When a person files for bankruptcy in Florida, they want to get rid of debt while being protected by the U.S. bankruptcy courts.A person's debts can be stopped by filing for bankruptcy.Chapter 7 is the most common form of bankruptcy for individuals.Chapter 7 involves liquidating assets.Chapter 13 allows a person to restructure his or her debt so that he or she can pay it off in installments.To complete and file all of the required federal and local bankruptcy forms, it is important to determine which type of filing is best for you.If you're not familiar with the law, you should talk to an attorney.
Step 1: Determine if it's necessary to file for bankruptcy.
It is important that you understand what debt will remain and what will be eliminated when you file for bankruptcy.Depending on the type of bankruptcy you file, you may be able to eliminate or pay off most of your debt.You can have a new financial start with a discharge.It is possible to stop the foreclosure on your home if you file for bankruptcy.Debt collection will no longer be possible if you file for bankruptcy.Utility companies can't stop your heat and water if you file for bankruptcy.If you can restructure your debt, you may be able to save money on your mortgage or car loan payments.You can't stop paying alimony and child support.You have to pay criminal fines and most taxes.If you file for bankruptcy, a friend or family member will have to pay your loan even if they co-signed it.
Step 2: Take a look at student loans.
Most student loans won't be discharged through bankruptcy.Chapter 7 may not be a good choice if the majority of your debt is student loans.A discharge of student loan obligations can be sought if the debtor is showing too much hardship.If you file for Chapter 13 bankruptcy, you may be able to negotiate a reduced monthly payment for your loans.
Step 3: Take into account the impact on your credit.
If you choose to file for bankruptcy, you should consider the impact on your credit.After you file a petition, your credit report will stay the same for 10 years.Your ability to secure credit may be affected by this.
Step 4: Chapter 7 eligibility can be determined.
Chapter 7 may be best for individuals who are having difficulty paying their bills and are willing to sell or liquidate some of their assets to pay off their debts.You need to show that your income is below the median family income for a house of your size in Florida in order to be eligible for Chapter 7.If your median income is above Florida's median family income, you must complete a means test, which will allow you to calculate your net monthly income.You can use an online means calculator to determine if you can file for Chapter 7 bankruptcy.
Step 5: Chapter 13 eligibility can be determined.
If you have a regular income and want to restructure your debt so that you can pay it off in installments, Chapter 13 is a good option.You need to show that you are an individual and not a business entity in order to be eligible for Chapter 13 bankruptcy.You haven't discharged debt under Chapter 13 or Chapter 7 within the previous four years.You did not have a case dismissed within 180 days.The credit counseling requirement was fulfilled by you.For the previous four years, you filled in the income taxes.A repayment plan that repays all legally required debts, such as child support, mortgages, vehicle loans and any tax liens, as well as some Unsecured debt, like money owed for household furniture or appliances, was developed by you.Your secured debt, such as a mortgage, is less than a million dollars.You can pay your restructured debt with your income.
Step 6: Chapter 7 and Chapter 13 bankruptcies are available.
If you find that you are eligible for both Chapter 7 and Chapter 13 bankruptcy, you should decide which is best for you.Chapter 7 cases take between three to six months to complete.If you do not own a lot of property, you will not lose it in a Chapter 7 bankruptcy.You don't need to repay your debts with Chapter 7.If you have fallen behind on your payments for your house or car and you want to be able to make those payments up, Chapter 13 may be better for you.If you have property that you want to keep, then Chapter 13 is a better option.If you have a cosigner on a loan who will become responsible for the entire loan if you file for Chapter 7 bankruptcy, Chapter 13 may be a better option.
Step 7: You should hire an attorney.
While you have the right to represent yourself in a bankruptcy proceeding, it is incredibly complex and can have a long-term impact on your financial future.An experienced attorney can fill out all of the required forms, file the forms in the proper jurisdiction, help you choose the right type of bankruptcy filing, and fully explain your options and potential outcomes.You can find a Florida bankruptcy attorney through the local bar association, or you can call the Florida Bar Lawyer Referral service.The program only helps people who live in an area with no local program.You will be connected with an attorney for 30 minutes at a reduced fee.
Step 8: Credit counseling.
People who are filing for Chapter 7 or 13 must complete a credit counseling program.You have to complete the program in 6 months.Before your debt is discharged, you have to take a debtor education course.You can find approved credit counseling agencies.
Step 9: You can find federal bankruptcy forms.
The appropriate federal bankruptcy forms must be used by all bankrupts.Depending on the circumstances of your case, you may need to file a Voluntary Petition for Individuals Filing for Bankruptcy.The filing fee can be paid in installments.There is a summary of your assets and Liabilities.A statement of income.If your income is above the state median, Chapter 7 means test calculation.There is a statement of your current monthly income.There is a calculation of your disposable income.You can find all of the forms at the website.
Step 10: The correct court to locate is the bankruptcy court.
There are federal bankruptcy courts in the United States.You have to file your bankruptcy petition in the federal judicial district where you have been living for 180 days before you can file.The district court can be found at: http://www.uscourts.gov/courtlinks.If there are any local forms that are required for your bankruptcy filing, you need to locate your district court and its website.
Step 11: Determine the relevant Florida exemptions.
Each state has its own exemptions for bankruptcies.There are exemptions that can't be counted against you in calculating your net worth.Florida does not allow its residents to use Federal bankruptcy exemptions, but they must use the Florida exemptions.You have to determine which exemptions you qualify for when you file for bankruptcy.A homestead exemption allows a debtor to exempt an unlimited amount of value in your home.Certain personal property in Florida is exempt for up to $1000.Up to $1000 in motor vehicle equity can be exempt.The debtor can exempt up to $4,000 in personal property for those who aren't using the homestead exemption.Retirement funds such as Simple IRAs are exempt.You can find a complete list of exemptions at: http://www.nolo.com/legal-encyclopedia/florida-bankruptcy-exemptions.
Step 12: There is a complete petition.
The Voluntary Petition for Individuals Filing for Bankruptcy must be completed by all Chapter 7 or 13 bankruptcy filers.The document requests debtor identifying and contact information, information about any previous bankruptcy cases, business information and other information related to your case.The form can be downloaded from the website.You can type your answers into the form and then print out a completed copy.
Step 13: A summary of assets and liabilities can be provided.
The summary of assets and liabilities must be submitted by the debtor.Schedule A/B: Property is one of the forms that must be completed by all persons filing for bankruptcy.You claim the property as exempt.There are claims secured by your property.The schedule is for the people who have Unsecured claims.Unexpired Leases and Executory Contracts are listed in Schedule G.Schedule H is for your co-debtors.Schedule I is about your income.Schedule J covers your expenses.If you are filing for Chapter 7 or Chapter 13 you may have to complete additional forms.You can find and download the forms from the website.
Step 14: A statement of financial affairs should be completed.
A statement of financial affairs is required of all filers.The form gives an overview of your financial history for a certain period of time.
Step 15: A certificate of credit counseling is needed.
The certificate of credit counseling that you received at the end of your course must be attached to your petition.When you file for bankruptcy, it must be filed no later than 14 days.
Step 16: You have to file the forms.
You have to take the forms to the appropriate bankruptcy court after you have completed them.Check with your local court as to the filing fees, the number of copies you need, and any additional questions.