Miami, Florida Bankruptcy Lawyers

Step 1: Itemize income resources and debts

Before filing for bankruptcy you must first identify all your sources of income, your monthly living expenses, and any major financial transactions undertaken by you in the last two years. You must also list all secured and unsecured debts including credit card accounts, loans, medical bills, student loans, etc. You will also be required to list any assets you have in the form or real estate and personal property.

Step 2: Filing for Bankruptcy - Chapter 7

If you choose to hire an attorney to help, you will then need to file a two page petition and a handful of other forms in the District of Florida's federal bankruptcy court. In the process of filing out the paperwork required, you will need to list all property you believe is exempt from liquidation under the bankruptcy laws. It is extremely important to complete your paperwork accurately since a judge, trustee and your creditors will review it. If either believes you have not told the truth, your petition could be denied. The cost for filing is roughly $274 dollars and may be waived in certain circumstances.

Step 2: Filing for Chapter 13

When filing for Chapter 13, a debt reorganization plan must be submitted, detailing how you plan on repaying creditors. You must determine how much disposable income you have after you've paid monthly living expenses. The plan you provide must represent an honest appraisal of your expenses and ability to repay the debt you incurred. It must also ensure that unsecured debt creditors (for example, credit card companies) will receive as much as if you had filed for Chapter 7. Under the terms of Chapter 13, you will be required to pay off 80% to 100% of your debt over a 3 or 5 year period. The cost for filing under Chapter 13 is $189 and cannot be waived.

If your Chapter 13 plan is accepted, monthly payments will likely be deducted from your wages and dispersed to creditors by a court-appointed trustee.

Step 4: The 341 Meeting with Creditors

A month after you file for bankruptcy, you must attend a meeting with all of your creditors. Referred to as the 341 meeting (named after the bankruptcy code section that created it), any objections to your bankruptcy must be raised and discussed then. In Chapter 7 341 meetings, creditors almost never attend. In Chapter 13 bankruptcy, only a few creditors who have concerns about your proposed plan are likely to attend. If an objection is raised and a resolution cannot be achieved, the presiding judge will intervene.

Step 5: Court Approval of Chapter 13 Repayment Plans

A judge must first authorize or approve a proposed Chapter 13 debt re-organization plan. Assuming the judge accepts your plan and you adhere to its schedule and requirements, any debt remaining after the term set for the plan expires will be discharged.

Contact Bankruptcy Attorneys at Kingcade & Garcia Today

If you have questions about how to prepare for bankruptcy or would like additional information regarding our practice, contact bankruptcy lawyers at Kingcade & Garcia today.