DiTocco Law Group, PLLC Bankruptcy Attorney Fort Lauderdale | Broward County Chapter 7 Lawyer | Miami Debt Relief Law Firm 2025-03-31T13:27:35Z https://www.ditoccolaw.com/feed/atom/ WordPress /wp-content/uploads/sites/1503327/2022/11/cropped-site-identity-32x32.jpg On Behalf of DiTocco Law Group, PLLC <![CDATA[What emotions might you experience when you file bankruptcy?]]> https://www.ditoccolaw.com/?p=51823 2025-01-15T15:59:43Z 2025-01-15T15:59:43Z The decision to file for bankruptcy is one that usually comes after considerable thought. It may take a while to realize that no matter how you try to alter the budget, there’s just not enough money to pay all the bills.  Some people who file for bankruptcy are surprised at the range of emotions they feel as they’re going through the process. Knowing what you may face before you file may make it easier to handle these emotions as they come up. 

Shame and sadness

In the past, having to file for bankruptcy was considered shameful. That’s not the case now. It’s now recognized that filing for bankruptcy is a legally acceptable manner to get out of debt so you can be responsible for your finances. Many people who file for bankruptcy were being responsible but fell victim to conditions they couldn’t control. You may also feel sad that you’re having to file, but you should focus on moving forward. 

Relief and hope

Once you realize that this is your chance for a fresh financial start, you may feel relieved that you don’t have to deal with the collection attempts any longer. This can lead to a sense of hope that you will be able to build a strong financial future.  Because filing bankruptcy can be stressful, it’s best to work with someone who’s familiar with the process. They can help you to learn about your rights and responsibilities during the bankruptcy. This may help you to feel more in control and comfortable, which can make it easier to handle your emotions. ]]> On Behalf of DiTocco Law Group, PLLC <![CDATA[What are the risks of debt settlement?]]> https://www.ditoccolaw.com/?p=51822 2025-01-04T18:49:48Z 2025-01-04T18:49:48Z When you're caught in financial strife, you may feel overwhelmed and desperate for solutions to manage your mounting debt burden. Debt settlement is one way to negotiate with creditors to pay less than you owe. While debt settlement may seem like a great option, it is important to understand some of the risks associated with this approach. This could help you determine if it is truly the right choice for your financial situation.

Risk of credit line closure

The credit industry views debt settlement as a risk indicator, often leading to immediate account closures. When you settle your debt, creditors may decide to terminate your credit relationship entirely. This can significantly affect your ability to make routine transactions that often require credit cards, from online purchases to travel arrangements.

Possible tax consequences

Debt forgiveness through settlement creates an unexpected tax obligation that many people don't anticipate. The IRS may treat the forgiven debt as taxable income, requiring you to pay taxes on the amount that was written off. This can result in an unexpected tax bill just when you're trying to regain your financial footing.

Substantial finances required

Pursuing debt settlement requires significant financial preparation. Most creditors expect a substantial portion of the debt to be paid in lump sum. Whether working directly with creditors or through a settlement company, you'll need to accumulate enough savings to make meaningful settlement offers while potentially still struggling with your current financial situation.

Damaged credit score

Debt settlement leaves a lasting mark on your credit history that can impact your financial opportunities for years to come. The settled status appears on your credit report for an extended period, signaling to future lenders that you didn't fulfill your original payment obligations. This can result in declined applications or higher interest rates on future credit. If you are considering the debt settlement approach, it is important to seek legal guidance to understand how it may affect your specific financial situation and what alternatives might better serve your needs.]]> On Behalf of DiTocco Law Group, PLLC <![CDATA[Bankruptcy and holiday gift giving: What to know]]> https://www.ditoccolaw.com/?p=51819 2024-12-18T03:20:32Z 2024-12-18T03:20:32Z Luxury purchases and extravagant gifts can get you into trouble Essentially, once you file for bankruptcy, you have to open up your financial records for the trustee assigned to your case. They will scrutinize not only the gifts that you’ve given others over the last two years but any recent purchases you’ve made on credit or cash advances that you’ve taken. Debts incurred to a single creditor over $800 for anything the trustee may deem “luxury goods or services” within 90 days of your bankruptcy filing will be presumed to be nondischargeable. So, too, will any cash advances on your credit cards that total more than $1,100. That could put you in a serious bind, especially if the trustee decides that you acted intentionally.

