Bankruptcy Laws: What you need to know

What are bankruptcy laws? Bankruptcy law is meant to help people who can no longer afford to pay their debtors. This happens by liquidation of personal property to repay the debts or through affordable monthly payments. Bankruptcy is generally filed under Chapter 11, Chapter 13 or Chapter 7 bankruptcy and can only filed in a federal court. This means that the majority of bankruptcy laws are the same throughout the United States. However, states are permitted to add laws on to the federal tax code. These adjustments usually have to do with the amount of money that can be discharged, what assets are eligible for liquidation and the amount of time between each step. Because the laws vary state by state, it is important to hire a Miami bankruptcy attorney if you are considering filing bankruptcy in Miami.

How do I know what the bankruptcy laws are in my area? The easiest way to figure out the laws in Florida is to hire a bankruptcy and foreclosure attorney in Miami. They will be familiar and experienced with the laws in Miami. You can also look online for both federal and state bankruptcy laws in your area. Keep in mind that bankruptcy laws are constantly changing, so hiring a lawyer is in your best interests.

What are the bankruptcy laws on the different Chapters of bankruptcy? There are three main Chapters of bankruptcy. Chapter 7 is a liquidation bankruptcy. In this type of bankruptcy, any eligible assets are sold off and the profits are applied to the debt. Any debt not covered by the sale of assets is discharged. Chapter 11 and Chapter 13 are both restructuring bankruptcy that allow the debtor to repay most of their debt off slowly over several years. At the end of the payment period, the remaining debt is discharged.

How often can I file for bankruptcy? Bankruptcy should not be used over and over again to get rid of debt from over using credit cards. However, some people will find themselves needing to file for bankruptcy more than once in their lives. Chapter 7 bankruptcy can be filed every 8 years based upon laws passed in 2005.

What are the bankruptcy laws on buying a house after filing for bankruptcy? There are no bankruptcy laws that prevent you from purchasing a home after bankruptcy. Technically, you can buy a house as soon as your bankruptcy is finalized. However, you will be charged higher interest rates and you may have difficulty finding a lender who is willing to loan you the money for a home. In order to get a good interest rate, it is best to wait two years before purchasing a home. Also, you should use the year or two after filing bankruptcy to get back on your feet financially.