The Bankruptcy Law Clinic Blog

Friday, September 12, 2014

Is Bankruptcy an Option if My Debt Includes Medical Bills?

The simple answer to this questions is, “Yes, you can declare bankruptcy if medical bills have caused you financial hardship.” As a matter of fact, many people have few financial issues until a medical emergency strikes.  The medical bills are what trigger their need for bankruptcy.  

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Thursday, May 15, 2014

Common Myths Related to Bankruptcy, Modification, and Foreclosure

The processes surrounding bankruptcy, loan modification and foreclosure in South Florida are often complicated, resulting in several misunderstandings about how these processes work and which one you should pursue if you are facing distressing financial situations.  These common myths make it difficult to make the right decision for your financial future, so dispelling them and learning the truth about which process would work in your favor if you are considering bankruptcy in Florida is an important step to getting back on track with your life and financial goals.

Myth #1 – Loan modification is encouraged by the federal government and therefore anyone can easily get it to reduce the principal amount that’s owed on their home.


Less than 30% of the homeowners who apply for loan modifications are granted them.  Additionally, it’s not an easy process and can take many months to complete and there is no guarrantee that  the lender reduce the principal amount on the mortgage.  You may have gone through the whole process merely to have your loan extended to 40 years and the interest rate temporarily reduced, not getting you any closer to paying off your home.

Myth #2 – If I apply for a modification, my house won’t go into foreclosure and my missed payments will be waived.


If the foreclosure process has already been started on your home, or is close to being started, applying for a loan modification will not stop this process.  At best, it might slow it down or postpone the sale date slightly, but there’s no guarantee.  Also, a loan modification will not waive your missed payments.  Most lenders simply add these missed payments on to the end of your loan terms. 

Myth #3 – My credit takes a bigger hit if I file for bankruptcy than if I have to undergo a foreclosure. 


Many people find that their credit score actually improves after bankruptcy, especially if they’ve been missing payments for a while on multiple accounts.  If you have a foreclosure on your credit, it will take a serious hit—often one that is more serious than bankruptcy causes. A Miami bankruptcy attorney will be able to look at your specific circumstances and help you determine if a bankruptcy will help you achieve better credit in the short-term and long-term.   

Thanks to changes in how chapter 13 bankruptcies are being administered, we are now able to include Loan Modification Motions inside your bankruptcy.  You may be pleased with the result, but the only way to know for sure is to schedule an appointment.  Give us a call 305-663-3281!

Saturday, April 19, 2014

Things to Ask and Look For When Choosing a Bankruptcy Lawyer

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Thursday, April 3, 2014

Yet another reason why we're different than other bankruptcy attorneys

Of course we want to eliminate your debt- we're very good at it.  But your debt is not your entire life.  There's more to you and your life- and what we want is for you to have a bigger life than what you have now. And we can help you achieve it...
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Tuesday, March 25, 2014

Videos on bankruptcy we like

Reminder-  we've shot some simple videos that address some of the most common questions people have.  You can find them on youtube.  Here's one..


Friday, January 10, 2014

Bankruptcy helps you keep your money when things get better... and they will

Happy client time again.  We got a nice thank you right before Xmas.  Client(s) got rid of debt which meant their creditors could not touch his paycheck, even after he got a nice promotion. 

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Monday, December 16, 2013

Bankruptcy is Saving the World

For a lot of people, the term “bankruptcy” refers to a trick: People rack up immense debts they can’t hope to pay back, and when justice begins to close in on them they can jump in the escape pod marked Bankruptcy and wriggle out of the consequences, only to repeat the cycle.  This, of course, isn’t true, and as bankruptcy rates skyrocket during the worldwide economic slowdown we’ve been experiencing, more and more people are realizing that bankruptcy serves a legitimate purpose in the world.  To put it in dramatic terms: Bankruptcy allows civilization to exist, because it gives us rules and structure for dealing with financial ruin.


The Bad Old Days

In the past, an inability to pay bills was dealt with via a destructive and unrealistic hostility.  People were even thrown into jail because they failed to pay their bills, and even where debtor’s prison didn’t exist, there were usually endless rounds of punishments that sank people into a hole they would never crawl out of.  While that might seem like justice to some folks who have smugly never missed a payment in their lives, the fact is it was totally harmful to society: The debtor had no chance not only of paying off that specific debt, they had no chance to pay off other debts either.  Punishment therefore spread like a cancer to all the interested parties.


The Modern Method

In contrast, bankruptcy today allows for an orderly and fair review of the debtor’s assets and debts, and as many debts as possible are made whole.  Lenders are able to negotiate to get at least some minimum amount of their principal back, and the debtor is allowed to rebuild their lives and their finances not only after their debts are discharged, but during the process as well – which benefits everyone.

More and more people are realizing this – more than a million people filed for bankruptcy protections under either Chapter 7 or Chapter 13 in 2012 and 2013.  The two main types of bankruptcy differ slightly in the details of how they work, and a professional should be consulted before making any decisions involving bankruptcy.  But if you are at a point where paying your debts has become impossible, it’s a better choice to alert your creditors and work with them under a legal structure than to deny what’s happening and let chaos rule the day – as it surely will if you don’t file.

Monday, December 9, 2013

Bankruptcy: What You Really Need to Know

You can go dizzy looking at all the bankruptcy information on the web.  Lots of it appears contradictory too.  I usually tell clients to just go to the dept of justice website on bankruptcy. Its boring, but at least they get it right. However, if you made it this far, here's what I think you need to lknow about bankruptcy....

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Monday, December 2, 2013

Life After Wage Garnishment: Can You Live on Less?

Life After Wage Garnishment: Can You Live on Less?

Some people are living paycheck to paycheck with no savings to rely on if there is a crisis.   Sound familiar?  We can help

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Monday, November 25, 2013

Common questions answered now!

Here are a couple of bankruptcy questions we get when we answer the phone.  Got your own questions, call us now!  305-663-3281

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Monday, November 18, 2013

Bankruptcy Can Save Your Retirement

When you are struggling with your monthly bills, retirement seems like a far-off event.  If you have some money set aside in a government or company retirement plan read the next three paragraphs.  They are very important.

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