Bankruptcy is processed and treated differently in each state of the United States of America. With the economy being less than favorable, numerous people have been contemplating about the decision of declaring bankruptcy in Florida; however, since the laws of each state are different, it is important to be able to first understand the legality of declaring bankruptcy in Florida. Those who are unsure of the different financial options that are available will want to consider contacting a bankruptcy attorney in Florida who will not only be able to provide consultation and advice, but also handle the paperwork if necessary.
There are two different chapters that are related to bankruptcy in Florida – Chapter 7 and Chapter 13. Both chapters are designed to be able to provide those in debt with the relief of debts and a fresh start; however, there are different consequences related to each chapter and different requirements as well.
Chapter 7 is the most common type of bankruptcy and is considered as “straight bankruptcy”. Those who apply for Chapter 7 are generally those who have no or few assets left under their name, and are unable to pay back creditors. Most debts under this chapter will be waived or dismissed; however, those who are interested in filing bankruptcy under Chapter 7 will have to qualify with their income and also through a means test. Nonexempt property will be sold by the bankruptcy trustee in order to repay some of the debt, and exempt property can be kept by the debtor.
Exemptions will include unemployment, disability and social security benefit. It will also include retirement funds, alimony and child support as well. Any prepaid medical, hurrican or education savings accounts will also be exempt from the bank, and depending on each individual’s situation, one’s home may also be consdiered as exempt property as long as it meets certain requirements. These requirements will include the home not being any larger than half an acre if it is within the city or 160 acres outside of a city. Different rules are set in place depending on the value of the home and the time when it was purchased. The laws regarding bankruptcy in Florida will depend on various factors.
Those who are eligible for Chapter 7 are those who do not have the ability to pay back any portion of the debt or those who do not simply have the funds on hand or the assets to pay back the debt. While most people who declare bankruptcy in Florida will generally apply for Chapter 7, those who do have some assets in their name and will be able to pay back a portion of their debt will have to go with Chapter 13.
Those who are declaring bankruptcy in Florida with Chapter 13 will find that they will be able to reorganize their debt by making partial payments according to a new payment plan. Any remaining debt may be discharged upon plan completion. Chapter 13 is considered as a middle ground n bankruptcy as debtors are able to attain some type of relief while creditors are able to attain some form of payment in return.
Those who are required to file for bankruptcy in Florida with Chapter 13 are generally those who have some form of dispoable income available after spending it on the essentials. The debts are ineligible for chapter 7 discharge. This will include debts of student loans and child support. Those who desire to pay off their debts to personal morals and values will also want to consider filing for bankruptcy in Florida through Chapter 13 as it is able to provide them with some type of leniency and relief.
Bankruptcy in Florida
Bankruptcy in Florida can be quite a headache, and while there are numerous rules and regulations in this area, many people have found that they are unsure of the best route and path to go with. Bankruptcy attorneys and lawyers are generally able to best provide information and details in regards to bankruptcy, and they are also able to provide affordable payment plans as well. If not, those who are brave enough to face the legal system by themselves will find the necessary forms to declare bankruptcy in Florida online. There are also numerous different types of tips and tricks that are posted online for those who are still on the fence on whether they should declare bankruptcy.
- Leasing a Vehicle? Insurance Tips You Need to Know - January 3, 2022
- How to Save More Money By Getting Quotes for Auto Insurance Twice a Year - December 9, 2021
- Do’s and Don’ts to Follow When Your Car Breaks Down - November 4, 2021