Florida Chapter 7 Bankruptcy Filing a Chapter 7 Bankruptcy in Florida. Florida Chapter 7 Bankruptcy: Under the Federal Bankruptcy Code, there are multiple types of bankruptcies available to Florida residents. An individual can qualify for a Florida chapter 7 bankruptcy if their income and expenses meets certain criteria. Certain debts cannot be discharged in a Chapter 7 bankruptcy, such as alimony, child support, fraudulent debts, certain taxes, student loans, and certain items charged. (see Florida Non-Dischargeable Debts) In most Chapter 7 cases, the debtor has large credit card debt and other unsecured bills and very few assets. In the vast majority of cases. There are significant differences between Chapter 7 bankruptcy and Chapter 13 bankruptcy. Both forms of bankruptcy allow you the opportunity to get out of debt, but they are entirely different processes. Discuss your financial situation completely with your Florida bankruptcy attorney, leaving nothing out.
Related videosWhat should you know about bankruptcy in Florida?
In order to reaffirm the debt, you must also bring it current. In other words, if you are three or four months behind, then you must pay the back payments which are due in order to reaffirm it. You can selectively reaffirm your debts — you can state that you wish to keep the house and the furniture, but that you want the car and the jewelry to go back to the respective Creditors.
The trustee will oversee the case and the debtors must submit tax statements, a certificate of credit counseling, and a copy of a debt repayment plan from a credit counselor. The good news for any Florida resident is that according to Florida law there are many types of assets that are exempt from being liquidated. This is why it is recommended that anyone seeking a chapter 7 bankruptcy consult an attorney before filing.
More good news for Florida residents is that once a debtor files for bankruptcy most collection efforts are required to stop. This means no harassing phone calls, no foreclosure proceedings, or other debt collection efforts.
Around 20 to 40 days after the initial Florida Chapter 7 bankruptcy filing and stay period start date, the trustee appointed to the case will hold a creditors meeting. During this meeting, the trustee puts the debtor under oath and requires him or her to answer questions from both the trustee and the creditors.
Immediately after this meeting, the trustee will respond to the court as to whether the bankruptcy is abuse or not. The trustee will also advise the debtor of the various consequences of a Florida chapter 7 bankruptcy. If the case does not involve any assets to liquidate then the case is considered a no-asset bankruptcy. If the case does involve assets then the trustee will sell off any assets in order to pay back creditors.
If the judge grants the debtor a discharge on his or her debts then a letter will be sent from the court to a creditor ordering them to stop debt collection procedures. Once this order has gone out, if a company continues to try to collect on past debts, the company may be fined due to contempt of court. The Florida Chapter 7 bankruptcy is the most common type of bankruptcy that individuals seek.
It allows them to be discharged from their debts and keep some personal property and assets under Florida law. It is important to understand that filing chapter 7 does not release a debtor from all debts.
Some tax debts, student loans, some mortgages, and even other debt may not be discharged under law. Additionally, the court may revoke a chapter 7 discharge on the request of the trustee, a creditor, or if a debtor committed any sort of fraud. In order for any type of bankruptcy to go smoothly for a debtor, the debtor must have excellent financial records and be honest in all dealings.
Our Petition Preparer Service can have all your documents professionally prepared after a brief interview with our experienced Legal Document Specialists. Your court papers will be in your hands and ready to file in as little as three days!