FAQS

Im being arrested for a debt what should I do?

The creditor must show proof that you have the debt within the period of time that you were contacted. If the accusation is untrue and the creditor continues to intimidate you, you can contact a law firm to obtain effective legal aid.

Are debt collectors is allowed to contact my employer?

They are, but with restrictions. If you tell them in writing that they are not allowed to contact you at work, then they cannot. If they do it, it is a violation of the law. They may not discuss your debt with your employer in any way.

What is the concept of credit?

Credit is a word derived from the Latin credititus and means to build confidence. Credit is an economic action by which a person or institution provides money, goods, or serviceids with the expectation of future payment.

Can I buy a home again after I file bankruptcy?

Sure, you can buy a home again if you want. You will need a loan from the federal department of housing in order to complete your purchase. After 2 years of the declaration of bankruptcy the approval is very feasible. If the bankruptcy was due to medical debts you may request to purchase the home only a year after bankruptcy.

What is the concept of bankruptcy?

The bankruptcy process is a mechanism of laws developed in federal court with the purpose of protecting and assisting individuals or businesses in solving their payment disputes with creditors. filing bankruptcy stops creditors from seeking to collect debts from you during the bankruptcy process.

How much does a lawyer cost?

The cost depends on how complex the case will be. However, resolving your financial issues today will very likely result in a better financial future for you and your family.

What benefit do I get by filling a bankruptcy?

Bankruptcy discharges debts, making possible a fresh financial start. It also stops foreclosure on your property and prevents the repossession of your car or other assets you may have. In addition, it prevents termination of utility and restores it.

Once I file for bankruptcy, will I have to go to Court?

Most probably you will only have to go to a meeting with creditors in order to meet them and the bankruptcy trustee. In the case that you need to dispute a debt, then you might have to appear before a judge.

Will my employer know I filed for bankruptcy?

No, they will not be contacted.

What is legally considered as harassment from a collection agency?

There are a few examples of ways collection agencies can cross the line and you have the right to send them a certified letter stating that you are being harassed. In order to avoid liability they will either offer to cancel the debt or settle at a fair rate. Some examples of ˜crossing the line include:

• Use violence or threatening to harm your reputation, take away your property, etc. Use disrespectful or obscene language. Misrepresenting the collection agency by saying they call on behalf of state or federal government or false implication saying they are a lawyer or law enforcement officer. Giving wrong information about the amount of money owned. Insinuating that failing to pay the debts will result in arrest or imprisonment. Constant calls.

what are some tips for individuals filing a bankruptcy?

Some tips that will help you through the whole process include:

• Assessing your finances: Find out more about what caused the financial problem and what to do in order to avoid the same issues in the future. Pull a free credit report: This will help you find out more about all the creditors you owe. All these creditors should be included in the bankruptcy process. Get a credit counseling certificate as soon as you can. This is one of the pre-filing requirements for bankruptcy. You must get the certificate from a government certified counseling agency. Hire an attorney: This is probably one of the wisest things you can do. Attorneys know way more than you about how things work in the legal system.

Is it possible getting bankruptcy forms on the internet?

Yes, its possible getting them but we dont encourage self-representation. This will leave your case open for possible serious or permanent error. Capable legal counsel is always best. If you would like to get familiar with these forms, click here.

Is credit counseling before filing for bankruptcy mandatory?

Under the new law, you must seek credit counseling, unless you have received counseling from an approved nonprofit agency. The law will only exempt individuals unable to comply due to disability, incapacity, or active military duty.

What happens if my spouse has a lot of debts but I dont? Would this affect my credit?

Bankruptcy cases work on an individual basis. Its not like owning a property where both spouses are in it together. A bankruptcy will only affect the person filing. It wont affect the spouse not-filing. Spouses have different names and social security numbers therefore their financial lives are independent in the credit bureaus eyes. However, if you are a co-debtor, the creditor will definitely look at you for payments. Ask more an attorney from Gallardo Law Firm about what to do in this situation.

