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Miami bankruptcy attorneys can help you decide between Chapter 7 and Chapter 13
The sponsoring Miami bankruptcy attorneys of Legal Helpers will explain that while Chapter 7 and 13 may be alike in some ways, they are also very different. In both, you file a Voluntary Petition and related documents prepared with the help of qualified Miami bankruptcy attorneys. In both, you attend a 341 meeting of creditors where you are examined by a Trustee regarding your documents. Your Miami bankruptcy attorneys will tell you that this is where any similarities between Chapter 7 and Chapter 13 end.
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Your Florida bankruptcy attorneys will point out that in Chapter 7, you do not make payments to the Trustee. You may continue to pay a mortgage or car loan and keep the house or car by signing a "reaffirmation agreement" which makes it as though you did not file bankruptcy on that particular loan. Your bankruptcy attorneys will tell you that Chapter 7 bankruptcy also gives you the option to redeem a vehicle by paying the secured creditor the value of the collateral in exchange for a release by the creditor of their lien.
The Chapter 7 bankruptcy process is relatively short, usually lasting about three and a half months from initial filing to final discharge. There are usually no motions filed by anyone in a Chapter 7 bankruptcy case. Nevertheless the process is complicated and there are many possible pitfalls.
With Chapter 13, you repay your debts through an agreed upon plan.
In a Chapter 13, you make payments to the Trustee with the first payment due 30 days after your case is filed. Also, in addition to a Voluntary Petition and related documents, you also file a Chapter 13 repayment plan. In this plan, you propose to repay your debts by making between thirty and sixty monthly payments to the Trustee.
With Chapter 13, you repay your debts through an agreed upon plan.
After your 341 meeting of creditors, there is another hearing called a "confirmation hearing" where your case goes before the Judge. Your case will be confirmed by the Judge if you are current with your Chapter 13 payments to the Trustee and any other problems have been solved. After that you must simply continue to make your payments on time throughout your plan.
If you feel that you may benefit from filing either Chapter 7 or Chapter 13, please contact a Florida lawyer immediately. We'll be more than glad to answer your questions and help you decide on the best route for you and your family. If you think it may be time to turn your financial life around, look no further. Legal Helpers can help you legally and emotionally through this rough time.
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