How to File Bankruptcy in Florida

Step-by-Step Guide

1. 1

   Step 1: Determine whether bankruptcy is necessary.

   When deciding whether to file for bankruptcy, it is important that you understand what debt bankruptcy will eliminate and what debt will remain.
   
   The most important question to ask yourself is “will bankruptcy help me?” When making your decision about whether bankruptcy is helpful, consider the following:
   Depending on the type of bankruptcy filing, you may be able to eliminate or pay off most of your debt.
   
   This is called a discharge and allows you to have a new financial start.
   
   Filing for bankruptcy may stop foreclosure on your home or provide you time to restructure your debt.
   
   Filing for bankruptcy stops debt collection processes, which means debt collectors will no longer be able to call your home or repossess your items.
   
   Filing for bankruptcy prevents utility companies from stopping your heat and hot water.
   
   You may be able to restructure your debt so that you have lower monthly payment for mortgages or car loans.
   
   You cannot discharge your student loans, or stop paying alimony and child support.
   
   You are still responsible to pay any court restitution orders, criminal fines and most taxes.
   
   A friend or family member that has co-signed a loan with you will be responsible to pay your loan even if you file for bankruptcy.
2. 2

   Step 2: Consider student loans.

   As mentioned above, in most cases student loans will not be discharged through bankruptcy.
   
   If the majority of your debt is from student loans, Chapter 7 may not be a good choice.
   
   A person can seek a discharge of student loan obligations be demonstrating undue hardship on the debtor and his or her dependents.
   
   While you may not be able to get a complete discharge, if you file for Chapter 13 bankruptcy, you may be able to negotiate a reduced monthly payment for your loans., Before choosing bankruptcy, you should consider the impact that a bankruptcy filing will have on your credit.
   
   A bankruptcy filing will remain on your credit report for 10 years after you file your petition.
   
   This may impact your ability to secure credit during that time period., Chapter 7 bankruptcy is referred to as “liquidation.” 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 payoff their creditors.
   
   In order to be eligible for Chapter 7 bankruptcy, you must:
   Show that your income is below the median family income for a house your size in Florida.
   
   If your median income is above Florida’s median family income, then you must complete a “means test.” You must complete Form 22A (means test), which allows you to calculate your net monthly income based on exemptions and deductions allowed under the law.You can download Form 22A from: http://www.uscourts.gov/forms/means-test-forms/chapter-7-means-test-calculation You can quickly check whether your net income allows you to file for Chapter 7 bankruptcy by using an online means calculator, located at: https://www.legalconsumer.com/bankruptcy/means-test/state.php?st=FL. , Chapter 13 bankruptcy is typically best for individuals who have a regular income and want to restructure their debt so that they can pay it off in installments and discharge any debts left unpaid.In order to be eligible for Chapter 13 bankruptcy you must show:
   That you are an individual and not a business entity seeking bankruptcy.
   
   You have not discharged debt under Chapter 13 bankruptcy in the previous two years or under Chapter 7 bankruptcy within the previous four years.
   
   You did not have a bankruptcy case dismissed within the previous 180 days.
   
   You fulfilled the credit counseling requirement.
   
   You filled income taxes for the previous four years.
   
   You developed 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 such as money owed for household furniture or appliances.
   
   Your unsecured debt, such as credit cards and medical bills, is less than $336,900 and your secured debt, such as a mortgage, is less than less than $1,010,650.
   
   You have enough income to pay your restructured debt., If you find that you are eligible for both Chapter 7 and Chapter 13 bankruptcy, you should decide which filing best meets your needs.
   
   When contemplating the benefits and drawbacks of both bankruptcy filings, consider:
   Chapter 7 bankruptcy cases are faster, taking between three to six months.
   
   Typically, you won’t lose your property in a Chapter 7 bankruptcy so longs as you do not own very much.
   
   With Chapter 7 you do not need to repay your debts.
   
   Chapter 13 may be better if you have fallen behind on your payments for your house or car and you want to the chance to make those payments up or you have substantial debt, such as a student loans, that cannot be discharged under Chapter
   7.
   
   If you have property that you want to keep and it would have to be liquidated under Chapter 7, then you may prefer Chapter
   13.
   
   Chapter 13 may be a better option if you have a cosigner on a loan who would become responsible for the entirety of the loan should you file for Chapter 7 bankruptcy., While you have the right to represent yourself in a bankruptcy proceeding, bankruptcy law 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 locate a Florida bankruptcy attorney through a local bar association, which you can find at: http://apps.americanbar.org/legalservices/findlegalhelp/home.cfm If there is not an attorney referral service in your area, you can call the Florida Bar Lawyer Referral service at 1-800-342-8011 to help you locate an attorney.
   
   This program only assists people who live in an area with no local program.
   
   You will be connected with an attorney for 30 minute introductory session at a reduced fee., All persons filing for Chapter 7 or 13 bankruptcy must complete a credit counseling program from an approved agency.
   
