Miami Chapter 7 Bankruptcy Attorney
When most people think of bankruptcy, it is Chapter 7 they think of first. While there are other types of bankruptcy, Chapter 7 is perhaps the most common in Miami. Through a Chapter 7 bankruptcy, you can discharge all or most of your debt so you are no longer legally obligated to pay it. Chapter 7 has many benefits, but there are some drawbacks if you do not know the law or make a mistake in your case. Our Miami Chapter 7 bankruptcy attorney will advise you of the different laws and give you the best chance of getting your debt discharged.
How Does Chapter 7 Bankruptcy Work?
Like all bankruptcies, a Chapter 7 case starts when a petition is filed with the appropriate court. Approximately 30 days later, you will attend a 341 hearing, also known as a meeting of the creditors. During this meeting, the bankruptcy trustee assigned to your case and any of your creditors can ask you questions about your financial situation. While you must attend, creditors rarely do. Still, the meeting can be intimidating and so, it is important to have a Miami bankruptcy attorney attend with you. You will receive a discharge of your debt approximately 120 days from the date of the 341 meeting.
Chapter 7 is also known as a liquidation bankruptcy because some of your property may be sold to repay your creditors. The bankruptcy trustee also oversees the bankruptcy estate and the sale of any assets. Still, just because you file Chapter 7 does not mean you will lose everything. Many people keep all of their property after Chapter 7.
Eligibility for Chapter 7
In 2005, the bankruptcy laws were changed to reduce the number of bankruptcies filed when a borrower had the funds to repay their debt. As such, today anyone filing Chapter 7 must pass the means test to be eligible. The means test considers your income, family size, and expenses to determine if you have the ability to repay your debt. If you do not pass, you cannot file Chapter 7. If your income is below the state’s median income, you do not have to pass the means test.
This does not mean you do not have any options, though. Most people who do not qualify for Chapter 7 file Chapter 13 instead, which is also known as the wage-earner’s bankruptcy.
Benefits of Chapter 7
Chapter 7 has many benefits in addition to discharging your debt. As soon as you file, creditors and debt collectors are prohibited from trying to collect the debt or taking legal action against you. You can also start rebuilding your credit faster than if you had not filed, and you can keep most if not all of your property.
Our Chapter 7 Bankruptcy Attorney in Miami Provides Sound Legal Advice
To learn more and determine which option is right for you, contact our Miami Chapter 7 bankruptcy attorney at Ronald Cutler. Our seasoned attorney can answer all of your questions, advise you of the law, and help you get as much debt discharged as possible. Call us now at 386-490-9949 or contact us online to schedule a free consultation.
