Share

The Bankruptcy Law Clinic Blog

Friday, January 10, 2014

Bankruptcy helps you keep your money when things get better... and they will

Happy client time again.  We got a nice thank you right before Xmas.  Client(s) got rid of debt which meant their creditors could not touch his paycheck, even after he got a nice promotion. 


Read more . . .


Monday, December 16, 2013

Bankruptcy is Saving the World

For a lot of people, the term “bankruptcy” refers to a trick: People rack up immense debts they can’t hope to pay back, and when justice begins to close in on them they can jump in the escape pod marked Bankruptcy and wriggle out of the consequences, only to repeat the cycle.  This, of course, isn’t true, and as bankruptcy rates skyrocket during the worldwide economic slowdown we’ve been experiencing, more and more people are realizing that bankruptcy serves a legitimate purpose in the world.  To put it in dramatic terms: Bankruptcy allows civilization to exist, because it gives us rules and structure for dealing with financial ruin.

 

The Bad Old Days

In the past, an inability to pay bills was dealt with via a destructive and unrealistic hostility.  People were even thrown into jail because they failed to pay their bills, and even where debtor’s prison didn’t exist, there were usually endless rounds of punishments that sank people into a hole they would never crawl out of.  While that might seem like justice to some folks who have smugly never missed a payment in their lives, the fact is it was totally harmful to society: The debtor had no chance not only of paying off that specific debt, they had no chance to pay off other debts either.  Punishment therefore spread like a cancer to all the interested parties.

 

The Modern Method

In contrast, bankruptcy today allows for an orderly and fair review of the debtor’s assets and debts, and as many debts as possible are made whole.  Lenders are able to negotiate to get at least some minimum amount of their principal back, and the debtor is allowed to rebuild their lives and their finances not only after their debts are discharged, but during the process as well – which benefits everyone.

More and more people are realizing this – more than a million people filed for bankruptcy protections under either Chapter 7 or Chapter 13 in 2012 and 2013.  The two main types of bankruptcy differ slightly in the details of how they work, and a professional should be consulted before making any decisions involving bankruptcy.  But if you are at a point where paying your debts has become impossible, it’s a better choice to alert your creditors and work with them under a legal structure than to deny what’s happening and let chaos rule the day – as it surely will if you don’t file.


Monday, December 9, 2013

Bankruptcy: What You Really Need to Know

You can go dizzy looking at all the bankruptcy information on the web.  Lots of it appears contradictory too.  I usually tell clients to just go to the dept of justice website on bankruptcy. Its boring, but at least they get it right. However, if you made it this far, here's what I think you need to lknow about bankruptcy....


Read more . . .


Monday, December 2, 2013

Life After Wage Garnishment: Can You Live on Less?

Life After Wage Garnishment: Can You Live on Less?

Some people are living paycheck to paycheck with no savings to rely on if there is a crisis.   Sound familiar?  We can help


Read more . . .


Monday, November 25, 2013

Common questions answered now!

Here are a couple of bankruptcy questions we get when we answer the phone.  Got your own questions, call us now!  305-663-3281


Read more . . .


Monday, November 18, 2013

Bankruptcy Can Save Your Retirement

When you are struggling with your monthly bills, retirement seems like a far-off event.  If you have some money set aside in a government or company retirement plan read the next three paragraphs.  They are very important.


Read more . . .


Saturday, August 24, 2013

How to Avoid Losing Your Home

Florida Leads The Nation in Vacant Foreclosures—How to Avoid Losing Your Home

If you are going through a foreclosure or if you are on the brink you are not alone.. and we can help.


Read more . . .


Monday, June 3, 2013

How Can Chapter 13 Bankruptcy Help You Save Your Business?

America was built on the small business owner.  Like everyone else, they may be facing difficult economic times.  Are you one of these people? 


Read more . . .


Wednesday, May 22, 2013

Loan modifications inside bankruptcies- A new powerful tool to save people’s South Florida homes since March 2013

For the past two years in Orlando, there has been a new wrinkle in bankruptcies.  You can now include loan modifications inside your chapter 13 bankruptcy. Over 70% of these bankruptcy cases resulted in new lower mortgage payment. Now, we are doing the same program in Dade and Broward counties.


Read more . . .


Sunday, March 24, 2013

Top Five Things To Avoid Before Filing Bankruptcy

Here are the top 5 things to do while you are in the early stages of the bankruptcy process...


Read more . . .


Sunday, March 17, 2013

Different Types of Debt and How They’re Treated in Bankruptcy

 

Many people have questions regarding how their debts will be handled after filing for bankruptcy and the answer depends on the type of debt that is owed.  Most debt falls under the following categories:  secured debt, general unsecured debts and priority debts.  Each will be handled slightly differently in your bankruptcy. 

Secured Debts

A secured debt is a debt that is secured by collateral.  These types of debts include car loans, mortgages or any other debt when there is property that can be repossessed or taken if the debt isn’t paid.  In most cases, if you want to keep a secured debt, you can do so while still wiping out your other debt. Converselly, if you are ready to walk away from your house or car, you can do that as well.When a secured debt is handled in bankruptcy, the trustee will consider the debt’s collateral versus how much is owed.  Also, some debts can be partially secured and partially unsecured, such as when you owe more on a home or vehicle than it is worth. 

General Unsecured Debts

Any debt that is not secured by collateral is known as an unsecured debt.  Most credit cards, personal loans, payday loans and medical bills fall into this category. 

Priority Debts

Priority debts are debts that receive priority because the law treats them as being more important than unsecured debts.  These debts usually include child and spousal support; the administrative costs of the bankruptcy case, including trustee fees and attorney fees; wages and other forms of compensation owed to employees if it is a business filing for bankruptcy; certain income taxes, and some other kinds of taxes.

How Each Category Of Debt Is Handled In A Bankruptcy

In a Chapter 7 bankruptcy, if assets are liquidated, the debts that are considered high priority are paid first; in many cases, the unsecured debts aren’t paid at all, or are only paid partially. 

In a Chapter 13 bankruptcy, the repayment plan created by your trustee will have all priority debts paid before the case is completed. 


Archived Posts

2017
2016
2015
2014
2013


The hiring of a lawyer is an important decision that should not be based solely upon advertisements. Before you decide, ask us to send you free written information about our qualifications and experience. This web site is designed for general information only. The information presented at this site should not be construed to be formal legal advice, nor the formation of a lawyer/client relationship. The Bankruptcy Law Clinic has offices in both Miami, and Doral FL and assists clients in the areas of Miami, Doral, Miami Beach, North Miami Beach, Opa Locka, Hallandale, Hialeah and Hollywood Florida and the surrounding areas.



© 2017 The Bankruptcy Law Clinic | Disclaimer/Privacy Statement
9555 N Kendall Dr, Suite 211, Miami, FL 33176
| Phone: 305-663-3281

A Few Thoughts About Bankruptcy | Foreclosure Defense | Spanish-Bankruptcy | Debt Settlement | Chapter 7 Bankruptcy | Chapter 13 Bankruptcy | Attorney Bios | Beat the banks | Choose your problem | 5 ways to save your home | Español | Things to read and watch

FacebookTwitterYouTube

Attorney Website Design by
Amicus Creative