   You must complete the program within 6 months of filing for bankruptcy.
   
   You must also take a debtor education course after you file but before your debt is discharged.You can find approved credit counseling agencies at: http://www.justice.gov/ust/eo/bapcpa/ccde/CC_Files/CC_Approved_Agencies_HTML/cc_florida/cc_florida.htm , All bankruptcy filers must use the appropriate federal bankruptcy forms.
   
   Depending on the circumstances of your case, you may need to file some of the following forms:
   Voluntary Petition for Individuals Filing for Bankruptcy.
   
   Application for Individuals to Pay the Filing Fee in Installments.
   
   Summary of Your Assets and Liabilities and Certain Statistical Information.
   
   Statement of Current Monthly Income.
   
   Chapter 7 Means Test Calculation (only if your income is above the state median income).
   
   Statement of Your Current Monthly Income and Calculation of Commitment Period.
   
   Calculation of Your Disposable Income.You can locate all bankruptcy forms at: http://www.uscourts.gov/forms/bankruptcy-forms. , Federal bankruptcy courts are located throughout the United States.
   
   You must file your bankruptcy petition in the federal judicial district where you have been living for 180 days before you file or the district where you maintain your home (domiciled).You can locate your district court at: http://www.uscourts.gov/courtlinks .
   
   Once you locate your district court and its website, check whether there are any local forms that are required for your bankruptcy filing., Each state sets forth its own exemptions for bankruptcy proceedings.
   
   Exemptions are the property or assets that cannot be liquidated or counted against you in calculating your net worth.
   
   Florida does not allow its residents to use Federal bankruptcy exemptions but rather a resident must use the Florida exemptions.
   
   When preparing to file for bankruptcy, you must determine for which exemptions you qualify.
   
   These may include:
   A homestead exemption, which allows a debtor to exempt an unlimited amount of value in your home when determining assets.
   
   Florida exempts certain personal property for up to a $1000.
   
   You can exempt up to $1000 in motor vehicle equity.
   
   For those not using the homestead exemption, the debtor can exempt $4,000 in personal property.
   
   Certain pension and retirement funds are exempt such as 401ks and Simple IRAs.For a complete list of exemptions visit: http://www.nolo.com/legal-encyclopedia/florida-bankruptcy-exemptions-property-assets-bankruptcy.html. , All filers for Chapter 7 or 13 bankruptcy must complete a Voluntary Petition for Individuals Filing for Bankruptcy.
   
   This document requests debtor identifying and contact information, information about any previous bankruptcy cases, business information, and other information related to your bankruptcy case.
   
   You can download the form from http://www.uscourts.gov/forms/individual-debtors/voluntary-petition-individuals-filing-bankruptcy.
   
   This is a fillable form so you can type your answers directly into the document and then print out a completed copy. , In addition to the petition, debtors must submit a summary of their assets and liabilities.
   
   As part of this requirement, all persons filing for bankruptcy must complete the following forms:
   Schedule A/B:
   Property.
   
   Schedule C:
   The Property You Claim as Exempt.
   
   Schedule D:
   Creditors Who Have Claims Secured by Your Property.
   
   Schedule E/F:
   Creditors Who Have Unsecured Claims.
   
   Schedule G:
   Executory Contracts and Unexpired Leases.
   
   Schedule H:
   Your Co-debtors.
   
   Schedule I:
   Your Income.
   
   Schedule J:
   Your Expenses.
   
   Depending on whether you are filing for Chapter 7 or Chapter 13 bankruptcy, you may have to complete additional forms.You can locate and download bankruptcy forms from: http://www.uscourts.gov/forms/bankruptcy-forms. , All filers must complete a statement of financial affairs.
   
   This form provides an overview of your financial history for a certain designated period of time preceding your filing., As part of your petition, you must attach and file the certificate of credit counseling that you received at the end of your course (discussed above).
   
   It must be filed no later than 14 days from when you file for bankruptcy., Once you have completed the forms, you must take them to the appropriate bankruptcy court for filing.
   
   Check with your local court as to the filing fees, the number of copies you need, and any additional formatting questions.
3. 3

   Step 3: Consider impact on your credit.

4. 4

   Step 4: Determine Chapter 7 eligibility.

5. 5

   Step 5: Determine Chapter 13 eligibility.

6. 6

   Step 6: Choose between Chapter 7 and Chapter 13 bankruptcy.

7. 7

   Step 7: Hire an attorney.

8. 8

   Step 8: Complete credit counseling.

9. 9

   Step 9: Locate federal bankruptcy forms.

10. 10

    Step 10: Locate the correct bankruptcy court.

11. 11

    Step 11: Determine relevant Florida exemptions.

12. 12

    Step 12: Complete Petition.

13. 13

    Step 13: Provide a summary of assets and liabilities.

14. 14

    Step 14: Complete a statement of financial affairs.

15. 15

    Step 15: File a certificate of credit counseling.

16. 16

    Step 16: File the forms.

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