It can be stressful and isolating when dealing with overwhelming debt, but you are not alone. At Garcia Hernandez, P.A., we are dedicated to helping individuals in Miami who are looking to start a fresh financial start through Chapter 7 bankruptcy. Are you searching for an experienced Chapter 7 Bankruptcy lawyer in Miami? Search no further! At Garcia Hernandez, P.A., our trusted Miami bankruptcy attorneys can help you through every stage. Here, we will provide you with everything you need to know about Chapter 7 Bankruptcy, how it works, and more.

Who is Chapter 7 for?

Chapter 7 is specifically designed for individuals and corporations – regardless of how much money is owed.

What Is Chapter 7 Bankruptcy?

It is a type of bankruptcy in which, through a process known as liquidation, individuals and businesses are allowed to eliminate most of their unsecured debts, and a court-appointed administrator sells the debtor’s assets that are non-exempt to pay creditors. This process involves the liquidation of assets, which is why it is often called “liquidation bankruptcy.”

Key aspects of Chapter 7 bankruptcy:

• Liquidation
• Debt Discharge
• Exemptions
• Means Test

How does it work?

Chapter 7 is designed to offer individuals a fresh financial start. Under this chapter, all of the individual’s nonexempt property (see section “what is exempt?”) is sold. Then, the money resulting from that sale is used to pay off the individual’s debts. Some of the outstanding debts would then be dismissed and the individual is no longer required to pay them. Something that many clients find very helpful is that while this proceeding is taking place, and after bankruptcy has been successfully approved, creditors cannot take action to collect or repossess. The Bankruptcy code provides the bankruptcy protection, known as the automatic stay, from the moment of filing the bankruptcy case. This means no more creditor calls, final notice letters, new liens, or wage garnishments. Individuals must take an online course prior to filing bankruptcy and another course after the filing,

In Florida, Chapter 7 bankruptcy involves filing a petition, attending a meeting of creditors, and potentially losing some non-exempt assets. Here is how it works:

1. Filing a Petition
2. Automatic Stay
3. Meeting of Creditors
4. Trustee’s Role (liquidation bankruptcy)
5. Means Test
6. Discharge of Debts
7. Follow-up Counseling and Discharge Hearing

What debts are not discharged?

A list of the common types of debts that cannot be discharged include:

• Alimony.
• Certain taxes.
• Child support.
• Condominium and Homeowner’s association fees.
• Court fees.
• Fines or penalties owed to government agencies.
• New credit card debt incurred within 90 days before you filed for bankruptcy.
• Student loans.

What is exempt?

An Exempt Asset is property that the debtor can protect which cannot be sold or used to repay the debt. These include:

• Homestead or up to $4,000 in a property of choice (if homestead exemption not used).
• Up to $1,000 in personal property.
• Up to $1,000 in value for a personal vehicle.
• Alimony and child support.
• Federal income tax credits or refunds.
• Part or all of your wages.
• Pensions.
• Prepaid college education trust deposits.
• Prepaid hurricane savings accounts.
• Prepaid medical savings account.

What information is required?

Bankruptcy law requires full disclosure of all assets and liabilities. After an initial consultation with an attorney at the Law Office of Garcia Hernandez, P.A., the client will provided a detailed list of documents and information that are required including the following:

• A list of all creditors and the amount owed to each one.
• The source, amount, and frequency of the individual’s income.
• A list of all of the individual’s property.
• A detailed list of the individual’s monthly living expenses, i.e., food, clothing, shelter, utilities, taxes, transportation, medicine, etc.

If the individual filing is married, the above information is also required for their spouse regardless of whether they are filing together, separately, or even if only one spouse is filing for bankruptcy.

Florida-Specific Exemptions You Should Know

There are specific exemptions that allow individuals to protect certain assets from creditors. These exemptions include the following:

Homestead Exemption: It is a powerful exemption that protects your primary residence if you meet residency requirements.
Vehicle Exemption: You can exempt up to $1,000 in equity.
Personal Property: You can exempt up to $1,000.
Wages and Benefits: Exemptions for certain wages, Social Security, pensions, and public benefits.
Wildcard Exemption: An additional $4,000 if you don’t use the homestead exemption.

Eligibility Criteria for Chapter 7 in Miami

In Florida, you typically need to pass a “means test” or have income below the median income of the state to be eligible for Chapter 7 bankruptcy. The eligibility criteria for Chapter 7 bankruptcy in Miami include:

1. Means Test:

• Income Below Median: You are eligible for Chapter 7 bankruptcy if your average monthly income of the past 6 months is less than the Florida median income for a household of your size.
• Income Above Median: You will need to complete a means test to see if you are eligible for Chapter 7 bankruptcy if your monthly income is more than the median.
• Disposable Income: You need to subtract the allowable expenses like housing, food, etc., from your monthly income to calculate the disposable income.
• Limits: You may qualify for Chapter 7 bankruptcy if your disposable income over 5 years is less than $9,075 or between $9,075 and $15,150.

