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.

Filing bankruptcy in Miami is a difficult process, and one of the scariest financial situations anyone will face. First, you need to find a Miami bankruptcy lawyer, next you will have to fill out 50 or more pages of paperwork, attending required credit counseling all while about losing property and dealing with the invasion of your financial privacy. But what happens after your bankruptcy is finalized and how do you move on with your life? You should have two main goals after bankruptcy. Rebuild your credit and rebuild your financial life to avoid being in a situation where you need to file bankruptcy again.

Saving money for rough times is difficult for most people. Your goal should be to have six months to a year worth of bill money saved. That is hard to do, and it is okay to start small. Do not get discouraged because you cannot afford to save much each week or get overwhelmed because you do not know where to start. Stop and take an honest look at your finances and determine out how much you can put away each week or each from each paycheck. Many banks will set up an automatic transfer from your checking to your savings account each month. You can set this up to happen after each check goes through, and before you spend it. Make a savings plan and stick with it! Do not stress if you can only save a few dollars each week, it will add up quicker than you think. Just do not tap into your savings unless you absolutely must.

Rebuilding your credit is an important step to rebuilding your life. And it is not as difficult as you might think. Most lenders will not want to lend you money right away, but keep in mind that you have gotten rid of debt, which opens up your income to make other payments. And you will be charged high interest rates at first because you are considered high risk. To rebuild your credit, you should apply for a small credit card and make sure you pay on time. Consider financing small purchases through stores like furniture or small appliances. To rebuild your credit as quickly as possible, make sure you make your payments on time!

Changing your financial life is not going to be easy. After you file, your bankruptcy and foreclosure attorney in Miami should have made sure you attended credit counseling which will help you make better financial decisions. While you probably cut back your spending already and started paying more attention to your finances, counseling can help you make better decisions. You might also consider after bankruptcy credit counseling. You need to safe guard you life against the issues that forced you into bankruptcy in the first place. Do you have insurance to protect your family from medical bills? Have you saved up for emergencies that could set you back? Make sure you do not end up in the same situation again.

Obviously the easiest way to stay of foreclosure is to make mortgage payments on time. In today's faltering economy, this is not possible for everyone. If you are struggling to make your house payment each month or are already a month or two behind, you might be worried your bank will foreclose on you. With foreclosure rates so high across the nation, this is a valid fear. However, you have more power to negotiate with your lender than you probably think. High foreclosure rates means there are a lot of homes on the market, and banks are having trouble selling them. You have a few tools to keep yourself out of foreclosure.

First, make sure you contact a Miami foreclosure attorney to help you. They are experienced in dealing with banks. While you may want to keep your home, you really must be realistic. If you are out of work or making way less money than when you purchased the home then keeping your home might not be in your best interests. A foreclosure attorney can sit with you and figure out your financial situation. If keeping your home is a realistic option for you, you still have several tools to work with.

Short sales in Miami occur you will ask your bank for permission to sell your property for less than the mortgage balance. Why would they let you do that? They will let you do that when the loss through short sale is less than the loss through pursing a foreclosure. If your bank agrees, you sell the house to the buyer with the best offer. If you do not foresee being able to afford payments anytime soon, this may be a good option to avoid foreclosure. You get to get out of a mortgage while avoiding a foreclosure on your credit, the bank avoids losing more money and the buyer gets a great deal on a home. Your bank does have to agree to a short sale, so you will need to hire a lawyer and contact your mortgage company to apply for a short sale.

Loan modification in Miami is another tool to avoid foreclosure. This way will allow you to keep your home and save money at the same time. A loan modification occurs when you notify your mortgage company that you having trouble making payments. The best way to convince them of this is to miss a few payments, unfortunately. A loan modification can be lower interest rates, a grace period where you can miss a few payments without penalty or a longer payment period. Again, your bank must agree to a loan modification.

If you are one of the lucky ones, the economy has yet to have you consider the prospect of Chapter 13 bankruptcy in Miami. If you have considered a chapter 13 bankruptcy in Miami, you are not much different than anyone else in Miami. Many of us have considered the idea of bankruptcy, particularly when you have so much debt that you feel as though you are drowning in it.

