Bankruptcy

Bankruptcy and the Student Loan Crisis

As a mother of four girls, the financial burden of college is a grim reality that I have had to deal with for the past 17 years. I am a proud lawyer mama with 2 children having already entered professions and 2 on their way! Even though I am extremely proud of my girls’ accomplishments, I am aware of how the stress of paying back student loans is not only a concern for the soon to be launched student, but for their strapped families as well. The cost of college has greatly increased in ...

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Debra G. Simms 1/29/2012 2:03:00 PM Comments(0)

The Mystery of Credit Scores

This time of year many of my clients are considering bankruptcy. They have held off as long as possible and now that the holidays are over, they know they need some debt relief. The most frequent question asked is: How badly will bankruptcy affect my credit score? Even after 23 years of practicing law, I have a hard time answering that question. Folks want quantitative answers. But even though they seem based on a logical arithmetic equation, credit scores are funny things. The calculation i...

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Debra G. Simms 1/1/2012 6:46:00 PM Comments(0)

Does Debt Consoldiation Work? (redux)

Frequently, my bankruptcy clients come to me after reaching out to debt consolidation companies. They want to solve their debt problems by avoiding bankruptcy. They have already paid thousands of dollars with very unsatisfactory results. I'm all for avoiding bankruptcy if possible, but are these companies legitimate? Can they really help?Here is a typical scenario: Clients have about $50,000 in debt. The net income is around $4,000 a month. The debt consolidation agency tells the clients i...

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Debra G. Simms 12/15/2011 8:13:00 AM Comments(0)

The Real Debt Consolidation: Cramdowns and Strip Offs!

Lately, I have been talking to a lot of folks who are considering hiring debt consolidation companies. Those of you who have already consulted with me or have read my blog on this subject (November 2, 2010) already know what I am going to say …Don’t do it! For those of you who want to consolidate your debt, the better option can be Chapter 13 bankruptcy. Not only does the law provide that your debts be consolidated and reorganized in a Chapter 13 plan, but Chapter 13 allows you to r...

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Debra G. Simms 10/6/2011 11:08:00 AM Comments(0)

Who's filing Bankruptcy now?

As a bankruptcy attorney, I consider myself to be on the "front line" when it comes to observing how a lot of folks are doing in this economy. For most of my bankruptcy clients, it's gone from bad to worse. Many of my clients work, some only part-time, but there is no way they can make ends meet. Others have been out of work and have used up all their unemployment benefits and their credit. Still others have been in accidents or are sick, and have yet to qualify for disability. The stigma of ba...

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Debra G. Simms 9/5/2011 5:18:00 PM Comments(0)

Bankrutpcy in Florida

Declaring bankruptcy can help you save your home and assets, eliminate credit card debt, stop creditor calls and harassment, and even permanently erase old IRS debts. And, fortunately for us, the laws covering Florida bankruptcy are more lenient than many in other states. Sites giving “general information” on national government bankruptcy laws often do not tell the full story, making it important to contact a bankruptcy attorney in Florida for your needs. There are many questions pe...

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Debra G. Simms 4/8/2011 9:29:00 AM Comments(0)

Should You File For Bankruptcy Now?

The holidays are over and it's time to get back to reality! Many of us have made New Year's resolutions to manage our money better and some of us even mean it!In my law practice, I have been seeing a lot of folks who have been living off of credit cards. They just can't do it anymore. Sometimes they can't manage the minimum payments, or the credit limit has been used up, or in many cases, they just can't handle the stress anymore. These people need relief! Here is my New Year's list of reaso...

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Debra G. Simms 1/5/2011 8:44:00 AM Comments(0)

Does Debt Consolidation Work?

Frequently, my bankruptcy clients come to me after reaching out to debt consolidation companies. They wanted to solve their debt problems by avoiding bankruptcy.I'm all for avoiding bankruptcy if possible, but are these companies legitimate? Here is a typical scenario: Clients have about $50,000 in debt. The net income is around $4,000 a month. The debt consolidation agency tells the clients if they pay $1,200 per month they could pay off the debt over a 52 month period. The service fees ra...

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Debra G. Simms 11/2/2010 4:51:00 PM Comments(0)

Don't Let Your Ex Trash Your Credit!

This is a topic near and dear to my heart. Don't let your ex trash your credit! When my friend, Sally, got divorced last year, her ex agreed to pay off their $25,000 in credit card bills. This was part of the property division and was made part of the divorce judgment. Ever since then, creditors have been calling and writing her because her ex is late or fails to make a payment. Last week, she was served with a lawsuit from Capital One. Despite the divorce agreement, Sally is still on the hoo...

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Debra G. Simms 9/8/2010 2:37:00 PM Comments(0)

Can a Second Mortgage be Stripped Off in A Chapter 7 Bankruptcy?

The answer to that question - in the Middle District of Florida - is NO. If the amount of the first mortgage on a property exceeds the value of the property (the home is "underwater") then a second mortgage or any other junior lien can be "stripped off" in a Chapter 13 Bankruptcy. But, on July 28, 2010, the Bankruptcy court in the Middle District of Florida declined to follow a minority of courts which allow stripping in Chapter 7. The Florida court ruled that a second mortgage on a primary r...

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Debra G. Simms 8/1/2010 6:46:00 PM Comments(0)