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 Mark S. Steinberg, P.A., every client meets with our attorney personally. We 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. We will discuss those alternatives so you can make an educated, well-informed decision concerning your financial future. You can rely on our attorney’s more than 30 years of experience to ensure that you are informed of all of your options.
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.
Choosing the right chapter depends on your income, your assets and your long-term goals. Each chapter offers a different path toward relief and the best option becomes clear once we review your financial situation with you.
Basic Eligibility Requirements For Bankruptcy Chapters
Before we recommend any chapter of bankruptcy, we review the basic eligibility rules. These rules help you understand which options may be available and how each chapter fits your financial situation. A clear picture of income, debts and recent filings makes it easier to decide on the right path.
Chapter 7 Eligibility Basics
To see if you qualify for Chapter 7, we look at several key factors. These requirements help determine whether you can eliminate your debts quickly through a straight discharge.
- Your income must fall below certain limits, or you must pass the means test
- You cannot have received a recent Chapter 7 discharge
- You must complete a credit counseling course before filing
Once we review these points with you, we can tell you whether Chapter 7 is a realistic option for your case.
Chapter 13 Eligibility Basics
Chapter 13 works best for people who have a regular income and want to protect important assets. To qualify, you must meet a few basic guidelines.
- You must have a steady income that can support a monthly repayment plan
- You must fall within the secured and unsecured debt limits
- You must be current on tax filings
- Only individuals may file Chapter 13
These rules help us understand whether a structured repayment plan will work for you and whether you can keep your home or car while catching up on past due amounts.
Chapter 11 Eligibility Basics
Chapter 11 is an option for businesses and for individuals with higher levels of debt. It requires a careful review of financial records to confirm that reorganization is possible.
- There are no strict income limits
- Debt limits are significantly higher than Chapter 13
- Both businesses and individuals may file
- You must show that your repayment plan is feasible
After we go through these points, our attorney can explain whether Chapter 11 makes sense for your goals or whether another chapter provides a better path forward.
Choosing the right chapter depends on your income, your assets and your long-term goals. Each chapter offers a different path toward relief, and the best option becomes clear once we review your financial situation with you. It is best to speak with us directly so we can help you understand which chapter fits your needs and how to move forward with confidence.
Speak With An Attorney About Bankruptcy
If you have questions about bankruptcy and would like to speak with an attorney, call Mark S. Steinberg, P.A., at 786-744-4746 or fill out the contact form to schedule a free consultation.
We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.