Miami Lawyer Blog

Chapter 7 Bankruptcy In Miami - Some Vital Things To Consider

Following the recent economic turmoil of 2008, scores of people as well as businesses have been trapped in a vicious cycle of debt. With the escalating prices of fuel, gas, food, electricity and every other essential item, it's quite obvious to see individuals struggling with an enormous amount of debt. If you're a resident of Miami and facing a similar debt situation, don't fret. These days, there are plenty of debt relief options available in the market. Based on a debtor's monetary situation, one may choose to go for debt consolidation, debt settlement, debt management and at times even bankruptcy. Although bankruptcy is not always the best solution to all your debt problems, it provides you with an opportunity to wipe away most of your debts. When you're contemplating bankruptcy, there are several legal questions that you need to take into consideration. The decision to declare bankruptcy is a very personal and tough one. Every debtor contemplating bankruptcy must find answers to the basic legal queries concerning bankruptcy. When you gather sufficient legal information, it'll be easier for you to decide whether bankruptcy is the best debt relief option for you.
Once you file for Chapter 7 bankruptcy in Miami, your finances will be reviewed by the bankruptcy court, and your property may even be sold off to repay your creditors. Then, a majority of the outstanding debt gets discharged. When a particular debt is discharged, the creditor has no further claim on you, even though you ultimately collect sufficient money to repay your creditors. However, in certain cases, filing Chapter 7 bankruptcy could be a big mistake. Therefore, think before you file.

See if Chapter 7 is the best means of protecting you from your creditors. In case you owe back taxes, student loans, child support or alimony, you won't be able to discharge those debts. As for mortgage debt, it can be discharged, but the debtor won't be able to keep the home since the collateral will go back to the mortgage lender or bank as compensation for the deficit payable by the debtor. Besides, Chapter 7 won't discharge debts due to deceit, driving under influence charge or excessive credit card usage just before filing bankruptcy.

Evaluate your property against Florida's catalog of exemptions to see whether it's at risk. Even though your property can be sold off by the court to repay your creditors, every state excuses certain types of assets, up to a specific dollar level, from sale. In Miami, no matter how much your home's value, it is exempted. However, you cannot claim in excess of $1,000 in personal property, together with equipment or tools you require for your job.

Check whether you qualify for Chapter 7 bankruptcy in Miami. Your income for the last six months before filing should be typically less than the Florida median, or you need to pass a special "means test" when your earnings are adjusted for expenditures. You also need to enroll in a credit-counseling session in the last six months ahead of filing. However, you are prohibited from filing if you've undergone a bankruptcy petition dismissal in that particular six-month period.

Guest Author : Mary Williams is the Community Member of Oak View Law Group and has been contributing her suggestions to the Community since 2009. Not just that, she has also made notable contributions through the various articles written on different subjects related to the debt relief, credit consolidation, bankruptcy, etc.

Miami Foreclosure attorney Aaron Resnick invites you to watch the 60 Minute expose on foreclosure fraud here. http://www.cbsnews.com/video/watch/?id=7361572n&tag=contentMain;cbsCarousel

Enjoy.

With the recent desperation to avoid foreclosure in Miami, it is no wonder that loan modification scams in Miami are becoming more popular than ever. In desperate times, a homeowner may be tempted by offers that are too good to be true; this is unfortunate as it usually ends with the resident losing his or her home. Here are a few tips you can use to avoid a loan modification scam in Miami.

How to Avoid Loan Modification Scams:

1. If it sounds too good to be true, it probably is. This is a timeless piece of advice that is ignored when someone becomes desperate. There is not a firm on earth that can promise or "guarantee" a loan modification, particularly when it comes to a reduction in principal.

2. If a firm or broker asks for money in advance, this is a huge tell that they are scammers. It is all but illegal for a firm to ask for money in advance when it comes to loan modifications in Miami.

3. If a firm of broker says that it is "attorney overseen", you should ask to speak to the attorney. If they do not give you the information needed to speak with the attorney, it is a scam.

4. If a firm or broker cannot provide testimonials from previous clients whom have successfully received a modification in Miami (while this is not always the case), it may be a scam.

5. Research. When you see an ad for a mortgage modification in Miami, before you call them up, do a quick internet search on the company. This is always a good way to figure out if they are scammers or not. (Again, this is not always the case).

The best thing you can do when it comes to avoiding Mortgage modifications in Miami is to hire an attorney from the get-go. If you are unsure about the process, you can obtain a free loan modification consultation in Miami. A loan modification attorney in Miami can explain the process and the types of loan modifications that will be available to you. A loan modification lawyer in Miami will also be able to assist you throughout the entire process and give you a little extra peace of mind, because avoiding a mortgage modification scam in Miami can be a scary situation.

Coral Gables dentist Dr. Rene Piedra likely left patients he was accused of overcharging for dental work high and dry by filing for Chapter 11 bankruptcy. Several of Piedra's patients are claimed he allowed them to open a line of credit through his practice but then over charged them by thousands of dollars for dental work and then refusing to issue refunds. Piedra claimed he intends to issue refunds, but merely needs time to figure out which patients are owed and how much. Instead of answering questions from local new networks about how long it will take him to figure it out, he deferred to his bankruptcy lawyer. His lawyer states that the patients who are owed money will be repaid during the restructuring process. With his recent filing of Chapter 11 bankruptcy protection, the chance that those patients will receive a full refund is unlikely. It is far more likely that Piedra managed to avoid giving full refunds by filing for Chapter 11. Is it really so easy for a company to scam people they are supposed to help and then just file for bankruptcy and avoid paying? Most people use bankruptcy as a way to get out of a financial crisis, but there are always people who will try to take advantage of the situation. Wondering how that is possible?

Chapter 11 bankruptcy is a restructuring bankruptcy, not a liquidation bankruptcy. In liquidation, a business's assets would be sold and the profits used to pay of creditors. If the dentist does not have a large amount of debt, the patients may have gotten all their money back.. However, in restructuring bankruptcy the business will stay open and pay off some of the debt over a longer period of time and some of the debt will be discharged. The payment plans in Chapter 11 can be as long as five years, which means his patients will likely not get back all of their money and have to wait years. Fortunately, a court has to approve the filing. If Piedra is not overwhelmed with debt and does have the money to issue full refunds, the courts can reject his appeal and he could be forced to pay the amounts back in full. Depending on the business classification of his practice, Piedra could avoid having to sell his expensive car to repay his patients.

Luckily, there are several safe guards within the Chapter 11 bankruptcy process to keep businesses and individuals from taking advantage of the process. During the Chapter 11 process, businesses are forced to restructure they way they run to become more profitable. They may be forced to sell off unprofitable parts of the company and large companies might be forced to close unsuccessful branches or stop providing services that have a low profit margin. Besides the restructuring process, creditors do not have to agree to Chapter 11, and the courts can also reject the proposal. So, there are a few different ways to keep businesses from scamming people and then avoiding payment.

Links:

Dentist In Local 10 Investigation Files For Bankruptcy, June 30th 2008