When most consumers speak about owing money to a creditor, they are generally referring to common everyday loans like credit cards, lines of credit, and payday loans. Generally the creditors’ options in these cases, while more limited than a secured creditor, can be quite extensive. Obviously the creditors have a legal right, pursuant to the contract you signed with them, to what is usually a monthly payment at an annual percentage rate of interest for making the loan. This percentage rate of interest is often subject to usury laws throughout the various states including Florida, with some states like South Dakota known for being very lenient on rates that can be charged. When the card is issued to you, or the line of credit is opened, you are obligated to pay this loan in full at least according to the minimum monthly payment. Exceptions to this would be if the credit violated a federal statute or general good faith in getting you to sign up for their offer. We would look at this on a case by case basis. Often paying back your debt through the minimum monthly payment will result in you being obligated possibly for the rest of your life depending on the extent of your debt. The amount of money earned by the lender in interest over time can be extensive.

If you have fallen behind on your payments, the creditor may have the option of accelerating the loan and demanding immediate payment of the entire balance at once. By doing this, the creditor is securing its legal right to pursue a judgment against you in a court of law for the balance that is owed. In order to obtain judgment against you, the creditor usually has to file a lawsuit in the court where you reside, or at least in a jurisdiction where you agreed to be available for suit. Once the lawsuit is filed, there may be a number of legal defenses you could possibly raise. We invite you to come in and speak with us about these defenses. Once a judgment against you is obtained, the creditor will likely demand you attend a deposition to inform the lender of where your assets are located. Failure to speak truthfully and completely could subject you to criminal prosecution. Even if it is construed that you are lying you could be in trouble. Please obtain an attorney immediately to represent you if you are faced with such a proceeding. Call us today for a consultation if this is your situation.

Once information has been obtained on your assets and income, the creditor will either seek a garnishment or a levy. If the creditor garnishes your wages, a high percentage of your wages earned will be deducted. Otherwise, the creditor will levy your assets and the sheriff will come out and take your property. If you are facing this situation please contact us immediately. There are a number of defenses you could raise to this. You don’t want your family or children being exposed to a situation like this.

Finally, bankruptcy is always an option especially if you are facing numerous difficult creditors who are bound to come after your assets. It is often better to file bankruptcy than become subject to surprise bank account seizures, garnishments, attachments, or have the sheriff knocking on your door ready to take your furniture, belongings, memorabilia and other property of both material and sentimental value. If you have a lot of assets or an especially complex situation, do not hesitate to call us. We handle bankruptcies from the most complex cases to those that may be deemed by some as less complicated. All bankruptcies, from the most complicated to the most basic, are important to us and you will be a valued client at our firm.

This firm will handle your Chapter 11 case, which is a complex reorganization case, often even more complicated and with more legal obligations than the payment plans under a Chapter 13 bankruptcy.

We can devise a fair and equitable payment plan under Chapter 13 if for some reason you do not qualify for a Chapter 7. This is often better than attempting to devise a credit repayment plan through a negotiation process. Often people fall for scams of this nature where they are not represented by an attorney, they pay a large amount of money up front for “debt consolidation”, and nothing is done. Even worse, they of often emerge from the process facing lawsuits. It is always better to contact a lawyer before deciding to choose “debt consolidation” over bankruptcy, to make sure your rights are protected.

Of course, we also help you with Chapter 7, representing your interests fairly and honestly, and doing what we can to preserve your assets and help you emerge with everything you need for a fresh start.