Bankruptcy Miami & Debt Relief

Bankruptcy in the state of Florida is a Federal matter placed by the United States Constitution. This allows Congress to enact "uniform laws on the subject of bankruptcies throughout the United States." Bankruptcy cases are often dependent upon State law, thus making state the major role player in many bankruptcy cases. Chapter 7 of the Bankruptcy Code is the process of liquidation. Chapter 7 is the most common form of bankruptcy in the United States. Another popular form is Chapter 13; which provides a court-approved plan for you to pay your money back in increments.

Chapter 7 & 13 Bankruptcy

Chapter 7 bankruptcy is designed to “wipe clean” and is known as the quickest form of bankruptcy. It will help eliminate most kinds of unsecured debt and pay your creditors all of your non-exempt assets. Florida has three bankruptcy districts; a Southern District, Middle District, and Northern District, and each of Florida’s counties is assigned to one of the three bankruptcy districts. You must be a resident, and file for your bankruptcy in the district where you reside. From filing to discharge, the process can take less than four months in many cases.

Chapter 13 is advisable for people who have a regular income and can afford a payment plan to help stop repossession and foreclosure. In Chapter 13 bankruptcy, essentially the court will issue a supervised payment plan where you pay your unsecured creditors what you can afford to pay based upon your family income and your family expenses. People might file Chapter 13 bankruptcy because they have too much income to file a Chapter 7 bankruptcy, or if the debtors want to keep secured assets, like their home or car.

Foreclosure Bankruptcy

You need to weigh your options when comparing foreclosures and bankrupcty. If you've stayed current on your mortgage payments but haven't been able to keep up with any of your other debts, bankruptcy may make more sense, because your more likely to be allowed to keep your home. If your main debt problem is your mortgage, you may be unable to avoid entering into foreclosure but you could possibly avoid declaring bankruptcy. However, there are some factors that could come into place, for example, your home equity and income; not everyone is eligible for bankruptcy protection, even after foreclosure. Having your home foreclosed is devastating to your credit rating, bankruptcy is the lesser of these two evils; but ultimately the choice is yours.