Bankruptcy Lawyer In Miami – Bankruptcy Information
People who are terribly troubled with impossible debt will do well by hiring a Miami Bankruptcy Lawyer to file for protection for them under the federal bankruptcy law.
There are two main ways to file for bankruptcy, Chapter 7 or Chapter 13. When filing under Chapter 7, this will wipe out your debt. With Chapter 13, which reorganizes your debt to pay it off in about 5 years. Chapter 7 is usually a smart choice to file if you do not have any belongings that is exempt from protection. Chapter 13 which is the reorganization bankruptcy is filed by debtors who are willing to pay their debts in 3 to five years. This bankruptcy is also filed when a debtor has a wish to keep non-exempt property. There are two options for filing bankruptcy; one is the debtor himself files a petition for bankruptcy or for the debtor to pay an experience Bankruptcy Lawyer From Miami to do it for them.
Non-exempt assets are things like some automobiles, real estate equity above the state homestead value, and boats etcetera. These are liquidated by the bankruptcy trustee.
The charge for filing the Chapter 7 bankruptcy is around $300 plus your attorney fee if using an attorney. It is clever to hire a reliableMiami bankruptcy lawyer that you can A knowledgeable Miami bankruptcy lawyer will be able to aid you in deciding which chapter to opt for and whether this is the right choice for your circumstances.
The difference between both chapters in bankruptcy law is that Chapter 7 involves taking the creditors non-exempt possessions and appoints a trustee to sell off the assets and then pays off the creditors with the proceeds. In Chapter 13 the trustee prepares the plan for paying back the debt in installments.
An experienced Miami Bankruptcy lawyer will be able to direct you on which chapter is best for you. They can choose the best chapter; either Chapter 7 or Chapter 13 that is best suited for your case.
November 8th, 2010 at 2:36 am
Bankruptcy is a legal procedure designed both to protect an individual or business that can\’t meet its financial obligations and to protect the creditors involved. To begin the process, proper papers must be filed.
There are specific chapters of the federal bankruptcy law. Proceedings under Chapter Seven (known as straight bankruptcy) involve taking most of the borrower\’s property. The court appoints a trustee to sell off the assets and distribute the cash among the creditors. Proceedings under Chapter Thirteen (known as wage earner\’s bankruptcy) involve the borrower proposing a plan for repaying a portion of the debt in installments from the borrower\’s income. Chapter Eleven of the federal Bankruptcy Act is generally used by corporations and not by consumer debtors. Its proceedings are expensive and complex. Consumer debtors normally use Chapter Seven or Chapter Thirteen.
Once the bankruptcy proceeding ends, the borrower is no longer liable. This occurs when the bankruptcy court enters a discharge order in a Chapter Seven case or the borrower has paid the debts due to the credit grantors according to a plan in a Chapter Eleven or a Chapter Thirteen case. In legal terms, the court has discharged the borrower from the debts. The borrower then starts over again with a clean financial slate, but the record of the bankruptcy will remain on the borrower\’s credit record for up to ten years.
Bankruptcy may be the best, or only, solution for extreme financial hardship. However, it should be utilized exclusively as a last resort, since it always has long lasting consequences. Be sure to consult a financial expert before resorting to bankruptcy as a means of solving your economic troubles.