Preparation is the key for success when filing bankruptcy in Florida. The best bankruptcy cases go unnoticed as debtors glide through the system without attracting attention to receive a full discharges in record time. Luck is not involved. Planning began months before filing.
The most successful filers know something that you don’t. Small lifestyle changes may alter means test income and expenses before filing. Well-planned strategic changes will have a dramatic effect on the results of the means test. With a few weeks or months to plan, creating $300 improvement on the bankruptcy means test calculation will save $18,000 in wasted Chapter 13 payments. Just as easily, many people avoid Chapter 13 altogether and may file Chapter 7 when understanding the test procedure. Timing is critical.
2010 Bankruptcy Strategies and the Means Test Explained
The average time required to receive a bankruptcy discharge varies according to chapter selected. Chapter 7 discharges for typical consumer cases occur 4 to 6 months after filing a petition. In Chapter 13 cases, discharge of debts that are designated in the plan for partial payment are discharge after plan completion which ranges from 3 to 5 years from first payment. In chapter 11 cases, liquidated portions of debt occur upon the confirmation of the plan by the court. Although both chapter 11 and 13 cases require plan confirmation for reorganization of debts, the actual discharge occurs at different times.
The discharge in all cases occurs only with court approval after objections filed by creditors and the trustee, if any, are resolved the court. After a court determines that the debtor satisfied all code requirements and resolved all valid objections, a hearing is required for the court to grant discharge. If no objections remain, the may conduct discharge hearings administratively, that is, without the necessity of debtor attendance, and the resulting order granting a bankruptcy discharge is mailed to debtors and/or their attorneys.
Be aware the application of law to each individual is unique. Depending upon personal assets, liabilities, and financial history, all benefits may not be available. The most successful debtors retain Florida bankruptcy lawyers and plan well in advance. Through planning, with the assistance of qualified Florida bankruptcy lawyer, optimal timing, selective payments, and exemptions are most likely to be achieved without question.
Back to Florida Bankruptcy Lawyers FAQ table of contents.
