Frequently Asked Bankruptcy Questions

It's one of the best tools available to individuals who are facing overwhelming amounts of debt. However, Florida bankruptcy is subject to many myths and misconceptions. Here are some answers to frequently-asked questions about Florida bankruptcy:

Should I file bankruptcy? Nobody can tell you whether or not bankruptcy will work for you. However, the Florida bankruptcy attorneys at Roberts Law Partners can help you decide whether to file based on your current financial picture. Some reasons to consider filing bankruptcy include inability to pay monthly minimums, impending foreclosures or property seizures due to non-payment, and/or inability to pay off debt due to adverse financial circumstances such as the death of a partner, a severe illness, or a lost job.

What are my options for filing for Florida bankruptcy? Florida residents have three options when it comes to filing bankruptcy: Chapter 7, Chapter 13 and Chapter 12. Chapter 7 bankruptcy is also referred to as "straight" or "clean slate" bankruptcy. This option wipes out all applicable debt immediately. Chapter 13 bankruptcy allows the individual to create a payment plan to wipe out debt over several years of payment. Chapter 12 bankruptcy is a special process only available for family farmers and fishermen and follows slightly different procedures than the more common Chapter 7 and Chapter 13 proceedings.

Am I eligible for Chapter 7 bankruptcy? Florida places restrictions on who may file for straight bankruptcy through Chapter 7. They use a median income test to qualify individuals for bankruptcy. If you make mess than Florida's mean income, you are immediately eligible; however, if you make more than the median, you will be subject to a formula which takes into consideration your last six months of income, factors like child support, alimony or overdue taxes, and current payments and debt obligations. If this formula shows that you can pay at least $6,000 in debt over the next five years, you will be denied the option of Chapter 7 and forced into Chapter 13 bankruptcy.

Can I keep property if I declare bankruptcy? It depends. Florida does allow you to keep alimony and child support money, proceeds from life insurance or retirement, benefits like unemployment insurance or Social Security, and even your home. However, Florida bankruptcy does not wipe out certain debts, such as tax obligations, most student loans, and obligations to pay child support or alimony.

I have more questions about bankruptcy. Who can help? Roberts Law Partners is dedicated to helping clients declare bankruptcy while retaining their dignity and pride. We provide assistance, legal counsel and advice and may be able to answer your bankruptcy-related questions and help you file Florida bankruptcy. Contact us today for a free consultation - it's entirely confidential.

ORMOND BEACH, FLORIDA
785 W. Granada Blvd. Suite 5
Ormond Beach, Florida 32174
Telephone: 386-677-6241
Fax: 386-677-9452