If at this time you do not have all the funds you would like, you have pending debts or you do not get to pay all your bills at the end of the month, you may be interested in knowing how to file chapter 13 bankruptcy in Miami.
For centuries, the United States has had a Law under which citizens can file for bankruptcy, and by doing so they can receive a multitude of benefits that allow them to take a break. That way they can return to meet their expenses after a while.
For this, there are different chapters of the bankruptcy law. For example, chapter 13, which is a kind of wage earner’s plan for people to have a more long-term plan to pay their debts, as long as they receive regular income.
Some considerations before filing Chapter 13 bankruptcy in Miami
The first thing you should know is that most chapter 13 applicants are rejected by creditors and move on to chapter 7 or are simply ruled out.
And the thing is… for the lender, the best thing is for their presentation to go to chapter 7, because that way some assets can be liquidated to pay the debts, so there is maximum guarantee.
But for you, the best option is to know how to file Chapter 13 bankruptcy in Miami, if you meet a series of requirements:
If you have recurring income but have unsecured debt payments that destroy your finances on a monthly basis. In that case, adjusting the payment schedule will help you continue without risking.
On the other hand, you probably need some protection from creditors, but unlike the requirements for Chapter 7, you don’t have enough money.
Furthermore, filing for Chapter 13 bankruptcy is a good idea if you haveassets you don’t want to losein a possible liquidation.
Prerequisites
Are you convinced yet? Knowing how to file Chapter 13 bankruptcy in Miami is a very good idea if what you want is to bring your debts up to date and have some room for improvement. But not all candidates make it, in fact, most are rejected for not meeting the following requirements:
- Total secured debts cannot exceed $1,184,200.
- Total unsecured debt must be less than $394,725.
- Credit resided for at least 2 years in the state where you are going to apply.
- Have a stable income that allows you to meet your obligations at home and face a payment plan.
- It is not a business since only an individual can file for Chapter 13 bankruptcy. Although it can be a business if it is only formed by an individual.
- You have not been excluded from a previous bankruptcy law.
- You have filed an income tax return.
- In addition Before filing, you must complete a certified credit counseling session. And this has to be approved by the Court within 180 days prior to the filing date.
Now you know all the requirements under which they will not be able to dismiss the bankruptcy chapter 13.
How to file Chapter 13 bankruptcy in Miami step by step
Since figuring out how to file chapter 13 bankruptcy in Miami can be very complicated at first, we have divided it into different steps, so that it is easy for you and you can mark the completed steps.
Documentation and papers
To file for bankruptcy you need a lot of documentation, even a little more than usual. You need some papers that declare your financial situation. These are:
- Official Form 122C – 1: Statement of your current monthly income and chapter 13 commitment period calculation.
- Official Form 122C – 2 : Calculation of your disposable income.
- Also, you must include documentation to show:
- A list of all your assets.
- Detailed accounting of your monthly expenses for food, transportation and others.
- The name of your creditors, the amount requested. and the cause of the claims.
- Your source(s) of income, amount and frequency of payments.
A counseling course
Before you file for Chapter 13 bankruptcy, you must participate in a pre-bankruptcy counseling course. Once you have completed it, you will receive a completion certificate that you must include with your application and documentation.
The presentation
Once you have all the documentation and the bankruptcy course completed, you can file. This includes a fee of $335. However, if you cannot afford to pay, you can file a waiver of this.
Once you do this procedure, the automatic suspension begins. And this means? that the creditors will no longer be able to demand anything from you or go after you, now everything will be solved in court and they will not “persecute” you for the debt.
Trustee
Once you are part of the chapter 13 bankruptcy in Miami, you will be assigned a trustee who will monitor the entire process so that you can have more peace of mind. In addition, you will receive a package explaining bankruptcy 13 in Miami with dates relevant to your own case.
The meeting with the creditors
Within 40 days of filing your bankruptcy, the trustee will set up a meeting with the creditors. Given this:
- You will be accompanied by your trustee.
- You will need to bring proof that you filed your tax returns for the last 4 years.
- Your creditors have 25 days before the meeting to file a complaint if they object.
- Have a modified payment plan to keep your creditors happy.
- You should know that creditors are not required to attend and some of them will not.
Confirmation hearing
Your attorneys or advisors can accompany you to your chapter 13 bankruptcy confirmation hearing. At this hearing the court will decide whether your plan is approved, whether any objections from creditors will be considered or the trustee.
Then, you will obtain the confirmationbetween 20 and 45 daysafter the meeting with the creditors.
Payment
Once you have confirmed authorization to file, the judge will set up a court-ordered payment schedule so you can pay off your debts.
You should also keep in mind that if your income is above the median income, your plan must be for five years, while if you are below, it will be a 3-year plan.
Finally, you have to know that:
- The money is paid to the trustee, who distributes the money to your creditors.
- These creditors cannot contact you to request additional money.
- You will not speak to a debt collector or creditor during this time.
Well, now you know how to file Chapter 13 bankruptcy in Miami and what the requirements are for you to do so. If you need Bankruptcy Attorney in Miami, please contact me!