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Foreclosure Defense FloridaGeneral Information

Federal Bankruptcy Judge Warns Consumers- Don't Ignore State Court Foreclosures, Bankruptcy Protections Have Limits!

bankruptcy-courtsI very much encourage everyone swimming in these fraudclosure waters to read the recent article that appeared in the St. Petersburg Times.   It is especially critical that members of The Bar and Officers of the court read the words of this federal judge carefully to understand both what the words mean and the impact and implications of the words.
The fact of the matter is our state’s federal bankruptcy courts are having dramatic success in forcing borrowers and lenders to work together to forge solutions to the foreclosure problems that are being faced.   A critical difference between state court meditations and the meditations that occur in federal court is that the federal courts are placing very important requirements on both the borrowers and the lenders to go into meditations   with all documents in hand, with all considerations reviewed ahead of time so that a mediation can occur with real information in possession of both parties.
We must all work together to solve these problems, and in Florida’s Middle District Bankruptcy Courts, they are doing just that…..and consumers and banks benefit from this…From the article:

More and more frequently, bankruptcy court judges see cases in which the debtors misapprehend the ability of the bankruptcy court to undo the effect of state court judgments of foreclosure. These debtors believe, erroneously, that the bankruptcy court can vacate those judgments, revisit unsuccessful defenses and counterclaims, and sit as a quasi-appellate court in review of the propriety of the judgment.
It is true that the Bankruptcy Code provides means to save a home when a mortgage loan is delinquent, such as in a Chapter 11 (reorganization for a debtor with a large amount of debt), Chapter 12 (family farmer or fisherman) or Chapter 13 case (debt adjustments for a person with regular income and debts within certain limits).


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