Bankruptcy FAQs

90 FAQs where found , 30 in this page

Why do I need to hire a bankruptcy attorney?

You may have heard advertisements on the radio for do-it-yourself bankruptcy, but this is not the best option for someone who is struggling with debts. You would save money on the fees a Miami bankruptcy lawyer will charge you, but you may pay for this decision later. Bankruptcy attorneys have much more experience in this area than you do as a layperson. Therefore, they know how to help you save your home and your automobiles. They can stop your creditors from calling you constantly. They can help you keep your most valuable possessions and may even be able to eliminate your credit card debt. Bankruptcy attorneys have also discharged expensive medical bills, stopped the wage garnishment process and resolved their clients tax nightmares. When you hire a bankruptcy attorney, you will have someone who will use many resources that you do not possess to guide you toward financial health. Learn More

Do I have to appear in court?

Chapter 7 and chapter 13 do not necessarily require a trip to court, but you will have to attend a short meeting. However, this meeting will not be held at the court. Learn More

Which debts can be discharged through bankruptcy?

You may discharge unsecured debts under chapter 7 and chapter 13 of the Bankruptcy Code. These debts include legal judgments, personal loans, bills for certain serviceids, utility bills, medical bills and credit card bills. Debts that are secured by collateral are considered to be secured debts, and they cannot be discharged. One example is a home loan hat is secured by your house. Debts that were incurred fraudulently also cannot be discharged in bankruptcy. Learn More

What if a creditor filed a lawsuit against me?

You can stop a creditors lawsuit by filing for chapter 7 bankruptcy or chapter 13 bankruptcy. Once this has been done, your creditors will be required to cease all collections activities, and they will not be able to garnish your wages. Learn More

My spouse wants to file for bankruptcy. Do I have to file as well?

If your spouse incurred significant debts in his or her name only, you are not required to file for bankruptcy. However, your salary and your assets will be taken into consideration before your spouse can file for chapter 7 bankruptcy or chapter 13 bankruptcy. Learn More

Do I qualify for chapter 7 bankruptcy?

Bankruptcy attorneys determine whether or not new clients qualify for chapter 7 bankruptcy by comparing their monthly or disposable income to Floridas median income. If you earn too much money to qualify for chapter 7 bankruptcy, you may be able to file for chapter 13 bankruptcy. Learn More

What Happens If I Decide Not To Do Anything?

The worst thing that you can do is decide not to do anything. If you do not take action, your creditors will continue to make attempts to collect what you owe them, and they may even increase these efforts. So, you must address this issue directly even if you do not have the means to repay your debts now. Otherwise, your creditors may act first and file a lawsuit against you. Learn More

What is legally considered harassment by a collection agency?

There are some examples where collection agencies can cross the line and you have the right to send them a certified letter saying that you are being harassed. Some examples of crossing the line include: Use violence or threaten to damage your reputation, take away your property, etc - Use disrespectful or obscene language - Distort the collection agency by saying that they are calling on behalf of the state or federal government or false implications saying they are a lawyer or a law enforcement officer - Give false information about the amount of money you owe - Insinuate that failure to pay debts will result in arrest or imprisonment Learn More

What are some tips for people who file for bankruptcy?

Some tips that will help you throughout the process include: Assess your finances: Get more information about what caused the financial problem and what to do to avoid the same problems in the future - Get a free credit report: This will help you find out more about all the creditors you owe. All these creditors must be included in the bankruptcy process - Obtain a credit counseling certificate as soon as you can. This is one of the prerequisites to filing for bankruptcy. You must obtain the certificate from a government-certified counseling agency - Hire a lawyer: This is probably one of the wisest things you can do. Lawyers know much more than you do about how things work in the legal system Learn More

Is it possible to obtain bankruptcy forms on the Internet?

Yes, it is possible to get them, but we do not encourage self-representation. This will leave your case open for possible serious or permanent errors. A capacitated, legal counselor is always better. If you want to become familiar with these forms, click here. Learn More

Is credit counseling mandatory before filing for bankruptcy?

Under the new law, you should seek credit counseling, unless you have received counseling from an approved nonprofit agency. The laws will only exempt people who are unable to pay due to: disability, or active military duty. Learn More

What happens if my spouse has a lot of debt, but not me, and I do not pay? Would this affect my credit?

Bankruptcy cases are worked on an individual basis. It is not like owning a property where both spouses are together. A bankruptcy will only affect the person who has it. It will not affect the spouse unless it is presented. Spouses have different names and social security numbers; therefore, their financial lives are independent in the eyes of the credit bureau. However, if you are a co-debtor, the creditor will definitely seek you for payments. Ask a Gallardo Law Firm lawyer what to do if you are in this situation. Learn More

Is it possible to keep my credit cards?

You may be able to keep some credit cards, but remember that the trustee can ask you to cut all your credit cards. After filing, you should not charge anything on your credit cards. The goal is to remain debt free. If you are not in debt to a particular creditor, you may be able to keep your credit card. However, first check with your lawyer. Learn More

What will I have to sell in bankruptcy? What will I be able to keep?

Under chapter 7 bankruptcy, you will have to sell expensive stereo equipment, plasma television sets, jewelry and watercraft. Most likely, you will be able to keep the following: Payments from Social Security disabilityRetirement accountsPrepaid college fundsBenefits from Workers Compensation Under chapter 13 bankruptcy, your assets will not be used to repay your debts because you will develop a repayment plan with your trustee. Learn More

What exactly is bankruptcy?

