Miami Bankruptcy Attorney Explains the Difference Between Bankruptcy and Offers Advice for Consumers
Many consumers considering bankruptcy don't realize they have two primary options, according to one Miami bankruptcy attorney with bankruptcy attorney Miami fl . Individuals may file for Chapter 7 or Chapter 13 bankruptcy and, while both options may provide relief, each has advantages and disadvantages and not everyone who qualifies for one will qualify for the other. According to the bankruptcy lawyer, Chapter 7 is referred to as straight bankruptcy liquidation, while Chapter 13 is a payment plan for individuals with regular income. With straight liquidation, bankruptcy filers are required to attend credit counseling with 180 days of filing, as well as pass a "means test" to determine eligibility. People with income higher than their state median will have trouble qualifying for Chapter 7, and may be forced to turn to a payment plan through Chapter 13 bankruptcy. For cases filed in Miami, Florida after May 1, 2013, household income will be compared to the Flor...