. If you owe far more than you can pay back, then you may be a candidate for Chapter 7 bankruptcy. Here, assets are exchanged for exemption of debts. Essentially your credit card debts, medical bills, and other debts are wiped completely clean. You are not required to set up a payment plan, but instead, you exchange nonexempt assets for debt liquidation.  

Chapter 13 is the best choice for many individuals. If you have the financial ability to pay off some of your debts but not all of your balances, then Chapter 13 may be the right fit for you. This form of bankruptcy involves a debt restructuring plan. Your income, debt, and expenses are analyzed, then your debts are restructured into payment amounts and cycles that match your financial capabilities. This means that with the help of Chapter 13 bankruptcy, you pay back only a small portion of your debt, a portion that won’t cost more than you can handle. The leftover balances after the Chapter 13 payment period can simply be wiped clean in many cases. 

Our bankruptcy law firm in Delray Beach is prepared to help you understand what filing for bankruptcy means and to determine your best options. Let the expert bankruptcy lawyers at The Law Office of John E. Mufson help you get rid of your debt and guide you towards the financial future you deserve. To learn more about how we can help with your individual situation, please call for a free consultation with one of our skilled bankruptcy attorneys in Delray Beach at (561) 272-1003.    

Do I Need a Foreclosure Defense Attorney in Delray Beach?

Posted on by John Mufson

While the housing market is somewhat stable today with interest rates still at all-time lows, statistics show that with 1 in every 1230 Florida houses sold, a homeowner will receive a notice of foreclosure. Ifyou’re a South Florida homeowner that received a foreclosure notice recently, you’ll want to contact a great foreclosure attorney in Delray Beach right away to get you through this difficult time. When you’re facing the threat of a foreclosure or have just received a foreclosure notice, it’s time to call the Law Offices of John E. Mufson. With our help, you can work towards the most effective foreclosure defense possible, preserving your assets, your finances and your even your home. Foreclosure defense can seem overwhelming, but with a foreclosure attorney in Delray Beach on your side, you can rest assured that we will have your best interests at heart.

Options to consider when facing foreclosure

There are some options to consider before giving up. First, your attorney should take the time to consider your financial needs and goals. There are different paths you can take when you’re faced withthe possibility of foreclosure on your home like:

  • Consider a loan modification – This does not always work in your favor as the loan may end up costing you more in interest over time. But it is an option to buy you more time.
  • Consider forgive a payment or two – sometimes a lender might forgive a payment or two if you promise to remain current on all future payments. It’s worth a try in any case.
  • Consider a repayment plan – this may buy you some time to come up with a payment plan that works for everyone. Spreading payments out over a set amount of time may be a viable option.
  • Consider a short sale – a short sale can be a great alternative to foreclosure. Essentially it is asking your lender to take less what than they are owed on the balance of the mortgage loan.
  • Deed in lieu – in this type of foreclosure the deed to your home is signed over to the bank. You just walk away. But not so fast. Although this will leave you free and clear of your debt, it will destroy your credit rating and make it impossible to purchase a home for years to come. When considering this option or any alternative to foreclosure, it’s best to speak with a foreclosure attorney in Delray Beach like the experienced legal team at the Law Offices of John. E. Mufson.Some of these options are viable alternatives to foreclosure that may be ideal for individuals looking to save themselves from the stress of a monthly mortgage. You may forfeit your home but in exchange for minimal to nonexistent impacts on your credit score and the ability to purchase a new home in the future. While it’s important to take the time to consider your best approach towards foreclosure, it’s important to find the best legal counsel quickly to ensure you fight your foreclosure with viable alternatives in a timely manner. If you’ve received a notice of foreclosure, or if you know that one will be coming soon, reach out to our team at the Law Offices of John E. Mufson today. We will help you devise a plan of action that works for you, then walk you through it from start to finish. To get started with your free consultation, please call our law office at (561) 272-1003. You’ll be glad you did!

