Chapter 7 Bankruptcy In Miami – Some Vital Things To Consider

Following the recent economic turmoil of 2008, scores of people as well as businesses have been trapped in a vicious cycle of debt. With the escalating prices of fuel, gas, food, electricity and every other essential item, it's quite obvious to see individuals struggling with an enormous amount of debt. If you're a resident of Miami and facing a similar debt situation, don't fret. These days, there are plenty of debt relief options available in the market. Based on a debtor's monetary situation, one may choose to go for debt consolidation, debt settlement, debt management and at times even bankruptcy. Although bankruptcy is not always the best solution to all your debt problems, it provides you with an opportunity to wipe away most of your debts. When you're contemplating bankruptcy, there are several legal questions that you need to take into consideration. The decision to declare bankruptcy is a very personal and tough one. Every debtor contemplating bankruptcy must find answers to the basic legal queries concerning bankruptcy. When you gather sufficient legal information, it'll be easier for you to decide whether bankruptcy is the best debt relief option for you. 
Once you file for Chapter 7 bankruptcy in Miami, your finances will be reviewed by the bankruptcy court, and your property may even be sold off to repay your creditors. Then, a majority of the outstanding debt gets discharged. When a particular debt is discharged, the creditor has no further claim on you, even though you ultimately collect sufficient money to repay your creditors. However, in certain cases, filing Chapter 7 bankruptcy could be a big mistake. Therefore, think before you file.

See if Chapter 7 is the best means of protecting you from your creditors. In case you owe back taxes, student loans, child support or alimony, you won't be able to discharge those debts. As for mortgage debt, it can be discharged, but the debtor won't be able to keep the home since the collateral will go back to the mortgage lender or bank as compensation for the deficit payable by the debtor. Besides, Chapter 7 won't discharge debts due to deceit, driving under influence charge or excessive credit card usage just before filing bankruptcy.

Evaluate your property against Florida's catalog of exemptions to see whether it's at risk. Even though your property can be sold off by the court to repay your creditors, every state excuses certain types of assets, up to a specific dollar level, from sale. In Miami, no matter how much your home's value, it is exempted. However, you cannot claim in excess of $1,000 in personal property, together with equipment or tools you require for your job.

Check whether you qualify for Chapter 7 bankruptcy in Miami. Your income for the last six months before filing should be typically less than the Florida median, or you need to pass a special “means test” when your earnings are adjusted for expenditures. You also need to enroll in a credit-counseling session in the last six months ahead of filing. However, you are prohibited from filing if you've undergone a bankruptcy petition dismissal in that particular six-month period.

Guest Author : Mary Williams is the Community Member of Oak View Law Group and has been contributing her suggestions to the Community since 2009. Not just that, she has also made notable contributions through the various articles written on different subjects related to the debt relief, credit consolidation, bankruptcy, etc.