Florida Bankruptcy Attorney Blog

Economic indicators appear to be mixed at this time, and the direction of the economy remains uncertain. In the midst of this uncertainty, Chrysler appears to be about to declare bankruptcy. It will be interesting to see what plan Chrysler will file and how they will reorganize to remain a viable concern. This is especially interesting considering that, last year, with the "bail out" extravaganza, bankruptcy was deplored as the least viable option by many. Perhaps now it is realized by more and more people to be the only acceptable way to handle Chrysler's difficulties.

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Posted In: Bankruptcy Discussion , Chapter 11

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The promise of a bill to handle delinquent first mortgages through the bankruptcy process died a quiet death. Meanwhile, the government appears to be relying more on the regulatory mechanism to handle the economic malaise that has swept the country since the end of 2007. By most estimates, this recession actually began a long time ago, but the full impact of it has not really been felt by most people until recently. With consumer spending down 1% this past March, any recent optimism may be false hope for the time being. Also, unemployment continues to climb.

Where does this leave you, the strapped homeowner, delinquent on your mortgage payments. It may be that you also took out a second home equity line of credit, which by now has been entirely spent. Depending upon the value of your home, your second mortgage may be removeable, you might be able to both lower your total mortgage payment and pay back your delinquent payments through the bankruptcy process. Don't discount bankruptcy as a possible valid option in your case.

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Posted In: Bankruptcy Discussion , Chapter 13

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The cost of economic recovery, beyond the solution of bankruptcy, is beginning to impact the national deficit in a large and burdensome way. Already many experts have become concerned that the ballooning national deficit could render both the dollar and the treasury bill far less secure than they once were. People should keep in mind that the value of everything is relative to other currencies, commodities, securities, and anything else of value, and the rate at which we are printing and spending fiat money may well come back to haunt us in the years ahead. But in the end there are potentially only two consequences to our crisis- a dramatic slowdown or dramatic inflation to bring us out of dramatic slowdown.

Many people have speculated that bankruptcy was not a viable option for the Big 3 automakers because of the lack of confidence bankruptcy would have brought to their customer base. Customer relations would plummet as people would be psychologically unsure of whether there would be support for the autos they purchased in the future. However, this is likely more psychological than rational. The specter of bankruptcy raises in the immediate consciousness the idea of failure, even though failure would have likely been imminent without bankruptcy, and bankruptcy would have possibly saved all 3 companies from oblivion. So it is a psychological reaction based on ignorance more than a reflection of the reality of a Chapter 11 bankruptcy solution.

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Depending upon the jurisdiction in Florida or elsewhere, it may be better for a client to declare either a Chapter 7 or Chapter 13 for a client to protect his home. For those behind on their payments, a Chapter 13 bankruptcy is often touted as the best solution. But this is not necessarily the case. Sometimes it is better to fight and renegotiate your mortgage and then declare a Chapter 7, even though there is an element of risk doing this. Much of this kind of decision rests upon the amount of income you are generating. Factors to consider include things as minor as Trustee collection fees. For these and other complicated reasons it is always good to consult with a bankruptcy lawyer and not engage in this process without professional help.

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Posted In: Bankruptcy Discussion , Chapter 13 , Chapter 7 , Foreclosure Defense

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The Federal Reserve has reduced the Lending Rate between banks to a level that is actually 0 percent. This should give everyone pause on the seriousness of the present state of our economy. It would appear that any additional economic stimulus may come from an increase in government investment into infrastructure and other public works. This is clear a gigantic period of correction for everyone, consumers, banks, and other institutions. The problem so far though, is that the average consumer still isn't getting any bailout, there is still little foreclosure relief in the state of Florida, and bankruptcy remains for the consumer in many cases the most viable option for handling their debts. Many consumers may also find themselves getting a Christmas present in the mail from their credit card companies- a notice of credit card cancellation or a significant credit line deduction, just in time to perhaps freeze up the month of January in more ways than one.

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There are various indications that the commercial real estate market may be about to collapse, similar to what was seen in the residential and consumer housing markets. If this occurs we could probably expect a slew of Chapter 11 filings and other mayhem to the economy in this sector. So far though, things appear to be holding somewhat steady.

New Mortgage Crisis Looms

A new crisis looms, but hopefully this won't impact things in January, right as consumers are about to get slamed with an apparent round of consumer credit line cuts by the lenders.

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Posted In: Bankruptcy Discussion , Chapter 11

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It was recently reported that the post Thanksgiving shopping day had another high turn out as in every other previous year. While it is good to see that people are getting things for their family and friends to give as gifts this holiday season (or perhaps splurging on the deals for themselves), one has to wonder whether Americans are truly addicted to spending beyond their means. Given the record low levels of available credit, and various reports that credit card companies will be slashing their high limits across the board on various consumer loans, one wonders how prepared consumers and the economy will be after the holiday season and come January. Bankruptcies may go higher once again as the economy seems to be remaining in a downward slump for the time being.

