Bankruptcy

Bankruptcy Attorneys

CAVA Law offers its clients concrete legal strategies that permit them to address debt-related legal concerns through the Bankruptcy Courts. Our team’s vast experience has allowed the firm to counsel diverse clients through insolvency proceedings; whether you’re a debtor, creditor, individual, small business, or large corporation, we have the skill and experience to navigate your bankruptcy case.

We develop a unique strategy for each client depending on the legal issues. Our team is adept at navigating cases through Chapters 7, 11, 12, and 13 of the Bankruptcy Code, through Assignment for the Benefit of Creditors (“ABC cases”) in Circuit Civil Courts, and through mediation and arbitration when the matter requires it.

The firm’s strategies when approaching insolvency and financial risk are designed to provide clients with a plan of action that will lead them towards financial security.

At CAVA Law, we provide personalized legal representation and guidance to help clients make informed decisions during financial uncertainty.

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Legal Foundations and Strategic Use of Bankruptcy Relief

Understanding Bankruptcy Chapters and Their Applications

The U.S. Bankruptcy Code offers different legal frameworks depending on a client’s financial structure, income, and obligations. At CAVA Law, we guide individuals and businesses in South Florida through these options, focusing on protecting what matters most while addressing debt through lawful, strategic means.

Chapter 7 – Liquidation for Qualified Debtors

Chapter 7 bankruptcy is typically suited for those who cannot maintain monthly debt payments and have limited assets. It may result in the discharge of unsecured obligations such as medical bills, credit card balances, or personal loans. Although the process can include liquidation, Florida’s exemption laws often protect essential property—including homestead, limited personal property, and retirement accounts. However, each case requires careful review to ensure compliance and prevent unnecessary exposure. A bankruptcy attorney is key in evaluating whether Chapter 7 aligns with the client’s financial profile and goals.

Chapter 13 – Reorganization for Individuals

Chapter 13 bankruptcy is structured for regular-income individuals who need time and legal protection to repay certain debts. It is beneficial for individuals who are:

• Facing foreclosure or vehicle repossession
• Dealing with unresolved tax obligations
• Looking to avoid liquidation while staying current on debt

The process involves a court-approved repayment plan typically lasting three to five years. It provides breathing room while protecting assets and offering a potential discharge of remaining unsecured debt once the plan terms are completed. A bankruptcy lawyer helps ensure that repayment schedules are realistic, complete, and comply with the court’s requirements.

Chapter 12 – Family Farmers & Fishermen

Chapter 12 bankruptcy is a specialized reorganization option under the U.S. Bankruptcy Code designed exclusively for family farmers and fishermen. It provides a way to restructure debt while continuing operations, recognizing the unique financial rhythms and risks associated with agricultural and fishing livelihoods. Unlike Chapter 11 or Chapter 13, Chapter 12 offers more flexible terms, streamlined procedures, and tailored provisions to help eligible debtors address secured loans, unpaid taxes, and other obligations without liquidating critical assets like land, boats, or equipment.

At CAVA Law, we guide clients through every step of the Chapter 12 process—from verifying eligibility and preparing court-approved repayment plans to representing them in trustee meetings and responding to creditor inquiries. Our legal team understands the importance of protecting your operations and livelihood, and we work closely with you to create a realistic, sustainable repayment plan that accounts for seasonal income and long-term goals. Our in-depth experience and personal approach help you regain control of your finances while preserving what matters most.

Chapter 11 – Business and High-Debt Reorganization

Chapter 11 bankruptcy is available to businesses and individuals with significant debt who seek to restructure while continuing operations or managing long-term liabilities. Unlike Chapter 13, there are no strict debt limits, and it offers more flexibility in modifying contracts, leases, and repayment terms. However, due to its complexity and cost, Chapter 11 is generally pursued only when other options are unsuitable.

