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Law Offices of Carol M. Galloway, P.A. Jacksonville Bankruptcy Lawyer
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Orlando Chapter 13 Bankruptcy Lawyer

In the first half of 2022, home foreclosures in Florida rose a staggering 124.5 percent. That’s mostly due to lingering effects of coronavirus lockdowns. That’s also due to bank-friendly Florida laws. Technically, mortgage service companies may start the foreclosure process after just one missed payment. This process usually begins with an acceleration notice. The bank demands the entire loan amount and stops accepting partial payments. Therefore, every month, a homeowner’s financial hole gets deeper.

Since Florida’s secured debt collection laws are against homeowners and other debtors, like vehicle owners, distressed debtors need a tough Orlando Chapter 13 bankruptcy lawyer from the Law Offices of Carol M. Galloway to level the playing field. Our professional team works hard to give families experiencing financial stress the financial fresh start they deserve. Our approach is simple. We plan our work, and then we work our plan. Furthermore, we proactively communicate with our clients throughout the process, so they are never in the dark.

Chapter 13 Basics

The so-called wage earner plan is designed for families who have fallen behind on vehicle loans, home loans, and other secured obligations. This assistance begins with the Automatic Stay. Section 362 stops foreclosure in its tracks, even if the bank has followed the correct procedure and even if the foreclosure sale is scheduled for later that day.

The Automatic Stay also prohibits most other kinds of creditor adverse action, such as wage garnishment, repossession, and lien placement. Furthermore, Florida laws protect most key assets, such as houses, government benefits, personal property, and motor vehicles.

About six weeks after the filing, the trustee (person who oversees the bankruptcy for the judge) works with the debtor to create a repayment plan. A monthly debt consolidation payment is at the center of this plan. Usually, as long as the plan meets minimum legal requirements, the judge approves it.

Once that happens, creditors cannot pressure debtors to repay more money or repay it faster. Instead, they must wait in line to get paid, just like the rest of us. This repayment plan lasts up to five years. Early bankruptcy exit is available in some cases, as is a repayment plan extension. Additionally, an Orlando Chapter 13 bankruptcy lawyer can modify the plan, or convert the debtor to Chapter 7, at almost any time.

Advanced Options

Lien stripping and fair market value cram-downs are the most common advanced options in a Chapter 13 bankruptcy. Only an experienced lawyer unlocks these options, which in many cases could save your family thousands of dollars every year.

Lien stripping is lien reclassification. Assume Jerry bought a $200,000 house with an 80/20 mortgage. His home’s value has dropped to $180,000. As a result, the home’s value isn’t high enough to fully secure both loans. Part of the junior mortgage becomes an unsecured, dischargeable debt which Jerry doesn’t have to repay.

Motor vehicle cram-downs are quite common. Jerry might owe $10,000 on a used vehicle that’s only worth $5,000. If Jerry pays the bank the car’s fair market value, the bank may have to tear up the rest of the loan.

These advanced options are quite complex. Only the most experienced bankruptcy lawyers should handle them.

Connect With a Thorough Orlando Chapter 13 Bankruptcy Attorney

Bankruptcy offers distressed debtors a way out. For a free consultation with an experienced Orlando Chapter 13 bankruptcy lawyer, contact the Law Offices of Carol M. Galloway, P.A. Virtual, home, and after-hours visits are available.

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