Alternative options to consider

So, how do you handle holiday gifts when you’re watching your budget unusually closely? Here are some tips:
  • Limit your gift list to just immediate family and stick with practical items, like clothing or food. Those kinds of essential purchases are still permitted (within reason).
  • Make gifts for extended relatives or friends. You can bake cookies, make gingerbread or – if you have an artistic bent – make them watercolor bookmarks. They may be token gifts, but it really is the thought that counts.
  • Give your time. A lot of people don’t really need more “stuff,” but they will appreciate your time, so call up your best friend and propose a movie night instead of a gift exchange.
While you’re considering your debt relief options, don’t forget that legal guidance can help you identify both options and pitfalls.]]> On Behalf of DiTocco Law Group, PLLC <![CDATA[How do I get my car back after filing for Chapter 13 bankruptcy?]]> https://www.ditoccolaw.com/?p=51818 2024-12-17T05:23:08Z 2024-12-17T05:23:08Z without warning, possibly after just one missed payment. Vehicle repossession can cause significant financial hardship. People may be at risk of losing their jobs and may have a much more difficult time qualifying for financing for a replacement vehicle. Chapter 13 bankruptcy can potentially help those who have lost their vehicles to repossession. A prompt filing is crucial, as people generally can't reclaim repossessed vehicles after lenders sell them at auction. How do filers regain their vehicles during a Chapter 13 bankruptcy?

By negotiating a plan

Part of what separates a Chapter 13 bankruptcy from a Chapter 7 bankruptcy is the requirement to establish a repayment plan. In some cases, the process of negotiating the plan can lead to the filer regaining possession of a repossessed motor vehicle. In a Chapter 13 bankruptcy, secured debts like car loans can be part of the repayment plan. Lenders may agree to return the vehicle in exchange for newly-negotiated payment arrangements. The automatic stay granted when someone files can prevent a pending repossession or halt the sale of a vehicle.

By having the right support

Trying to regain access to a repossessed vehicle is a very challenging process. Most people pursuing a Chapter 13 bankruptcy benefit from having legal representation during that process. Those in unusual, particularly difficult situations, such as those with a recently repossessed vehicle, may need assistance more than the average filer. An attorney can advise someone on when and how to file. They can also manage communication with creditors, including the lender that may have repossessed a financed vehicle. Taking immediate action when a vehicle is at risk of repossession or has been repossessed can help filers optimize the benefits they derive from personal bankruptcy. Chapter 13 bankruptcy is one of the best means of addressing missed vehicle loan payments and vehicle repossession. People facing major financial challenges may need help reviewing their options when considering bankruptcy.]]> On Behalf of DiTocco Law Group, PLLC <![CDATA[How is debt negotiation different from Chapter 13?]]> https://www.ditoccolaw.com/?p=51815 2024-11-24T20:06:08Z 2024-11-24T20:06:08Z If you have a considerable amount of debt, you are familiar with that tight feeling in your chest and feeling like you can barely breathe. Every day, you're staring at your bills, trying to figure out how to pay your creditors and still put food on the table for your family. Fortunately, you do have options available for tackling your debt.

What's best for your situation?

Debt negotiation involves working with your creditors to reduce the total amount you owe. While receiving less than the amount they're owed, creditors may agree because it ensures they'll recover some of the money rather than risking no repayment. Some may prefer this route as it's typically faster than bankruptcy and doesn't require court proceedings. However, the negotiated debt may be marked as "settled" on your credit report, negatively impacting your credit score. Furthermore, creditors are not obligated to accept your settlement offer. Chapter 13 bankruptcy allows you to restructure your debt into manageable payments that you pay over a specified period, which is usually three to five years. To be eligible for Chapter 13 you need to prove you have enough income to stick to a repayment plan and your total secured and unsecured debt must be less than $2,750,000. You must also undergo credit counseling before filing a bankruptcy petition with the Southern District of Florida bankruptcy court. While Chapter 13 bankruptcy halts creditor collection efforts and allows you to retain your assets, it will lower your credit score and stay on your credit report for seven years. Bankruptcy filings are also accessible to the public. Deciding between debt negotiation and Chapter 13 depends on your finances, goals and priorities. Negotiation may be your best option if you are disciplined enough to make payments without a court-approved repayment schedule and wish to keep your financial situation private. If you desire legal protections and more structure, Chapter 13 could be what you need to get started on your path to a fresh start.]]> On Behalf of DiTocco Law Group, PLLC <![CDATA[2 things that could make bankruptcy more likely]]> https://www.ditoccolaw.com/?p=51813 2024-11-20T23:26:44Z 2024-11-20T23:26:44Z They don’t teach finance in most schools. So it is no surprise that so many Americans have problems with their finances in adult life.  While bankruptcy could happen to anyone, certain things could make it more likely to happen to you.

