Hints for Bankruptcy in Florida

• Tips to keep in mind before filing bankruptcy in Florida.Flat Broke Calculator image by ike from Fotolia.com
  
  Filing for bankruptcy varies by state and by household or situation. In Florida, four filing options are available, providing different exemptions and repayment schedules. Knowing the rules up front and coming prepared to a bankruptcy attorney can save money.
  
  

Types of Bankruptcy Available in Florida

• Residents of Florida are allowed to file under four different chapters of bankruptcy: Chapter 7,11,12 and 13.
  
  A Chapter 7 bankruptcy will allow debtors to discharge most if not all of their debts. Discharging a debt under a bankruptcy will cancel it forever. Typically a bankruptcy attorney will require a larger fee to be paid upfront before or around the time of filing. Debtors in a Chapter 7 are allowed to keep a certain amount of property based on the determination of assets and liabilities per household or person filing.
  
  A Chapter 11 allows businesses or corporations to file under the business name. A Chapter 11 is somewhat like a debt repayment plan or a reorganization. The business will have all the debts rolled into one monthly payment, which is paid to a trustee (a third person party who oversees the bankruptcy) over a period of years. The plan, which is usually constructed by a bankruptcy attorney, determines what amount each creditor will get every month.
  
  A Chapter 12 is similar to a Chapter 11 reorganization, except its intent is directed to farm owners with operations owned by an individual, family or business.
  
  A Chapter 13 also is a reorganization intended for individuals or families. Those who have steady jobs and can prove to the court they can pay their debts qualify for this type of bankruptcy.
  
  

Debt's Not Discharged in Florida

• In Florida, there are certain debts that withstand bankruptcy. Alimony and support payments cannot be discharged, nor can student loans, past taxes owed to federal or Florida government and any large purchases made 90 days prior to filing for any chapter of bankruptcy.
  
  Large purchases, such as a vehicle, home or other luxury items, can be the basis of fraud; a trustee may object if the debtor has made such purchases. An attorney can help a filer fight such objections if the purchases were needed for the household.
  
  Also any illegal credit activity will not be discharged in a bankruptcy in any state. This includes using fake identification, stolen social security numbers or other fraudulent activity.
  
  

Bankruptcy Exemptions in Florida

• Permanent residents of Florida may keep certain assets after filing for bankruptcy. These include: the equity and property of a homestead; up to $2,000 per household for a vehicle; medical, emergency and college fund savings; traditional and Roth IRA's up to $1,095,000 per person, per household; and any public benefits or disability insurance.
  
  If debtors have just moved to Florida from another state, they may not qualify for a bankruptcy in Florida. Check with a bankruptcy attorney to determine residency qualifications.
  
  Any information found online or elsewhere should not be considered legal counsel. For legal advice, contact the local bankruptcy courts in Florida or an attorney.