Chapter 13 Bankruptcy in Miami

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At Gallardo Law Firm, we not only have the professional guidance you need to get out of a financial crisis, but we are also there with you the entire way. When it comes to filing for Chapter 13 bankruptcy, things can get confusing and overwhelming. Here's a breakdown of the specifics and what we can do for you.

Introduction to Chapter 13 Bankruptcy in the United States

The United States economy has been experiencing a period of financial crisis resulting in unemployment and increased debt. Unfortunately, the financial state of the U.S. has forced many Americans to fall into debt while others simply do not know how to manage their earnings and thus become tangled in further, overwhelming debt—most likely as a result of Chapter 13 bankruptcy.

Major cities in the country have been affected by the downfall of the country’s financial stability. Gallardo Law Firm has professionally assisted debtors in filing Chapter 13 bankruptcy in Miami. For individuals who currently face such a situation, filing for bankruptcy is the perfect solution to solve their economic problems by proving their eligibility. Bankruptcy is established under federal law to eliminate and/or repay—according to federal court—the obtained debt.

In the United States, there are six categories of bankruptcy: Chapters 7, 11, 12, and 13. Chapter 7 is also known as debt settlement. Chapter 12 meets the same requirements as Chapter 13 bankruptcy, but is aimed specifically at debtors who are engaged in agriculture and fishing. According to professionals, filing for bankruptcy under Chapter 13 can be the lifesaver that several debtors are searching for.

Differences between Chapter 7 and Chapter 13 Bankruptcy

Are there big differences between Chapter 7 and Chapter 13 bankruptcy? The difference between these two chapters depends on the particular case and for that reason their subject matter differs to the situation’s particular circumstances related to each case. Chapter 7 bankruptcy, also known as liquidation, is when a client removes unsecured debts and does not have to pay any of the debts that are accumulated. This could help the client if they are wishing for a clean, fresh start. Also, Chapter 7 has the option to protect the individual from a credit collector right after filing and the case can be discharged within three to six months.

While with Chapter 13 bankruptcy, the debtors have to pay those debts that they can afford and within a long term they’re maintaining their properties. In many cases, they significantly reduce their debts. At Gallardo Law Firm, an expert bankruptcy lawyer in Miami can advise you on what is the best way to file for bankruptcy. We can guide you through the proper steps to take once reviewing your case so that we can see what’s the most appropriate for you while noting the requirements for your particular case. In many cases—depending on your current situation and future goals—Chapter 13 bankruptcy could be more convenient than Chapter 7. In addition, Chapter 13 can be filed as many times as necessary without time exceptions.

Concept of Chapter 13 Bankruptcy in Miami

Chapter 13 bankruptcy is also referred to as a “wage earner” or “acquired salaries.” This Chapter is the practical solution for you if you are struggling with financial difficulties. This process is better defined as a payments strategy that is legally declared by the court. Chapter 13 bankruptcy you to pay all your debts within a period of 3 to 5 years, for example—depending on your case and/or your situation—without risking the loss of properties that were obtained throughout your life. In layman's terms, in the long run there is an opportunity to keep your possessions following Florida Bankruptcy exemptions.

Chapter 13 bankruptcy in Miami can be used to avoid foreclosure, catch up on car and mortgage payments, and tax debt as well as the interest in it. This includes the advantage of keeping the assets. The payment plan and amount remunerated differs on many factors such as income, which could be determined by the Florida Means Test, and factors that must be discussed in detail with an expert bankruptcy lawyer at Gallardo Law Firm.

Chapter 13 bankruptcy is the best option for debtors that wish to keep their secured properties, followed by a payment plan. The debtors must have the correct guideline knowledge that is necessary to file under Chapter 13 due to the fact that not every case can fall under such requests to which the Florida law calls for.

Requirements to File For Bankruptcy under Chapter 13

In order to file for Chapter 13 bankruptcy, the following list of guidelines must be executed in order to be eligible.

  • You must have a sustainable income that does not allow you to file under Chapter 7 bankruptcy.
  • You must have long delays in mortgage payments with a desire to keep the property.
  • You have two mortgages on a property while needing to pay only the first mortgage.
  • You have had a Chapter 7 discharge in the past 8 years.
  • You have an unsecured debt of approximately $336,900 or a secured debt of less than $1,010,650.
  • You have filed your income tax in the last four years.
  • You have attended a Credit Counseling Course, minimum 180 days, before filing for Chapter 13 bankruptcy.

Advantages of Chapter 13 Bankruptcy

Chapter 13 Bankruptcy in Miami can provide a number of benefits to an individual that is going through an economic crisis. Gallardo Law Firm lawyers can elaborate on confusing lingo and guide you to detailed benefits and solutions to any issue that you are facing. In order to gain a new level of freedom in the face of financial struggles, we can help you to get rid of the following depending on your case and situation.

  • You can have the opportunity to recover your economic stability, which allows for controlling monthly mortgage payments.
  • You can have more time to recover your financial stability.
  • Your payment to creditors without losing the properties that have been acquired so far.
  • You can have the possibility to fully pay outstanding accounts in less than three years—including child support.
  • You can experience obtained charges becoming greatly reduced.
  • After 30 to 60 months of making the ongoing payments, your remaining debts will be eliminated.
  • You will be able to settle all your debts in a period of 3 to 5 years and, in many cases, you will only have to pay 10% of your total debt.
  • You will be able to settle all your debts in a period of 3 to 5 years and, in many cases, you will only have to pay 10% of your total debt.