Co-signing for things

Co-signing often seems like a great way to help a family member out if their financial situation is not strong enough for them to get what they are after, such as a rental contract or a car. Yet you should remember that it may not take much to unbalance whatever financial stability they have. And, if you cannot step up and cover the payments they promised to make, the lender may come knocking on your door, expecting payment, whether you can afford it or not.

Not building up a reserve of cash

Life will almost always throw financial twists and turns. Maybe you freelance and work is going great. Then, from one day to the next something hits the industry you work in and scuppers your bookings. If you did not put away some savings while you could, or took out loans or mortgages based on how fantastically you were earning at the time, it could leave you with no leeway to survive the lean months.  Of course, it is not always possible to build up reserves of cash, as it can be tough enough just to make enough to live week to week. But it’s worth doing if you can. Accidents or health problems can also hit you out of the blue, as can redundancies and so many more things that will stress your finances and possibly leave you at the point of bankruptcy. If you do reach this point, learning more about how bankruptcy works could be a wise next step. Experienced legal guidance can help.]]> On Behalf of DiTocco Law Group, PLLC <![CDATA[Should you keep bankruptcy a secret from your family?]]> https://www.ditoccolaw.com/?p=51809 2024-11-20T23:10:33Z 2024-11-20T23:10:33Z You might feel embarrassed about having to file for bankruptcy. That could lead you to want to keep it a secret from everyone. Most people need never find out, but it is certainly worth telling some close family members. Here are a few reasons why:

It may affect them

If you are married, your finances will be tied to your spouse’s to a certain degree, so you definitely need to talk to them about it because it could directly affect them. This is just as true if it is a business bankruptcy as a personal one – they still need and have a right to know. Your kids probably need some information, too. What you give them will depend on their age and maturity. A toddler might worry it’s their fault because they asked you for an expensive toy for their birthday, so you’d need to reassure them it’s not. Your teenager might have to look again at college options to find somewhere less expensive than their initial choice.

They can offer support and help

Maybe your child offers to get a Saturday job so they can pay for themselves when they go out instead of asking you for money. Maybe your brother offers to loan you some money rather than you file for bankruptcy. Or perhaps your mom just gives you a big hug and tells you it’s OK, and that they know plenty of people who have been in your position and it’s nothing to be ashamed of. Whatever they offer, your family’s support could prove invaluable. But they can’t provide that until you tell them. Learning more about how bankruptcy works will leave you better informed to answer any questions your family may have.]]> On Behalf of DiTocco Law Group, PLLC <![CDATA[What are the most common concerns that lead to bankruptcy?]]> https://www.ditoccolaw.com/?p=51806 2024-11-19T21:42:47Z 2024-11-19T21:42:47Z the reasons for filing bankruptcy vary, certain concerns consistently emerge as the most common inspirations for this course of action.

Job loss

Losing a job is one of the most destabilizing events for any household; for many, their income is the primary means of covering essential living expenses such as:
  • Housing
  • Food
  • Utilities
When that income suddenly disappears, financial obligations can quickly spiral out of control. A lack of emergency funds exacerbates the problem, leaving individuals vulnerable to financial ruin when employment is unexpectedly lost.

Credit card debt

Credit cards are a double-edged sword; while they provide financial flexibility, their high interest rates can trap users in a cycle of debt if not managed carefully. Many individuals rely on credit cards to finance daily expenses or emergencies, only to struggle with repayment later. Minimum payment requirements make it seem manageable in the short term, but the accumulating interest creates a growing financial burden.

