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 Bankruptcy

Debt Relief under Chapters 7, 11 and 13 of the Bankruptcy Code

– Bankruptcy

If you are having a hard time paying your debts, including your mortgage, car payments or student loans, filing for Bankruptcy relief may be able to help you. The Bankruptcy laws are written to assist individuals and couples get a fresh start on their financial life.

Bankruptcy is Federal Law, and therefore, stops all collection activity, including foreclosure and wage garnishments, once filed with the Court. 

There are different types of Bankruptcies, and each type has its pros and cons. 

 

 

 

Good judgment comes from experience, and experience coms from bad judgment.

- Rita Mae Brown

Chapter 7 - Liquidation

If you are unemployed, or underemployed, and can no longer pay your debts, a Chapter 7 bankruptcy may give you the fresh start you need to recover from a financial hardship. A Chapter 7 may result in the Court forgiving, or Discharging,” your unsecured debts such as credit cards, lawsuits, medical bills, and other debts. If you qualify, you could be debt free in as little as two months. 

Chapter 13 - Adjustment of Debts of an Individual with Regular Income

Chapter 13, often referred to as “reorganization” or a wage earner’s plan, allows individuals who do not qualify for a Chapter 7 to benefit from the discharge of some of their debts they can not afford. Chapter 13 also allows you to resolve financial matters such as Mortgage Foreclosure, Tax debt owed to the Internal Revenue Service (IRS), and even workout options for Student Loans. Chapter 13 cases allow you to propose a payment plan that pays what you can afford for up to five years, and can potentially discharge or forgive amounts you can’t afford to pay over that period of time. 

Chapter 11 - Reorganization

Similar to a Chapter 13, Chapter 11 allows you to extend the plan period potentially over five years. This may assist individuals that need more time to get up to date on their mortgages, and other debts that cannot be discharged or forgiven.   

Chapter 7

A Chapter 7 bankruptcy can discharge, or forgive, all of your unsecured debt. Credit cards, personal loans, and medical bills are all examples of unsecured debts. If you can no longer afford your home or car, and would like to surrender either to the bank that holds the mortgage or loan, a Chapter 7 may allow you to not be responsible for any deficiencies that may result from the surrender of the collateral.  

Not everyone, however, qualifies for a Chapter 7. Also, the State of Florida, as well as Federal Law, place limits on what personal property you can exempt, or protect from your creditors. 

Pros

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Relatively quick process.

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Most of your unsecured debt is forgiven with no resulting tax consequences.

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It may be possible to request mortgage loan assistance from your lender in a Chapter 7.

Cons

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Not everyone qualifies based on income.

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Any property that is not exempt, or protected, may have to be either turned over or repurchased.

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Few options for secured debts such as cars and mortgages.

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Difficult to get out if in the event of complications.

Chapter 13

A Chapter 13 bankruptcy involves entering into a Court supervised and approved payment plan for three, four or five years. Chapter 13 bankruptcies are typically best for individuals and families that have income, are having difficulty paying their mortgage or car payments, or don’t qualify for a Chapter 7. 

Pros

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More flexible options to resolve mortgage issues.

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Ability to payoff investment properties based on value instead of mortgage balance.

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Ability to lower car payments based on the current value.

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Court supervised Mortgage Modification Mediation program to resolve foreclosure.

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Able to resolve IRS obligations, including discharge or forgiveness for some taxes.

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Affordable payments calculated based on IRS standards for cost of living.

Cons

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Lengthy, up to five year process.

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Higher fees and costs.

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May require your employer to deduct Bankruptcy payment from your paycheck.

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Missing payments could leave you in the same or worse position than you were before.

Let me help you with your debt problems.

If you are having a hard time paying your debts, are in forclosure or can no longer afford your mortgage or car, or have debt resulting from a failed business or student loans, let me help you get a clean start..

Contact Me

Attorney & Mediator Tony Roca

Tony Roca

Tony Roca

Attorney & Mediator

A Miami native, Miami Bankruptcy Attorney and Mediator Tony Roca attended the University of Miami on an academic scholarship. Mr. Roca received his law degree from the University of Miami School of Law in 1998, and continued his studies there post Law School, focusing on International Business as part of the U of M’s prestigious International Foreign Law Program.
For almost 10 years, Mr. Roca focused his career on developing business relationships and negotiating agreements internationally in the Telecommunications and Technology space. He has negotiated international service agreements with companies such as Telmex, America Movil, Embratel, Entel, and Petrobras.
In 2009, Mr. Roca opened The Roca Law Firm, P.A. in Miami, Florida focusing on assisting clients in matters of general civil litigation, including foreclosure, debtor’s rights, student loan law and federal student loan assistance, personal injury, and the representation of debtors in Federal Bankruptcy proceedings under the US Bankruptcy Code. He is admitted to practice in Florida as well as the US District Court for the Southern District of Florida, including the Southern District’s Bankruptcy Courts.
Mr. Roca is also a Florida Supreme Court Certified Family and Circuit Civil Mediator, and has special training in the areas of Residential Mortgage Foreclosure Mediation. He has mediated thousands of cases dealing with matters of Mortgage Foreclosure, Condominium Disputes, and Tort litigation.
He is a member of the Dade County Bar Association, the Cuban American Bar Association, the American Bar Association, and the Belen Alumni Lawyers Section.