Bankruptcy is the state of being completely lacking in a particular quality or value. Put simply, it is the process wherein the bankruptcy judges and the court trustee look at the businesses, particularly those that cannot pay for their debts, liabilities, and assets, or in layman’s terms, “what is owed” and “what is owned.” After considering these areas, they decide whether to discharge the debts incurred by the business, so they will not be legally obligated to pay for them. Thus, giving financial relief. This legal process not only aims to provide financial relief on the part of the debtors but also provides a way to reorganize their debt, liquidating assets to pay for the debt, which, when successful, can provide a fresher and cleaner start for the business owner. Keep in mind that bankruptcy is not easy. And if you are a bit unsure of how to file for bankruptcy in Miami, An expert bankruptcy attorney can assist you in this bankruptcy process by providing you with viable options and directions.

Become familiar with the basics of chapter 7 bankruptcy in Miami

Handling a business is hard. And as hard as it may seem, with all the stress and overwhelming debts it accompanies, the truth is that no one looks forward to filing for bankruptcy. The silver lining to this cloud is that it can provide you with a fresh start, a blank sheet where you can start all over again, but this time with a lighter load or, for some, no load at all. Something to keep in mind is that here in the United States, there are many different types of bankruptcy along with the different qualifications that a person must meet to be eligible for the particular benefits they entail. The 5 most common types of bankruptcy in the United States are Chapters 7, 9, 11, 12, and 13, each having different requirements, documents, and types of filing. Seeking expert legal advice from a Miami bankruptcy attorney on this matter is critical, as they may guide you on the specific type of filing, requirements, or additional documents required. But before filing an application for bankruptcy under Chapter 7, we must first be familiar with what it is. Chapter 7, or what most people call “liquidation,” permits the business or its owner to surrender their non-exempt properties, which in turn will allow you to pay off your outstanding debts. 

How to determine if you qualify for chapter 7 bankruptcy in Miami?

Qualifying for bankruptcy under Chapter 7 is a quick and fairly straightforward process. It is straightforward and quick, but not simple as it takes an appropriate understanding of the law and the intricacies it entails for us to create an informed decision regarding the matter. The first step in filing for bankruptcy under Chapter 7 in Miami starts by at least seeking legal services from a bankruptcy law firm in Miami and allows them to establish grounds of eligibility for Chapter 7. Part of this eligibility is that the debtor’s income is less than their state’s median income. According to reports, in Miami, the price range is around 92,800USD. After determining that they are qualified, the next thing to do is for them to fill out the “Statement of Financial Affairs”. Knowing effectively which type of bankruptcy a person is qualified for will help them greatly and prevent them from wasting time or filling out insufficient or incorrect bankruptcy paperwork.

Attend a credit counseling session in Miami

According to Henry Ford, “The only real mistake is the one from which we learn nothing.” Having a bankruptcy provides both stress and devastation to the owner. No one plans to have it and no one surely looks forward to repeating it. This is true both on the part of the owner and on the part of the court. That is why, to prevent this from happening again, the U.S. Bankruptcy Court is requiring the debtors to attend a debtor education class. The advantages of Chapter 7 bankruptcy in Miami are that it not only allows you to start over by eliminating your debts, but it also helps bankruptcy filers avoid making the same mistakes by providing counseling sessions and educational classes once they are found eligible.

Collect and complete your chapter 7 bankruptcy documents

There are things to accomplish here in the United States during a bankruptcy filing. The U.S. Bankruptcy Court requires individuals and some types of business debtors to fulfill particular requirements and financial documents in order to be qualified for bankruptcy under chapter 7. Seeking legal advice in this area is vital as it may mean being denied because of failure to accomplish or having financial freedom from the debts once approved by the court. An experienced Miami bankruptcy lawyer can provide you with a detailed list of things to accomplish while guiding you through the process. Examples of the things to accomplish and submit are your photo ID and social security card. While also qualifying as a person that has a low and stable income, struggles to pay the monthly bills; after submitting the financial documents, it has been revealed that the debt will take at least 5 years to be fully paid; and the person has not yet recently filed a Chapter 7 bankruptcy.

Go to the bankruptcy court and file your forms

In filing for bankruptcy under chapter 7, there are forms to submit. This accounts for 23 different but vital forms that are roughly 70 pages long in total. These are forms that the U.S. Bankruptcy Court uses to assess and know how much the debtor owns, how much they spend, how much they make, and especially how much they owe. Is there a detail such as, is there a Miami Bankruptcy Lawyer helping you? And which particular bankruptcy are you filling out for?

Seeking help and advice on bankruptcy matters. A huge number of people that are filing for chapters 7 and 13, the most common bankruptcy chapters in the United States, are filling them for the first time. If you seek the help of a Miami Bankruptcy Lawyer, these bankruptcy professionals will be the ones to file these particular documents for you based on the details you have provided. These have provided assurance and comfort to a lot of bankruptcy under Chapter 7 filers in the United States as they are assured that they have filled it correctly with the necessary details needed.

Participate in a 341 hearing, also known as a creditors’ meeting

A 341 meeting, more commonly known as the creditor’s meeting, is a meeting required by the U.S. Bankruptcy Court where the bankrupt company that has debt to a particular person or company conducts a meeting. The main goal of these meetings between the bankrupt company and the persons owed is for the creditors to select a trustee, provide necessary directions to the trustee, while also interrogating the insolvent and taking into consideration the insolvent’s offer of composition. Questions such as: “Is there any real estate that you have any interest in owning?” Did you give away or transfer any property within the past year? Is there anyone holding property that belongs to you? These are questions you can expect to be asked during these meetings.

Take a Personal Financial Management class

It seems that the U.S. Bankruptcy Court takes to heart the words uttered by George Santayana when he said, “Those Who Do Not Learn History Are Doomed To Repeat It.” This is seen through their efforts to educate the insolvent twice. This legal matter is done twice, first by the legal assistance given through credit counseling sessions as mandated by the federal court to be taken. The second legal assistance provided to prevent history from repeating itself is through the help provided by the bankruptcy professionals through the Personal Financial Management class. This program is required by the United States Bankruptcy Court to ensure that a bankrupt business owner has a better life after bankruptcy. A sufficient number of courses as approved by the United States Trustee and a substantial period of time allotted for education is mandated by the federal bankruptcy law, providing not only legal assistance but also appropriate steps to take to prevent this scenario from taking place again. Successfully accomplishing these two will be vital for the discharge of debts.

Discharge your debts

Congratulations! You’re almost done. After compiling the necessary documents, they are filed, and the meeting and classes provided by the U.S. Bankruptcy Court have been attended and successfully accomplished, the period of time we are all looking forward to will finally come. A bankruptcy discharge will finally be provided. The court shall close the case after the United States federal court’s issuance of the bankruptcy discharge.

How can a bankruptcy lawyer in Miami help?

You might be asking, “Do I really need legal assistance when I file for bankruptcy chapter 7 in Miami?” or “What legal assistance can a bankruptcy lawyer in Miami provide for me?” Jargons such as “homestead exemption”, “exempt property”, and, in some cases, providing a repayment plan are some of the legal assistance a bankruptcy firm can provide for you. This may seem of less importance to you, but some of the words provided above may mean securing a roof over you and your family’s heads during these trying times. They can also assist you in making sure that you submit all the necessary documents to be filed to qualify for bankruptcy.