Has Overwhelming Debt Sent You into Hiding?

Posted on by John Mufson

If your debt has been piling up and you feel like you are drowning in it year after year with nowhere to turn for help, it may be time to contact a trusted Chapter 13 bankruptcy lawyer in Delray Beach. It’s easy to be fooled by the ads on TV that promise to easily eliminate and consolidate your debt into lower payments that you can handle. The truth is that many of these companies charge high fees for their services and the last thing you need when you’re trying to get out of debt is to pile on yet another debt. When credit card debt and the stress of worrying about it is overtaking your life and even the minimum payments are hard for you to handle, it may be wise to consider filing for Chapter 13 bankruptcy. To accomplish this, you are going to need a legal professional that understands how to best approach debt consolidation. If you’re looking to negotiate credit consolidation in Delray Beach through Chapter 13 bankruptcy, the team at The Law Offices of John E. Mufson is here to help. Our attorneys can handle your case and explore every avenue to ensure the success of your Chapter 13 bankruptcy. We understand the best and most effective approach to successful debt restructuring. Through Chapter 13 bankruptcy, many of your debts can be reduced and even eliminated. All-in-all it’s a positive scenario—you may pay back much less than you owe, or in the best-case scenario, pay back nothing at all.   

How Can our Experienced Law Team Help You? 

At the Law Offices of John E. Mufson, we work with Chapter 13 and Chapter 7 bankruptcies. Through our Chapter 13 bankruptcy attorney in Delray Beach, your debts are restructured into payment plans that are tailored to how much you can pay back comfortably. How it works is that our attorneys contact your creditors, and we negotiate with them to get you the best debt repayment plan possible.  In addition to chapter 13 bankruptcy filing, our bankruptcy lawyers handle Chapter 7 bankruptcy in Delray Beach, helping those facing major credit card, mortgage and even student loan harassment. Automatic stays during both Chapter 13 and Chapter 7 bankruptcy negotiation can help put an end to creditor harassment as you work towards debt and credit card relief.  

There is No Reason to Hide with Our Law Team on Your Side 

When your creditors come knocking at your door, there is no reason to hide. The professional chapter 13 bankruptcy lawyer in Delray Beach at The Law Office of John E. Mufson, understand how to best approach your case to ensure the best personal outcome for you. Under our direction, you will successfully alleviate the weight of your personal debt. Our experienced team at The Law Offices of John E. Mufson is here to help bring about the best solutions to your debts through either Chapter 13 or Chapter 7 bankruptcy. If you fall victim to the vicious credit card cycle, learn more about how to get out from under your debts once and for all. Whether it be credit card debt, loans, hospital bills or auto repossession, our team of Chapter 13 bankruptcy lawyers in Delray Beach are here to offer you the help and support you need. Call us today at (561) 272-1003 for a free, no-obligation consultation.   

Harassed by Creditors? How Bankruptcy Can Protect You!

Posted on by John Mufson

We all the old song and dance: a number you don’t recognize pops up on your phone and you stare at it debating if you should answer. It could be a friend or family member with a new number you haven’t saved yet. More likely, it’s an unsolicited caller attempting to sell you a product or service. For people living with credit debt, those calls can be frustrating and cause anxiety. Having creditors hound you for funds you don’t have keeps you in a cycle of financial stress that seems impossible to escape.  

Creditors call at any time of the day, using shady tactics to get you to answer and to keep you on the phone. These agents make false claims and threats to try and force your hand to collect on debts. Harassing calls can make you hesitant to answer the phone, causing you to miss important information or job opportunities.  

Stop the harassment and reclaim control of your life now. Here’s how filing bankruptcy can help. 

What is Bankruptcy? 

The word bankruptcy strikes fear in many people, yet most don’t actually understand what it is. Bankruptcy is a means of consolidating and eliminating debt through a legal agreement with your creditors. Depending on the type of bankruptcy filed, a bankruptcy law firm in Delray Beach can help you find a solution to your specific situation. 

