Bankruptcy

People get overwhelmed by debt for any number of reasons.  Whether it is an unexpected medical condition, the end of a marriage, the loss of a job, or a downturn in business, financial problems often occur with little warning.  Last year more than 25,000 people filed bankruptcy just in Miami-Dade, Broward, Palm Beach and the Florida Keys alone. There are three primary types of bankruptcy: Chapter 7, Chapter 13, and Chapter 11.

Chapter 7 is the most common type of bankruptcy.  Most debts can be eliminated in a Chapter 7 bankruptcy after approximately three months.  But not every person can qualify for a Chapter 7 bankruptcy and if a corporation files a Chapter 7 bankruptcy, it will have to stop conducting business.  For people who do not qualify for Chapter 7 or for businesses that want to continue operating, the more complex Chapters 13 and 11 are available.  Chapter 13 is the part of the United States Code that sets the rules for individual debt reorganization.  Chapter 11 is the section of the United States Code that governs business reorganization and personal reorganization for individuals with a significant amount of debt beyond that which is allowed under Chapter 13.

Filing bankruptcy is a very important decision.  At Mark S. Steinberg, P.A., every client meets with the attorney who will ask questions and evaluate the unique facts so that together they can decide on the best course of action.  However, bankruptcy is not the best solution for everybody and there may be more suitable alternatives.  The attorney will discuss those alternatives so that the client can make an educated, well informed decision concerning his or her own financial future.

Chapter 11

Chapter 11 is by far the most complex type of Bankruptcy. Chapter 11 is usually for businesses in dire financial consequences but who still want to continue operating.  However, for individuals who do not qualify for either Chapter 7 or Chapter 11 Bankruptcy, Chapter 11 is the only option. Just like a Chapter 13 Bankruptcy, Chapter...

Chapter 13

When you file a Chapter 13 Bankruptcy, you enter into a three to five year plan to make monthly payments to a Chapter 13 Trustee who disburses that money to your creditors.  Chapter 13 Bankruptcy gives you the ability to catch up on your past due mortgage payments, back taxes, car payments, and even child...

Chapter 7

In general, people file Chapter 7 to eliminate credit cards, medical bills, judgments, repossessions, mortgage deficiencies, and certain personal taxes.  A Chapter 7 Bankruptcy also allows you to surrender a house or a car that is worth less than the balance of the mortgage or loan and to terminate a lease early without repercussion. Once...

If you have questions about bankruptcy and would like to speak with an attorney, call Mark S. Steinberg, P.A. at (305) 671-0015 or fill out the Contact Form to schedule a FREE consultation.