Bankruptcy
Bankruptcy Attorney Miami | Bankruptcy Lawyer Miami
Dealing with difficult debt can be a challenging experience, but you are not alone in this situation. In Miami, there are lots of people and businesses who are turning to bankruptcy as a legal option to recover their financial stability. If you are looking for a bankruptcy lawyer in Miami, then Garcia Hernandez, P.A. is one of the best law offices based in Coral Gables, FL, and serving people from across the state, including Miami.
Garcia Hernandez, P.A. has represented thousands of clients in bankruptcy throughout central and south Florida in Miami, Broward, West Palm Beach, the Treasure Coast, Naples, Cape Coral, Ft. Myers, and Tampa. Many factors force people to file bankruptcy, but some of the most common are medical debt, student loan debt, loss of employment or income, and foreclosure. Bankruptcy affords people the opportunity to start over with a fresh start or to reorganize their debt.
What is Bankruptcy?
Bankruptcy is a legal way for people (and corporations) who are unable to pay their debts to get a fresh start or reorganize debt. It is done by liquidating assets to pay debts, creating a debt repayment plan, or discarding debts altogether.
In 2021, over 386,800 consumer bankruptcy petitions were filed, with 70% under Chapter 7 and 30% under Chapter 13. Total liabilities decreased by 67%, while median monthly income and expenses showed minimal changes, according to the United States Court.
How Does the Process of Bankruptcy Work?
Bankruptcy is a legal procedure that allows people or companies to erase or repay their debts under the security of the federal bankruptcy court. This procedure starts with a consultation to evaluate your economic condition and decide the most suitable law to file under, either Chapter 7 or Chapter 13.
The bankruptcy process starts with the submission of your petition to the U.S. Bankruptcy Court. When filing for bankruptcy in Miami, it is essential that the petition be complete and accurately identify all your assets, liabilities, income, and expenses. You will need to complete a credit counseling program before you can file.
After your petition is filed, an automatic stay is created, preventing creditors from taking further action against you. You will be assigned a bankruptcy trustee, and there will be a meeting of creditors. Your Miami bankruptcy attorney will help you through this meeting and any subsequent proceedings.
If you are filing for Chapter 7 or Chapter 13 bankruptcy, the timelines and procedures differ. A typical Chapter 7 case takes about 3 to 6 months to complete, and most Chapter 13 bankruptcies are structured to take 3 to 5 years for you to complete a repayment plan.
Chapter 7 Bankruptcy:
- It is available to people or companies with low income and resources.
- This chapter involves the selling of non-exempt properties to pay creditors.
- Normally finishes within 4 to 6 months.
- Removes the most unsecured debts and provides a fresh start to people.
Chapter 13 Bankruptcy:
- It is developed for people with a consistent income who can stick to an offered repayment plan.
- In this procedure, the court establishes a 3 to 5-year repayment plan to pay the creditors.
- Allow people to keep their property and catch up on missed car payments.
Chapter 11 Bankruptcy:
- Mainly used by businesses, but people with huge debts probably also qualify for this.
- It involves the repayment plan of debts and business operations.
- This procedure offers a way for businesses to resume operations while repaying debts to creditors.
These procedures involve an automatic stay after filing for bankruptcy that holds creditor activities, such as collections, foreclosures, and harassment.
Why did People in Miami File for Bankruptcy?
In Miami, people usually face unique financial difficulties that lead to bankruptcy filings. In the year 2023, the southern region of Florida, near Miami, recorded a total of almost 3372 Chapter 7 filings, 99 Chapter 11 filings, and 2373 Chapter 13 filings. Here we mentioned some Common reasons for filing bankruptcy in Miami:
- High Medical Bills: Unexpectedly high medical costs can lead to difficult debt for people.
- Credit Card Debt: The high interest on credit card debt can become uncontrollable for people in Miami.
- Job Loss: Underemployment or unemployment can make it tough to meet financial commitments.
- Divorce: The financial stress of divorce can lead to huge debt acquisition.
- Foreclosure: The threat of losing the house can incline people to seek bankruptcy filing.
What Are the Consequences of Filing for Bankruptcy?
Although bankruptcy provides relief from particular debts, it also has some associated consequences that people should think about before filing. These are:
- Affect Credit Report: Bankruptcy can be visible on your credit report for almost 10 years, possibly impacting your ability to acquire credit.
- Public Record: Filing for Bankruptcy is a public procedure and is recorded publicly, which probably impacts your privacy.
- Asset Liquidation: As per Chapter 7, non-exempt properties are probably sold to pay the debt to creditors.
- Mental Stress: This procedure can be mentally straining, but legal help from a lawyer can offer some support and guidance.
Along with these consequences, it can offer a fresh or new start to someone who is burdened by impossible debt.
Is bankruptcy the right decision for you?
