How to file bankruptcy in the florida

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How to File Bank ruptcy in the Florida



ď‚ž Bankruptcy

laws are a series of federal laws enacted to allow people to be relieved from their debts and start over with a clean slate. The laws changed in 2005, making the road to a fresh start more complicated, so it is important to completely understand the benefits and drawbacks before you decide to declare bankruptcy. Understand how to know when you should file bankruptcy, the different types of bankruptcy, and the procedure for filing.



Deciding to File for Bankruptcy ď‚ž Consider

other options. Bankruptcy should only be used as a last resort. Before filing, try other options available to you to pay off your debts. Contact your creditors and try to negotiate for a loan settlement or a repayment plan with lower payments. Alternately, you can try a short sale of your assets to cover your debt, assuming you are not underwater on your loan. Try consulting with a debt management agency before deciding to file for bankruptcy.



Analyze your debt.  Certain

kinds of debt cannot be discharged, or erased, even if you declare bankruptcy. Categorize all of your debt and calculate how much falls into categories that cannot be discharged.  Alimony  Child Support  Debts that arise after bankruptcy is filed  Some debts incurred in the six months prior to filing bankruptcy  Loans obtained fraudulently  Debts from personal injury while driving intoxicated  Debts from willful and malicious injuries to person or property  Some student loans  Some taxes  Secured loans, as lenders can foreclose on their capital



Know which assets are exempt from seizure in bankruptcy proceedings.  While

bankruptcy proceedings will seek to seize and sell off your valuable assets to repay creditors, there are some assets that are protected under state law.  Common protected assets are cars, wedding rings, and your home.  Some states may offer "wild card" exemptions that allow you to keep any other valuable assets up to a certain amount.  Chapter 13 bankruptcy allows you to keep all of your assets, but you can reduce your liability to creditors by selling of assets of significant value.



Understand That Bankruptcy does not erase debt for cosigners ď‚žA

cosigner agrees to pay your debt in the event that you cannot pay. For example, a parent may have cosigned an auto loan for you when you graduated from college because you had little or no credit. However, if you declare bankruptcy, a cosigner on your loan is still be legally obligated to repay your debt. For example, your parent will still have to repay all or part of that car loan, even if you declare bankruptcy.


Learn about the different kinds of bankruptcy.

 Individuals

and businesses may file for Chapter 7. Property may be liquidated to pay off creditors. Secured debt may be eliminated, or you have the option of allowing the property to be repossessed or paying the creditor a lump sum equal to the current value of the property. Your income must be below a certain level to qualify for Chapter 7  Chapter 13 is also known as “wage earner” bankruptcy. Under Chapter 13, if you have a reliable source of income, you can propose a repayment plan to your creditors that pays them back over the next three to five years.  Municipalities, such as cities, towns, villages, taxing districts, municipal utilities, and school districts can reorganize under Chapter 9.  Businesses can reorganize under Chapter 11 or liquidate under Chapter 7.  Chapter

12 is similar to Chapter 13. It is reserved for businesses for which 80% or more of debt is from the operation of a family farm or fishery.



Understand the Consequences of Bankruptcy  The

impact bankruptcy has on your credit is largely determined by how good your credit is to begin with. If your credit score is high, it will probably take a huge hit and drop significantly. If your credit is already pretty bad, bankruptcy might not lower your score by very much.  The more accounts associated with the filing, the bigger the impact on your credit score.  If you file for Chapter 7 or 11, it will remain on your credit report for up to 10 years.  A Chapter 11 bankruptcy will stay on the business's credit report, not the individual owner's, unless they file a personal bankruptcy.


Consider Hiring A Bankruptcy Attorney  Filing

without an attorney is called filing pro se. If you do decide to file pro se, the court may allow non-attorney preparers to help you. They can only help you with paperwork. They cannot answer legal questions or provide legal advice. Since they don’t represent you, they cannot sign anything on your behalf or receive payment for court fees  The United States has 90 bankruptcy districts, each with one bankruptcy court. Every state has at least one or more districts.


File the bankruptcy forms. ď‚ž Filing

the forms officially begins your case. If you are using an attorney, he or she will file the forms for you. If you are representing yourself, then you can take them to the bankruptcy court yourself.



Attend the 341 Meeting. ď‚ž You

will have to attend a formal meeting of creditors, which usually happens at the offices of your trustee. This meeting with creditors is known as the 341 meeting, referring to section 341 of the Bankruptcy code. This requires debtors to face creditors so they can answer questions about their debts and property. The meeting will occur approximately one month after you file. [28] During the meeting, the trustee asks you questions about your debt and why you are filing for bankruptcy. Arrangements for selling your non-exempt property are made. Also, arrangements are made for property pledged as collateral in secured loans.


Filing for Chapter 13 ď‚ž Businesses

cannot file for Chapter 13, even if you are a sole proprietor. You must have a certain amount of disposable income. Your debts cannot be too high. You do not qualify for Chapter 13 bankruptcy if your secured debts exceed $1,149,525. Also you must be current on your income taxes. You must prove that you filed your federal and state income taxes for the past four tax years.



Getting a Discharge  If

you are awarded a bankruptcy discharge, you are no longer legally required to repay some kinds of debts. This is a permanent order. Creditors can take no further action against you to collect the debt. They cannot communicate with you about the debt. They can take no legal action against you.  Unless there are any objections to the discharge, it is usually granted automatically. Creditors, debtors and their attorneys all receive copies of the order of discharge.  You can fill the Florida bankruptcy form anytime and can use the laws of bankruptcy.



Recovering from Bankruptcy Develop a realistic spending plan. Pay all of your bills on time. Stick to your budget at all costs. Avoid accumulating any more debt. Save to establish an emergency fund to help you deal with unexpected expenses.



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