The Process of Filing for Bankruptcy in Florida

The process for filing for bankruptcy in Florida involves completing a series of legal steps under federal bankruptcy law, which provides individuals and businesses with relief from debt. In Florida, the United States Bankruptcy Court for the Southern District of Florida, located in Miami, Fort Lauderdale, West Palm Beach, and Fort Pierce, oversees all bankruptcy filings.

There are several types of bankruptcy proceedings available, each with its own eligibility requirements and benefits. The most common types of bankruptcies are Chapter 7, Chapter 11, and Chapter 13.

Chapter 7 Bankruptcy

Chapter 7 bankruptcy, also known as liquidation bankruptcy, is designed for individuals and businesses with limited assets and income. In this form of bankruptcy, a trustee is appointed by the court to sell any non-exempt assets, distribute the proceeds to creditors, and discharge any remaining unsecured debts.

Chapter 11 Bankruptcy

Chapter 11 bankruptcy is designed for businesses, but individuals can also use it for restructuring their debts. In this process, the debtor retains possession of all assets while proposing a restructuring plan that repays debts over time.

Chapter 13 Bankruptcy

Chapter 13 bankruptcy is designed for individuals with a steady income source who need to reorganize their debts. Under this plan, the debtor proposes a repayment plan that allows repayment of the debts over a three- to five-year period.

To file for bankruptcy in Florida, the debtor must file a petition with the bankruptcy court in the district where they live or where their business is located. The debtor must also submit a fee for filing the petition and other necessary documents.

It is recommended to consult with an experienced bankruptcy lawyer before filing for bankruptcy. A skilled attorney can help you determine which type of bankruptcy is best suited for your unique financial situation and guide you through the process from start to finish.

It is important to note that there are limitations and exceptions to the bankruptcy process in Florida. For example, some debts cannot be discharged in bankruptcy, such as student loans, child support, and tax debts. Additionally, if the debtor engages in fraudulent activity or conceals assets, their bankruptcy case may be dismissed or subject to criminal charges.

In summary, the process of filing for bankruptcy in Florida involves a series of legal steps that must be taken under federal bankruptcy law. Depending on the individual or business's financial situation, different types of bankruptcy may be the best fit. Therefore, it is crucial to consult with an experienced bankruptcy attorney before taking any legal actions.