A chapter 13 bankruptcy in Miami involves the restructuring of your debt. This type of bankruptcy may allow you to keep your home and much of your assets as a chapter 13 bankruptcy will help you reorganize your debt into payments that are more affordable. The only problem with this type of bankruptcy is that your spending and finances will be thoroughly scrutinized by the court appointed liaison until you have finished repaying your debt.

When considering a chapter 13 bankruptcy in Miami, you may want to take a step back, decide if there is a way to liquidate some of your assets to repay your debt first as this will be more preferable to your credit report. Regardless, you should seek the advice of a chapter 13 bankruptcy attorney in Miami, long before you actually file for a chapter 13 bankruptcy.

A chapter 13 bankruptcy lawyer can advise you on any options you may have in order to avoid filing for bankruptcy and if you cannot avoid the bankruptcy, your Miami attorney can then help you prepare, file and follow through with your chapter 13 bankruptcy. Utilizing a chapter 13 bankruptcy attorney can assure that you are making the best possible decisions for your personal and financial future.

Do you own or operate a small or large business in Miami? Is so, you may have noticed a rash of businesses filing for a chapter 11 bankruptcy in Miami. Why? Probably because the economy is not at its best at the moment, unemployment is up, interest rates are up and people are just not spending the same amount of money they used too. Filing for a bankruptcy sounds like a scary prospect, but in truth, a chapter 11 bankruptcy is not as scary as it sounds.

A chapter 11 bankruptcy in Miami is filed when a business, small or large, reaches a point when the income to debt ratio is off balance. Paying your monthly bills becomes a chore and you as a business owner decided that there is no other alternative.

Chapter 11 is a lot like filing a Chapter 13 bankruptcy in Miami. While a chapter 13 bankruptcy in Miami is for an individual person or family, chapter 11 is for businesses. It is a restructuring bankruptcy. It is the type of bankruptcy that will not eliminate your debt, but restructure business, your debt and your monthly bills so that the monthly payments are more affordable and at the same time allow you to keep your business open and running. Once you pay off the debt, you will be free and clear of debts. The only downside of this type of bankruptcy is that you will have someone oversee your expenses and you will basically be under a microscope with your business accounts to assure that you are able to pay your monthly payments.

There may be alternatives to filing a chapter 11 bankruptcy in Miami. You should talk to a chapter 11 bankruptcy attorney in Miami about your options BEFORE you file bankruptcy. A chapter 11 Bankruptcy lawyer can help you file bankruptcy, give you support and defense when needed during your bankruptcy and explain the ramifications of filing a chapter 11 bankruptcy in Miami. With a phone call you can obtain a free initial consultation to discuss your chapter 11 bankruptcy options.

Filing bankruptcy is never a pleasurable experience. Bankruptcy can be a difficult legal cavern to navigate and unless you know the law, you may make the wrong decisions that will affect the rest of your life. Chapter 7 bankruptcy is one of the most filed bankruptcies in Miami. Chapter 7 allows for the liquidation of your assets to repay all outstanding debts you may have. Here is a few tips when considering a Chapter 7 bankruptcy in Miami.

• Always seek the counsel of a chapter 7 bankruptcy attorney in Miami before initiating a bankruptcy filing. They may be able to find other alternatives to filing bankruptcy in Miami.

• Evaluate your assets. If you can pay off your outstanding debts by liquidating your assets yourself, you should! This will help you avoid a stain on your credit report that can last for MANY years.

• Chapter 7 bankruptcy in Miami should only be considered when you retain very little in the way of assets. Chapter 7 bankruptcy in Miami is usually only used by those whom have outstanding medical bills or the like. Chapter 7 bankruptcy will liquidate all of your assets to repay your creditors, so if you only have a thousand dollars in assets you may be forgiven a massive amount of debt for a small amount of money.

Speaking with a chapter 7 bankruptcy lawyer in Miami will help you decide if a chapter 7 bankruptcy is right for you. You may need to file another type of bankruptcy, especially if you are trying to keep your home and your vehicle. A chapter 13 bankruptcy may be more preferable. A chapter 7 bankruptcy attorney will guide you through the entire process of filing for bankruptcy and explain the affects that a chapter 7 bankruptcy will have on your credit.