For any individual or company contemplating filing for bankruptcy, the decision should not be taken lightly. It is important to understand what to expect once you initiate the process. Here are some important things you need to know before filing:
Types of bankruptcy. Chapter 7 and Chapter 13 are the two basic options individuals have when filing for bankruptcy. There are key differences between the two and choosing the right one is critical for the success of your bankruptcy case. Chapter 7 bankruptcy is a liquidation form of bankruptcy that can discharge all or most of your debts. Chapter 13 bankruptcy is a form of reorganization that involves creating a payment plan to pay back creditors over a period of time. This process can take between three and five years. Businesses can file for Chapter 7 bankruptcy, but at the end of the process the business will cease to exist. The most popular type of business bankruptcy is Chapter 11, which allows businesses to reorganize their debts and continue operating.
Bankruptcy is not free. Some people are surprised to hear this. As opposed to a straightforward Chapter 7 bankruptcy, the cost of filing Chapter 13 bankruptcy is typically more because it is stretched out over the course of several years. You cannot go wrong scheduling an appointment with an experienced bankruptcy attorney to discuss the best path for your financial future. Many offer FREE consultations and Saturday appointments to best assess your financial situation and provide guidance moving forward.
Bankruptcy does not eliminate all of your debts. Bankruptcy will discharge your unsecured debts, such as medical bills, payday loans, outstanding utility bills, and credit card debt, but it will not eliminate the following:
- Student loans
- Alimony
- Child support
- Taxes
- Real estate liens
You will also have to attend something called a meeting of creditors before completion of the bankruptcy process. Creditors have one final opportunity to dispute the discharge of any debts that you owe.
When in doubt, meet with a professional. How do you know if filing for bankruptcy is right for you? It can be difficult to make this decision without consulting with an experienced bankruptcy attorney, first. Receiving this professional guidance can help ensure you will take the right financial steps, complete all of the proper forms and avoid doing anything that could disqualify you from getting your debts discharged.
If you have any questions on this topic or are in financial crisis and considering filing for bankruptcy, contact an experienced Miami bankruptcy attorney who can advise you of all of your options. As an experienced CPA as well as a proven bankruptcy lawyer, Timothy Kingcade knows how to help clients take full advantage of the bankruptcy laws to protect their assets and get successful results. Since 1996 Kingcade Garcia McMaken has been helping people from all walks of life build a better tomorrow. Our attorneys’ help thousands of people every year take advantage of their rights under bankruptcy protection to restart, rebuild and recover. The day you hire our firm, we will contact your creditors to stop the harassment. You can also find useful consumer information on the Kingcade Garcia McMaken website at www.miamibankruptcy.com.
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