What Is Bankruptcy?
Bankruptcy is a legal procedure that allows a person who is unable to pay their creditors to start over financially. Filing for bankruptcy immediately prevents all of your creditors from attempting to collect debts from you, at least for a limited time. Federal law guarantees the right to file for bankruptcy, and all bankruptcy cases are heard in federal court.
Most people who are unfamiliar with this area of the law believe that bankruptcy is the result of excessive spending. While this is true, it is also important to understand that many hardworking and financially responsible people are forced to declare bankruptcy due to unexpected hardships such as job loss and unexpected medical expenses. Credit card interest and fees alone can quickly add up to unmanageable debt.
You should consult with an attorney before filing for bankruptcy to ensure that this complex legal proceeding is the best option for you or your small business. A professional Bankruptcy Lawyer will assist you in exploring the various options available to you in order to free yourself from your mounting debt and the high-stress levels that often accompany financial insecurity.
While filing for bankruptcy might seem overwhelming, an experienced attorney who’s knowledgeable in both bankruptcy law and finance can ensure that filing gives you the clean financial slate you deserve.
How Will A Bankruptcy Lawyer Determine Whether Filing For Bankruptcy Is Right For Me?
I have clients from all walks of life as a bankruptcy attorney in Miami Gardens, FL. One of the first questions I ask a client when determining whether bankruptcy is the best option for them is: What is your income compared to your expenses? A judge will question why the client needs to declare bankruptcy if they are making enough money and can keep up with their bills.
The second critical question I ask is: What percentage of your assets do you own? The most valuable asset is the home to most of the people. If a client has significant equity in their home, this does not preclude them from filing for bankruptcy. However, whether they are able to keep their home depends on whether they are able to use an exemption to protect it. Exemption laws protect your property when you file for bankruptcy. Exempt property cannot be sold to benefit your unsecured creditors.
If you’re having trouble making your mortgage or car payments, or if you’re facing mounting medical bills or credit card debt, filing for Chapter 13 or Chapter 7 bankruptcy may be the solution. The federal court issues a notice of automatic stay to your creditors the moment you file for bankruptcy protection. This prevents any and all creditors mentioned in your bankruptcy petition from pursuing your debts further, resulting in the cessation of harassing phone calls. Your ability to keep your home will be determined by your circumstances, so it is best to consult an expert attorney.
At Lee Law Firm, we get to know our clients as individuals and seek to understand their financial goals in order to assist them in making informed decisions about how to proceed after being confronted with demanding debts. If we determine that Chapter 13 or Chapter 7 bankruptcy is the best option for you, we will be there for you every step of the way. Bankruptcy laws are complex and change frequently, but our firm stays current in our knowledge to provide you with the expertise you need to start a new financial future.
What Is The Difference Between Chapters 13 And 7 Bankruptcy?
Chapter 13 is a debt repayment plan in which you repay all or a portion of your debt over three to five years. It allows you to keep your home and possibly your car while paying off your debts. Chapter 13 is intended for people who have a secure or consistent income and can make payments over time to solve their financial problems. If a client’s income is insufficient to cover the payments in this bankruptcy plan and they do not have access to contributors who can provide financial assistance, Chapter 13 bankruptcy is not an option.
When a person has a lot of unsecured debt, they can file a Chapter 7 bankruptcy to liquidate their estate (e.g., credit card debt, medical bills, student loans, etc.). Clients who file for Chapter 7 Bankruptcy typically do not earn enough money to cover their monthly expenses. In essence, Chapter 7 is a tool for discharging unsecured debt without losing exempt assets. This means that credit card and medical bills will be erased. Another benefit of Chapter 7 is the relatively quick turnaround time, with debts potentially discharged in as little as four to six months (compared to the three to five years during which an individual who has filed for Chapter 13 will be making payments).
Chapter 7 bankruptcy has more advantages than Chapter 13 bankruptcy. It assists a person in liquidating their estate when they have a large amount of unsecured debt such as credit card bills, debit card bills, medical bills, and loans. If a person declares bankruptcy, he will be unable to meet his regular expenses. As a result, the primary benefit of filing for bankruptcy is that unsecured debt is discharged while exempt assets are preserved.
Both Chapter 13 and Chapter 7 bankruptcy have financial advantages and disadvantages. Before making any bankruptcy decisions, you should consult with an experienced Bankruptcy Attorney in Miami Gardens, FL.
Lee Law Firm Can Help You Get Back On Solid Financial Footing.
An experienced bankruptcy attorney is dedicated to assisting the people of Miami Gardens, FL, to achieve financial stability by overcoming debt. Through our open communication, dependability, and honest legal counsel, Lee Law Firm has earned a reputation in the industry for delivering successful results while providing exceptional customer service. We don’t consider our job done until we’ve helped the client achieve a more prosperous financial future.
To best serve you, we provide excellent services at reasonable prices. We are happy to provide free initial consultations and answer any questions you may have about bankruptcy. We like to get a complete picture of your finances during the initial consultation by discussing your income, cost of living, and debts. This allows us to provide personalized advice on debt relief. We handle your financial information with the utmost discretion because we understand the value of your privacy. After meeting with you and learning about your specific needs and goals, we will advise you on whether Chapter 13 or Chapter 7 bankruptcy is the best option for you. If this is the case, our firm will guide you through the entire process, from filing your petition with the federal court to notifying your creditors.
Our attorneys will advise you whether to file for chapter 7 or chapter 13 bankruptcy based on your specific situation. If you’re struggling with mounting debt and unmanageable financial burdens, it’s time to take charge of your financial future by contacting an experienced and discreet attorney to help you explore your options. You are entitled to a clean financial slate.
A free consultation with a Miami Gardens, FL’s bankruptcy attorney is your next best step for more information on Filing for Bankruptcy. Call us today for further information and legal answers you are seeking.