This FAQ On Filing For Chapter 7 Bankruptcy In Florida will include:
- The types of debt chapter 7 bankruptcy does not release you from.
- The cost of filing for bankruptcy.
- When it is best for you to file for bankruptcy.
What Type of Debt Is Not Released By Chapter 7 Bankruptcy?
Chapter 7 bankruptcy never releases debt from child support and alimony. In addition, chapter 7 bankruptcy will not discharge your debt if you have criminal restitution. In general, debt from federal and state taxes cannot be released. Also, any debt you incurred by fraudulent means is not eligible to be discharged.
When combined with additional efforts that would require litigation, chapter 7 bankruptcy can discharge student loan debt. Recent changes to the law make getting relief easier in some situations, but you will still need to meet a specific bar. Nevertheless, even with these changes, your debt is not guaranteed to be discharged.
Can Chapter 7 Bankruptcy Help Me Keep My Home?
Chapter 7 bankruptcy allows you to discharge certain unsecured debts by liquidating your assets. Given that Florida has a generous homestead exemption, you may be able to keep your home if you own equity in it. Florida bankruptcy law allows you to exempt an unlimited amount of value in your home or any other property.
If the property is bigger than half an acre in a municipality or 160 acres in a rural environment, the homestead exemption is restricted. Likewise, you must have lived in the state of Florida for a minimum of 1,215 days for these rules to apply, otherwise, you will be limited by federal law. It is also important to note that if the property is purchased as a future residence, or as an investment home, it is not protected by the homestead exemption until it is occupied as a permanent residence.
To find out how you can get the most out of your bankruptcy proceedings, it is important to speak with an experienced chapter 7 bankruptcy attorney about your particular situation as soon as possible.
Should I File For Chapter 7 Or Chapter 13 Bankruptcy?
The best way to determine whether or not to file for bankruptcy is by speaking with a chapter 7 or chapter 13 bankruptcy attorney. They will help you meticulously analyze your financial situation and construct a viable plan of action moving forward. Bankruptcy is not for everyone. However, it can provide the opportunity for a clean financial slate, allowing you to put the stress of debt behind you.
Depending on your circumstances, chapter 7 and chapter 13 bankruptcy may be the financial tools you have been looking for. While chapter 7 bankruptcy allows you to discharge certain debts by liquidating your assets, chapter 13 provides you with the opportunity to reorganize your debts into manageable pieces.
Everybody’s financial situation is different. That’s why it is important to work closely with an attorney to establish a legal strategy that is effective and sustainable. If you are thinking about filing for bankruptcy, it is recommended that you schedule a consultation with a qualified legal professional.
What Is Our Outlook For Consumer Bankruptcies In 2023?
Although our practice has already filed a few bankruptcies this year, it is not outside of what is typical. However, looking at how many cases have already been filed in the state leads us to believe there will be a significant increase in bankruptcy filings this year.
When Is It Best To Hire A Bankruptcy Law Firm?
In general, the sooner you take action, the better. Waiting for your situation to worsen is taking an unnecessary chance that you will not be able to receive the relief you need when you need it. Taking action sooner significantly reduces this risk.
If you take action “too soon”, the worst that can happen is that you do not require a law firm when you reach out to one and they will tell you to contact them again later. This does not work the other way around, however.
In summary, it is best not to let a bad situation worsen. If it’s already headed that way, call and talk to us. You can hire us if it works out. Even if it does not, at least you have more information than you did before.
How Much Does It Cost To File Chapter 7 Bankruptcy? Can I Afford It If I’m In This Financial Position, To Begin With?
The cost of filing chapter 7 bankruptcy depends on several factors but tends to run between $1700 and $2000 on average. But, of course, every case is different, so your cost may not fall at that price point.
Factors that determine the cost include:
- Attorney’s fees
- Court fees
Our firm has a payment plan where you only have to pay upfront your court costs. Your other fees are paid after we file, typically on a 10 to 12-month payment plan. We do this to make it more affordable for the people who cannot come up with $1700 to $2000 for their case.
When Is The Best Time To File For Chapter 7 Bankruptcy?
There is no best time to file for bankruptcy.
Many people file during tax season because they receive a tax refund and can afford their fees upfront. Aside from this, there is no reason why you should especially file during tax season.
The time to file for bankruptcy is as soon as you realize you have a problem that warrants filing.
Do I Have To Go To Court In A Chapter 7 Case? If So, What Happens?
You do not necessarily have to go to court for a chapter 7 bankruptcy case.
However, you must attend a meeting of creditors – a telephone call where you speak with a bankruptcy trustee. This trustee is not a judge, but rather someone appointed by the court to represent the interest of the creditors. Although you are under oath for this meeting, it is not as formal or intense as a court proceeding.
When going to court is required in a bankruptcy case, it is most likely to challenge a creditor challenging something related to your case. However, this is not necessarily common.
Talk To An Experienced Orlando Bankruptcy Attorney
For more information on FAQs On Filing A Chapter 7 Bankruptcy In FL, an initial consultation is your next best step. Get the information and legal answers you are seeking by calling (407) 305-5599 today.
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