Things to Consider In a Florida Bankruptcy
Florida bankruptcy or simply bankruptcy is a legal court proceeding in which an individual or business organization that can no longer pay off debt can get an opportunity to start afresh.
If you are considering Florida bankruptcy, here are the four types of bankruptcy proceedings:
* Chapter 7, also known as “liquidation”, where a debtor must give up assets not classified by Florida bankruptcy law as exemptions, so the assets can be converted to cash to pay as much debt as possible
* Chapter 11 is generally used by large businesses, where the business goes under a reorganization
* Chapter 12 is specifically for family farmers.
* Chapter 13, also known as “wage earner plan” or “debt adjustment”, where a debtor to proposes a debt repayment plan over 3 to 5 years based on income to pay debt to the extent possible
Most individuals file under either chapter 7 or chapter 13 bankruptcy.
What happens when you file for Florida Bankruptcy?
Once you file for bankruptcy, a provision under the law known as the “automatic stay”. That prevents lawsuits, wage garnishments, utility service disconnection, eviction, foreclosure or repossession of property and any other action your creditors are taking to collect from you.
The ultimate result of a bankruptcy filing is the discharge of your debts, which frees you from any legal obligation to pay them.
Bankruptcy may seem to be the perfect solution to a debt-ridden life but not all your financial worries can be fixed by filing bankruptcy. Bankruptcy cannot discharge certain types of debt such as child or family support, most student loans, some tax debts, criminal fines, among others. Check the complete list of non-dischargeable debts under Florida bankruptcy law to find out which of your debts can be cancelled.
When you file for bankruptcy and you have a loan that you obtained with a co-signer, you may not have to pay the loan if it is discharged but your co-signer will be left with the responsibility to repay it.
If you have secured debts such as home mortgages and auto loans, you may have to surrender the car and house under Chapter 7 bankruptcy. You can keep them if you file under Chapter 13, but you would need to make regular monthly payments based on the payment plan.
Certain parts of the bankruptcy law are not the same for all states. In Chapter 7 bankruptcy, individual state laws list the assets that are exempted and cannot be taken away from you. Therefore, bankruptcy petitioners in Florida should check the Florida bankruptcy exemptions that apply to them. Additionally, you would want to make sure to consult with a qualified Florida bankruptcy lawyer who can give you legal advice on specific Florida bankruptcy laws.
In bankruptcy filing, you must file your petition at the bankruptcy court in the area where you have lived for the last six months or for the greatest portion of that period prior to your filing. Therefore, you have to be a resident in Florida for the past six months or have been residing in Florida for the most part during the last six months prior to filing at a Florida bankruptcy court.