Medical expenses

Medical costs are a leading cause of financial distress, even for those with health insurance. Individuals can accumulate staggering bills that are difficult to pay off due to:
  • Unexpected illnesses
  • Surgeries
  • Chronic conditions
While insurance may cover a portion, copayments, deductibles and uncovered procedures can still leave patients facing thousands—or even tens of thousands—of dollars in debt.

Mortgages beyond means

Owning a home is a common aspiration, but overextending financially to achieve this goal can have devastating consequences. Many individuals take on mortgages that exceed their financial capacity, often underestimating the impact of:
  • Fluctuating interest rates
  • Property taxes
  • Maintenance costs
A job loss, medical emergency or unexpected expense can make monthly mortgage payments unaffordable, leading to foreclosure and financial ruin. Bankruptcy is rarely the result of a single concern; it often stems from a combination of factors. Thankfully, it can be a safety net for those overwhelmed by debt. With knowledgeable legal guidance, individuals can learn to use bankruptcy to their advantage when necessary.]]> On Behalf of DiTocco Law Group, PLLC <![CDATA[Avoid these 2 things if filing for bankruptcy]]> https://www.ditoccolaw.com/?p=51804 2024-11-18T20:06:08Z 2024-11-18T20:04:04Z If you are considering filing for bankruptcy, it’s important not to do anything that could harm your chances of acceptance. Here are two such things to avoid:

1. Making one last big purchase

Bankruptcy courts typically allow you to keep a few essentials. Maybe that’s your car to get around, or your tools to carry out your trade. Now may seem like the perfect chance to upgrade them for free – you may think you can buy the item on credit just before filing, get the debt written off and the court will let you keep it as exempt property. Forget it. Creditors will note any big last-minute purchases you make and can report them to the bankruptcy court. If the bankruptcy trustee believes you made this purchase with full knowledge you were about to file, they may take it off you, or exclude it from the filing.

2. Failing to declare all your assets

It can be tempting to try and hide any money you still have so that life is a little easier after bankruptcy. After all, a few hundred or a thousand is a lot more valuable to you right now than to the financial institutions you owe. Or, maybe, you just figure that no one will be the wiser if you don’t mention the Bitcoin you invested in, hoping to fund your child’s college fees. You are obligated to present an accurate and complete picture of your financial affairs when filing for bankruptcy, so don’t even consider not doing so, as that could jeopardize your filing and potentially cause you more problems. If you wish to file, it is important to do so correctly. Learning more about how to do this will be time well spent.]]> On Behalf of DiTocco Law Group, PLLC <![CDATA[Why might filing for bankruptcy sooner than later be a good idea?]]> https://www.ditoccolaw.com/?p=51801 2024-11-14T16:56:13Z 2024-11-14T16:56:13Z Deciding to file for bankruptcy does not come easy. People delay for all sorts of reasons. For example, you might hope that you can somehow resolve the situation. Or you might delay it because you feel ashamed to file. Yet, in many cases, people look back and wish they had filed sooner. What might some of the advantages be of doing it now rather than holding out?

You can relieve yourself of the mental stress

Debt can do a lot of damage to your mental health. It can be so stressful that it affects your relationships, work and enjoyment of life in general.  Filing for bankruptcy puts you back in control of a situation where you may have felt powerless to stop yourself from sinking further. It can allow you to lose that heavy mental burden you have been carrying around and look forward to a brighter future.

You can start to rebuild your credit

Filing for bankruptcy will cause your credit rating to drop further, but, unless you actually repay those debts it will do that anyway. Once you file, you can start to rebuild your credit rating slowly but surely. Some lenders offer loans and credit cards targeted at people who recently filed, to help you do this.

You reduce the risk of taking on even more debt

If you don’t file now and don’t suddenly get more money coming in, you might be tempted to take on more loans to try and stay afloat. In desperate times, people often accept the only deals anyone will offer them, which can be at an extortionate rate of interest. With appropriate legal guidance to examine your options, you can make a better decision about whether to file for bankruptcy now or hold off.]]>