FAQS

What will I have to sell in bankruptcy? What will I be able to keep?

Under chapter 7 bankruptcy, you will have to sell expensive stereo equipment, plasma television sets, jewelry and watercraft. Most likely, you will be able to keep the following:

• Payments from Social Security disabilityRetirement accountsPrepaid college fundsBenefits from Workers Compensation Under chapter 13 bankruptcy, your assets will not be used to repay your debts because you will develop a repayment plan with your trustee.

What exactly is bankruptcy?

The process is the mechanism carried out in federal court through bankruptcy laws established in the United States, to protect and assist individuals or businesses to solve the problems of payments to other institutions known as creditors.Â

Who are the ideal candidates to file for bankruptcy?

All those individuals and companies with large financial debts that cannot be resolved by themselves and need to rely on one type of bankruptcy. Bankruptcy works best for borrowers who may have some type of income that helps them cover their expenses after discharging the chapter in the case.

Will I be able to eliminate all my debts filling bankruptcy?

With bankruptcy, debtors are generally freed from almost all the debts , but there are some fixed payments that are not eliminated by filing bankruptcy, including:

• child support payments and alimony, payment of fines, student loans , taxes and committed fraud. Besides, debts for driving under the influence of drugs and alcohol and other debts that were not canceled in prior bankruptcies.

Should I stop using credit cards before filing for bankruptcy?

You have to stop using credit cards if you are considering filing bankruptcy, because the judge will review all of your debts and can establish some kind of fraud linked to the cards.

Can I get credit after I file bankruptcy?

The time depends on what type of bankruptcy you are filing; if it is a Chapter 7 bankruptcy it only takes 2 to 3 months from the time it was filed. For bankruptcy under Chapter 13, the process can take 3 to 5 years depending on the payment plan submitted to the court and which one was approved by the judge

What is the estimated time it takes for bankruptcy in Miami?

The time depends on what type of bankruptcy you are filing; if Chapter 7 bankruptcy only takes 2 to 3 months from the first time it was filed . For bankruptcy under Chapter 13, the process can take 3 to 5 years depending on the payment plan submitted to the court and which one was approved by the judge.

Can I keep my properties such as my car and my house after filing bankruptcy?

In most cases bankruptcy debtors can keep all the properties as they are able to consolidate debts. Also they can maintain their retirement income.

What is the minimum amount of debt that I should have to file bankruptcy?

There is no minimum amount established, if you need to protect your property from creditors then it is necessary to consider bankruptcy.

What does the term detention in the process of bankruptcy mean?

When the process of bankruptcy is presented to the court the judge orders the creditors to stop the foreclosure process on the properties of the debtor, creditors cannot continue with the eviction of their property, no harassing telephone calls, otherwise the court may punish the creditors for their behavior.

How frequent can I apply to bankruptcy?

The application time depends on the type of bankruptcy for which you applied the first time, sometimes you have to wait at least six years to settle back in bankruptcy again. The right to bankruptcy is very important so it is recommended to consider the case well before filing bankruptcy.

Can I go to jail for having so much debt?

No, the debtors are not going to prison for having accounts payable with creditors, unless they have committed a federal crime of fraud. Creditors may only collect debts through the court and asking the judge for a claim against the debtor for a money judgment. If the creditors succeed with the demand, 10% of the wages of the debtor could be removed, checking bank account may be cancelled before the debtor withdraws the money from it. The creditors can also seize some of the debtors properties, but what they cannot get is an arrest warrant for debtors, this is impossible.

What are the disadvantages when filing for bankruptcy?

There are few disadvantages that exist with respect to the bankruptcy process. The bankruptcy will remain on your credit history for roughly a 10-year period after going bankrupt, which sometimes results in the disapproval of new loans and student loans and even renting an apartment. With chapter 7 bankruptcy the individual might lose some of the properties that were declared not exempt because they would be sold to make the payments.

How much does it cost to file for bankruptcy?

The cost of the bankruptcy varies depending on the lawyer to advice and how complex it can become. The individual filing bankruptcy might need to do some fixed payments to court ranging from $200 to $300 depending on the type for bankruptcy and there are some government agencies that fund this type of cost for those with low incomes.

How to buy a house when a person files for bankruptcy?

If a person files for bankruptcy property Miami, the probabilities of qualifying for a mortgage are not good. Being bankrupt does not preclude you from buying a home after a few years of rebuilding credit, but if you are in the process of filing for bankruptcy means you will probably not be able to finance a mortgage loan. There are other options to purchase a home:

• Wait two years: If you want to buy a house, you must wait two years after filing bankruptcy in order to qualify for a loan. Rebuild your credit: The best way for a mortgage after bankruptcy is by the Federal Housing Administration. They will have less stringent credit standards, but still need to have a credit score of 620 or higher. Saving for a high down payment: When a person is in bankruptcy, he or she will need to put a high enough down payment to buy a house. Pay in cash if possible. You can find a home with a reasonable price to be able to pay a lower price in cash. Have a friend or a family member with good credit score to apply for the home loan. Consider a rental with option to buy.

What is the cost of filing for bankruptcy under chapter 7 and chapter 13?

The processing fees charged by the court are $ 274 to file for bankruptcy under Chapter 13 and $ 299 to file for bankruptcy under Chapter 7, whether for one person or a married couple.

What is the cost of filing for bankruptcy under chapter 7 and chapter 13?

In a Chapter 7 case, you can keep all property which the law says is exempt from the claims of creditors. Exemptions are determined by state law.

Who are the ideal candidates to opt for bankruptcy Chapter 13?

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.

When is Chapter 13 a better choice than Chapter 7?

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.

How Much Money Do I Have To Pay If I File Chapter 13 Bankruptcy?

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.

Is There Any Advantage Of Filing For Bankruptcy?

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.

What Happens After I File For Bankruptcy?

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.

Can I Get Credit Cards After Setting Chapter 13 Bankruptcy?

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.

Are There Some Debts That Cannot Be Eliminated With Chapter 13 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.

Who is exactly a Chapter 13 Bankruptcy trustee?

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.

Can I File Chapter 13 Bankruptcy for an LLC or Corporation?

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.

What is credit counseling and must I take it to file Chapter 13 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.

Will my bank close my bank accounts if I file for bankruptcy?

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.

What amount of time does it take for bankruptcy to remain on my credit bureau report? Am I able to get credit before that time runs?

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 unable to make Chapter 13 payments temporarily, what happens?

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.