Bankruptcy sounds ominous in everyone’s life. You might have heard about nightmare tales of business giants that have gone bankrupt. When you cannot pay off several debts, you are bound to declare bankruptcy. But, a highly skilled bankruptcy attorney in Miami can save you from these challenges.
How do you know the potential that you can go bankrupt-
Find the answer to these questions
• Do you make minimum credit card payments?
• Do you receive calls from bill collectors every day?
• Have you already chosen debt consolidation services?
• Are you not sure of the owed amount?
Bankruptcy is when you owe an amount that is more than your affordability.
Chapter 7 bankruptcy filing-
Several debtors have chosen the Chapter 7 bankruptcy filing process. Most have filed for bankruptcy because of unemployment, marital problems, and high medical costs. Chapter 7, also known as straight bankruptcy, liquidates your assets for debt payment. The cash obtained from selling your investments is allocated to creditors.
Your credit report will show your bankruptcy record for ten years. However, Chapter 7 bankruptcies may not be the right choice for every person. Debtors need to be ready to sell their assets to repay their creditors.
Thus, to make the safest decision, you can hire a bankruptcy attorney in Miami, FL.
A bankruptcy filing under Chapter 13-
Chapter 13 has mentioned that you have a chance of securing your property. You can also refer to it as a reorganization bankruptcy. Chapter13 lets you repay your debts over 3 to 5 years. Chapter 13 is suitable for those having a consistent annual income. It also provides a grace period, and your debts are discharged at the end of this period.
With the court’s approval for bankruptcy, creditors can stop disturbing you. Debtors can continue paying off debts over the years.
Other types of bankruptcies-
Chapter 9-
Under this Chapter, you will get debt restructuring opportunities. There is no need to sell your assets.
Municipalities filing for Chapter 9 bankruptcies can put effort into reorganizing debts. In this case, the loan interest rate gets lowered, and debtors will find refinancing options.
Chapter 11-
Businesses filing bankruptcy under Chapter 11 can restructure debt. It lets the filer create a repayment scheme while retaining assets. Moreover, it prevents shareholders from losing their investments. But, for the sole proprietorship business, the company owner is the debtor. Thus, bankruptcy covers both business and personal assets.
Bankruptcy Miami under Chapter 11 is complicated and costlier.
You can look for an attorney to identify the right type of bankruptcy. This legal professional will help you better, and you will not feel confused during the bankruptcy filing process.