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
If creditors attempt collection any debt while a Florida bankruptcy case is pending, court sanctions may be ordered by the court. Creditors are allowed to collect only specific debts and take specific actions which are authorized by the court. 11 U.S.C. 362 sets forth exceptions to the automatic stay. If a creditor desires to proceed with collection efforts, a motion must be filed seeking permission. Creditors who fail to obtain court permission are subject to sanctions. If creditors attempt collection of a discharged debt after a case is closed, the procedure is similar. The debtor may ask the court to reopen the case and impose sanctions upon the creditor. Available sanctions include a finding of contempt of court, specific injunctive relief, and the imposition of fines and incarceration. The most common sanction is the imposition of a civil fine.
The code also specifically prohibits employers to discriminate against employees because of bankruptcy. To become actionable, the employee's bankruptcy proceeding must be the sole basis for discrimination. In practice, employers are well versed on discrimination law, and well advised by their attorneys concerning plausible deniability. Any other basis, such as those commonly documented by memorandum warning of poor job performance, often relieve employers from liability. For employees, the bankruptcy discrimination statute is grossly ineffective.
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.
