There are several chapters under which you can file for bankruptcy in a United States Bankruptcy Court. The two most common are Chapter 7 and Chapter 13. Last year in the Florida Middle District of the United States Bankruptcy Courts approximately 75% were Chapter 7, and 24% were Chapter 13 filings. Chapter 11 used by businesses and individuals whose debts are very large, and Chapter 12 for family farmers amounted to 1%.
The intent of this page is to explain some of the issues involved in a Chapter 7 bankruptcy case. A Miami Chapter 7 Bankruptcy Lawyer can help you make the decision to file and if so whether it should be for Chapter 7 or Chapter 13.
Because the Bankruptcy Code combines both federal and state laws, it can be complicated. The items listed below will provide the reader an overview of the major components of a Chapter 7 Bankruptcy case. It is advisable that you contact a Miami Chapter 7 Bankruptcy Lawyers who will more fully explain and elaborate on any bankruptcy issues.
Chapter 7, entitled Liquidation, provides a court supervised procedure by which a court appointed trustee assumes control of the non-exempt assets, liquidates them and makes a distribution of the proceeds to the creditors. Once that has been done your debts will be excused, with some notable exceptions such as:
Deciding if a bankruptcy is the right option for you is a very important to you and your future. Contact a Daytona Beach Chapter 7 Bankruptcy Lawyer, who will help you decide and guide you through the entire process.
Chapter 13 of the US Bankruptcy Code is appropriately titled "Adjustment of Debts of an Individual With Regular Income". As the title implies, it was conceived to allow a debtor, who has a regular source of income, to develop a plan which would allow him to pay off his debts while maintaining a valuable asset such as is home.
All of your existing debts are consolidated in a court controlled repayment plan. You will make monthly payments to the trustee who was appointed by the court. Your creditors get paid as per your approved Chapter 13 Plan. In the process, the court can force your creditors to accept terms to allow you to pay off your debts. Under this type of bankruptcy you retain all of your assets including your home and cars.
As part of the process you will have to document your monthly expenses so that your Miami Chapter 13 Bankruptcy Lawyer can prepare the proper schedule which will be submitted and approved by the court. Repayment schedules are normally three to a maximum of five years.
The court papers that have to be completed separate unsecured debts from secure debts. It is therefore important that you know the difference between the two.
Unsecured Debts - Include any personal loans or credit cards. If your unsecured debts are in excess of $337,000 you cannot file for Chapter 13.
Income and Expenses Statement must be as accurate as possible. The regulations require that all of your disposable income is paid into the Chapter 13 Plan. Disposable income is defined as the amount left over at the end of the month after paying reasonable expenses. Listing luxury items may result in the Trustee requiring that these items be sold and the proceeds used to pay your creditors. In addition the trustee will require you to submit your income tax returns for the plan period to verify the amount of your disposable income is and to demonstrate that the entire amount is being paid into the plan.
A Chapter 13 filing may be appropriate for you. Contact a Miami Bankruptcy Lawyer, who will evaluate the particulars of your case and help you decide how you should proceed.
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9370 Sunset Drive
Miami, FL 33173
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(877) 404-6487 Toll Free