Filing for Bankruptcy in FL
While you may have other debt-relief options available to you to fix your financial health, filing for bankruptcy in FL is the most practical option for a lot of people who are having difficulties supporting themselves. In Florida, the most common options for bankruptcy are chapter 7 and chapter 13.
Keep in mind that the bankruptcy process is governed by federal bankruptcy laws, not state laws, and it functions by disentangling the contracts between you and the creditors to give you a fresh financial start. The state’s bankruptcy laws, however, will be used when determining the property, you may keep while going through bankruptcy.
The Steps for Filing for Bankruptcy in FL
You will go through the following steps when you file for bankruptcy in FL:
- Understand the difference between chapter 7 and chapter 13 bankruptcy
- Determine if you qualify for bankruptcy
- See whether bankruptcy will suffice to erase your debt
- Check if and what property you may keep
- Discuss your case with a Florida bankruptcy attorney
- Gather all the financial documents you’ll need for filing
- Stop paying erasable debts
- Complete a credit counseling course
- Complete and file the necessary documents
- Submit your paperwork and financial documents
- Go to the 341 creditor’s meeting
- Develop plan payments (for chapter 13 bankruptcy)
- File your debtor’s education certificate
- Have your debts formally discharged by the court
What You Should Know About Bankruptcy Exemptions in Florida
You may be able to keep property covered under federal and state bankruptcy exemption lists. The kind of bankruptcy you file would determine what would happen to the property that can’t be exempted.
When you opt for chapter 7 bankruptcy, your bankruptcy trustee will sell any nonexempt property and use the proceeds for paying off your creditors. On the other hand, when you file for chapter 13 bankruptcy, you may keep all your property. However, you will need to pay the value of the nonexempt property to your creditors via your repayment plan. You will be given three to five years to do this.
The property exemptions that are most used in Florida bankruptcy cases include:
- Motor vehicle exemption – You can utilize this exemption to protect up to $1,000 for one motor vehicle.
- Homestead exemption – You may be able to use this for protecting an unlimited equity amount in their primary residence.
- Wildcard exemption – If you can’t or don’t want to utilize the homestead exemption, you can use the wildcard exemption instead to protect any property as long as the value doesn’t exceed $4,000.
- Retirement plans – Pension Plans, 401k, IRA, life insurance, and college funds are some additional assets that may be protected in bankruptcy.
In addition, you may have the option of protecting child credits, tax credits, and stimulus payments with the covid-19 rebate exemption.
Discuss Your Case With an Experienced Florida Bankruptcy Attorney Now
To learn more about the process, which type of bankruptcy is best for your case, and how you can protect your finances while going through bankruptcy, talk to our Florida bankruptcy attorney today. Schedule your complimentary case review with our Florida bankruptcy attorney by reaching us online or dialing 561-658-1789.