The process of filing for bankruptcy in Miami can be tedious, unless you have a skilled bankruptcy attorney who can help facilitate the necessary documents in the most time efficient manner. The bankruptcy process is an option for individuals and companies that are having financial hardships and need to eliminate their debts.
First we need to decide which type of bankruptcy to file. A report of your assets, income, debts and any additional information about your creditors are obtained to determine this. There are several important chapters often used by most people or institutions with economic difficulties depending on the goals the debtor would like to reach by filing the bankruptcy.
- Chapter 7 Bankruptcy: Also known as a settlement is the law process created for companies and individuals with property, with the objective of eliminating all debts acquired. Obtaining a discharge in Chapter 7 bankruptcy means that you can continue with your life without worrying about your debts since they will be canceled during the bankruptcy process. This includes credit card debt and medical expenses. In Chapter 7, the debtor does not have to worry about creditors since she/he has no obligation to settle the debts. The process only takes two to three months from the first time it was filed.
- Chapter 11 Bankruptcy: This type of bankruptcy is aimed at large American businesses which are under financial distress and bankruptcy is the solution to reorganize and achieve financial stability. Chapter 11 can also be used by independent debtors with large amounts of debt. This type of bankruptcy is for limitless debt and the debtors may continue working their business under the control of the bankruptcy court; thus, the creditors will benefit. The process only takes two to three months from the first time it was filed. Usually it takes six months to two years for a Chapter 11 case to come to a close.
- Chapter 13 Bankruptcy: It is also known as acquired wages and is a process in which the debtors propose a repayment plan to make installments to creditors. Once the court confirms the plan, the debtors must make the plan succeed, allowing them to pay all their debts over a period of time between three to five years, without the risk of losing their properties. Debtors must have a maximum amount of $250,000 dollars in unsecured debts and $750,000 in secured debts to apply for this type of bankruptcy. The process can take three to five years depending on the payment plan submitted to the court and which was approved by the judge.