The process is the mechanism carried out in federal court through bankruptcy laws established in the United States, to protect and assist individuals or businesses to solve the problems of payments to other institutions known as creditors.  Learn More

Who are the ideal candidates to file for bankruptcy?

All those individuals and companies with large financial debts that cannot be resolved by themselves and need to rely on one type of bankruptcy. Bankruptcy works best for borrowers who may have some type of income that helps them cover their expenses after discharging the chapter in the case. Learn More

Will I be able to eliminate all my debts filling bankruptcy?

With bankruptcy, debtors are generally freed from almost all the debts , but there are some fixed payments that are not eliminated by filing bankruptcy, including: child support payments and alimony, payment of fines, student loans , taxes and committed fraud. Besides, debts for driving under the influence of drugs and alcohol and other debts that were not canceled in prior bankruptcies. Learn More

Should I stop using credit cards before filing for bankruptcy?

You have to stop using credit cards if you are considering filing bankruptcy, because the judge will review all of your debts and can establish some kind of fraud linked to the cards. Learn More

Can I get credit after I file bankruptcy?

The time depends on what type of bankruptcy you are filing; if it is a Chapter 7 bankruptcy it only takes 2 to 3 months from the time it was filed. For bankruptcy under Chapter 13, the process can take 3 to 5 years depending on the payment plan submitted to the court and which one was approved by the judge Learn More

What is the estimated time it takes for bankruptcy in Miami?

The time depends on what type of bankruptcy you are filing; if Chapter 7 bankruptcy only takes 2 to 3 months from the first time it was filed . For bankruptcy under Chapter 13, the process can take 3 to 5 years depending on the payment plan submitted to the court and which one was approved by the judge. Learn More

Can I keep my properties such as my car and my house after filing bankruptcy?

In most cases bankruptcy debtors can keep all the properties as they are able to consolidate debts. Also they can maintain their retirement income. Learn More

What is the minimum amount of debt that I should have to file bankruptcy?

There is no minimum amount established, if you need to protect your property from creditors then it is necessary to consider bankruptcy. Learn More

What does the term detention in the process of bankruptcy mean?

When the process of bankruptcy is presented to the court the judge orders the creditors to stop the foreclosure process on the properties of the debtor, creditors cannot continue with the eviction of their property, no harassing telephone calls, otherwise the court may punish the creditors for their behavior. Learn More

How frequent can I apply to bankruptcy?

The application time depends on the type of bankruptcy for which you applied the first time, sometimes you have to wait at least six years to settle back in bankruptcy again. The right to bankruptcy is very important so it is recommended to consider the case well before filing bankruptcy. Learn More

Can I go to jail for having so much debt?

No, the debtors are not going to prison for having accounts payable with creditors, unless they have committed a federal crime of fraud. Creditors may only collect debts through the court and asking the judge for a claim against the debtor for a money judgment. If the creditors succeed with the demand, 10% of the wages of the debtor could be removed, checking bank account may be cancelled before the debtor withdraws the money from it. The creditors can also seize some of the debtors properties, but what they cannot get is an arrest warrant for debtors, this is impossible. Learn More

What are the disadvantages when filing for bankruptcy?

There are few disadvantages that exist with respect to the bankruptcy process. The bankruptcy will remain on your credit history for roughly a 10-year period after going bankrupt, which sometimes results in the disapproval of new loans and student loans and even renting an apartment. With chapter 7 bankruptcy the individual might lose some of the properties that were declared not exempt because they would be sold to make the payments. Learn More

How much does it cost to file for bankruptcy?

The cost of the bankruptcy varies depending on the lawyer to advice and how complex it can become. The individual filing bankruptcy might need to do some fixed payments to court ranging from $200 to $300 depending on the type for bankruptcy and there are some government agencies that fund this type of cost for those with low incomes. Learn More

How to buy a house when a person files for bankruptcy?

If a person files for bankruptcy property Miami, the probabilities of qualifying for a mortgage are not good. Being bankrupt does not preclude you from buying a home after a few years of rebuilding credit, but if you are in the process of filing for bankruptcy means you will probably not be able to finance a mortgage loan. There are other options to purchase a home: Wait two years: If you want to buy a house, you must wait two years after filing bankruptcy in order to qualify for a loan. Rebuild your credit: The best way for a mortgage after bankruptcy is by the Federal Housing Administration. They will have less stringent credit standards, but still need to have a credit score of 620 or higher. Saving for a high down payment: When a person is in bankruptcy, he or she will need to put a high enough down payment to buy a house. Pay in cash if possible. You can find a home with a reasonable price to be able to pay a lower price in cash. Have a friend or a family member with good credit score to apply for the home loan. Consider a rental with option to buy. Learn More

What is the cost of filing for bankruptcy under chapter 7 and chapter 13?

The processing fees charged by the court are $ 274 to file for bankruptcy under Chapter 13 and $ 299 to file for bankruptcy under Chapter 7, whether for one person or a married couple. Learn More

What is the cost of filing for bankruptcy under chapter 7 and chapter 13?

In a Chapter 7 case, you can keep all property which the law says is exempt from the claims of creditors. Exemptions are determined by state law. Learn More