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
Planning for a Florida bankruptcy is essential. All types of cases are protected by an automatic stay after filing a petition. Thereafter, qualification for each chapter is different, as is the relief available. All issues concerning exemptions, forfeiture of assets, if any, legality of past conveyances, and qualification are properly consider before selecting a particular chapter. The options currently available to individuals domiciled within the state are:
Florida bankruptcy under Chapter 7 remains the most popular chapter today for individual debtors because it eliminates debts quickly and does not require full or partial payments. With reform looming on the horizon since 1994, new restrictions are expected at any time which will eliminate chapter 7 options for all individuals who receive a salary equal to or above the state median income level.
Florida bankruptcy under Chapter 11 is the preferred choice for large corporations and wealthy individuals. In exchange for an expensive administration, more lucrative options and benefits are available. Ch. 11 filings decreased nationwide since 2001, while all other chapter filings increased steadily both in number and as a percentage of the general population.
Florida bankruptcy under Chapter 12 applies only to family farmers. Because of the seasonal nature of crops, special provisions allow reorganization payments to be tailored to harvests.
Florida bankruptcy under Chapter 13 availability requires regular monthly income. Subject to ceilings placed on total debt, employees and others who earn regular income may reorganize payments, terms, and interest rates, as well as discharge the remaining portion of debts upon completion of a plan.
Note: the particular chapter which may best serve debtors depends on many factors. Past due payments are treated differently. Property may be subject to forfeiture. The period of court supervision of the estate lasts from a few months, up to five years. The personal goals of each individual and their lawyer must receive primary consideration to maximize results.
Restrictions on Florida Bankruptcy Lawyers
Special restrictions apply to Florida bankruptcy lawyers according to the rules of procedure adopted by Florida bankruptcy courts. Attorney fees and filing fees are also subject to regulation. For more information, see:
Reform of the availability of federal debt relief is now under consideration by the U.S. Congress. A new abuse prevention act is expected to pass into law at any time. Included within proposed regulations, Ch. 7 will not be available to many individuals, Ch. 13 payments will increase, judges will lose discretion on individual cases, and mandatory new penalties and fines will be imposed in new circumstances, and become mandatory upon the motion of any creditor. New laws under consideration were proposed primarily by lobbies representing commercial lenders.