Around 97% of bankruptcies are filed by individuals, according to debt.org. This means that you do not need to feel defeated or alone when deciding to file for bankruptcy. Many people – from all walks of life – struggle with debt management and have found themselves in overwhelming debt. Sometimes individuals take on expenses (like a mortgage, auto loan, or student loan, to name some of the most common) and don’t have the income to pay for them. Other times, they are faced with unexpected expenses such as medical debt, loss of employment, business closure, the death of a loved one, or a disability that keeps them from earning at their full potential. Whatever the reason for you to feel like the debt is crushing and there is no way out of it, bankruptcy can be the solution.
What are the Advantages of Bankruptcy in Miami Fl
Filing bankruptcy with the help of a lawyer bankruptcy attorney in Miami will have many more benefits:
1. Waiver of Debt
The primary advantage of bankruptcy is the waiver of debt. Whether through liquidation of assets in Chapter 7 or a repayment plan in Chapter 13, bankruptcy offers individuals a chance to discharge or reorganize their debt, thus giving them a fresh start.
2. Asset Protection
In Chapter 13 bankruptcy, debtors may have an option to keep their property, including homes and cars, while paying off debts over time. A bankruptcy attorney in Miami can help ensure as many of your assets as possible are protected.
3. Financial Literacy
After bankruptcy, debtors often must take credit counseling and financial literacy classes. This allows individuals to develop better strategies for handling money, thus avoiding similar financial issues in the future.
4. Stopping a Foreclosure
Bankruptcy automatically stops all foreclosure proceedings and gives individuals time to develop a plan of action with lenders. Whether through Chapter 7 or Chapter 13 bankruptcy, a Miami bankruptcy attorney can help individuals understand options for saving their home.
What are the repercussions of filing bankruptcy?
It is crucial to understand that even though bankruptcy offers a chance to start over financially, there are some consequences. It negatively impacts your credit and reduces your ability to take out loans in the future. Bankruptcy may stop wage garnishment, collection calls, and prevent or delay foreclosure on a home, and repossession of a car, but there is a small price to pay.
Types of Bankruptcy Garcia Hernandez, P.A Handles
At Garcia Hernandez, P.A, our lawyers, Henry Hernandez and Carla Garcia, specialize in the many types of bankruptcy, such as:
- Chapter 7 Bankruptcy
- Chapter 13 Bankruptcy
- Chapter 11 Bankruptcy
Our experienced and knowledgeable lawyers at Garcia Hernandez, P.A guide clients through each step of the bankruptcy procedure. We ensure clients receive the best possible result based on their situations.
Why Hire a Bankruptcy Attorney in Miami?
When you are considering filing for bankruptcy, you need a qualified Miami bankruptcy lawyer. Different reasons for which you need to hire a Miami, FL bankruptcy attorney are given below:
1. Expertise and Knowledge of Local Laws
Bankruptcy laws can be complex and vary from state to state. If you hire an experienced Miami bankruptcy law firm, they can understand the specific regulations and court procedures. With the knowledge of local laws, they can help you avoid common mistakes, including missing filing deadlines or failing to understand which debts can be discharged.
2. Objective Advice and Guidance
Deciding to file for bankruptcy can evoke many emotions, but consulting with a bankruptcy attorney in Miami, Florida, can provide an objective perspective, allowing you to focus on your financial future. A bankruptcy lawyer in Miami, Florida, will assess your unique financial situation, offer guidance on the most appropriate options, and help you understand every consequence of filing for bankruptcy.
3. Increased Chances for Success
A bankruptcy attorney in Miami, Florida, understands the best way to prepare and present your case to best suit your needs. They will make sure all documentation is in order and submitted correctly. Your attorney will also represent you during hearings. All of these aspects will increase the chances of a successful bankruptcy case, whether under Chapter 7 or Chapter 13.
4. Protection From Creditors
Once you file for bankruptcy, creditors cannot attempt to collect funds or pursue you. This is called an “automatic stay,” and it halts any harassing phone calls, foreclosures, and wage garnishment. A bankruptcy lawyer in Miami, Florida, will protect your rights and will monitor all interactions to make sure creditors do not violate the laws of bankruptcy during the entire process.
Why Choose Garcia Hernandez, P.A. in Coral Gables
Garcia Hernandez, P.A. is a reputed and trusted law office based in Coral Gables, FL. We specialize in handling normal to complicated bankruptcy cases across the state of Florida, including Miami. Here are the reasons why the people of Miami chose us for their Bankruptcy filing:
- At Garcia Hernandez, P.A, our lawyers have almost 15 years of combined experience in bankruptcy law.
- Our lawyers are familiar with Miami-Dade County courts and procedures.
- We offer personalized and tailored solutions to meet the unique needs of each client.
- Our professional attorneys are fluent in multiple languages, such as English and Spanish.
- We offer free starting consultation for clients, so they can tell their entire situation freely and discuss their case perfectly.
Selecting Garcia Hernandez, P.A. as your bankruptcy attorney in Miami means associating with a law office committed to navigating you through the difficulties of this procedure and regaining financial stability.
