Florida Debt Relief

With the economic climate of Florida continuing to worsen and all financial indicators suggesting there’s no relief in sight, personal bankruptcy filings have dramatically increased over the past year. However, much as Florida borrowers may be drawn to bankruptcy as the last resort of debt relief, once traditional methods of repayment seem insufficient to swiftly and easily satisfy the outstanding balances, there are new (and, in many ways, more effective) means of relieving unsecured debts that every Florida resident should take into account. Obviously, for each one, the accessibility and effectiveness will be determined by the household’s specific financial criteria – earnings, assets, and the type of debts that they hold. There’s no one perfect solution for each Florida borrower, and it’s instructive to examine all of the different methods of debt relief before simply falling toward bankruptcy in search of a fresh start because it seems the right thing to do. Chapter 7 debt elimination has become so ingrained as the only sort of debt relief that borrowers in Florida and across the United States could depend upon, too many of our citizens do not even bother to research the other options for helping working men and women rid themselves of obligations they could not otherwise repay. More troubling, they’re not aware of all of the alterations to the United States bankruptcy code after recent legislation weakened protections and only find out the potential damages after they have spent too much for attorney services and erased any chance of finding another avenue toward a lasting relief of their debts. In this article, the new realities of Chapter 7 and Chapter 13 bankruptcy for Florida borrowers shall be addressed as well as an elaboration of the new methods of debt relief that have come into being the past few years.

In 2005, congressional legislation from the federal government changed the bankruptcy statutes. From that time forward, every Floridian that files for bankruptcy protection must have taken and passed a course of debt relief instruction no more than six months before they enter their paperwork as well as completing a similar course before bankruptcy discharge. Also, after the passage of the 2005 legislation, the courts will examine the filer’s earnings to see whether they are even eligible for the Chapter 7 debt relief elimination program. If the trustee finds that the Florida debtors’ income was greater than the median income for their state of residence, they’ll be automatically transferred to the Chapter 13 program. Even if their earnings are too substantial compared to those of the average consumer within their state, borrowers still have one more alternative. If the Florida courts find they would not be likely to afford payments of one hundred dollars each month over the next five years (for a total of six thousand dollars) to the assembled unsecured lenders, Chapter 7 debt elimination would remain a possibility. Unfortunately, the determination of every Florida household’s capacity will be based upon those Internal Revenue Service estimations of the cost of living for the state as a whole, and, no matter the practicalities of any family’s actual situation, these artificially mandated expenses will overshadow the realities. As long as the Florida courts believe that a debtor could pay a quarter of their accumulated unsecured obligations, there’s no possibility for Chapter 7 as a form of debt relief.

At first glance, debt settlement may appear quite similar to Consumer Credit Counseling as a debt relief solution. After all, there’s still an element of consolidation to the program. Florida borrowers will once again be asked to provide monthly stipends to the debt settlement company that doles out the accepted amounts each month to the credit card companies. However, with debt settlement, the credit card companies pay no money back to the settlement firms. On the contrary, through a succession of phone calls, debt settlement negotiators argue down not only the interest rates of the loans but also the total amount owed. Yes, if the settlement program is successful, the collected obligations could be reduced by as much as fifty percent of the original, and the credit card lenders, frightened that their client may attempt bankruptcy, will have no alternative but to agree. Since the consumer retains legal responsibility for their loans, debt settlement does not have even have much of an effect upon the credit rating. Not every Floridian borrower will be allowed access to debt settlement negotiation – the settlement professional also promises on behalf of the debtor that all remaining funds will be paid in full in a period not extending beyond five years or sixty months – and there are serious costs for such services, but, compared to the competing approaches of debt relief, every Florida resident looking over their choices must at least examine settlement. It isn’t perfect, no debt relief solution would be without risks and disadvantages, but debt settlement as a form of relief of burdens certainly beats all other alternatives currently to be found by Florida consumers.

The decision to reach out for help with your debt is not one that's easy to make. You were raised to "do the right thing", but now it’s nearly unbearable. You struggle along while your creditors are turning up the heat. And now you’re at the point where the late fees, penalties and interest expense make it impossible to keep your head above water.

Ask yourself this. If you could eliminate your debt without permanently damaging your credit, why wouldn't you?

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Debt Relief

Bankruptcy is not your only option! Our goal is to help you determine the right course of action for you to take. We will connect you with a debt settlement company today that will help you avoid filing for bankruptcy protection.

Are your finances spiraling out of control? Get the information you need today to stop harassing creditor’s phone calls. Total Debt Relief provides a matching service to connect you with pre-screened Debt Settlement Professionals. These debt management pros will educate you on all of the options available to you to get out of debt. Total Debt Relief helps you make the most informed decision possible so that you can get your financial life back on track.