Chapter 13 Bankruptcy in Miami

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Introduction to Chapter 13 Bankruptcy in the United States

In recent years, the U.S. economy has been going through a period of financial crisis that results in unemployment and human misery. Many Americans have been affected by this economic situation that forces them to get into huge debts; others simply did not know how to manage their earnings and were also involved in uncontrollable debt.

To all the people who currently face a situation like this, filing for bankruptcy is the perfect solution to solve their economic problems. Bankruptcy is established under federal law to eliminate, according to federal court, the obtained debts.

In the United States, there are six types of bankruptcy, but really the most used are under Chapters 7, 11, 12, and 13. Chapter 7 is also known as debt settlement, Chapter 11 as bankruptcy reorganization, and Chapter 12 meets the same requirements as Chapter 13, but it is aimed only at those debtors who are engaged in agriculture and fishing.

Differences between Chapter 7 and Chapter 11

There really is not much difference between them, it all depends on your particular case, but it can be noted that with Chapter 7 bankruptcy, also known as liquidation the client removes unsecured debts and does not have to pay any of the debts that are accumulated; while with the chapter 13 the debtors have to pay those debts that they can afford, but within a long term, thus maintaining their properties and in many cases significantly reducing their debts. The expert bankruptcy lawyer in Miami can advise you on what is the best way to file for bankruptcy, i.e., what is the most appropriate for you, and in many cases Chapter 13 is more convenient than Chapter 7 bankruptcy.

Chapter 13 Bankruptcy in Miami

Concept of Chapter 13 Bankruptcy in Miami

Chapter 13 bankruptcy is also known as “acquired salaries ” and is the practical solution for many people with financial problems. Chapter 13 is defined as a payments’ strategy that is legally declared by the bankruptcy court. It allows debtors to pay all their debts within a long period of time without taking the chance of losing the properties that were obtained in the course of their life and get a better future.

Requirements to file for bankruptcy under Chapter 13

  • To have a large income that does not allow you to file for bankruptcy under chapter 7.
  • To have long delays in mortgage payments not wanting to get rid of the property.
  • To have two mortgages on the house and the need to pay only the first.
  • To have a Chapter 7 discharge in the past 8 years.
  • To have an unsecured debt of approximately $ 336,900 or a secured debt of less than $1,010,650

Advantages of Bankruptcy Chapter 13

Bankruptcy chapter 13 can bring many benefits to a person who is in economic crisis, its greatest advantage comes from the elimination of all or most of the debts and includes:

  • The opportunity to recover your economy and to monthly control mortgage payments.
  • It allows the customer to have much more time to recover the economy.
  • It allows payment to creditors without losing the properties that have been acquired so far.
  • It provides the possibility to fully pay the outstanding accounts in less than three years and the child support payment.
  • Obtained charges are greatly reduced.
  • After 30 to 60 months making the ongoing payments, the remaining debts will be eliminated.
  • You will be able to settle all your debts in a period of 3 to 5 years, and sometimes you might end up paying only 10% of the total debt.

Establishment Process of Chapter 13 bankruptcy in Miami

Chapter 13 Bankruptcy in Miami

The customer gathers all the information that is required for a bankruptcy process with one of our qualified bankruptcy lawyers. It is necessary for the client to provide all the incomes, properties, and assets to the lawyer to determine the appropriate case of bankruptcy. Then, the document that includes the bankruptcy payment plan in Chapter 13 is drafted. The bankruptcy 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. Then, the trustee approves 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 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 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

A bankruptcy lawyer in Miami plays an important role in the process of financial crisis. Do not be afraid to file for bankruptcy, it is the best solution to improve your financial status. It is important to work from the start with bankruptcy lawyers because they know the laws of Florida and they can restore your economy in the shortest time, successfully reducing debt and reducing the persecution of creditors.

Questions and Answers about Chapter 13 Bankruptcy

Questions and Answers about Chapter 13 Bankruptcy

Peasants, traders, retirees, professionals, housewives, all those who have a large income that allows them to pay for electricity, rent, insurance, food, etc., and they can pay the plan as set out in Chapter 13. It is not mandatory that the accounts are paid only with your salary, bankruptcy lawyers will help you recognize if you are a good candidate for Chapter 13.
Chapter 13 is commonly more 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 not eligibility for Chapter 7.
  • Ineligible for a Chapter 7 discharge, because it was already received in 8 years.
  • The debtor has a considerable amount of debts not dischargeable in Chapter 7 but still qualifies for Chapter 13 discharge.
  • The need for temporary relief from the creditors with enough assets to cover all debts.
The money to pay depends on the debt and the monthly payment plan established by your attorney. 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.
Sure, 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, such as: 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.