| TAMPA PERSONAL BANKRUPTCY AND DEBT REORGANIZATION Bankruptcy and debt restructuring are complicated processes that have long term effects, both beneficial and adverse, on a person’s life. The court process, dealing with creditors and the events leading up to the decision to take action involve financial and emotional issues. It is frequently a stressful, frustrating, and intimidating experience. You should have an experienced and skillful attorney to represent you throughout that process. Even an experienced bankruptcy attorney cannot foresee every difficulty that may arise in your unique case. The complexities of insolvency law are such that the services of an attorney who is knowledgeable and experienced in that field is highly advisable. We understand the strain that this process may put on you and your family. We are dedicated to personal service and our sympathetic staff is ready to help walk you through this difficult time. Since we understand your position, we approach each case with the compassion, dedication and heart that you deserve. For more information or to see if bankruptcy is an option for you, please contact our office for a no-obligation consultation. NOTE that bankruptcy is just one of the tools that your Tampa Attorney may have available to help you fight your foreclosure. Please contact your Tampa Attorney for more information. UPDATE: under current law Your Tampa Bankruptcy Attorney may only change a mortgage value in a chapter 11 case for a non-homestead property. If someone has promised to change your homestead mortgage value in a chapter 7 or 13 bankruptcy please get a second opinion. There has been a new move to allow mortgage modifications through Chapter 13 mediation. We have recently been very successful in cooperating with lenders for mortgage modifications in and out of Chapter 13. Question of the week: Can a Bankruptcy Attorney stop a garnishment from a judgment against me? Yes. A bankruptcy can stop a creditor that may try to garnish your wages or bank account and may be able to discharge a judgment against you. Contact your bankruptcy attorney to help determine how a bankruptcy can protect you from garnishment, foreclosure or other collection activity. I am surrendering a home to a mortgage lender to help consolidate my debt, may I still collect rent on the home, and does this change after filing a chapter 7? If you have rental income from property but are planning on surrendering the property to the mortgage lender, either in bankruptcy or foreclosure, the rental income may belong to the mortgage lender. Please refer to your mortgage and note for details, but often rental income is assigned as part of the mortgage. If you were to file a chapter 7 or 13 bankruptcy, you may still not be able to keep the rental income. In a chapter 7 bankruptcy, the bankruptcy estate would own the rental property and they would be the proper party to collect the rent. Even if the rent is paid to you, you may be required to turn over the rent to the bankruptcy trustee. If you file a chapter 13 or reorganization, the rental income may be used in calculating your income for purpose of determining your discretionary income and ultimately your chapter 13 plan payments. I am up-side-down or have negative equity in my home, can a Tampa Bankruptcy Lawyer help me? If you owe more than your house is worth, your Tampa Bankruptcy Lawyer may help you decide between four options: pay for the house until the home value increases, return the home to the bank, attempt to negotiate with the bank for a loan modification or sell the home. If you sell the home, a Tampa bankruptcy attorney may help you to negotiate a short sale with the bank, so you do not need to bring money to sell. If you decide to give the house to the bank, this may be done, with or with out a the help of a Tampa Bankruptcy Attorney. If you do not file a bankruptcy the Court may grant the bank a deficiency judgment against you for the difference between the sale price and the amount owed. The bank may attempt to collect the difference from your personally or may file a 1098/1099 with the IRS, and treat the deficiency amount as earned income. You would then be personally liable for the difference as if it were earned income from that tax year. A bankruptcy or reorganization may save you from the deficiency judgment and the 1099 taxable gain. It is often easier for your Tampa Bankruptcy Attorney to obtain a discharge from the Tampa Bankruptcy Court prior to the foreclosure sale. Call your Tampa bankruptcy lawyer for more information. What happens and what questions are asked at the 341 Meeting of Creditors? Click here for your Tampa Bankruptcy Lawyers 341 Meeting of Creditors information sheet. |


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