Filing Bankruptcy in Florida
Many Floridians are facing an economic crisis. Whether it is from a job loss, an unexpected medical crisis, poor financial decisions or a divorce, they may be able to find financial relief by filing for bankruptcy in Florida.
If you are in a desperate financial situation, filing personal bankruptcy may be an option for you. Federal bankruptcy laws have been created to allow individuals to legally file bankruptcy and discharge debt. If a debtor qualifies for Chapter 7 Bankruptcy in Florida, they can discharge most of their unsecured debt. Debtors who do not qualify for a Florida Chapter 7 Bankruptcy may be able to file Chapter 13 Bankruptcy in Florida and create a 3 to 5 year debt repayment plan to discharge most of their qualifying debt.
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Filing Chapter 7 Bankruptcy in Florida
Chapter 7 Bankruptcy in Florida is the most common and simplest type of bankruptcy. Chapter 7 Bankruptcy is a considered a "liquidation" of a debtor's assets to pay their personal debt. In many cases Individuals, corporations, partnerships and married couples can all file Chapter 7 bankruptcy.
Chapter 7 Bankruptcy in Florida allows the Florida bankruptcy court to appoint a trustee to sell or liquidate the debtor's non-exempt assets to repay their creditors. Creditors are paid by the trustee in priority order, according to federal bankruptcy laws.
Changes in federal bankruptcy laws have made it increasingly difficult for debtors to file Chapter 7 Bankruptcy in Florida. Under the current bankruptcy laws, most individuals will now have to repay all or a portion of their personal debt by filing Chapter 13 Bankruptcy in Florida.
How do you know if you qualify to file Chapter 7 Bankruptcy? There are several tests which are done to determine your eligibility. The first test is an income test which will evaluate your income for the last six months and determine if it is below the Florida median income (compared to other families of similar size). If you median income is above the median income, additional "means testing" must be done.
Median income for the state of Florida is provided by the United States Trustees. In the state of Florida, beginning March 15, 2011, the median income level for a single wage earner in the state of Florida was $40,029. For a two person family it was $50,130 and for a family of three it was $54,594. For a family of four it was $65,135.
Floridians whose income is not less than the median income for their state must pass additional means testing to find out if they can file Chapter 7 in Florida. The first step in the means test is to determine the debtor's disposable income or the income they have left over after paying their "allowable" monthly expenses. In general, the "means testing" will analyze the debtor's monthly income over the last six months and subtract priority debt (taxes owed, mortgage payments, school tuition- up to a threshold limit). If, after the expenses are subtracted, the debtor can pay $100 per month to their unsecured creditors or $6,000 within the next 5 years, they may have to file Chapter 13 Bankruptcy in Florida.
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Filing Chapter 13 Bankruptcy in Florida
If you cannot file Chapter 7 Bankruptcy in Florida you may be able to file Chapter 13 Bankruptcy. Chapter 13 Bankruptcy in Florida does not immediately discharge debt but requires debtors to repay a portion or all of their debt back to their creditors under an approved three to five year bankruptcy repayment schedule. Debtors who complete their repayment plan may have their qualifying debts discharged, but it could take up to five years.
Chapter 13 in Florida may be the best option for many families. It will generally allow debtors to retain their property and it can stop repossessions, wage garnishments, bank account levies, and harassing creditor calls.
Who can file Chapter 13 Bankruptcy in Florida? Individuals, including the self-employed or those operating an unincorporated business, may file Chapter 13 Bankruptcy in Florida. To file a Florida Chapter 13 Bankruptcy the individual must have unsecured debt which is less than $360,475 and secured debt which is less than $1,081,400 (11 U.S.C. § 109(e)).
Not all property is included in the bankruptcy estate. Allowable property exemptions are outlined at the federal level, but many states have decided to "opt out" of these choices and have developed their own state lists. Certain states allow the filer to choose between the state list and the federal exemption list. In the state of Florida, you must use the Florida State Exemption List and Federal Exemptions are not allowed.
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Will all my debts be discharged by filing bankruptcy in Florida?