2. Florida Residency: For Chapter 7 bankruptcy in Florida, you must be a permanent Florida resident or own property in the state.

3. Other Requirements:

• In the past 8 years, you must not have filed for Chapter 7 bankruptcy
• Before filing for bankruptcy, you must attend a credit counseling course

Step-by-Step Chapter 7 Filing Process

Here is the step-by-step process of filing a Chapter 7 bankruptcy case:

1. Pre-Filing Requirements:

• Credit Counseling
• Gather Documents

2. Filing the Bankruptcy Case:

• Complete Bankruptcy Forms
• Pay Filing Fee
• File the Petition
• Submit Additional Documents
• Automatic Stay

3. During the Case:

• Meet with the Trustee
• Meeting of Creditors (341 Meeting)
• Debtor Education Course

4. Post-Filing: You will receive a discharge of eligible debt if your case is successful

5. Additional Considerations:

• Liquidation of assets to pay off debts is involved in Chapter 7, whereas a repayment plan is involved in Chapter 13.
• To protect your assets from being liquidated, you can claim certain exemptions.
• For legal advice, consult a qualified lawyer, as bankruptcy comes with several consequences, such as long-term legal and financial ones.

Debts That Can and Cannot Be Discharged

Some of the debts that can or cannot be discharged include the following:

Dischargeable Debts:

• Credit card debt
• Medical bills
• Personal loans
• Utility bills

Non-Dischargeable Debts:

• Student loans (in most cases)
• Alimony and child support
• Recent tax debts
• Court-ordered fines and restitution

Potential Drawbacks and Considerations

Some potential drawbacks that you should consider include:

• Temporary hit to your credit score
• Public record of the bankruptcy filing
• Possible liquidation of non-exempt assets
• Waiting period to file again (8 years after a previous Chapter 7)

What Sets Garcia Hernandez, P.A. Apart

Here are some key features that set Garcia Hernandez, P.A. apart:

• Personalized, strategic bankruptcy solutions
• Years of experience in Florida bankruptcy law
• Compassionate legal team offering full support
• Client success stories and testimonials

Schedule a Consultation With Garcia Hernandez, P.A.

If you want to learn more about Chapter 7 bankruptcy Miami and need legal assistance. Contact us today through the given contact details:

The Law Office of Garcia Hernandez, P.A.

Address: 2655 LeJeune Road, Suite 802, Coral Gables, FL 33134
Phone Number: (305) 771-3374
Email: www.hhlawflorida.com

Frequently Asked Questions (FAQ) About Chapter 7 Bankruptcy Miami

Question 1. How much is the average cost of Chapter 7 bankruptcy in Florida?

Answer. The average cost of Chapter 7 bankruptcy cases typically ranges from $1,000 to $3,500, while the cost for Chapter 13 bankruptcy cases is higher, starting from $2,500 to $6,000.

Question 2. Who is eligible for Chapter 7 bankruptcy in Florida?

Answer. Individuals who have a low monthly income, which can be determined by the means test, and individuals who are not seeking to keep non-exempt assets typically qualify for Chapter 7 bankruptcy in Florida.

Question 3. How long does the Chapter 7 bankruptcy process take in Miami?

Answer. It typically takes 4 to 6 months for the Chapter 7 bankruptcy process in Miami. An uncomplicated case in which a person has no financial assets and personal property can be discharged within 90 days.

Question 4. What disqualifies you from filing Chapter 7?

Answer. Several factors disqualify you from filing Chapter 7 bankruptcy, such as a previous Chapter 13 discharge within the past six years, a previous Chapter 7 discharge within the past eight years, failing the means test, etc.

Question 5. How will Chapter 7 affect my spouse if I file individually?

Answer. Your spouse’s credit and debts will remain the same if you file for Chapter 7 bankruptcy individually. But if you have joint debt, like mortgages or car loans, your spouse will also be responsible.

Question 6. How soon can you start reconstructing your credit after bankruptcy?

Answer. You can start immediately after the bankruptcy is discharged. You can start taking steps to improve your credit score, while the bankruptcy will stay for 7 to 10 years, depending on the type.

Question 7. What if you receive an inheritance after filing Chapter 7 bankruptcy?

Answer. If you receive an inheritance within 180 days after filing Chapter 7 bankruptcy, it will become part of your bankruptcy estate, and you can use it to pay off creditors.