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Posted In: Bankruptcy Discussion

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The economy continues to tailspin as retail numbers make their largest decline in years. People often have no idea of the power of the consumer. Consumer spending is one of the largest portions of domestic GDP every year. The power resides not with corporate america, but with your average consumer. Forget about Wall Street being spooked. If your average consumer is spooked and not spending appropriately, the entire economy will begin to feel the harshest bite of a recession. Most of our clients are typical consumers, and we rely on the good faith of our consumer clients for our own bankruptcy business. Most Chapter 7 bankruptcies are consumer bankruptcies, and involve little to not distribution of any actual assets because most of the consumers that come are not able to make even basic credit card payments. Every consumer should have the right, once every eight years, to this kind of fresh start. Do not underestimate the power of the consumer to get back on his feet and get the economy running again.

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Posted In: Bankruptcy Discussion , Chapter 7

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As the continuing recent economic decline begins to move out of the financial sector and into the other main sectors of the economy, the question has begun to be raised whether we should "bail out" the Big Three automakers or let them fall into Chapter 11. The traditional remedy in these cases is certainly the Chapter 11, which was designed for situations like this. However, recent policy arguments have been raised that without government intervention into these broad sectors the entire economy will collapse. But what will happen if the Government's credit rating drops below AAA, and the United States itself begins to suffer from the economic malaise? One has to wonder how this would restore confidence in the economy as a whole. Redistributing the problem may have little to any impact. Bankruptcy may in the end prove the most viable solution. It would also force the domestic car manufacturers to improve their product line.

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Posted In: Bankruptcy Discussion , Chapter 11

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As sad as it is to see people who have worked hard their whole lives lose their home, sometimes it is inevitable that the auction sale will commence and the house will be forced to sale. Often vulture type investors swoop up these houses at the auctions, looking for a good deal. Obviously, this has been happening alot around Florida lately, given that this state along with a few others have shared the brunt of what has become known as the "housing crisis", which has caused a high number of bankruptcies to be filed recently as well.

Apparently, though, one might be able to find better deals than these elsewhere. I unbelievably overheard someone on the radio today reporting being able to buy a two story brownstone style condominium for one dollar! This individual apparently has heard of others doing the same (for very small sums like $100.00). Maybe foreclosure auctions aren't the best places to find some good house prices after all. Of course, it is likely this person could just have been lying.

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Posted In: Foreclosure Defense

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In recent months Florida has recorded an unemployment rate higher than the national average, and one of the highest unemployment rates it has had in years. Unemployment is presently hovering around 7.1 percent. Last year it was around only 4 percent. This is certainly something that could impact bankruptcy filings. The Bartlett Law Firm has seen the number of bankruptcy consultations rise. Much of the problem in Florida likely stems from its higher than average economic reliance on the real estate market, where prices have plummeted in percentage terms at rates not seen in decades. The Orlando area, while critically impacted, does not appear to have been impacted as greatly as certain cities along the Florida coastlines, especially Miami-Dade and north along the east coast, and portions of Tampa. During these stressful times for many, our firm has been instrumental in helping many people not only file for bankruptcy, but also save their homes, and protect their cars from repossession.

Sometimes, the best thing for a client is actually not to file for bankruptcy. We have had clients come to us for our free consultation almost demanding bankruptcy, and in all honesty we had to inform them they were simply not a good candidate. This is part of our job as a lawyer, to assess what is in the best interest of our clientelle.

Sometimes the better solution was to work out a negotiation with their mortgage lender, or defend a foreclosure proceeding that was already instituted against them. We have been successful in helping our clients negotiate better terms on their loans, and in vigorously defending their possessions from seizure. Our goal is to make our client ultimately happy with the results they obtain, and advise them on how to get there.

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Posted In: Bankruptcy Discussion , Foreclosure Defense

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We would like to remind Florida voters in and outside of our community that this election will likely impact your rights under the United States Bankruptcy Code. For example, Barak Obama and others have proposed substantial reforms that would make it easier to cram down and reduce total outstanding indebtedness on mortgage obligations. There are both positive and negative arguments regarding this new proposal. Back in 2005, when new legislation was passed under President George Bush, reforming the code, many people were surprised by how these changes affected their ability to file and their rights under the code. We encourage our clients and all consumers to be aware, before you take large financial risks, of the consequences for you if that financial risk ends up not working in your favor. Bankruptcy laws are changing, and it is always good to refer to a qualified Florida bankruptcy lawyer for advice- a lawyer who knows not only the Florida state statutes regarding creditor and debtor disputes (which often play into a bankruptcy), but also knows of course the Bankruptcy code and applicable rules.

The Bartlett Law Firm does not officially endorse any candidate but encourages all voters to go out and vote after being informed on the issues.

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Posted In: Bankruptcy Discussion

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