The most common forms of bankruptcy are Chapter 7 and Chapter 13 bankruptcies.  

Chapter 7: liquidation of assets to eliminate unsecured debts. Chapter 7 bankruptcies are used for businesses, couples, and individuals who qualify under state specific guidelines.  

Chapter 13: development of a repayment plan spanning three to five years. Chapter 13 bankruptcies allow people with a steady monthly income to eliminate debts through repayment. With manageable monthly payments and a structured repayment plan, this form of debt solution in Delray Beach is the most common.  

How Bankruptcy Ends Harassment 

Filing for bankruptcy provides certain legal protections that help to prevent creditors from going after you in certain ways. Once bankruptcy is filed, creditors must go through the proper legal channels to settle their debts.  

Bankruptcy filing protects you against: 

Property Liens: Debts owed on home or car loans can give creditors the ability to place a lien on that property. A lien means you cannot sell or trade said property until the debt you owe is settled. Through bankruptcy filing, your creditor cannot prevent the transfer of ownership of the property. This is especially important for asset liquidation used toward elimination of debt.  

Foreclosure: As with property liens, foreclosure is an action taken against your property in an attempt to collect on a debt. Foreclosure is an attempt for a home loan provider to take ownership in order to settle mortgage debt. Bankruptcy filings prevent foreclosure proceedings to keep you and your property protected. 

Eviction: Because bankruptcy filing prevents foreclosure, it also protects against eviction from your property, keeping you and your family in your home. A bankruptcy law firm in Delray Beach like the Law Offices of John E. Mufson can guide you through this process.  

Repossession: In the same way that bankruptcy prevents foreclosure and eviction, it protects against repossession of motor vehicles and other collateral property.  

Harassing Phone Calls: Legally, once bankruptcy has been filed and proceedings begin, your creditors can no longer contact you in an effort to collect those debts. Doing so is in violation of the law and carries heavy fines. If the calls continue, gather as much information as you can including specifics of when and who the caller represents. Bring this information to a bankruptcy law firm in Delray Beach so they can ensure your rights are honored. 

If you are getting harassed by creditors and considering filing for bankruptcy, contact the Law Offices of John E. Mufson now. 

Five Ways Bankruptcy Improves Your Credit Score

Posted on by John Mufson

For many Americans, bankruptcy is a desperate, final option shrouded in shame and feelings of failure. While we often think those who file bankruptcy have lost it all, in reality, it is a smart decision designed to help protect your financial well-being. Knowing your options for debt solution in Delray Beach gives you the freedom to choose the path of your financial future. In fact, despite misconceptions, filing bankruptcy can improve your credit score. Here’s how: 

Chapter 13 Bankruptcy Reports Regular Payments to Credit Bureaus 

Chapter 13 bankruptcy allows people with a source of regular income to create a repayment plan with creditors. Over the course of three to five years, you can make manageable monthly payments toward eliminating your debt and improving your credit score. Because you are making regular payments, this form of debt solution in Delray Beach greatly improves your score.  

Because chapter 13 bankruptcy consolidates your debt into one monthly payment, it makes it easier to manage your monthly budget and ensure your payments are on time. Reassessing your income and developing a repayment plan that works for you helps to remove the weight and stress of debt from your shoulders so you can move forward.  

Chapter 7 Bankruptcy Liquidation Increases Cash Flow 

Filing chapter 7 bankruptcy liquidates your assets to eliminate unsecured debts. This is typically reserved for individuals, married couples, and businesses that qualify: 

  • Monthly income below Florida’s median income 
  • Submit a chapter 7 means test calculation 

If you qualify for chapter 7 bankruptcy, a trustee will be in charge of liquidating your assets to resolve your debts. Debt solution in Delray Beach with Mufson Law keeps you and your well-being as our top priority. Learn more about our bankruptcy services here. 

