File Bankruptcy Florida, Bankruptcy Lawyer Miami

Bankruptcy (Chapter 7 and Chapter 13)

For clients struggling with the burden of excessive debt obligations, we can file Chapter 7 and Chapter 13 bankruptcy petitions on behalf of the client. We focus on individual filers, although we can represent creditors, such as condominium associations, as well. A bankruptcy filing may permit the client to stay in their home while they attempt to resolve their current financial difficulties. We closely examine the client’s financial information and paperwork to ensure that bankruptcy is appropriate for their current situation. We also advise the client on the consequences of a Chapter 7 and Chapter 13 filing.

Chapter 7 Bankruptcy

Chapter 7 bankruptcy is also called liquidation. It may eliminate unsecured debt like credit cards, medical bills, loans, and utility bills. Student loans, DUI personal injury judgments, trust fund penalties and taxes, and child support are not able to be eliminated via Chapter 7. An attorney or certified public accountant will act as the Chapter 7 trustee, whose job it is to gather your assets and funds and distribute them to your creditors. You may be able to enter a payment plan to hold on to some or all of your assets. Your home, 401K, IRA, pension, and cash value life insurance funds are generally exempt from being seized in bankruptcy and are not factored into any payment plan that you may be required to complete to retain control of your assets. Businesses are not protected from being seized by the trustee. Therefore, a Chapter 7 is not always the appropriate bankruptcy for self-employed individuals.

Chapter 13 Bankruptcy

A Chapter 13 bankruptcy may stop foreclosure and provide you time to repay your secured debts (like your home mortgage or car loans). This Chapter is also known as the wage earner’s bankruptcy. If you make more than the state median income, you may be required to file Chapter 13 instead of Chapter 7. You will be required to enter a payment plan of three or five years. For your plan to be approved, you must pass a liquidation test that guarantees payment to the unsecured creditors of at least as much money as they would have received if your assets were sold and distributed in a Chapter 7 liquidation. In this Chapter, you may strip IRS liens or second mortgages from your home. You can also "cram down" mortgages on investment properties to the value of the property. The cram down requires you to be the full and reduced loan balance within the three or five year plan. While somewhat complex, this type of bankruptcy provides tangible benefits to debtors that complete the process.

Some of the issues we assist clients with are:

  • Credit card debt
  • Deficiency judgments
  • Garnishments
  • Underwater homes
  • Family law judgments