Learning the Facts about Bankruptcy in Miami
Behind the beautiful beaches and amazing nightlife, restaurants, and shopping in Miami are thousands upon thousands of people just like you who are facing very serious financial problems. Ten years ago, bankruptcy cases in this part of Florida were incredibly high but then a few years later, they took a dramatic downturn. Although there is some stabilization and economic recovery, many people still need the services of a qualified bankruptcy attorney in Miami.
Types of Bankruptcy Options
Hiring a bankruptcy attorney in Miami is always recommended, regardless of the type or amount of debt owed to creditors. Because new laws are now in place, even simpler bankruptcies can be quite complex. With there already being significant risk, bankruptcy in Miami is not something to play around with but at the same time, not anything you need to fear.
Yes, this is an extremely difficult time and one with real risks of losing property and other valued assets but it is also a time to get finances back on track so you can move forward with a better and healthier financial life. Many people do not realize that in addition to a Chapter 7 and Chapter 13, there are other bankruptcy options. In Miami, the District Court hears five of those, which are listed below.
- Chapter 7 – This is liquidation whereby your assets are sold and the proceeds distributed to creditors
- Chapter 11 – Known as a reorganization, this type of bankruptcy in Miami is typically focused more on partnerships and corporations
- Chapter 12 – For fisheries and family-owned farms, this is the type of bankruptcy filed
- Chapter 13 – In this case, your debts are adjusted over a period of usually three to five years, providing an opportunity to get creditors repaid in full
- Chapter 15 – Also referred to as “cross border insolvency”, this was added to the Bankruptcy Abuse Prevention and Consumer Protection Act in 2005 as a means of bringing US law into compliance with international law. As such, assets or property owned by people in other countries outside of the United States are addressed.
Hiring an Excellent Attorney
A good bankruptcy attorney in Miami will be highly professional but also empathetic regarding your case. Instead of shouldering all of the stress on your own, the attorney will handle the bulk of the work involved so you can focus more on personal or business recovery. Some examples of things that happen once the bankruptcy is filed include:
- Formal bankruptcy papers are filed in the appropriate court. With this done, creditors are notified and an automatic stay is executed to stop the garnishment of wages and pursuit through collections.
- A trustee is assigned to your case, which is the officer of the court who will handle the details but also work as the liaison between you and the creditors
- With the bankruptcy attorney in Miami by your side, you are mandated to attend a meeting under Section 341 of the bankruptcy code in which you will answer questions directed by the creditors specific to property and assets.
Although declaring a bankruptcy in Miami is the last thing you want to do, it may be your best option for a fresh start. You can find valuable information at Bankruptcy-America or through local services that provide advice specific for people in Miami.