Miami Debt Lawyer
Dealing with debt is never easy, and Miami residents struggle on a daily basis with secured and unsecured debts. At Nowack & Olson, PLLC, we are committed to assisting members of the Miami community with debt relief solutions. We know that everyone has different types of debt, and that debt arises under numerous types of circumstances. For example, sometimes Miami residents spend beyond their means for months or even year, amassing tens of thousands of dollars in credit card debt. In other situations, an unexpected medical emergency might result in thousands of dollars of unexpected debt. And yet for others still, debt anxiety might focus on unpaid mortgage payments or student loan bills.
An experienced Miami debt lawyer can discuss your options with you today for taking control of your debt.
Understanding Different Types of Debt in Miami, Florida
In general, there are two different types of debt that consumers and business can accrue: secured debt and unsecured debt. Both types of debt can be managed through Chapter 7 bankruptcy, Chapter 13 bankruptcy, or Chapter 11 bankruptcy. While there are certain types of unsecured debt that cannot be discharged through a bankruptcy proceeding, many Miami residents are able to get debt relief through bankruptcy protection.
What is secured debt? This is a type of debt that is secured through some sort of collateral. In other words, there is some tangible property tied to the debt, and if you fail to make the payments you owe, the creditor can take that tangible property from you. For example, mortgages and automobile loans are the two most common forms of secured debt. You also may have secured debt if you have a credit card tied to a specific store for which you bought property, such as a home furniture store.
Unsecured debt, unlike secured debt, does not have collateral associated with it. As such, if you fail to make payments on the debt you owe when it comes to unsecured debt, the creditor cannot come and repossess the property that you are making payments on. Common types of unsecured debt include general credit card debt, medical debt, and student loan debt.
Discharging Debt Through Bankruptcy in Miami
Depending upon the types of debt you are facing, there may be multiple bankruptcy options for you to consider. Generally speaking, Chapter 7 bankruptcy allows debtors to discharge most debts, including secured and unsecured debts, as long as the debts are not listed as exceptions to discharge under the U.S. Bankruptcy Code. Examples of debts that fall into this category include certain types of tax debt, debts incurred fraudulently (with the knowledge that the consumer or business would be filing for bankruptcy), child support or other family support obligations, and personal injury damages owed.
Chapter 13 bankruptcy can be especially helpful to debtors with secured debts where they want to retain the collateral. For example, if you are behind on your mortgage payments but want to keep your home, Chapter 13 bankruptcy can help you to reorganize your debts and to get back on track with your monthly mortgage payments.
Many Miami residents also want to learn more about student loan debt relief. While student loan debt can be difficult to discharge in a consumer bankruptcy, it is not impossible. A Miami bankruptcy lawyer can help you to understand your options when it comes to student loan debt.
Seek Advice from a Miami Debt Lawyer
Do you need help dealing with debt? An experienced Miami debt attorney can speak with you today. Contact Nowack & Olson, PLLC to learn more about the services we provide to clients in South Florida.