FAQs About Bankruptcy in Florida

Bankruptcy is a process that can allow you to eliminate your debts, known as a discharge, and protect you from creditors. Bankruptcy is always a last resort but it offers you the opportunity for a fresh financial start and to get back on your feet. When starting the process, you will likely have many questions, and it is important that you get the answers you need. Below, our Orlando bankruptcy attorney outlines some of the most common questions we hear, and the answers to them.

What Type of Bankruptcy Should I File?

It is important to speak to an Orlando bankruptcy lawyer who can advise on the type of bankruptcy that is right for you. Chapter 7 and Chapter 13 are the two main types of bankruptcy filed by consumers. Chapter 7 deals mainly with unsecured debt, such as credit card debt, and may be the right choice if you qualify and simply want to walk away from the debt, and perhaps some property.

Chapter 13 is more expensive, as you will have to repay most of your debt, but can allow you to keep your home even if it is already in foreclosure. You will also have three to five years to repay your debt in Chapter 13.

How to Qualify for Chapter 7 Bankruptcy?

As part of the bankruptcy reform in 2005, the means test was introduced to all Chapter 7 cases. To qualify, your household income must be lower than the average for the size of your household or the means test will apply. The test determines if you have the means to repay your debt. If you do, you do not qualify for Chapter 7 but will have to file Chapter 13 bankruptcy instead.

Can Bankruptcy Stop a Wage Garnishment?

Yes. As soon as you file for bankruptcy, the court will issue an automatic stay. This prevents creditors and lenders from taking legal action against you, including wage garnishments. You can start receiving your full pay again, as the automatic stay will dissolve the garnishment. Bankruptcy can also stop a foreclosure and if you file Chapter 13, allow you to keep your home.

Will I Lose Everything in Chapter 7?

Chapter 7 bankruptcy is also known as liquidation bankruptcy because the trustee often seizes a borrower’s property to sell it and use the proceeds to repay some of the debt. However, Florida has some of the most generous bankruptcy exemptions in the country, meaning much of your property is not eligible for liquidation. Most people who file Chapter 7 in Florida do not lose any of their property.

Should I Work with a Bankruptcy Attorney in Orlando?

The law does not require you to work with an Orlando bankruptcy attorney, but it is always advised that you do. At Anderson & Ferrin, P.A., our experienced attorney can help you determine what type of bankruptcy is right for you, guide you through the process, and ensure you receive the best outcome possible. Call us now at 407-412-7041 or fill out our online form to request a consultation and to get the legal help you need.

Source:

uscourts.gov/court-programs/bankruptcy/bankruptcy-basics/chapter-13-bankruptcy-basics