Types of Personal Bankruptcy

6/27/2013

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Under the direction of Patrick Cordero, the Law Offices of Patrick L. Cordero, PA, in Miami, Florida, is one of the state’s largest bankruptcy firms. Patrick Cordero and his staff have helped many clients facing a difficult economic situation seek relief through bankruptcy.

Individuals have two types of bankruptcy potentially available to them: Chapter 7 and Chapter 13.

People may qualify for Chapter 7 bankruptcy if they meet a two-part eligibility test that determines ability to repay and compares income to the state median income. If the person in debt meets eligibility requirements, he or she may file for a “liquidation bankruptcy” in which certain types of personal debts are discharged in exchange for conversion of liquid assets to pay off a portion of the debt. State laws determine which assets are exempt from liquidation.

Chapter 13 bankruptcy involves debt reorganization. People filing Chapter 13 bankruptcy submit a plan to the courts showing how they will repay all or a portion of their debt over the course of three to five years. Chapter 13 bankruptcy allows people to maintain possession of liquid assets.
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Patrick Cordero: Credit after Bankruptcy

5/16/2013

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Patrick Cordero manages a private law office in southern Florida, where his primary focus is on helping clients find their way through financial turmoil. His practice is the second-largest bankruptcy-filing firm in the state of Florida with more than 55 employees.

Most individuals worry about what will happen to their credit after filing for bankruptcy, especially as financial security in this country is based upon good credit. However, bankruptcy does not mean the end of credit. A good attorney can help bankruptcy filers prepare to achieve a more secure, healthier financial future, and most are able to obtain new credit within a year or two of filing for bankruptcy. In fact, they may have better credit than ever. Banks and credit card companies may be more apt to give credit to those without any debt because they are better able to make full and timely payments. Additionally, most individuals who go through the bankruptcy process learn valuable lessons and become better financial managers.

If you are thinking about filing for bankruptcy, you are encouraged to meet with a bankruptcy attorney to learn what steps you should take next.
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Filing for Chapter 7 or Chapter 13 bankruptcy protection: What Are The Options? By Patrick Cordero

4/22/2013

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Individuals who are considering filing for bankruptcy to restructure their
financial situations often want to know what differentiates Chapter 7 from
Chapter 13 bankruptcy proceedings. Considered the simplest form of bankruptcy
protection, Chapter 7 liquidates and redistributes the filer’s assets, which may
include property, in order to pay off creditors. The end result is a reduction
in, or elimination of, debt for the client, which can lead to financial peace of
mind as well as an end to collections proceedings from debt recovery agencies.
Because of the possibility of losing property, clients owning homes or land may
opt for Chapter 13 bankruptcy, which offers more protection for individuals who
own a greater amount of assets. To file for Chapter 13, clients must have a
steady monthly income and be capable of repaying a certain percentage of the
debt.

An attorney with over 21 years in the practice of law, Patrick
Cordero runs his practice out of Miami, Florida. The Law Offices of Patrick
Cordero is the largest bankruptcy filer in the state of Florida, and has helped
thousands of individuals regain their financial security.
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A Brief Overview of American Bankruptcy Law: Part 1, by Patrick Cordero

11/12/2011

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Patrick Cordero operates one of the leading bankruptcy and mortgage modification law practices in South Florida. Cordero’s practice serves as the second-largest bankruptcy filer in the nation.

The framers of the U.S. Constitution wisely reserved to Congress the power to make rules and laws pertaining to bankruptcy. Throughout the 19th century, bankruptcy laws in the United States were considered only after financial crises. Before 1898, only three were enacted and each was repealed shortly afterward because of the costs involved and the high degree of corruption. The first such law, passed by Congress in 1801, was extremely limited in scope and applied only to traders and not individuals or corporations. In addition, the 1801 law provided only for involuntary bankruptcy imposed by a judge based on a debtor’s inability to meet a creditor’s demands in a lawsuit. Subsequent bankruptcy legislation expanded the population of entities that could be declared bankrupt; made provisions for voluntary bankruptcy; and introduced the concept of compositions, plans devised by debtors for the distribution of its assets among creditors.

Without bankruptcy laws, debt collection was primarily governed by contract law. Creditors would sue delinquent debtors and, following judgment, seize their belongings to meet the amount due. Some states modernized their laws, declaring certain assets immune from such seizure, such as residences and tools of the debtor’s trade. They reasoned that without a place to live or tools to earn a living, a debtor would be rendered less able to pay a judgment. Individual debtors, as well as their families and servants, could be jailed if they were unable to meet their obligations. However, this practice fell into disfavor in the 1830s.

Despite the need for a uniform national bankruptcy law, the Bankruptcy Acts of 1801 and 1841 were enacted after a period of national financial difficulty and intended to last only five years each. Both were repealed after only two years. The Bankruptcy Act of 1867 lasted longer, but was repealed in 1878. As the United States entered the Industrial Revolution, it had no uniform law governing bankruptcies. Instead, creditors dealt with delinquent debtors by means of an often punitive legal process that may well have exacerbated their financial hardships.
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