Things To Know About Bankruptcy
People who find themselves hopelessly troubled with impossible debt will do well by hiring a Miami Bankruptcy lawyer to file for protection for them under the federal bankruptcy law.
There are two major ways to file for bankruptcy, depending on what you are looking to acheive. These two ways are: Chapter 7, which gets rid of your debt and Chapter 13, which helps organize your debt to pay it off in about 5 years. Chapter 7 is usually a good choice to file if you do not have any property that is exempt from protection. Chapter 13 which is the reorganization bankruptcy is filed by debtors who are able to pay their debts in 3 to 5 years. This bankruptcy is also filed when a debtor has a wish to keep non-exempt property. There are two options for filing bankruptcy; one is the debtor himself files a petition for bankruptcy or for the debtor to hire an experience Miami bankruptcy lawyer to file for them.
Non-exempt assets are things like some cars, real estate equity above the state homestead value, and boats etcetera. These are liquidated by the bankruptcy trustee.
The cost for filing the Chapter 7 or Chapter 13 bankruptcy is around $300 plus your attorney fee if using an attorney. It is clever to obtain an experience Miami bankruptcy lawyer that you can afford and of course this will depend on the lawyer’s price.
An experienced Miami bankruptcy lawyer will be able to aid you in deciding which chapter to opt for and whether this is the right choice for your situation.
The distinction between the two chapters in bankruptcy law is that Chapter 7 involves taking the creditors non-exempt possessions and appoints a trustee to sell off the assets and then pays off the creditors with the earnings. In Chapter 13 the trustee prepares the plan for paying back the debt in installments.
Related posts:
Tags: miami bankruptcy lawyer