Many debts will not be discharged by filing either Chapter 7 or Chapter 13 Bankruptcy in Florida. Debts not discharged in a Florida bankruptcy must be paid and creditors have the legal right to continue their debt collection efforts. Debts not discharged in a Florida bankruptcy include the following:
- Child support and alimony or spousal support payments
- Debts for personal injuries caused by driving while intoxicated by drugs or alcohol
- Student loans (exceptions may be made if you can prove that there would be an undue hardship if it was repaid)
- Fines or penalties for any criminal offenses, including traffic fines
- Income tax debts (from the past 3 years)
- Debts omitted from the bankruptcy documents
Debts not discharged by filing Chapter 7 Bankruptcy in Florida (if the creditor challenges the discharge)
- Debts incurred from larceny, breach of trust or embezzlement
- Debts from the malicious or willful injury of another person or their property
- Credit purchases of $1,150 or more for luxury goods or services within 60 days of filing Chapter 7 Bankruptcy in Florida
- Debts incurred from fraud
- Debts owed from a divorce decree or settlement (may be discharged if the court determines the benefit you would receive by the discharge outweighs the detriment to your ex-spouse)
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Hiring a Florida Bankruptcy Lawyer
Find Attorneys in FloridaIf you live in the state of Florida, it is important to find, contact, and hire a Florida Bankruptcy Attorney prior to filing either Chapter 7 or Chapter 13 Bankruptcy. Filing bankruptcy is a serious financial decision and should not be made before talking to a Florida bankruptcy lawyer who can review your assets and debt levels and determine if Florida bankruptcy is the best option for you. Filing bankruptcy in Florida can potentially lower your credit score and reduce your ability to get loans. Fill out our free case evaluation below to see if if one of our lawyers can help you get your financial freedom today!
One of our highly qualified Florida Bankruptcy Attorneys will walk you through the confusing legal process and make sure you have all the information you need to decide if Chapter 7, Chapter 13 or Bankruptcy Alternative is the best choice for you.
We offer a free confidential debt evaluation of your financial situation to help you get the solutions you seek. Don’t wait to get the financial fresh start you deserve!
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Florida Bankruptcy Attorneys
Following is a list of bankruptcy attorneys who practice law in Florida. To contact one of these attorneys, please complete our free case evaluation form or call 800-859-0844
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Boca Raton Guaranteed Performance 10851 King Bay Dr. Boca Raton, FL 33498 |
Map & Directions Call Now: 800-859-0844 Contact for your Free Evaluation |
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Clearwater Carolyn Secor Attorney and Counselor at Law 2451 N. McMullen Booth Rd. Clearwater, FL 33759 |
Map & Directions Call Now: 800-859-0844 Contact for your Free Evaluation |
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Fort Lauderdale The Law Office of Michael Johnson 3230 W. Commercial Blvd. #290 Fort Lauderdale, FL 33309 |
Map & Directions Call Now: 800-859-0844 Contact for your Free Evaluation |
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Ft. Lauderdale The Law Office of Michael A. Dye P.A. 1 E. Broward Blvd., Suite 700 Ft. Lauderdale, FL 33301 |
Map & Directions Call Now: 800-859-0844 Contact for your Free Evaluation |
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Jacksonville Bryan Mickler 5452 Arlington Expressway Jacksonville, FL 32211 |
Map & Directions Call Now: 800-859-0844 Contact for your Free Evaluation |
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Largo Law Offices of Don A. Anderson 801 West BAy Drive, Suite 511 Largo, FL 33770 |
Map & Directions Call Now: 800-859-0844 Contact for your Free Evaluation |
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Mount Dora Shipley Law Firm 20110 US Highway 441 Mount Dora, FL 32757-6963 |
Map & Directions Call Now: 800-859-0844 Contact for your Free Evaluation |
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Orlando Katz and Phillips, PA 121 South Orange Ave., Suite 1420 Orlando, FL 32801 |
Map & Directions Call Now: 800-859-0844 Contact for your Free Evaluation |
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Pompano Beach Low Cost Legal 891 Northwest 45th St. Pompano Beach, FL 33064 |
Map & Directions Call Now: 800-859-0844 Contact for your Free Evaluation |
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West Palm Beach The Port Law Firm, PA 2161 Palm Beach Lakes Blvd., Suite 217 West Palm Beach, FL 33409 |
Map & Directions Call Now: 800-859-0844 Contact for your Free Evaluation |
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Related Pages
More Information on Bankruptcy Law in Florida:
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