Information On Bankruptcy
Monday, March 30th, 2009 Subscribe To Our Feed
People who find themselves hopelessly burdened 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 main 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 reorganizes your debt to pay it off in about 5 years. Chapter 7 is usually a smart choice to file if you do not have any belongings that is exempt from protection. Chapter 13 which is the reorganization bankruptcy is filed by debtors who are willing to pay their debts in three to five years. This bankruptcy is also filed when a person who owes money 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 possessions are things like some automobiles, real estate equity above the state homestead value, and boats etcetera. These are liquidated by the bankruptcy trustee.
The charge for filing the Chapter 7 or Chapter 13 bankruptcy is around $300 plus your lawyer fee if using an attorney. It is clever to hire a reliable Miami bankruptcy lawyer that you can afford and of course this will depend on the lawyer’s rate.
An experienced Miami bankruptcy lawyer will be able to help you decide which chapter to file and whether this is the right choice for your cicumstances.
The difference 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.
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