Do I have to explain myself in court?

You will not have to go to court. There is a section 341 Meeting of the Creditors that you will have to attend but since no one ever shows up you will probably have to hire a lawyer. These meetings take around 10 minutes and no special preparation is required.

Is it possible to keep my credit cards?

Maybe you will be able to keep some credit cards but just remember that the trustee will request that you cut up all your credit cards. After you file, you should not charge anything on your credit cards. The goal is going debt free. If you are not indebted with a particular creditor perhaps you can keep their credit card. However, first check with your attorney.

What happens to my credit records?

A bankruptcy will definitely hurt your ability to get credit in the future. This will appear on your credit records for ten years. The best thing to do is to pay the bills as agreed. Bankruptcy will not get rid of your bills; it only helps you with some responsibilities. Perhaps you are lucky enough to find a creditor that may be able to overlook your past financial status.

How long do I have to answer after a foreclosure is filed?

In the state of Florida you must respond within 20 days following notification. Therefore it is of great importance to meet with a lawyer.

Could I save my home after starting the foreclosure actions?

Yes, the foreclosure attorney in his defense gives you time to fix your financial situation or achieve alternatives that benefit both you and your family.

What does deficiency judgment mean?

It is the embargo that occurs against the debtor since the sale of the property was not enough to pay the mortgage, it is considered a debt.

Who are the ideal candidates to file for bankruptcy?

All those individuals and companies with large financial debts that cannot be solved by themselves and need to rely on one of the types of bankruptcy to resolve the economic situation. The bankruptcy works best for borrowers who may have some type of income that helps them cover their costs after downloading the corresponding chapter in the case.

What is a strategic default?

When a homeowner decides to stop making mortgage payments, this is called a strategic default. Strategic defaults are used usually when the persons home is worth less than the mortgage balance, or when the person is no longer able to pay their monthly mortgage payments.

What is a letter of demand or acceleration?

A letter of demand or acceleration is sent by a lender to a homeowner when the homeowner stops paying the mortgage. The lender must send this letter before they can proceed with a foreclosure lawsuit by the total loan amount.

Are there alternatives to foreclosure available?

There are a number of foreclosure alternatives available to homeowners, including short sales, deed in lieu of foreclosure and loan modifications. A qualified attorney can assist you in implementing these options and give great chances of a successful outcome.

Should I file bankruptcy to avoid foreclosure?

Bankruptcy should never be the first alternative for individuals with a foreclosure; there are other options that can be adopted to prevent the implications of a foreclosure sale. If the mortgage borrower has other debts, then bankruptcy could be a way to use to relieve the homeowner, but still it should be the last resort.

Can I go to jail for having so much debt?

No, the debtors are not going to prison for having accounts payable with creditors, unless they have committed a federal crime or fraud. Creditors may only collect debts through the court and ask the judge for a claim against the debtor for a money judgment. Even if the demand is achieved, creditors can seize some of your properties or cancel your checking account, but they cannot get an arrest warrant for debtors.

How many loan modifications can a borrower receive?

Borrowers are allowed to receive only one loan modification within a period of 2 years.

Can a lender perform an interior inspection of the house if they are worried about the propertys condition?

Yes. The lender can perform an inspection or any review it considers necessary to verify that the house has no physical conditions negatively influencing the borrower's ability to make the modified mortgage payments.

What is the Home Affordable Modification Program?

The Home Affordable Modification Program (HAMP) was created by the government. This federal program was designed in order to ease the financial burden of homeowners when paying their housing costs. HAMP helps homeowners by reducing their mortgage payments and make them more affordable. Our lawyers at Gallardo Law Firm are familiar with the process. They can help you determine which options you have and whether you qualify.

Can a lender include late charges in the loan modification?

It is expected that the lender waive all late charges accrued at the time of the loan workout. This can vary depending on the loan but its always useful to ask for a complete breakdown or description of all penalties and fees from your lender.