How to Apply for Chapter 7 Bankruptcy in Florida
It can be easy to get caught up in spending more than you can afford and then find yourself struggling to make ends meet due to your debts. Florida bankruptcy courts serve the purpose of wiping a financial slate clean. There is no shame in doing this, and in fact, some creditors look more favorably upon you for taking the initiative to go through the Chapter 7 bankruptcy process as opposed to taking the easy way out and ignoring the situation.
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Instructions
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Gather all of your financial records from the past six months. This includes all credit card statements, household bills, income records (including unemployment and Social Security payments), medical expenses and any bills that have been large and unexpected (for example, your air conditioner broke and you had to install a new one). Also, gather your last two years' tax returns.
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Speak with a lawyer about your decision to file bankruptcy. A lawyer can help determine if you qualify and will guide you through the process. Your attorney will also see if you can pass the "means test," which is a complicated calculation based on your income and expenses to determine if you can pay back some of your debt through Chapter 13 instead (see Resources for a means test calculator).
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File all necessary paperwork in the bankruptcy district in which you live. Pay all necessary fees at the time of filing.
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Complete an approved credit counseling class. Florida requires that all parties applying for bankruptcy seek this out within 180 days of filing. Since you are filing for Chapter 7 bankruptcy, the law also requires that you take a financial management course before the bankruptcy is finalized.
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Respond to any inquiries from the trustee appointed to your case. The trustee will organize a meeting in court with you, your attorney and your creditors to determine how much money they can recover from the sale of your assets. The trustee may assess your property to see what valuables you have as well.
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Abide by the rule stating that creditors have 60 days after the creditor meeting to file claims against you. After 60 days, your debt will likely be discharged, meaning your bankruptcy has been approved; you will receive notice of this in the mail. In another 30 days or so, you will receive a notice stating your bankruptcy case is closed.
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Tips & Warnings
Only Florida residents may file bankruptcy in Florida. In order to claim all property exemptions (like the homestead exemption), you must be a resident for two years or longer.
You must be thorough when gathering your bills. If you don't include a creditor in your petition because you forgot about it, this debt will not be discharged.
Consider hiring a Florida attorney with experience in this area before filing.
Do not accumulate debt after you file bankruptcy. Your lawyer will probably advise you to stop making all payments on your debt (mortgage, credit cards, cars and the like).
Do not give away any money or property when preparing to file for bankruptcy. This can look like you're trying to be sneaky and may result of a dismissal of your case.
References
Resources
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