In 2016, almost 1 million people in the U.S. filed for some form of bankruptcy, the most common being Chapter 7 protection, which differs from Chapter 13 in that a repayment plan does not need to be filed. Those who file for Chapter 7 will take a major hit on their credit, possibly dropping their credit score 200 points or more. There is no doubt that this is a major financial blow – as were the events leading up to the bankruptcy, in all likelihood – but the mistake many people make is in seeing their filing as an end; as something that can’t be recovered from.
The rules are clear here in Orlando, Florida and anywhere else: if you’re filing for Chapter 7, you cannot charge your bankruptcy lawyer fees on a credit card.
Any Orlando bankruptcy attorney who reads the bankruptcy code knows that it specifically prevents us from counseling a client to go into debt to pay for a bankruptcy attorney’s fees. Also, when you file for Chapter 7, the court will scrutinize any last-minute credit card debts to determine whether they are dis chargeable, since these charges could be viewed as evidence of bankruptcy fraud. Also, any expenditures for “luxury items” during the 90 days before you file could result in the court denying you a discharge of your debts.
Many of our clients are surprised by just how good they feel after declaring bankruptcy. Not that filing for bankruptcy is an easy decision; on the contrary, the decision to discharge your debts should only be undertaken with care and consideration, not to mention consultation with an experienced Florida bankruptcy attorney.
A law that helps Orlando homeowners avoid taxes on the short sale of their home is scheduled to expire at the end of this year. A short sale is one of the best non-bankruptcy alternatives for the many Orlando homeowners who are in financial distress due to having an underwater home. In a short sale transaction, the home is sold and the bank that holds the mortgage agrees to accept payment for less than the mortgage loan balance. An Orlando short sale allows the homeowner to transfer title, avoid foreclosure, and eliminate their mortgage debt.