Solomita Law Offers Free Debt Relief Tele-seminar Thursday, April 7, 7 pm

Solomita Law Teleseminar on iphone screenWe know that it’s not always easy to discuss personal financial matters, particularly when they involve debt. Many people struggling with debt believe there is no way out, so they avoid seeking advice until monetary situations become even more dire. Often, they can’t pay off their debts without outside help. To answer frequently asked questions about debt relief and bankruptcy, Solomita Law will host an informational tele-seminar. Registration is free and easy.
Once registered, participants simply need to telephone our conference call line at 7 pm, Thursday, April 7, 2016.


Debt Relief Strategies and Bankruptcy Options Tele-Seminar
REGISTER NOW  SolomitaLaw.com/register-for-event
Participants may listen in and/or ask questions in the privacy and convenience of their own homes. During this 45-minute tele-briefing, participants will:
  • Get answers to questions about the bankruptcy process and how it works.
  • Find out who is a candidate for a bankruptcy petition.
  • Learn how Chapter 7 and Chapter 13 petitions enable debtors to get a fresh start.
  • Have the opportunity to ask questions.
  • Learn more about how the legal system works.
  • Find out how to set up a free private consultation to discuss their individual concerns.

This tele-session is designed to help people struggling with debt and/or asking questions such as:

  • How can I get out of debt?
  • Will I lose my home in a bankruptcy filing
  • Is there any way to protect my assets?
  • Should I use my retirement funds to pay off my debts?
  • How can I get creditors to stop calling me?
Note: The information presented in this tele-seminar will be provided for educational purposes regarding options available for dealing with debt. This seminar is not intended to provide legal advice related to individual situations. For specific legal advice, please contact a qualified attorney to discuss your individual needs and circumstances.

Frequently Asked Questions by Solomita Law Clients — Part ll

In our prior article, Solomita Law answered three frequently asked questions about bankruptcy. This article addresses other common queries.

Must I include every one of my debts in a bankruptcy filing or may I elect to pay off certain debts without applying for a discharge?
All debts must be included in the bankruptcy petition. Certain debts such as student loans and child support (among others) will not qualify for discharge. Other debts, like mortgage and vehicle loans, can be repaid during the bankruptcy and after the discharge is entered as well.

Can a creditor file a new claim after I have filed a bankruptcy petition? What happens to new claims?
When you file for a bankruptcy judgment, the courts issue an automatic stay that will prevent additional creditor actions during the time of bankruptcy. This can buy you valuable time to stay in your home while exploring your financial options, finding a new place to live, preparing your belongings for a move, conducting your move, and/or applying for a mortgage modification.

An automatic stay also stops creditors from harassing you for payments and/or making claims during that time. However, creditors may elect to pursue you for debts that were not discharged during bankruptcy. During bankruptcy, the judge may discharge non-secure debts in full or in part (depending on circumstances and rules of the bankruptcy chapter under which you qualify). If debt remains, the judge also may establish a plan and order you to continue paying secured debts and non-dischargeable debts. Generally, the plan will be based on what the court determines you can afford to pay based on the total you owe and will establish a three-to-five year payment plan.

Will I lose my home if I file bankruptcy?
The answer depends on your mortgage history, the state in which you reside and the bankruptcy chapter under which you file. If you file under Chapter 13 in the State of Florida where Solomita Law operates, you have a good chance of keeping your home. The bankruptcy court’s Mortgage Modification Mediation Program has proven to be very successful for debtors in the Central Florida area. This program can help make your payments more affordable so you can stay in your home—particularly if you continued to make regular, on-time mortgage payments before filing for bankruptcy.

Will I be allowed to keep my furniture, car or other personal property?
The court provides each debtor with exemptions that they can use to protect their assets. If the exemptions used do not shield the full value of your assets, as the debtor, you will have to repay the unexempt amount to the Court or surrender possession of the unprotected asset. Please contact Solomita Law for further information on this topic.

