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
Filing Florida bankruptcy under Chapter 13 provides individuals with an opportunity to reorganize debts. Longer payouts, discounted payouts, and discharges of debts with court protection are available. Many code provisions apply to all chapters, while 11 U.S.C. Sec. 1301 applies only to Chapter 13.
Chapter 13 is designed to allow financially distressed individuals who file Florida bankruptcy to invoke a cloak of protection provided by the courts. Under court supervisions, assets are protected, and a proposed plan must be filed that provides for payment of all or part of debts owed. Following confirmation, a trustee collects monthly payments, deducts a fee for services provided, disburses payments to creditors, and provides a periodic accounting to the court.. All laws applicable to Florida bankruptcy are currently under review by the U.S. Congress, especially payment amounts required in Chapter 13. Reform bills specifically target Florida bankruptcy by placing a mandatory limit on all state homestead exemptions, and limit allowable living expenses to a standard adopted from the IRS which applies to criminals charged with tax evasion.
Chapter 13 is designed for individuals with regular income. The term wage earner is derived from this requirement and is still in use today for Florida bankruptcy under Ch. 13. These plans are ideally suited for employees who desire court protection from creditors and are also permissible for sole proprietors who satisfy the regular income requirements of the Code. Plans may provide either full or partial payment of debts, with discharge of remaining balances, if any, upon completing all payments. Plan terms are available for Florida bankruptcy cases ranging from 3 to 5 years. A plan lasting more than three years must be approved by the court for cause. All Chapter 13 plans are limited to a maximum of 5 years. 11 U.S.C. 1322(d).
Individuals, including self-employed owners of sole proprietorships, are authorized to file Chapter 13 if owing less than $269,250 in unsecured debts, and less than $807,750 in secured debts. 11 U.S.C. 109(e).
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.
Florida Bankruptcy topics.
