In Florida, filing for bankruptcy involves several steps, and the type of bankruptcy you choose will depend on your personal circumstances.
The first step in filing for bankruptcy is to attend credit counseling from an approved agency. This counseling must take place within six months before you file. After completing the counseling, you must file a petition with the bankruptcy court that has jurisdiction over your area. This petition must include detailed information about your financial situation, including your debts, assets, and income.
There are two main types of bankruptcy available to individuals in Florida: Chapter 7 and Chapter 13. Chapter 7 bankruptcy is often referred to as a "liquidation" bankruptcy, because it involves the liquidation of your non-exempt assets to pay off your creditors. In most cases, however, you will be able to keep most of your property, including your home and car, due to exemptions provided by Florida law.
Chapter 13 bankruptcy, on the other hand, involves a reorganization of your debts. Under this type of bankruptcy, you will be required to pay back a portion of your debts over a period of three to five years. This type of bankruptcy is often preferable for people who have a regular income and can afford to make payments on their debts.
It is important to note that bankruptcy does have some limitations and exceptions. For example, certain types of debts, such as student loans and taxes, may not be dischargeable in bankruptcy. Additionally, filing for bankruptcy may impact your credit score and future creditworthiness.
If you are considering filing for bankruptcy, it is important to consult with a licensed attorney who can provide personalized legal advice regarding your specific circumstances. They can also help you navigate the bankruptcy process and ensure that your rights are protected throughout.
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