Can I sell or transfer property before filing bankruptcy?
The courts will look at your financial transactions over the year prior to your bankruptcy to ensure those transactions did not occur with intent to commit fraud. If, for example, you sold a car six months earlier, and used the money to pay attorney fees or to purchase or repair an old car and use the remaining money to continue paying your bills, the court may consider those transactions an appropriate part of your debt management plan.

If you are considering a bankruptcy petition, speak to an attorney who can help you protect your assets and your standing in court. It’s important to make informed decisions before selling or transferring property so you do not jeopardize your opportunity to discharge debts through bankruptcy proceedings.

For more information, contact Solomita Law at 407-545-3625, or send email to Staff@SolomitaLaw.com. We will respond to your questions as soon as possible.

Frequently Asked Questions by Solomita Law Clients — Part l

Many people under financial duress avoid filing for bankruptcy because they don’t understand how bankruptcy works, don’t know where to turn for information, or fear that they will not be able to live a normal life after bankruptcy. In fact, bankruptcy law provides a means for recovering from excessive debt, and many (possibly even most) people who qualify to file bankruptcy wish they hadn’t waited so long.

Below, Solomita Law provides answers to three of the most frequently asked questions from clients considering bankruptcy.

Will I be free and clear of debts if the court approves my bankruptcy filing?

Not all debts are dischargeable through bankruptcy. Typically, in Chapter 7 bankruptcy, qualified debtors may be released from all unsecured debts. Under Chapter 13 bankruptcy filing, a debtor may be relieved of certain debts, depending on individual circumstances,, and in general, most debts managed under Chapter 13 include a repayment plan that allows the borrower more affordable payments each month, until those debts are paid, typically within three to five years.

Recent tax debts, as well as child support, criminal restitution and student loans will not be discharged through bankruptcy court; and, in certain cases, the Court may order a borrower to repay these debts in full during the course of the bankruptcy.

How can I protect my assets under bankruptcy?
Your ability to protect assets under rules of law depends on your individual case and the bankruptcy chapter under which you qualify for relief. For specific advice on the merits of your case, speak with a qualified bankruptcy attorney.

Certain assets, such as Individual Retirement Accounts (IRAs) are protected under 11 U.S.C § 522(d) and cannot be involuntarily used to repay creditors in a bankruptcy. Do not allow a creditor to harass you into using your retirement savings to pay a debt! Creditors are not allowed to demand or place a lien against your retirement savings. Varying levels of home equity and motor vehicles (depending on their monetary value) also may be protected from creditors provided that payments are not in arrears and continue to be made regularly according to your loan agreement.

Is there any way to stop creditors from harassing me through bankruptcy?

Bankruptcy court offers debtors relief from creditor harassment by order of an “automatic stay” that goes into effect when a bankruptcy petition is filed. The automatic stay essentially freezes your estate in time and protects you against further creditor actions while your attorney presents your case and advocates on your behalf with the bankruptcy trustee and judge.

The automatic stay stops a creditor from proceeding against a debtor to recover a claim that arose before the bankruptcy filing. During the stay (usually for the length of the bankruptcy proceeding), creditors are prohibited from any act to obtain possession of property of the debtor’s estate or to exercise control over the property of the estate. Creditors may not create, perfect (complete), or enforce any lien against the property, nor may they act to collect, assess or recover a claim that arose before the case.

After a bankruptcy discharge or plan is entered by the Court, the automatic stay is lifted; at that point, creditors must abide by the terms established by the judge. In some cases, debts may be entirely discharged (eliminated). In other cases, the court will establish a debt repayment plan based on the court’s judgment of your ability to pay.

Watch for answers to other common questions in Part II of this article. Or, if you are considering filing bankruptcy and wish to discuss your needs, feel free to contact Solomita Law at 407-545-3625 or send email to Staff@SolomitaLaw.com. We will respond to your questions as soon as possible.