Chapter 7 bankruptcy asset liquidation creates greater cash flow. By eliminating debts and increasing your expendable cash, this form of debt solution can improve your credit score by opening the doors to credit rebuilding. Creditors recognize the dissolution of prior debts and are more likely to extend opportunities for rebuilding your credit score. By proving yourself better capable of credit management and debt repayment, your crediting options expand to allow for improving your credit standing. 

Removal of Delinquent Accounts 

The greatest benefit of filing for bankruptcy is removal of delinquent accounts from your credit report. Delinquent accounts have the greatest impact on your credit score, signifying an inability to repay loans and lines of credit. Whether through repayment or liquidation, being able to settle these debts and remove them from your report can quickly increase your credit score. Bankruptcy law firms in Delray Beach can help to guide you through the process of removing delinquent accounts from your report so you can rebuild healthy credit. 

Improve Debt-to-Credit Ratio 

Having high debt in relation to your available credit can stand in the way of your future more than a low credit score. Maxed out credit cards and failure to adhere to a loan repayment plan can quickly create formidable, mounting debt that seems impossible to overcome. Attempting to open additional lines of credit are more likely to be denied, as creditors are reluctant to lend money to customers they perceive as unable to repay. Filing bankruptcy to settle high debt can even out this ratio, establishing trustworthiness for future credit. 

Provide the Opportunity to Rebuild 

Filing bankruptcy is not the end of the world, nor does it mean you are trapped in your current financial situation. As a debt solution in Delray Beach, the intention is to give you another chance to get things right. By settling or eliminating debts, bankruptcy allows you to use new financial knowledge to establish a healthy relationship with your finances. Discipline and adherence to your budget can help to create a better future for you and your family. 

For more information about bankruptcy and assistance determining your next move, contact Mufson Law today! 

How to Know When it’s Time to File for Bankruptcy

Posted on by John Mufson

Piling up debt seems like the norm our society today, and so it makes sense that more and more people will see filing for bankruptcy as the only alternative to getting out of debt in the coming years. While it isn’t something we want to happen anytime soon, there are some that see bankruptcy as their only option to escape debt. Your outstanding debts over the years may include credit cards, mortgage, car loan, hospital bills, doctor and dentist bills, car loans, student loans or personal loans. If these debts have become more than you can handle, filing for bankruptcy may be a viable financial option. If this sound like you, then don’t despair because there is help for you out there. If you’re considering filing for bankruptcy, it’s important to find an experienced bankruptcy lawyer in Delray Beach to work with because you want to make sure you file all of the papers properly or risk being turned down by a bankruptcy court. At the Law Office of John E. Mufson, our expert legal team is here to help you navigate through the bankruptcy process from start to finish. It can be overwhelming, but rest assured, we specialize in helping our clients find a wide range of solutions to paying back debt.  

Common Mistakes to Avoid if You’re Thinking of Filing for Bankruptcy 

Filing for bankruptcy isn’t an easy process and it requires more than just filing paperwork. You might not know that should not do this before filing for bankruptcy:  

  • Don’t incur any more debt. We know that sounds like a no brainer but you’d be surprised at how many people still continue to use their credit cards after they file the bankruptcy paperwork. You risk not being approved because the bankruptcy court may think that you aren’t serious and have no intention of paying your debts back. This would actually be considered fraud. 
  • Don’t lie about your assets or provide inaccurate information. This is the time to let it “all hang out,” so to speak. If you lie about any of your assets you could be subject to penalties that could equal thousands of dollars. This would include not so obvious things like assets in safe deposit boxes or storage units. Worse yet, lying about assets may cause a bankruptcy court to dismiss your case altogether.  
  • Don’t file for bankruptcy if you think you might come into some money (like a gift or an inheritance) within the first year of filing. It’s most likely that your bankruptcy case will be dismissed because you can use this money to clear up your debt on your own. 
  • Don’t wait too long to file for bankruptcy. It’s always best to file as quickly as possible so that you don’t incur any more debt and especially if a creditor has a lawsuit against you. A bankruptcy attorney in Delray Beach like The Law Office of John E. Mufson can help you make sense of it all and can advise on the ins and outs of bankruptcy law. 

