Filing bankruptcy is a difficult decision with both financial and emotional consequences. If you are considering bankruptcy in Miami, contact a Miami bankruptcy attorney who can help you decide if you even need to file for bankruptcy and determine which chapter of bankruptcy is best for you. There are many other options besides bankruptcy, and a bankruptcy and foreclosure attorney in Miami is best equipped to help you. This information is provided for research only to help you understand what options you might have for your situation.
Chapter 7 bankruptcy is a liquidation bankruptcy. This chapter is available to both businesses and individuals. In this type of bankruptcy, many of the person or individuals assets are sold off and the proceeds are used to pay off your debts. Some assets are exempt, such as cars under a certain amount, retirement accounts and tools you need to continue working. When a business files for Chapter 7, the company will be closed and all assets liquidated. After your assets are sold off and the profits applied to your outstanding debt, the remaining debt is discharged. You start over with a fresh financial slate.
Chapter 11 bankruptcy is a restructuring bankruptcy used most often by large corporations, but it is available to any size business that is in financial distress. In this type of bankruptcy, the way the company is run will be changed to run more efficiently in order to earn a better profit. In addition to restructuring the way the company runs, some of the debt will be repaid through monthly payments. Over a several year period a large portion of the company’s debt will be paid back through affordable monthly payments. If all the payments are made on time, after the payment period is over the remaining debt is discharged.
Chapter 13 bankruptcy is a restructuring bankruptcy for individuals. Unlike liquidation, you will retain all of your assets. However, your financial life with be restructured. You may be required to cut back on your expenses and you will be required to pay back a portion of your debt. Just like in Chapter 11, you will make affordable monthly payments over and agreed amount of time. The payment period can last up to five years. This type of bankruptcy is less damaging to your credit score and allows you to keep your assets.
Ever person or company’s situation is different and only a bankruptcy or foreclosure attorneys in Miami can analyze your case and determine which chapter will best suit you. The information provided here is only a short summary of the types of bankruptcy, filing for bankruptcy is very complicated and should only be attempted under the advice of a bankruptcy attorney.