What is the process for filing for bankruptcy in Florida?
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The process for filing for bankruptcy in Florida involves several steps. The first step is to determine if bankruptcy is the right option for your financial situation. There are two types of bankruptcy that individuals can file in Florida: Chapter 7 and Chapter 13.
To file for Chapter 7 bankruptcy, individuals must pass a means test to determine if their income falls below the state median. This test also assesses the individual's expenses and debts. If they pass the means test, they can file a petition with the United States Bankruptcy Court for the Middle District of Florida. This petition includes a list of all debts, assets, income, and expenses.
Upon filing, an automatic stay goes into effect that prevents creditors from contacting the debtor or taking further legal action against them. A trustee is assigned to the case to administer the bankruptcy process. The trustee will review the individual's assets and determine if there are any that can be liquidated to pay creditors. Any debts that cannot be discharged are paid off with the proceeds from the liquidated assets.
To file for Chapter 13 bankruptcy, individuals must have a regular source of income and their debts must be below a certain threshold. They must also submit a repayment plan to the court that outlines how they will pay off their debts over a three to five year period. The plan must be approved by the court and must be followed by the individual throughout the repayment period.
The cost of filing for bankruptcy in Florida is $335 for Chapter 7 and $310 for Chapter 13. The individual can request a fee waiver if they cannot afford to pay the filing fees.
It is important to note that not all debts can be discharged in bankruptcy. Examples of non-dischargeable debts include student loans, taxes, and child support payments. It is recommended to consult with a licensed bankruptcy attorney in Florida who can provide guidance on the specific details of each individual's case.
Additionally, filing for bankruptcy can have long-term consequences on an individual's credit score and ability to obtain credit in the future. It is recommended to carefully consider all options and obtain legal advice before proceeding with bankruptcy.
