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.
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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