Helping Clients Throughout Florida File 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.
At my firm, Mark S. Steinberg, P.A., every client meets with me personally. I will ask questions and evaluate the unique facts so that, together, we can decide on the best course of action. However, bankruptcy is not the best solution for everybody, and there may be more suitable alternatives. I will discuss those alternatives so you can make an educated, well-informed decision concerning your financial future.
What Are The Three Forms Of Bankruptcy?
There are three primary types of bankruptcy: Chapter 7, Chapter 13, and Chapter 11.
- Chapter 7: This 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. 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 terminate a lease early without repercussion.
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: This part of the United States Code sets the rules for individual debt reorganization. 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 support.
- Chapter 11: This section of the United States Code governs business reorganization and personal reorganization for individuals with a significant amount of debt beyond that which is allowed under Chapter 13. Chapter 11 is by far the most complex type of bankruptcy. It is usually for businesses with dire financial consequences that still want to continue operating. However, for individuals who do not qualify for either Chapter 7 or Chapter 13 bankruptcy, Chapter 11 is the only option.
Speak With An Attorney About Bankruptcy
I am a debt relief agent. My firm helps people file for bankruptcy relief under the Bankruptcy Code.