If you’re thinking about filing for bankruptcy, it could not have been an easy decision for you. But when you work with our experienced legal team at the Law Offices of John E. Mufson in Delray Beach, you’ll get honest answers and the highest quality customized client care that you deserve. If you’re considering bankruptcy but our team determines that it’s not aligned with your financial needs and goals, we’ll be upfront and let you know. While you may be shocked to realize that bankruptcy isn’t in your best interests, you’ll also be glad that a bankruptcy lawyer in Delray Beach was upfront with you about your options for debt relief. If filing for bankruptcy is the plan best for you, our legal team will take the time to fully explain your options so that you’re truly confident in the decisions you’re making. Call us today at (561) 272-1003 for a free consultation. We are available to our clients both nights and weekends. 

Fighting Foreclosure: Five Things You Need to Know

Posted on by John Mufson

Owning a home is a goal we all have, so to achieve homeownership is a big milestone. As a financial commitment, home ownership can be challenging, especially as your financial situation changes. Illness, job termination or layoffs, unexpected bills, and other financial strains can make it difficult to keep up with mortgage payments. If you find yourself struggling to stay afloat, threats for foreclosure can feel like the end of everything you’ve worked hard for. Don’t give up—you still have options. If you’ve been notified of foreclosure proceedings against you or you’re struggling to stay ahead of that looming threat, here’s five things you need to know. 

Review Mortgage Documents 

Before you panic, carefully review your mortgage documents. Look for clauses specifying the procedures your lender must follow to execute foreclosure. If they have not followed the proper guidelines, it does not invalidate their claim, but this can buy you time to build your foreclosure defense.  

Beyond just reviewing your mortgage documents yourself, you should also have a foreclosure defense attorney in Delray Beach review it as well. Their knowledge of foreclosure law can be useful in determining your next steps and helping you take advantage of any loopholes that may exist. 

Review the Legality of the Foreclosure 

As previously mentioned, a foreclosure defense attorney can use their legal knowledge to your advantage. Mortgage lenders must follow certain procedures which may include providing proper notice of default and opportunities for debt settlement. If it is determined that your home mortgage provider did not follow these laws, it can help to reverse their attempts to foreclose on your home. Again, this does not eliminate your troubles, but it will provide a bit more time to find a solution.  

Contact Your Lender 

Most mortgage companies don’t actually want to waste the time and resources on going through the courts to foreclose on a home. It is more cost effective for them to keep a current resident in place than to try to find a new home buyer. Even if you have defaulted on your loan, if you contact your lender you may be able to come to an agreement in regards to settling your debt and keeping your home. A foreclosure defense attorney in Delray Beach may also come in handy here as well. Lawyer involvement forces your mortgage lender to play fair and work with you in order to avoid heading to courts. 

Examine Finances 

It is also in your best interest to try and settle monetary disputes with your lender outside of the courtroom. Going to court only accrues further debts as you will be responsible for costs and fees. Before you get to that point, try to examine your finances and determine what you can do to get back into the green. Look for areas where you can potentially lower or eliminate your bills so allow for more breathing room.  

As you examine your finances, you may also want to consider if bankruptcy is the best option for you. Filing bankruptcy can put a hold on foreclosure proceedings and stop debt harassment in Delray Beach. Depending on your specific situation, you may file either Chapter 7 or Chapter 13 bankruptcy in order to reconstruct your financial situation. Be forewarned, though: bankruptcy filings will remain on your credit history for 10 years and may require you to completely rebuild your credit. It may also require you to liquidate your assets and ultimately your lenders and creditors can dispute your filing. 