Establishment Process of Chapter 13 Bankruptcy in Miami

The following steps are necessary when it comes to establishing Chapter 13 Bankruptcy in Miami:

  1. The client must gather all the information required for the bankruptcy process. It is necessary for the client to provide all incomes, properties, and assets to the lawyer in order to determine the appropriate case of bankruptcy.
  2. After having all of the necessary information, the document that includes the bankruptcy payment plan under Chapter 13 bankruptcy is drafted.
  3. The attorney presents the case to the federal bankruptcy court. The client should be prepared to testify in court, where creditors and the commissioner will ask questions to corroborate all the information submitted to the judge.
  4. The trustee then approves of the case and the monthly payments are established to creditors, which can be directly deducted from the salary. If you do not pay on time, the court may terminate Chapter 13 bankruptcy and creditors have the right to take your properties.

Creditors have no jurisdiction over your properties once the process of bankruptcy has begun, and debtors cannot donate any of the goods that have been set out in the Chapter 13 bankruptcy process. The commissioners of the case can also cancel some money transfers that were made by the debtor within a year before starting the process—if any fraud is recognized.

Bankruptcy Lawyer in Miami

Scary factors that come with this process include but are not limited to, not having the correct guidance as well as not having enough knowledge on the topic. However, deciding to embark on this process can save you.

“Bankruptcy helps people who can no longer pay their debts, get a fresh start by liquidating assets to pay their debts, or by creating a repayment plan. Bankruptcy laws also protect financially troubled businesses.”- United States Courts

A bankruptcy lawyer in Miami plays an important role in the process of financial crisis. Do not be afraid to file for bankruptcy, for it is the best solution to improve your financial status. When filing Chapter 13 bankruptcy in Miami, it is important to contact a bankruptcy attorney from day one. Gallardo Law Firm bankruptcy lawyers have advanced knowledge of the laws of Florida and we can help you to restore of your personal economy.

Low-income or struggling individuals, traders, retirees, professionals, housewives, and people who have a large income that allows them to pay for electricity, rent, insurance, food, etc. These individuals can pay the plan as set out under Chapter 13. It is not mandatory that the accounts are paid only with your salary. Bankruptcy lawyers will help you to recognize if you are a good candidate for Chapter 13.
Chapter 13 bankruptcy is preferable when: The individual that owes money wants to repay his or her debts in a specific amount of time. The person will lose prized, nonexempt property under Chapter 7. Under the mean test, there is no eligibility for Chapter 7. A person is ineligible for a Chapter 7 discharge because it was already received in 8 years. The debtor has a considerable amount of debts not dis-chargeable in Chapter 7 but still qualifies for Chapter 13 discharge.
The money to pay depends on the debt and the monthly payment plan established by your attorney. These can vary according to your income. It also depends on the duration of the plan to make your payments.
With bankruptcy, many people have the opportunity to restore their economy and eliminate their debts. Through the bankruptcy court, greatly indebted individuals have the possibility to recover economically.
After filing for bankruptcy you have the right to maintain those properties that were considered exempt; if you have inherited properties, you may have to sell some in order to start paying for the goods that are considered non-exempt properties and comply with the debt.
Yes, you can get new credit cards. With bankruptcy, you will be able to restore your credit again long before you finish the set payments. You only need the approval of the bankruptcy court. Sometimes the interest on loans is higher due to the bankruptcy.
With bankruptcy, a high percentage of debts are eliminated but there are some that depending on the established chapter cannot be canceled. These include student debts, certain taxes and fines, fraudulent customer debts, debts of food handling and custody, debts for driving under the influence of drugs and alcohol, debts that were not eliminated in previous bankruptcies, and so on.
A Chapter 13 bankruptcy trustee is an attorney who is selected by the United States Trustee. They must act as the trustee to the bankruptcy estate of every one who is filing for bankruptcy. In addition, his or her responsibilities are to make sure that the payment plan is followed, to collect the entire debtors payments, make the payments to the creditors, and finally control the case until it is closed.
Only individuals can file for Chapter 13 bankruptcy. This is because by law limited liability companies and corporations are consider a separate entity from the owner and its not consider an individual asset. When you file your taxes, they are both filed separately: personal and business. Other options can help business owners who wish to file for bankruptcy.
In order to file Chapter 13 bankruptcy, the debtor must take a credit counseling course by an official credit counseling agency to complete the process. After completing the course, the debtor will receive a certificate that he or she must present. The price of this course is approximately $50.00 and it usually lasts around one hour in course time. It is absolutely necessary to take this course if filing for bankruptcy. If not competed, the case will be dismissed automatically.
It varies from case to case. In most circumstances if the bank or credit union has to withstand a loss, it will close any accounts. On the other hand, if the debtor reiterates the debt to the bank, then the bank may not take action. It is important to discuss the different options with your bankruptcy attorney.
Ten years is an estimate time in which bankruptcy remains in the credit bureau report of public records. Depending on the employment and income conditions, car and mortgage financing might be available with a considerable down payment. Also, credit card solicitations may also be taken into consideration. These steps can be accomplished once the discharge is entered.
If the debtor is temporarily unable to make the payments from the payment plan due to certain situations, such as loss of employment, insured, or ill, the plan can be adapted to allow the debtor to make the payments when he or she can continue. If none of the reasons above are fulfilled or the debtor can no longer make the payments, then the case can be dismissed or adapted to a Chapter 7.
Your student loan can be paid with no interest as part of the payment plan. This is only accurate for Chapter 13 bankruptcy and not Chapter 7.
In order for an individual to file under Chapter 13, repayment of all secured creditors before debts in its entirety must be completed. A part of the amount that is owed to unsecured creditors must also be paid.