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
Fla.Stat. Sec. 222.30 provides, in part, Fraudulent asset conversions. (1) As used in this section, conversion means every mode, direct or indirect, absolute or conditional, of changing or disposing of an asset, such that the products or proceeds of the asset become immune or exempt by law from claims of creditors of the debtor and the products or proceeds of the asset remain property of the debtor. The definitions of chapter 726 apply to this section unless the application of a definition would be unreasonable. (2) Any conversion by a debtor of an asset that results in the proceeds of the asset becoming exempt by law from the claims of a creditor of the debtor is a fraudulent asset conversion as to the creditor, whether the creditor's claim to the asset arose before or after the conversion of the asset, if the debtor made the conversion with the intent to hinder, delay, or defraud the creditor. (3) In an action for relief against a fraudulent asset conversion, a creditor may obtain: (a) Avoidance of the fraudulent asset conversion to the extent necessary to satisfy the creditor's claim. (b) An attachment or other provisional remedy against the asset converted in accordance with applicable law.
In practice, the debtor will also notice of liquidation of assets forfeited through Florida bankruptcy. This limited protection offers an opportunity for debtors to solicit bona fide buyers at auction. Typically, levy-auctions obtain far less than the fair market value while debtors remain liable for deficiencies.
Bankruptcy Exemptions Footnotes regarding state bankruptcy laws of Florida and bankruptcy attorneys in Florida:
Back to Florida Bankruptcy Laws.
