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
11 U.S.C. 523 provides discharge will not be allowed for debts owed (5) to a spouse, former spouse, or child of the debtor, for alimony to, maintenance for, or support of such spouse or child, in connection with a separation agreement, divorce decree or other order of a court of record, determination made in accordance with State or territorial law by a governmental unit, or property settlement agreement, but not to the extent that - (A) such debt is assigned to another entity, voluntarily, by operation of law, or otherwise (other than debts assigned pursuant to section 408(a)(3) of the Social Security Act, or any such debt which has been assigned to the Federal Government or to a State or any political subdivision of such State.
The interest of children is protected to high degree, and thereafter debts owed to ex-spouses will survive discharge in most circumstances, so long as the debt is actually owed to the spouse.
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.
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