Bankruptcy law

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Individuals that have experienced hardship due to the economic downturn may greatly benefit from the filing of a bankruptcy.

Depending on the individual’s situation, a chapter 7 or chapter 13 bankruptcy will assist in the restructure and re-organization of secured debts and the elimination of unsecured obligations.

Using bankruptcy can greatly assist individual in gaining control of their financial situation and moving forward without years of delinquent debts and lawsuits looming over one’s life.

Read about Chapter 7

Many individuals seek bankruptcy when they have fallen behind on their mortgage obligations and wish to save their home. The filing of a chapter 13 bankruptcy allows for the restructure of an individual’s secured debt. This restructure allows for the elimination or “stripping” of certain secured debts and the elimination of all unsecured debts.

Read more about Chapter 13

In April of 2013, the Bankruptcy Court for the Southern District of Florida enacted a new program known as Loss Mitigation Mediation (“LMM”). Individuals in a chapter 13 bankruptcy may use this program to attend mediation during the chapter 13 bankruptcy and attempt a modification of mortgage obligations.

Read more about Loss Mitigation Mediation

A chapter 13 bankruptcy may also be used to eliminate or “strip” second mortgages for properties that are underwater. For example, during the mortgage boom many individuals were only able to qualify for the purchase of a property with an 80/20 loan.

Because of the decline in property values, many homeowners owe more to the first mortgage company than the current market value of the property. When this occurs, an individual may use a chapter 13 bankruptcy to completely eliminate the second mortgage. This same concept may be applied to liens placed on under-secured properties by Homeowner and Condominium Associations.

To many homeowners’ surprise, associations may foreclose based on unpaid association fees. The foreclosure process for a Condominium or Homeowner Associations moves much more quickly than the bank foreclosures.

Another benefit of a bankruptcy is that it will stay all proceedings and debt collection attempts, thereby paralyzing any creditor, including an association or bank’s ability to move forward the foreclosure process.

While an individual is in bankruptcy, this automatic stay will protect their assets and remain in effect until a creditor can demonstrate cause to have it removed or the debt is not necessary for the restructure of a debtor’s assets.

We have knowledgeable attorneys and staff at the Corona Law Firm P.A. that can assist you with the filing of your bankruptcy and help advise you as to which bankruptcy may be best for you. Contact Corona Law Firm P.A. today for a free consultation.