Bankruptcy Attorney Juan C. Burgos Esq.

Facing overwhelming debts can be a terrifying experience. If you’re in this situation, bankruptcy may seem like a solution, but understanding how this process works is essential to making informed decisions and protecting your rights.

Types of Bankruptcy in Florida:

There are two main chapters of the US Bankruptcy Code that apply to individuals:

• Chapter 7: Known as “liquidation,” this chapter allows you to eliminate most unprotected debts, such as credit cards, personal loans, and some medical debts. However, some assets may be sold to pay creditors.
• Chapter 13: Also known as “debt reorganization,” this chapter lets you create a payment plan to eliminate or reduce your debts over time (usually 3 to 5 years). You can keep your assets and avoid liquidation, but you must comply with the plan’s obligations.

Requirements for Filing Bankruptcy in Florida:

To file for bankruptcy, you must meet certain requirements:

• Residency: You must reside in the state of Florida or have a business there.
• Proof of Income and Expenses: You must provide accurate information about your monthly income and expenses to determine your payment capacity.
• List of Creditors: You must present a complete list of all creditors and the amount owed to each one.

Steps of the Bankruptcy Process in Florida:

1. Consult with a Specialized Lawyer: It is highly recommended that you seek legal advice from a bankruptcy lawyer before submitting any documentation.
2. Filing Documents: The lawyer will help you complete the necessary documents, such as the bankruptcy petition, financial statement, and list of creditors.
3. Creditors’ Meeting: Once your application is submitted, a meeting with the judge and creditors will be scheduled to discuss your financial situation.
4. Payment Plan (Chapter 13): If you opt for Chapter 13, you must submit a detailed payment plan to the court, including how you will pay off your debts over time.
5. Liquidation of Assets (Chapter 7): If you choose Chapter 7, the process of liquidating assets to pay creditors will begin.
6. Discharge Order: Once the payment plan is approved or the asset liquidation is complete, the court will issue a discharge order, legally freeing you from eliminated or reduced debts.

Potential Consequences of Bankruptcy in Florida:

Impact on Your Credit: Bankruptcy will have a negative impact on your credit history for several years.

Limitations on Obtaining Credit: It will be more difficult to obtain loans, credit cards, or other lines of credit after the process is complete.

Final Recommendations:

Bankruptcy is a complex decision with long-term consequences. It is crucial to seek professional legal advice from a bankruptcy lawyer in Florida to evaluate your specific situation and determine if bankruptcy is the best option for you.

A good lawyer will guide you through the process, protect your rights, and try to achieve the most favorable outcome possible.

References:

United States Courts – Bankruptcy Basics: https://www.uscourts.gov/services-forms/bankruptcy

Florida Bar Lawyer Referral Service: https://www.floridabar.org/public/lrs/