Each chapter carries different eligibility requirements and legal outcomes. Our role is to provide legal clarity and recommend an approach that is both procedurally appropriate and responsive to our clients’ financial realities.

Insolvency Solutions for Business Owners

The legal approach for businesses facing insolvency depends on operational goals and creditor activity. CAVA Law assists clients in selecting between Chapter 11 bankruptcy and Assignments for the Benefit of Creditors (ABCs), depending on whether restructuring or wind-down is more suitable.

• Chapter 11 allows businesses to continue operating while restructuring debts under court supervision.
• ABCs allow for the orderly transfer of assets without formal bankruptcy, often resulting in fewer administrative burdens and lower costs.

Our attorneys also represent creditors in insolvency proceedings, ensuring claims are preserved, objections are timely, and distributions are handled according to applicable statutes. A bankruptcy attorney from our team works closely with clients to manage these transactions efficiently and with full legal compliance.

Florida Bankruptcy Exemptions

Bankruptcy does not mean forfeiting all property. Florida’s exemption laws protect specific categories of assets when properly claimed. Common exemptions include:

• Homestead: Primary residences, subject to acreage and duration requirements
• Personal Property: Furniture, clothing, and household items within state limits
• Retirement Accounts: IRAs, 401(k)s, and other qualified plans
• Motor Vehicle Equity: A limited amount of vehicle value may be exempt
• Unpaid Wages: Income earned but not yet received in some instances
• Tools of the Trade: Work-related equipment or professional tools

The correct application of these exemptions can significantly affect the outcome. Misuse or incorrect filings may lead to objections, trustee challenges, or asset loss. Our bankruptcy lawyer helps clients evaluate what may be protected and ensures that exemptions are applied accurately in accordance with Florida law.

Intersection of Bankruptcy and Family Obligations

In some cases, bankruptcy coincides with divorce or support-related obligations. While Chapter 13 may help address certain joint financial obligations from property settlements, it cannot discharge child support or alimony.

Complying with family court orders while pursuing bankruptcy court relief must be taken. Bankruptcy may also impact obligations related to marital debt, including indemnity clauses or hold-harmless agreements from a divorce judgment. Classifying these debts—whether as support or property division—can affect discharge ability.

These overlapping legal processes often require careful timing and documentation to avoid conflicting obligations. Our attorneys help clients balance both legal obligations and address timing, debt classification, and jurisdictional coordination where necessary, ensuring court orders are respected while identifying lawful opportunities for relief.

Legal Accuracy and Full Disclosure Requirements

The integrity of a bankruptcy case depends on complete, accurate disclosure. All income, debt, property transfers, and financial activity must be documented in court filings. Failure to do so can result in:

• Denial of discharge
• Case dismissal
• Civil or criminal liability

Errors often stem from overlooked assets, outdated financial records, or assumptions that informal transfers don’t require reporting. Issues may also arise during the 341 Meeting of Creditors, where the trustee may request clarification or additional records. Our role includes preparing clients for these inquiries, reviewing documentation for consistency, and responding to any court or trustee concerns that arise during the case. A knowledgeable bankruptcy lawyer helps minimize risk by ensuring court expectations are met and procedural missteps are avoided.

Frequently Asked Questions

What is the automatic stay?
It is a legal protection that halts most collection activity immediately upon filing. This includes lawsuits, wage garnishments, repossessions, and foreclosure proceedings.

Can tax debt be eliminated in bankruptcy?
Sometimes, older income tax debt may be discharged if it meets specific timing and filing requirements under federal law.

Will my employer find out about the bankruptcy?
Unless your employer is a creditor or involved in wage garnishment, they are not typically notified.

How long does bankruptcy stay on my credit report?
Chapter 7 remains for up to 10 years, while Chapter 13 remains for 7 years. Credit rebuilding may begin as soon as the case concludes.

Do I have to go to court?
Most cases only require the filer to attend a 341 Meeting of Creditors. Additional hearings are only necessary if disputes or objections arise.