Miami Chapter 7 vs. Chapter 13 Bankruptcy Lawyers
You are probably aware that there are two types of consumer bankruptcy — Chapter 7 and Chapter 13. Our lawyers at Ferrer Shane, PL, can explain the differences to you in detail. Read on for some information about these two types of bankruptcy filings.
What You Pay
Chapter 7 bankruptcy requires you to liquidate all your assets, minus the Florida (or federal) exemptions, and use the proceeds to discharge your debts. The judge will determine the amount each creditor will be paid. Chapter 13 bankruptcy is a partial repayment plan. Your debt will be restructured so that you can pay a portion of it over three or five years.
Income Limits
In Chapter 7 bankruptcy, your income must be less than the Florida median income adjusted for family size. If you earn more than this amount, you may be able to file Chapter 13. Our attorneys can determine whether you meet the income requirements as demonstrated by a means test. This test looks at all sources of income including business income, Social Security income and income from a spouse not included in your filing.
Foreclosure
A Chapter 7 bankruptcy filing will temporarily stop foreclosure by the bank. However, unless you can make your monthly payments after discharging your other debts, the bank will probably obtain relief from the automatic stay that will allow it to proceed with the foreclosure action. In Chapter 13, you could fold the delinquent mortgage payment into the debt that will be paid. However, you must be able to remain current or arrange for a loan modification with the mortgage holder.
What You Can Keep
If you file Chapter 7 bankruptcy, you will probably lose some personal property, especially if you own luxury items that can be sold to pay a percentage of your debt. In Chapter 13, you may be able to include payments for items such as high-end electronics in the amount to be repaid and keep your property.
Call a Miami Bankruptcy Attorney for More Information
For more information about the difference between Chapter 7 and Chapter 13 bankruptcy, contact Ferrer Shane, PL. Call us at 305-262-2728.
We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.