What to Expect During the Bankruptcy Process
Garcia Hernandez, P.A. included and informed you through each step of the bankruptcy procedure with clarity and care. Here is what you can expect from us:
Free Initial Consultation
Our lawyers evaluate your financial condition and decide whether filing for bankruptcy is the perfect way for you or not. We discuss your goals, income, properties, and debts to select the suitable Chapter for you.
Credit Counseling Requirement
Before filing for bankruptcy, federal court law requires you to complete a credit counseling session from a government-authorized agency. Our team helps you find and finish this procedure correctly.
Petition Filing
Then, we are ready and will file your bankruptcy petition with the USA bankruptcy court for the southern region of Florida. It involves schedules of your debts, assets, earnings, and a statement of financial matters.
Automatic Stay Begins
After filing for bankruptcy, the automatic stay goes into effect. This powerful order of the court stops repossession, foreclosure, wage garnishment, and calls of creditors instantly.
341 Meeting of Creditors
Almost 30 to 40 days after filing for bankruptcy, you have to attend a short meeting with a bankruptcy trustee assigned by the court. Creditors can ask some normal questions in the presence of your lawyer.
Plan Confirmation or Asset Liquidation
The court confirms your repayment plan in Chapter 13, or erases your debts and liquidates non-exempt properties in Chapter 7 to pay debts to creditors.
Discharge of Debts
In the end, your applying debts are legally erased. It means you are no longer legally obligated to pay creditors, giving you a clean and fresh financial beginning.
Ready to Take the First Step?
If you are overwhelmed by unmanageable debt and looking for a way to relief, Garcia Hernandez, P.A. is here to help you in Miami! As one of the leading law offices based in Coral Gables, we specialize in bankruptcy cases and help hundreds of people in Miami regain their financial stability. Need Help? Call On: (305) 771-3374 Office Address(Coral Gables): 2655 LeJeune Road, Suite 802, Coral Gables, FL 33134. You can contact us by calling, visiting our office, or scheduling a virtual meeting with our lawyers to discuss your case. Contact now!
Frequently Asked Questions for Bankruptcy Lawyers in Miami
Question 1. Will I lose my home if I file for bankruptcy in Miami?
Answer: As we know, the state of Florida has one of the strongest homestead laws in the country. Provided you meet residency needs, in most situations, your primary home is protected from foreclosure, even in Chapter 7.
Question 2. Can bankruptcy stop wage garnishment?
Answer: At the filing of your bankruptcy case, the automatic stay instantly stops wage garnishment. This protection then remains in place for the duration of the case and usually will permanently discharge the underlying debt, causing the garnishment.
Question 3. How long does bankruptcy stay on my credit report?
Answer: It stays on your report for almost 10 years for Chapter 7 and 7 years for Chapter 13, starting from the filing date. Many clients begin rebuilding their credit shortly after discharge by using secured credit cards and maintaining good financial habits.
Question 4. How much does a bankruptcy lawyer in Miami cost?
Answer: The fees depend on the complexity and chapter. As Garcia Hernandez, P.A., we are happy to arrange for flexible payment plans, and we also offer free initial consultations so that your case can be evaluated before any work or payment is required.
Question 5. Can I keep my car if I file for bankruptcy?
Answer: In most cases, yes. If you are present on payments, Florida’s vehicle law and bankruptcy provisions will allow you to retain the vehicle. In Chapter 13, people have the option of restructuring their car payments.
Question 6. What kinds of debts are not dischargeable in bankruptcy?
Answer: Some debts simply can not be wiped out. These are major student loans, child support, alimony, certain taxes, and certain other liabilities, like those resulting from fraud or a personal injury while driving under the influence.
Question 7. Is it a good option for me to go through bankruptcy if foreclosure is being put on my property?
Answer: Bankruptcy, indeed, will stop foreclosure proceedings and will give the debtor some time to get caught up on categories of payments. Chapter 13 is especially useful for those who want to keep their house and restructure their automobile debt.
Question 8. What debts may be discharged in bankruptcy?
Answer. Most unsecured debts, including credit card debt, medical bills, and personal loans, will typically become discharged in Chapter 7 bankruptcy. Chapter 13 bankruptcy allows debtors to restructure debts, including mortgages, car loans, and some tax debts.
Question 9. How long will bankruptcy appear on my credit report?
Answer. If you file for Chapter 7 bankruptcy, a bankruptcy will remain on your credit report in Miami, FL, for up to 10 years. Chapter 13 bankruptcy will appear on your credit report for 7 years. A bankruptcy will negatively affect your credit score; however, it also provides an opportunity to repair your credit eventually.
Question 10. Can I file for bankruptcy if I have a stable income?
Answer. Yes, if you have a stable income, you can file for Chapter 13 bankruptcy. This type of bankruptcy is for individuals who want to keep their property but need additional time to catch up on manageable payments.