Here are some frequently asked questions (FAQs) related to bankruptcy that a Miami bankruptcy lawyer might address:

What are the different types of bankruptcy?

Answer: The two broad classifications are liquidation (Chapter 7) and reorganization (Chapter 11, Subchapter V, and Chapter 13). Each has its own eligibility requirements and processes.

How do I know if I qualify for bankruptcy?

Answer: Everyone qualifies for bankruptcy. The more precise questions are do you qualify for a discharge of your debts, and can you discharge your debts without paying anything to your creditors in the bankruptcy process. Most people qualify for a discharge and many obtain a discharge without having to pay anything to their creditors in the process. Factors such as have you received a bankruptcy discharge in the past eight years, your income, your assets, and your recent transactions with friends, family members all play a role in determining which chapter is right for you and if you will be required to pay at least some of the debts in the bankruptcy process. An experienced bankruptcy attorney can help you understand what a bankruptcy will be like for you given your unique set of circumstances.

Will I lose all my possessions if I file for bankruptcy?

Answer: No. Florida exemptions are very generous when it comes to protecting your home and your retirement accounts. And Florida married couples are also very well-positioned to protect their joint marital assets when they have no joint unsecured debts and only one of the spouses files bankruptcy. Florida exemptions are not as generous, however, when it comes to protecting motor vehicle equity and other personal property. A homeowner can only protect $2,000 and a non-homeowner can only protect $6,000. Thes amount are doubled for married couples who file a joint bankruptcy. An experienced bankruptcy attorney can help you maximize your exemptions and minimize what you are required to pay your creditors.

How will bankruptcy affect my credit score?

Answer: If you have already been in default on your credit cards for more than three or four months, bankruptcy will not negatively affect your credit score. In fact, it will be the first step in rebuilding your credit score. An experienced bankruptcy attorney can share proven credit rebuilding strategies with you as a part of an overall plan to get you the promised fresh start of bankruptcy.

Can I keep my home and car if I file for bankruptcy?

Answer: Of course! If you can afford your home and car payments, you have every right to keep them. Most people have little, if any, equity in their cars, so they are usually not the target of a Chapter 7 Trustee demanding payment of the non-exempt equity for creditors. However, if you have a lot of equity in your car (it is worth a lot more than what you owe on it), you can still keep the car in Chapter 7 if you can reach an agreement with the Chapter 7 Trustee. Or, if the equity is very large, you can file a Chapter 13 and pay the equity out over a three- to five-year plan of reorganization. An experienced bankruptcy attorney can tell you what to expect in your bankruptcy and help you plan a strategy that is right for you.

Will bankruptcy stop creditor harassment and lawsuits?

Answer: Yes, filing for bankruptcy triggers an automatic stay, which halts most collection actions including creditor harassment, lawsuits, wage garnishments, and foreclosure proceedings.

How long does the bankruptcy process take?

Answer: The duration of the bankruptcy process varies depending on the type of bankruptcy and the specifics of your case. Chapter 7 typically takes a few months, while Chapter 13 can last three to five years.

What debts can be discharged in bankruptcy?

Answer: Many types of unsecured debts, such as credit cards, medical bills, and personal loans, can be discharged in bankruptcy. However, certain debts such as child support, alimony, student loans, and recent tax debts are generally not dischargeable.

What documents do I need to file for bankruptcy?

Answer: A lot! I usually tell my clients, “Every document you have with a dollar sign or a decimal point!” However, we will customize a list specifically for you so that we are not asking you for documents that don’t apply to your particular situation. You’ll typically need to provide financial documents such as tax returns, pay stubs, bank statements, credit card statements, and home and auto loan statements, etc…

How much does it cost to file for bankruptcy?

Answer: The filing fee for bankruptcy varies depending on the type of bankruptcy you’re filing. Additionally, attorney fees will vary based which type of bankruptcy you file and the complexity of your case. Our Miami bankruptcy lawyer offers a free initial consultation for consumer clients who are not currently in a bankruptcy or just got dismissed from one, as well as the ability to pay your fees and costs over time.

These FAQs provide a general overview of common questions individuals may have about bankruptcy answered by a Miami bankruptcy lawyer. However, it’s important to consult with a qualified bankruptcy attorney for personalized guidance and advice tailored to your specific situation.