Stiberman’s Blog

Helping clients across Florida achieve financial freedom, since 1998.
Free Consultation
  • Louisa P.starstarstarstarstar5.0
    Robert and the team at Stiberman Law are truly exceptional. I was faced with the daunting task of navigating bankruptcy, and from the moment I contacted them, I knew I was in good hands Read More
    May 21, 2024logo
  • Arlene S.starstarstarstarstar5.0
    Excellent Lawyer, friendly and on top of things and reliable and efficient. I had to go through bankruptcy twice and I trusted them every time. I had the best experience with Robert and Read More
    March 20, 2024logo
  • Gustavo S.starstarstarstarstar5.0
    I am very satisfied with the service that they offered us. They were very professional and kept us informed at all times. I was looking for a bankruptcy attorney nearby and fount Robert Read More
    March 19, 2024logo
  • Louisa P.starstarstarstarstar5.0
    Robert and the team at Stiberman Law are truly exceptional. I was faced with the daunting task of navigating bankruptcy, and from the moment I contacted them, I knew I was in good hands Read More
    May 21, 2024logo
  • Arlene S.starstarstarstarstar5.0
    Excellent Lawyer, friendly and on top of things and reliable and efficient. I had to go through bankruptcy twice and I trusted them every time. I had the best experience with Robert and Read More
    March 20, 2024logo
  • Gustavo S.starstarstarstarstar5.0
    I am very satisfied with the service that they offered us. They were very professional and kept us informed at all times. I was looking for a bankruptcy attorney nearby and fount Robert Read More
    March 19, 2024logo
  • Paul B.starstarstarstarstar5.0
    I would like to share the amazing experience I have had with this Law firm. I was on the verge of loosing my house because I had not paid my property taxes. I looked for a Bankruptcy at Read More
    July 10, 2023logo
  • S.M.starstarstarstarstar5.0
    When I say this office was absolutely the best, I am not kidding! They have been absolutely phenomenal. Robert has been the best bankruptcy attorney. The whole team has always kept Read More
    April 20, 2023logo
  • Paula D.starstarstarstarstar5.0
    I was referred by a friend to this bankruptcy attorney. Mr. Stiberman and his staff was very courteous, knowledgeable and very caring towards my concerns. I am pleased with the outcom Read More
    April 18, 2023logo
  • R.P.starstarstarstarstar5.0
    The process was relatively easy, I would recommend Stiberman Law to anyone who finds themselves in need of a bankruptcy attorney.
    February 24, 2023logo
  • Jose N.starstarstarstarstar5.0
    I have to say that I have had a great experience with Stiberman Law regarding a bankruptcy and they have been very informative and supportive. They have been very helpful and always ans Read More
    January 20, 2023logo
  • L.L.starstarstarstarstar5.0
    Excellent service. Great bankruptcy attorney and staff. Always informed me of what to expect. My Chapter 13 bankruptcy was smooth and the process was easy thanks to Robert and the Read More
    July 20, 2022logo
  • Sam Sstarstarstarstarstar5.0
    Twelve years ago I was in need of legal representation stemming from the housing meltdown if 2008. Robert Stiberman and his staff handled the matter with complete professionalism and sp Read More
    October 19, 2022logo
  • K.D.starstarstarstarstar5.0
    I was looking for a bankruptcy attorney in Miami, and I found Mr. Stiberman. He and his office were efficient, and they guided me through every step of the process. I am appreciative of Read More
    September 16, 2022logo
  • Carmen C.starstarstarstarstar5.0
    I am so grateful for Stiberman Law, P.A. In 2019 my husband and were faced with a very difficult decision file for Bankruptcy, unfortunately we weren’t able to pay for our credit Read More
    October 26, 2022logo
  • N.M.starstarstarstarstar5.0
    Excellent work from this bankruptcy law firm! I was drowning in debt with my license suspended from a lawsuit I had and thought I would have to spend the rest of my life paying back deb Read More
    August 17, 2022logo
  • R.Z.starstarstarstarstar5.0
    The experience with this office has been great. No problems at all they have kept me straight to doing the right thing and feeling a breeze of peace and being debt free with my bankruptcy.
    August 30, 2022logo
  • F.starstarstarstarstar5.0
    Very happy with Robert and his team. Thanks to them we were able to save our home. Very helpful and knowledgeable in bankruptcy. Best attorney.
    July 28, 2022logo
  • E.R.starstarstarstarstar5.0
    I had a great experience, I just want thank Stiberman law and his team for a great experience also Ana for the help and explaining my case. Appreciate, thank you
    July 25, 2022logo
  • A.B.starstarstarstarstar5.0
    Very good office with my bankruptcy. They have been amazing through this hard process. Very happy with Robert and his staff they are very nice and professional. Thank you stiberman!
    July 23, 2022logo
  • W.J.starstarstarstarstar5.0
    Amazing work by Robert. They are really good with what they do, very attentive and knowledgeable. Customer service and professionalism are top, the lawyer has been great this whole t Read More
    June 25, 2022logo

What are advantages of filing bankruptcy? (2022)

This article discusses what are advantages of filing bankruptcy as well as its disadvantages.

Image depicting what are advantages of filing bankruptcy?

What are the benefits of filing for Chapter 7 bankruptcy?

Automatic stay

Most legal and collection efforts pause the moment you file for bankruptcy. Creditors who violate the automatic stay can be sanctioned by the bankruptcy court. See 11. U.S.C. section 362.

