Florida Debt Lawyer
At Nowack & Olson, we are a team of professionals driven to help individuals, families and businesses reduce their debt. We have helped thousands of clients in South Florida find financial freedom using bankruptcy. Everyone has a unique arrangement of debts, which means no two bankruptcy cases are exactly the same. There are several types of debt that affect the majority of bankruptcy filings, some of them may be discharged but others are not dischargeable in bankruptcy, contact our Florida debt lawyers to find out more. Here are some types of debt:
Unsecured Debt
Unsecured debt has no collateral attached to it, which means that the creditor or lender cannot repossess or foreclose on any property associated with the debt. However, failure to make payments on unsecured debt can result in enforcement action like wage garnishment and lawsuits.
At Nowack & Olson, our lawyers have dedicated their careers to assisting people overwhelmed by debt. From our office locations in Fort Lauderdale, Miami, Boca Raton and Jupiter, we have helped thousands of people all over South Florida eliminate unsecured debt so they can focus on the future.
Secured Debt
If you are facing bankruptcy, it is important to know what your secured and unsecured debts are. Understanding the difference between secured and unsecured debt can be confusing. At Nowack & Olson, our South Florida bankruptcy lawyers are well-versed in different types of debt and how to eliminate them.
How a certain debt is classified depends on several factors. Simply put, secured debt is any debt that is secured by collateral. In other words, if the debt is tied to something that a creditor can take away, the debt is secured. Some common examples of secured debt are:
- Home mortgage debt
- Auto loans
- Credit used to buy expensive items like appliances, furniture and jewelry
- Store-specific credit card debt
You Deserve A Second Chance
You have options for dealing with secured debt in bankruptcy. Depending on your unique circumstances, you can deal with secured debt in several ways as part of the bankruptcy process. You may choose to repay the debt over time under your repayment plan in Chapter 13, return the collateral or, in some cases, discharge the debt in Chapter 7.
Even if a creditor repossesses the property secured by a loan, you can still be held liable for any remaining deficiency. Bankruptcy removes your personal liability for secured debt, protecting you from subsequent lawsuits or creditor harassment.
Mortgage Debt
For many people, the only thing worse than falling behind on mortgage payments and being threatened with foreclosure is reaching out for help. It may take the threat of losing one’s home to get motivated enough to discuss how to avoid foreclosure. Being in debt is not an easy topic to discuss, even with lenders. People who have spent their whole lives working toward financial independence can be reluctant to admit that they are no longer able to meet their obligations. You don’t have to do it on your own. Our lawyers have been through the process of working with lenders before, so you won’t be led astray. There are some crucial things to keep in mind if you want to try to work with your mortgage company.
- You need to provide every document your lender asks for, including pay stubs, a hardship letter, or other required documentation. You don’t want your request denied simply because you failed to submit a needed form.
- You need to be flexible. Your lender may come back with a specific proposal such as rolling your late payments and interest into the loan, for example. This might not have been your preference, but if it brings your loan to a current status, you may be hard-pressed to turn it down — particularly if that means exposing yourself to foreclosure proceedings.
The lawyers at Nowack & Olson in South Florida understand that asking for help when it comes to a mortgage is a difficult decision to make — even if it is one that can help you to save your home. With multiple office locations in Fort Lauderdale, Miami, Boca Raton and Jupiter, you are never far from an experienced lawyer.
Medical Debt
Every day, holes in our health care system leave thousands of people with unaffordable medical expenses — from costly imaging bills and exorbitant specialist visits to surgeries and hospital stays that weren’t covered. Many people with good jobs cannot recover from giant medical debts that threaten to wipe out their savings or create massive credit card problems.
Millions of people — perhaps as much as 40 percent of all bankruptcy filers — have declared bankruptcy because of medical bills they could not afford to pay because:
- They were not insured at the time of a serious illness or accident.
- They were underinsured.
- They lost their jobs, and their insurance didn’t cover everything it needed to.
- They had significant medical debt because of an accident, but no one to take responsibility for the damage.
- They have suffered illnesses and can’t get insurance as a result.
- They have “pre-existing conditions” that are deemed ineligible for coverage.
Medical Debt Is An Easy Type Of Debt To Discharge
The good news is that medical debt is easy to discharge in bankruptcy. It is a form of unsecured debt with no collateral tied to it.
While banks, credit card companies, car companies and other creditors often have lawyers who fight bankruptcy cases, medical creditors rarely show up in bankruptcy court. For many families who are struggling under the weight of medical debt, that means relief.
