The Florida Bankruptcy Law For Individual Bankruptcies

2007-03-08 10:33:40

( Legal )



In the state of Florida bankruptcy laws allow a person to start anew after a certain period, for as long as timely payments are made towards present bills.

Florida bankrupt laws require the person claiming for bankruptcy to be a permanent resident of Florida for a certain number of years, and to file bankruptcy in the district nearest to the location of the individual’s residence.

Among all types of bankruptcies that exist, only two types of bankruptcies apply to private citizens. With both types of bankruptcies, Florida bankruptcy laws do not allow the court to take any of your assets which are considered exempted. These include your home, interests gained in pension or retirement plans and insurance policies, your salary and government benefits. Additionally, a certain amount of equity in your home, your vehicle and any secured purchases or debts may not also be confiscated by the court.

The chapter 7 bankrupt laws allow for an individual to settle debts by surrendering certain assets to the court through liquidation or by placing the assets for sale. Despite the bankruptcy laws on exemption, you may still surrender your exempted assets even if you have existing debts on it. You may be allowed to keep a couple of credit cards with existing debts; however, you will need to reaffirm to the court that you understand that those debts will not be protected by Florida bankruptcy laws. Unsecured debts such as medical bills can also be eliminated under a chapter 7 bankruptcy.

The chapter 13 bankrupt laws will allow you to consolidate all your debts, and require you to make regular monthly payments to a bankruptcy trustee for a certain number of years. Your monthly payments will be based on the amount that you can afford each month after deducting the total amount of your daily living expenses. There are certain maximum amounts for which you need to have as unsecured and secured debts before you can be eligible for a chapter 13 bankruptcy.

The best way to claim bankruptcy is to approach a Florida bankruptcy lawyer, who can advise on the best bankruptcy option for you.


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