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

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?

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!

Harassed by Creditors? How Bankruptcy Can Protect You!

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

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!