Filing For Bankruptcy

Federal law regulates bankruptcy. However, Florida law still governs property exemptions and how much you have to repay creditors.

In Florida, before filing for Chapter 7, debtors must pass a means test. This test shows the debtor’s income level and disposable income compared to the state average. If the debtor fails the means test, meaning their income or disposable income is too high they are unable to file for Chapter 7 bankruptcybut may qualify for Chapter 13 bankruptcy.

A Chapter 13 bankruptcy is available to all consumers and allows an individual to reorganize its debts by filing a repayment plan. A Chapter 13 plan usually pays creditors over a period of three to five years and explains to the Court how the debtor intends to reorganize and pay its debts.

Generally, the most important aspect of bankruptcy is determining which assets are exempt from using to pay off creditors. Florida has its own unique property exemptions laws. When filing for bankruptcy,Florida law requires that you attend and complete a credit counseling course with a pre-approved agency. Before receiving your discharge you’re also required to attend a mandatory debtor education course. This counseling is enforced for both Chapter 7 and Chapter 13 bankruptcy filings.