How Do You File For Bankruptcy In Florida – If you are struggling to pay off your debts, filing for bankruptcy in Florida may be the solution. Bankruptcy allows the borrower to stop all collection efforts and get a fresh start immediately. Calls, wage garnishments, foreclosure sales, and collection notices must stop immediately after filing for bankruptcy. Bankruptcy also provides debt to give people a fresh start from which to rebuild. Filing for bankruptcy in Florida has many benefits, but it is not suitable for every situation. Contact a bankruptcy attorney in Tampato schedule a consultation if you are considering bankruptcy.
Bankruptcy is more common than you think. In 2018, there were 755,185 bankruptcies filed in the United States. Studies show the average American now has about $38,000 in debt. In June 2019, there were 852 new bankruptcy cases filed in Tampa alone. Medical bills are a significant factor in the number of cases filed. A study by the American Journal of Medicine found that 62.1% of all bankruptcy cases were due to medical reasons. Furthermore, studies have found that 92% of people who file for bankruptcy for medical reasons have more than $5,000 in medical debt.
How Do You File For Bankruptcy In Florida
Chapter 7: Usually called liquidation bankruptcy. Chapter 7 covers the sale of non-exempt property to pay off debts. Not everyone is eligible for Chapter 7, as there are certain income limits you must meet.
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Chapter 13: Also known as reorganization bankruptcy. Chapter 13 involves creating a three- to five-year payment plan to pay off your debts. If you comply with the repayment plan, you should be allowed to keep the property and pay off the loan.
Chapter 11: This type of bankruptcy differs from Chapter 7 and Chapter 13 in that it is designed to provide legal aid to struggling businesses and corporations. The company continues to operate normally, but its finances are being restructured to maximize repayment plans for creditors.
These cases are usually filed in the district where the borrower resides for the individual. For example, if you live in Tampa, you can file your case in the US Middle District of Florida. The housing will be based on the most recent 180 days prior to filing the case. If there have been multiple residences in the past 180 days, the filing must be where you stayed the most.
In general, businesses must file the company’s location. The domicile of the company shall be the district in which the business is incorporated. A domicile will not change unless a new one is acquired. See In Re Frame. On the other hand, the main place of business will depend on the facts and circumstances of each case. For example, many companies do business in multiple countries and have locations throughout the country. In this type of situation, the main place of business is the “nerve center” of the business. See In re Peachtree Lane Associates. The “nerve center” will be the company’s main business decisions in the 180 days before bankruptcy.
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For cases involving business partnerships, the venue will be based on the principal place of business or the location of the principal assets. Place or domicile is not the proper basis for venue in a bankruptcy case filed by a partnership. SeeIn Re Willow Ltd Partnership. However, the bankruptcy court will look for the principal place or location of the assets. The main assets of a business are those assets that are primarily used in the company’s operations. The asset must be related to the business; investment may not be enough. See In Re Newport Creamery.
You will need access to the information to complete the bankruptcy forms required to begin the bankruptcy process. In addition, the bankruptcy trustee will need documents to verify that your petition is valid. Therefore, before filing for bankruptcy, you should gather the following information:
Under Bankruptcy law, married couples can file for bankruptcy individually or jointly as a married couple. SeeBankruptcy law 11 USC 302. However, just because a couple can file bankruptcy together, it does not mean they must file bankruptcy together. Deciding how to file for bankruptcy should not be taken lightly; decisions can have long-lasting effects on finances. If you need legal advice, you should contact a bankruptcy law firm in Tampa for assistance.
Married couples are the only parties allowed to file bankruptcy together. If a couple intends to file jointly, they must do so on the initial petition. Bankruptcy courts consistently deny amendments to add spouses after the case is filed. Look at Clinton again. Furthermore, the filing of a joint petition does not automatically confer a right to joint administration or consolidation. However, under Bankruptcy Rule 1015, the bankruptcy court has discretion to deny joint administration or consolidation. However, joint petitions filed by married couples are almost always filed jointly unless objections are raised.
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Exempt property is property that you do not have to lose when you file for Chapter 7 bankruptcy. Filing jointly may entitle you to double the amount of some Exemptions. For example, Florida’s bankruptcy exemption for motor vehicles is only $1,000 in individual bankruptcy cases. However, when filing jointly, the exemption doubles to $2,000. Additionally, the $1,000 personal property exclusion increases to $2,000 when filed jointly. See In re Hawkins. It is important to note; the exemption will still remain the same and will not increase by filing a joint proposal. Therefore, couples filing for bankruptcy in Florida may be able to claim more exemptions by filing separate individual petitions.
The number of state and federal exemptions you qualify for can have a significant impact on whether or not you file jointly. Depending on the circumstances of your case, all of your property may be exempt from bankruptcy. On the other hand, if you file for Chapter 7 bankruptcy and your property does not qualify for an exemption, a Florida bankruptcy judge may order that your non-exempt assets be liquidated.
According to Florida law (689.115), when a married couple jointly buys a house or other personal property, it is assumed that the property will be held as a tenancy by all. In tenancy by the whole, the marital union owns the property rather than the spouses. This is an important fact to consider if you are considering bankruptcy during your marriage.
Each party to the marriage has a one-half interest in the marital union, which also owns the property. Thus, a debtor from one spouse cannot lend against property held as a tenancy by the entirety without both spouses agreeing. Therefore, if only one spouse agrees to give the property held as a tenancy by all the debtors as security for the loan, the creditor will not be able to force the liquidation of the property. However, the creditor will only have a lien for the spouse’s half interest in the tenancy by the whole.
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Chapter 7 bankruptcy is also known as liquidation bankruptcy. In Chapter 7, the borrower may be required to sell certain assets as a condition of the case. Fortunately, not all of a debtor’s property will be liquidated by the bankruptcy court. Florida bankruptcy exemptions are granted for many assets that a debtor may own. If the asset is exempt from liquidation, the borrower will not be required to sell the asset. Click here to learn more about non-exempt assets and assets that can be protected in bankruptcy.
To be eligible to file for Chapter 7 bankruptcy, you must pass themeans test. The means test requires borrowers to have the following income. The income is based on the average income of the same household size. Median income is determined by the U.S. Census. and updated frequently.
The test is designed to weed out those who “need” bankruptcy from those who don’t. It was developed to keep people from abusing Chapter 7 bankruptcy. You only need to pass the means test for Chapter 7 bankruptcy. Borrowers seeking relief under Chapter 13 do not have to pass a means test. Additionally, the means test may not apply in your case if you are a disabled veteran. Also, you may be exempt if your debt is primarily business-related debt, rather than consumer debt.
Yes, all borrowers, including those filing for bankruptcy in Florida, must take a credit counseling class before filing for bankruptcy. The class must be completed within 180 days prior to the bankruptcy filing. After the course is completed, the debtor must file a statement of compliance with the bankruptcy court. The statement must include a certificate or a statement that the debtor received the briefing but does not have a certificate. The certificate of completion must be submitted together with the bankruptcy petition. If it is not included, the case may be dismissed by the Court.
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Classes can be done individually or done in groups. Most often, borrowers take online classes from the comfort of their homes. You can usually use your smartphone or tablet to complete the course. Private companies provide these courses, and you can use companies approved by
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