Bankruptcy

Florida Chapter 7 Bankruptcy Rules

As per Florida chapter 7 bankruptcy rules, the state residents who are declared as bankrupt can avail certain sets of exemptions for their assets and properties. However, unlike other states, you do not get an option to replace the state-specified exemptions with the federal set of exemptions. But, you can use the federal supplemental exemptions in addition to the list of exemptions allowed under the Florida laws. When you go bankrupt under this chapter, the majority of your debts are written off and most of your assets and properties are liquidated. A bankruptcy trustee is appointed by the court who looks after the entire process. They collect the money received from the sale of assets and then pay the same to creditors a priority basis as specified in the court judgment. There are three districts in Florida – southern, middle, and northern. There are overall nine bankruptcy courts. These courts and the Congress establish the rules for the procedures and filings associated with a bankruptcy case.

Residency Requirements

As per Florida chapter 7 bankruptcy rules, you must be a resident of this state for the last two years in order to qualify for filing your petition under this chapter. If you do not meet this 2-year residency requirement, Florida laws will not apply to your case; instead, the state you were living before moving to Florida will regulate your bankruptcy case.

Credit Counseling

The 2005 Bankruptcy Code was introduced with an objective to prevent the abuses of chapter 7 bankruptcy. With the introduction of these new laws, now it has become mandatory for the debtors to first complete a credit counseling session from an expert counselor duly licensed by the state. Approval from the court is also necessary when it comes to the selection of the right credit counseling agency in this regard. Florida chapter 7 bankruptcy rules have imposed certain additional requirements also. For example, the debtors must also a personal finance management class within a certain period of time after filing the petition. You can attend these classes either on Internet or in person.

The Cost Of Filing

When you file a chapter 7 petition in Florida, you have to pay $299 as bankruptcy filing fee. It is very important for you to keep in mind that this cost is in addition to the fees charged by your lawyer.

Assets Determination

Florida laws also require the debtors to first compile a detailed list of their debts, income, and assets. This list is then used to conduct the Means Test, which is another legal requirement imposed by the 2005 bankruptcy Act. If your regular monthly income after deducting the regular expenses is higher than the median income of your state, you will not qualify for chapter 7 petition. As per the latest statistics released by the U.S. Census Bureau, the current median income of the state is around $41,000 for an individual. The median income of the families varies depending upon the number of members in the families.

An attorney who is specialized and experienced in Florida chapter 7 bankruptcy rules can help you conduct the means test. In fact, they can also help you do some basic preparations in such a way to pass the means test in a way to meet certain objectives, depending upon your specific debt and financial situation.


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One Response to “Florida Chapter 7 Bankruptcy Rules”

  1. Scott says:

    Residents of Florida can get some exemptions for properties and other assets in case of bankruptcy. In some states, you have the option to replace the state specified exemptions with the federal set of exemptions but in Florida you can not use this option. You can add the Federal supplemental exemptions with your state specific exemptions. A bankruptcy trustee will be appointed to look after the whole proceedings of the case. There are some specific rules of Florida Chapter 7 Bankruptcy. It is compulsory that you should be a resident of the state of Florida for at least two years only then you can file for Bankruptcy. It is very important for the debtors to attend a Credit counseling session from a professional counselor. The counselor must be approved from the court. There is a very nominal fee for the bankruptcy filing which has to be given by you. Florida laws also require the debtors to first compile a detailed list of their debts, income and assets. An attorney who is specialized and experienced in Florida chapter 7 bankruptcy rules can help you conduct the means test.

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