You get to discharge most of your your debts

Most debts such as credit card debts, medical bills, personal loans, and civil judgments can be discharged in bankruptcy. Once you receive the Order of Discharge, your creditors can never attempt to collect from you in the future.

Most people get to keep most if not all of your property

In most chapter 7 bankruptcy filings are determined no asset cases by the bankruptcy trustee where no assets are liquidated. For people who have assets, Florida has some of the strongest exemptions in the country, such as the Florida homestead exemption to protect your home.

You also get to apply a $1000 Motor vehicle exemption for 1 vehicle title in the debtor’s name. Some exemptions such as the $4,000 Florida wildcard can be applied in addition to the $1000 if the Debtor is not claiming a homestead exemption.

It doesn’t take too long to rebuild Your credit

Filing for bankruptcy does not mean your credit score will be impacted forever. We have seen credit scores go up after filing for bankruptcy in many cases and have seen clients receive credit offers within months of completing the bankruptcy.

Bankruptcy can result in a fresh start and financial freedom

By filing for bankruptcy you get to eliminate most of your debts. You get to focus on rebuilding your financial future and not on paying high interest rates on credit cards or having to deal with collection agencies.

You will be able to answer your telephone calls confidently and allocate your money towards your future and not debt repayment.

Low Cost

Chapter 7 filings fees a re $338.00. Since there is no limit in the amount of debt you can eliminate, even you pay an average attorney’s fee of $1500, declaring bankruptcy can be much cheaper than repayment plans or debt consolidation programs.

What is the downside to filing for bankruptcy?

We’ve discussed the benefits, now lets explore the cons of filing for bankruptcy.

You have to qualify to File for bankruptcy

You have to pass a means test to be eligible for chapter 7 bankruptcy. If your average six month income is above the median income for a family of your size in your state, you will have to take the second part of the test. If you do not pass, it means you may have disposable income to repay debts and not be eligible to file Chapter 7 bankruptcy.

You may lose some of your property

Chapter 7 involves the liquidation of your nonexempt assets to repay your debts. If you are unable to exempt any asset, the Trustee can force you to turn it over and then sell it.

Not all of your debts can be eliminated in bankruptcy

Debts such as child support, alimony, student loans, and most IRS obligations are not discharged in bankruptcy. Addtionaly, secured debts such as mortgages and car loans have to be paid if you want to keep your house or vehicle.

Your credit score will be impacted

Filing for bankruptcy will affect your credit. A chapter 7 bankruptcy will remain in your credit for 10 years.

What about Chapter 13 bankruptcy?

We’ve explored the advantages and disadvantages of bankruptcy (chapter 7), but what about chapter 13?

What are the benefits of filing for chapter 13 bankruptcy?

Below are some advantages of filing a chapter 13 bankruptcy.

You can get current or your mortgage or other secured debts

Chapter 13 is a type of bankruptcy where you can catch up on missed mortgage payments, past due car payments, delinquent HOA dues and property taxes, and even delinquent IRS debts.

Different than chapter 7 bankruptcy, if you owe a lot of money on your mortgage and do not want to lose your house to foreclosure, you can present a chapter 13 plan to get current over a 3 or 5 year period.

You may be able to reduce the loan amount or interest rate on your car loan

If you’ve owned your car for more than 910 days prior to filing for bankruptcy, you can reduce your car loan amount down to the car’s market value at the time of filing.

Additionally, you can seek to reduce your car loan’s interest rate if it is too high to something more reasonable like 6.75 %.

You may be able to eliminate second mortgages

You may be able to eliminate a second mortgage of your homestead if your first mortgage balance exceeds your property market value at the time of filing your case.

What are the disadvantages in a chapter 13 bankruptcy?

You need to make monthly payments to the chapter 13 trustee

You are required to make monthly payments for a 3 to 5 year period which are applied to your creditors. The monthly payment amount is based on your disposable income.

YOUR DEBTS CANNOT EXCEED $2,700,000

A 2.7 million debt limit is not a problem for the majority of people who file for bankruptcy, but this limitation is not present in a chapter 7.

YOU WILL BE IN BANKRUPTCY FOR 36 OR 60 MONTHS

Different than chapter 7 which takes an average of 5 to 6 months to complete, in chapter 13 a debtor is required to present a 36 or 60 month plan of reorganization.

Schedule a Free Consultation with a Bankruptcy Attorney

If you’re considering filing for bankruptcy, we can help. At Stiberman Law, we have the experience and knowledge to skillfully guide you through bankruptcy and come out with financial freedom and confidence in the future. To schedule a free consultation with a bankruptcy lawyer in Florida, reach out to us at (954) 314-4530 or fill out the form below to get started.

Written By:

Attorney Robert Stiberman

Robert is an experienced bankruptcy attorney adept at handling Chapter 7, 13, and 11 filings, with more than 15 years of experience in bankruptcy cases. Robert represents clients in both consumer and business bankruptcy ... Read More

Contact Stiberman Law Today!

Speaking to our law firm is always 100% confidential. Help is just a call away!.

Name(Required)
This field is for validation purposes and should be left unchanged.

Do I Have A Case?

find out, it’s free
Free Consultation

Request A Free Consultation

Speaking to our law firm is always 100% confidential. We do our best to respond to inquiries in under 24 hours.

Name(Required)
This field is for validation purposes and should be left unchanged.
Image

Received!

We’ll get in touch as soon as possible.