Florida Bankruptcy Attorney Blog

Happy New Year from The Bartlett Law Firm, P.A. in Orlando, FL.

Bankruptcy filings in 2009 for the Orlando area increased to about 20,000 filings. This is a substantial increase from only around 12,000 one year earlier. It is clear that many people found themselves in substantial financial trouble during this time. The bankruptcy system was there for them, helping them to discharge much of their debts. If you are thinking of filing bankruptcy, feel free to take advantage of our free consultation.

So far, for 2010, there are have been about 500 filings in the Orlando area, essentially the same rate as filed thus far last year.

Because of the substantial numbers of anticipated future foreclosure filings, as adjustable rate mortgages continue to reset in massive numbers this year and next year, it would seem that many more people will likely choose to file in the coming months. It is important that these people choose bankruptcy lawyers that will be able to assist them effectively in this important time.

The judge of the General Motors bankruptcy noted today that the officers of the company were now spending more time on focusing on consumer needs, rather than in bankruptcy efforts, and efforts at Chapter 11 reorganization. This likely represents a step forward for the financially strapped and strained company. Meanwhile, General Motors still has significant reorganization to complete, including (unfortunately) possibly removing up to an additional ten thousand employees from payroll in order to make the company viable. Consumers are giving the new product lines a positive response.

As the recession continues and more people are being saddled with significant debt burdens and increasing rates of default, the question continues to arise whether student loans should be discharged in bankruptcy. Prior to amendments a few years ago, it was common and acceptable for people to discharge their private student loans after seven years if they were unable to make the monthly payments. Unfortunately, due to changes resulting from BAPCA, it became virtually impossible to discharge your student loans unless you could prove to the court that you would be undergoing an inordinate hardship. The requirements to show the court that you had this kind of hardship are very strenuous and most people simply do not fulfill the required conditions. It takes a good lawyer to put on a good case for those facing student loan defaults. The Bartlett Law Firm, P.A. has experience handling student loan defaults in bankruptcy cases, for all chapters. Hopefully, though, with more and more people realizing the incredible burden student loans can create for those who are trying to restart their lives on a proper footing, legislation will eventually be passed making it easier for normal people to discharge their student loans like any other debt.

The Bureau of Labor Statistics released a larger than expected increase in the rolls of the unemployed, and the total rate of the unemployed now stands at 9.8%. This kind of activity will cause the economy to only slowly pull out of this monster of a recession that has been affecting us all. If you're considering filing a bankruptcy because of your unemployment situation, definitely give us a call. Often when you file bankruptcy because you are unemployed, and have been unemployed for awhile, you will get better terms than if you waited until you were employed again. Sometimes timing is everything in the bankruptcy process. Give us a call today to see how we can help you figure out when it would be best for you to file.

When you file a bankruptcy the Court imposes an automatic stay on all actions against you, with certain exceptions. Any one who has what is called a claim, or cause of action for damages, can no longer pursue you for those particular damages until the stay is lifted. Thus, if you owe alot of money on a credit card, when you file bankruptcy the credit card company is no longer permitted to come after you. This happens when you file the initial paperwork, and as long as the paperwork is filled out properly and the action is not dismissed, this stay will last for approximately 3 to 4 months in a Chapter 7 case, and even longer in a Chapter 13 case.

The Bankruptcy Courts have the power to impose these measures pursuant to federal statutes and the supremacy clause when dealing with state courts.

There are exceptions to the automatic stay, usually involving a request to preliminarily lift the stay.

The automatic stay can be very useful for those who are attempting to calm the waters and get their lives back together through the bankruptcy process, and most importantly it stops those annoying phone calls!

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.

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.

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.

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.

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.

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.

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.