Do you know the bankruptcy laws in Florida? if you live there and are having financial problems, then you need to find out what your options are if bankruptcy is being considered at all. The laws in Florida are fairly standard and conform to Federal laws, as in most states. However, things have changed a little since the middle of the last decade.
First, new laws have been passed in regards to bankruptcy by the U.S. Congress in 2005. The major changes that took effect are that bankruptcy applicants who wish to file under Chapter 7 must meet certain eligibility requirements which are called a “means test.” This makes it a little harder to file for bankruptcy, especially for those that are guilty of acquiring a lot of debt and then hoping to have it all magically go away by filing for bankruptcy. Under this new “means test,” if your current monthly income is less than the median income in your state, then you can file for bankruptcy under Chapter 7. However, if your current monthly income is greater than the median income in Florida, and you can also afford to pay $100 per month toward paying off your debt, you cannot file under Chapter 7 and must file Chapter 13. Whether you can afford to pay $100 a month is calculated on a formula that includes your monthly income, expenses, and the total amount of your debt. Another thing is that if you have not paid your income taxes over the last few years, then filing for bankruptcy is not an option until you do so.
Another thing you must do is go through some type of credit counseling. There are government approved programs set up in the state of Florida to help educate bankruptcy candidates about spending and buying habits. This is designed to assist those who have had a lot of trouble in the past with spending money, but many filing for bankruptcy have other debt issues such as medical bills or a loss of job. Another thing to keep in mind is that your debts may not be wiped clean until you also participate in a government approved financial management education program. These are setup through a court-appointed trustee, who will look at your individual circumstances and decide whether you are able to finish the bankruptcy conditions made by the court.
In Florida, you can keep your home and other possessions if you are current on the payments. There are other certain exemptions, such as insurance, pensions, intellectual property, wages, and certain benefits such as social security. Also, if the property is secured by a loan such as a car or home, and you are current on the payments, the equity is covered by your exemptions, and you wish to keep making payments on the loan you normally can keep this property.
