Miami Florida Bankruptcy Blog

Archive for the ‘Chapter 7 Bankruptcy’ Category

A Chapter 7 bankruptcy, also known as a “Straight Bankruptcy” or a “Liquidation Bankruptcy” allows you to discharge your debts. What does “discharge” mean? Quite simply, it means that you can get rid of your debts, not pay them back and keep almost everything you own as per state exemptions. Often you will have to pay back very little and keep all of your property. A Chapter 7 Bankruptcy, in most instances, gives a family a chance to start over again without the burden of bills. A Chapter 7 allows you to have a clean slate and even buy property again.

To fully understand Chapter 7 Bankruptcy, you need to be well informed. It was created so that people in severe financial hardship would not have to suffer forever. It gives them the opportunity to obtain a clean slate and start over and build a credit history they deserve.
Not everyone qualifies for a Chapter 7 Bankruptcy. You must pass what is called the “Means Test.”

If you do not qualify for a Chapter 7 Bankruptcy, all hope is not lost. A Chapter 13 Bankruptcy (Court Ordered Payment Plan) is still a viable option. A Chapter 13 Bankruptcy can still make your life much better than it is right now if you are behind on payments, being harassed by debt collectors, and worried about your financial future.

In future posts we will talk about the “means test” and common misunderstandings about Chapter 7 Bankruptcy.

Matthew E. Mazur, Jr. Esq., is the managing shareholder of Matthew Mazur, P.A., a Coral Gables, Florida based law firm that represents clients in Bankrutpcy matters. For more information please visit www.coralgablesbankruptcyattorney.com.

Throughout History, successful people have had to file for bankruptcy to get back on the road to success. The following is a short list of current and past Famous Successful Americans who have had to file for bankruptcy:

• Walt Disney: He went through some very serious financial difficulties in his early years because financial backers in his first company withdrew their financial backing. This left Walt with considerable debts and no way to pay them off. He filed for bankruptcy protection. He went on to create one of the largest entertainment companies in the world.
• Burt Reynolds:  He got into debt after his 1996 divorce. He owed $10,000,000.00 and his only way out was to file for bankruptcy.
• Donald Trump: As shocking as it may seem, the Donald has filed for bankruptcy. In 1990 he filed for bankruptcy protection because he was $900,000,000.00 in debt.
• Larry King: In 1978 he was $352,000.00 in debt and had to file for bankruptcy as he had no other way out.
• Abraham Lincoln:  He declared bankruptcy in 1833 after his law practice failed. As you know he went on to become the 16th President of the United States.
• Francis Ford Coppola: He filed for bankruptcy in 1982 after one of his entertainment projects lost money. His only way out was to file for bankruptcy.
• Toni Braxton: She filed for bankruptcy in 1998. Despite the fact that she had sold millions of records she was unable to get out from under her debts without the assistance of bankruptcy. 

The above list of famous successful people who have filed for bankruptcy and gone on to do great things should serve as a reminder that filing bankruptcy is not the end of the world. It is the beginning of a new financial future, one that should be better than the one you had before you filed for bankruptcy.

Matthew E. Mazur, Jr. Esq., is the managing shareholder of Matthew Mazur, P.A., a Coral Gables, Florida based law firm that represents clients in Bankrutpcy matters. For more information please visit www.coralgablesbankruptcyattorney.com.