Miami chapter 7 bankruptcy lawyer explains more about Florida Chapter 7 bankruptcy and Florida Chapter 13 bankruptcy.
What is Chapter 7 bankruptcy?
Chapter 7 bankruptcy is also known as ‘straight bankruptcy’ as this is a liquidation procedure. This form of bankruptcy is generally considered as the quickest and the simplest form of bankruptcy. Almost all sections of the population can file for a straight bankruptcy as it is open to individuals, married people and even corporations.
What happens in Chapter 7 bankruptcy?
To put it quite, quite simplistically, a trustee is appointed by the court to gather data about the nonexempt property of the debtor. This trustee gathers information and subsequently sells the property. The proceeds of the sale go to the creditors. Certain properties are exempt and are claimed by the attorney as being exempt.
So, what is Chapter 13 bankruptcy?
This code is available to debtors who want to pay off their debt over a period of time, like 3-5 years. This is the best form for those people who own non-exempt property that they do not want to sell off. In Florida, Chapter 13 bankruptcy is ideal for those debtors who earn reliable incomes at regular intervals and it is great for people who earn an income that is sufficient to meet their needs with a little cash to spare.
Is filing for Chapter 7 bankruptcy as tough as people make it out to be?
Well, it is true that new laws have been introduced a couple of years ago. Following this, much has been written about how difficult it is going to be to file for Chapter 7 bankruptcy. However, although there are more hoops to jump through under the new regulations, a qualified and experienced Chapter 7 bankruptcy lawyer can easily negotiate the process and work their way through the paperwork.
What would be the most common causes for filing Chapter 7 or Chapter 13 bankruptcy?
According to a Harvard based study, most bankruptcies in the United States are the direct result of overwhelming medical bills. Besides large medical expenses, unexpected expenses like overextended credit and job problems could also lead to financial problems which in turn require filing for bankruptcy.
What is the advantage of filing for Chapter 7 bankruptcy?
One of the main reasons to file for bankruptcy is the give the debtor an opportunity to erase their financial problems and start life afresh. When the bankrupt person is discharged, their debt is written off. But, the impact of filing for bankruptcy will be felt immediately. As soon as a person files for bankruptcy, their debtors are prevented from trying to collect the debt through a stay order. For people who are terribly harried by debts, this in itself is a big reprieve.
As it is obvious from the above excerpt, filing for bankruptcy can help the debtor overcome their financial miseries. That said, the success of your case depends largely on the Miami chapter 7 bankruptcy lawyer you hire.