Court Appeal 

If you have exhausted all of your options, going to court to appeal a foreclosure may be your final option. If it is, having an experienced foreclosure defense attorney in Delray Beach working on your behalf can help you save your home. With the law office of John E. Mufson, you can take advantage of over two decades of foreclosure and bankruptcy law experience. We help you to understand all your options so you can make an educated decision for your future. We are dedicated to getting you the best possible outcome no matter what direction you choose to take. 

Contact us today to begin exploring your foreclosure defense options. 

Five Things You Should Know Before Filing for Bankruptcy

Posted on by John Mufson

One of the most common sources of stress, anxiety, and depression in the United States is financial strains. If you’re in debt, you know how crippling it can be, affecting your life in unanticipated ways. Large amounts of debt can make it impossible to find decent housing, maintain your car properly, or take care of other obligations. It can feel like you’re drowning and struggling to stay afloat with no sign of relief in sight. Not knowing where you turn can make debt seem inescapable, but you do have options out there.

If you are considering filing for bankruptcy for debt relief, here are five things you need to know first. 

Understanding Different Types of Bankruptcy 

For the average person, debt solutions in Delray Beach are a foreign language. Bankruptcy laws are full of confusing language that make them difficult to understand without legal experience. Hiring a bankruptcy lawyer in Delray Beach can help you navigate and understand your options. 

The primary options for most people filing personal bankruptcy claims are Chapter 7 bankruptcy and chapter 13 bankruptcy.  

Chapter 7 Bankruptcy 

Also known as liquidation bankruptcy, filing under chapter 7 means that you are unable to make minimum payments on your debts to become debt-free. As the name suggests, this form of bankruptcy requires the liquidation of all assets to settle debts. However, it does give one the option to halt harassing phone calls and foreclosure proceedings, forcing creditors to accept the terms of your settlement. Once a discharge has been issued by the courts, you can then focus on rebuilding your credit. 

It should be noted, however, that not everyone qualifies for chapter 7 bankruptcy. If your debts are over a certain amount or you belong to a higher tax bracket, you may not qualify. Contact the Law Offices of John E. Mufson for more information today!  

Chapter 13 Bankruptcy 

The “reorganization” option for bankruptcy, chapter 13 is a form of consolidation and repayment plan. With a more affordable three to five-year payment schedule, this bankruptcy option offers debt relief without completely surrendering everything. Just as with chapter 7 bankruptcy filing, this option stops harassing phone calls and threats of repossession or foreclosure. Additionally, making your payments regularly and on time helps to build your credit as you pay off the debts. Once you’ve successfully paid off the agreed upon amount, your remaining debts will be dismissed. 

Consequences of Bankruptcy 

Filing bankruptcy isn’t a get out of jail free card. If you choose to liquidate, it will wipe out your good credit as well as bad. Bankruptcy filing also remains on your credit history for up to 10 years, which can affect things like trying to buy a home or car down the line. Having a bankruptcy on your credit history may also affect your chances of approval and interest rates on loans, ability to find an apartment, and other financial transactions. 

 What Bankruptcy Doesn’t Cover 

Not all debts qualify for dismissal through bankruptcy. If you owe child support or back taxes, bankruptcy will not remove these debts. Seeking other debt programs in Delray Beach can help you manage these expenses. The Law Offices of John E. Mufson can guide you through your options. 

Bankruptcy is on Public Record 

If you decide to file for bankruptcy, you should know that information will be available through public records. Not only will potential loan companies, realtors, and car dealerships be able to find the information, but others may be able to find it as well. If this is a concern for you, consider other debt solutions available to you. 

Creditors Can Challenge Your Request 

Filing bankruptcy is not a guaranteed solution. If you owe significant amounts to lienholders or other lenders, they can challenge your bankruptcy correct. A bankruptcy lawyer in Delray Beach can help you navigate the court process should a company decide to challenge your filing. At the Law Offices of John E. Mufson, we are well versed in bankruptcy law and fully capable of helping you make the best decision for your specific situation. 

For more information about how we can help you, contact us now!