At Nowack & Olson, PLLC, we help our clients find solutions to serious debt problems. We work with families and individuals who want to improve their lives after hard things have happened. Our lawyers can help you develop a plan to get out of debt and move forward. With office locations in Fort Lauderdale, Miami, Boca Raton and Jupiter, you are never far from skilled legal help.
Credit Card Debt
For many people, credit card debt is an unpleasant reminder of the past. It may have come from a past financial mistake, or a life-changing event like a divorce or illness. These past events can haunt you long afterward in the form of angry letters and persistent phone calls from collection companies. Don’t let debt from your past keep you from the future you want.
Put Credit Card Debt Behind You Today
At Nowack & Olson, PLLC, we know that many good people end up in bad situations — we have personally helped thousands of them all over South Florida. There are proven steps that we can take to eliminate credit card debt and get a clean slate for the future.
Most credit card debt is considered unsecured debt, which means there is no collateral tied to it and nothing for the issuer to repossess if you fall behind. Both Chapter 7 and Chapter 13 bankruptcy provide options for discharging, or wiping out, unsecured debt.
Personal Loans
Private loans from banks and other lenders can be useful for planned expenses, but can result in serious debt. Our lawyers can help you discharge this debt when possible and develop sustainable strategies for repaying any remaining debts.
Tax Debt
In the best scenario, the amount withheld from our paychecks covers our taxes, so that when tax time rolls around we are not hit with a huge obligation, and hopefully even get a refund. But income and tax laws and other facts of life can change during the year, so that April sometimes brings an unwelcome surprise in the form of a tax bill you had not budgeted for and simply cannot afford to pay. Tax debts cannot be ignored, however, even if you dispute the amount the government says you owe. The IRS and the Florida Department of Revenue have many tools at their disposal to collect an unpaid tax obligation, including imposing a wage garnishment, freezing your bank account and seizing your funds, or simply pulling money out of your social security or unemployment check before it ever gets to you. Also, the entire time you owe taxes, interest and penalties continue to pile on, making it harder and harder to catch up and pay off the taxes you owe.
If tax debt is weighing you down and playing havoc with your finances, you may have several options available to deal with it. In Plantation, Doral, Boca Raton or Jupiter, Call Nowack & Olson for a free consultation with knowledgeable and experienced Florida bankruptcy lawyers to discuss and implement a successful strategy to deal with the taxes you owe.
Some Tax Debts are Dischargeable in Chapter 7 Bankruptcy
One common myth about bankruptcy is that tax debts are not dischargeable in bankruptcy. This is true for certain tax debts, but not all of them. For instance, certain federal income tax bills can be discharged in bankruptcy. To receive a discharge of your federal income tax debt in Chapter 7 bankruptcy, the debt must meet the following conditions:
- The related tax return was filed at least two years ago
- The related tax return had a filing deadline more than three years ago, including extensions
- The tax assessment is 240 days old or more
- The related tax return is not fraudulent
- There is no evidence of tax evasion
Chapter 13 Bankruptcy can Help with Nondischargeable Tax Debt
If your federal income tax does not qualify for discharge, or if you have other tax debt such as state income tax which is not dischargeable in Chapter 7, you can still find relief with a Chapter 13 payment plan. A Chapter 13 payment plan will organize all of your debts into one affordable monthly payment, which you can pay off comfortably over time. Putting your tax debt into a Chapter 13 plan will not only ease the stress and worry of IRS notices; it will also put a stop to the interest and penalties that would otherwise continue to rack up.
If the bulk of your bills are nondischargeable debts such as tax debts or child support, or if you do not meet the requirements to file for Chapter 7, consider whether Chapter 13 would be an effective solution to your troubles. Find an experienced bankruptcy lawyer who will offer a no-cost consultation to understand your financial situation and recommend an appropriate strategy for getting out of debt.
Domestic support obligations
Alimony and child support may not be wiped out in bankruptcy, but other benefits of bankruptcy can make them easier to pay.
Call Today To Schedule Your Free Consultation
America is the land of second chances, and no one should hesitate to take advantage of an opportunity for a clean slate. Bankruptcy is a legally and socially recognized tool for recognizing, correcting and letting go of past mistakes.
To learn more about your options for getting rid of secured debt, please contact Nowack & Olson by email or call us at 866-907-2970. Our Florida debt lawyers look forward to helping you embrace a second chance. With multiple office locations in Fort Lauderdale, Miami, Boca Raton and Jupiter, you are never far from experienced help.
