In a Chapter 7 bankruptcy, you’ll fill out forms about what you earn, spend, own, and owe and submit these forms to the bankruptcy court. You’ll also submit recent tax returns and pay stubs, if you’re employed. A bankruptcy trustee will review your forms and documents.
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Steps in a Florida Bankruptcylearn about Chapters 7 and 13.check whether bankruptcy will erase debt.find out if you can keep property.determine whether you qualify.consider hiring a bankruptcy lawyer.stop paying qualifying debts.gather necessary financial documents.take a credit counseling course.More items...
In Florida, a one person family with an average monthly income of $3,493 or a 6-month total of $20,958 may qualify for Chapter 7. Some judges look to your ability to pay as part of the “totality of the circumstances” test that may bar you from Chapter 7 bankruptcy, even if your income is above or below the median.
Here are common mistakes you should avoid before filing for bankruptcy.Lying about Your Assets. ... Not Consulting an Attorney. ... Giving Assets (Or Payments) To Family Members. ... Running Up Credit Card Debt. ... Taking on New Debt. ... Raiding The 401(k) ... Transferring Property to Family or Friends. ... Not Doing Your Research.
If you qualify for Chapter 7 bankruptcy, it will only take a few months to complete. This is different from other filing chapters, which take anywhere from three to five years to resolve.
A Chapter 7 bankruptcy will generally discharge your unsecured debts, such as credit card debt, medical bills and unsecured personal loans. The court will discharge these debts at the end of the process, generally about four to six months after you start.
How much debt do I need to file for bankruptcy? There is no minimum or maximum amount of debt for Chapter 7 bankruptcy.
The first step to prepare for bankruptcy is to gather proof of your income. Copies of your tax returns and copies of proof of income for the past six months are required when you file a Chapter 7 case. To prepare for bankruptcy under Chapter 7, you must complete the Chapter 7 Means Test.
Your Chapter 7 bankruptcy trustee will likely check your bank accounts at least once during the process of overseeing your filing. They have a right to perform a full audit of your accounts or check them any time it is necessary. However, it is rare for them to keep close tabs on every account.
Bankruptcy Exemptions: What Property Can you Keep In Chapter 7 Bankruptcy?Houses, Cars, and Property Encumbered By a Secured Loan. ... Household Goods and Clothing. ... Retirement Accounts. ... Money, Jewelry, and Other Property.
Chapter 7 Bankruptcy Petition A debtor initiates a Chapter 7 bankruptcy by filing a Petition with the bankruptcy court. The bankruptcy petition is a universal federal form that covers substantial financial information about the debtor and his family. Debtors must sign their petitions under oath.
You can usually keep your vehicle if you file for bankruptcy. If it has a lien on it and your payments are current, you can continue to make your car payments and keep your car. In Florida, we are limited to the value of a vehicle that you can keep in a bankruptcy.
If you file a Chapter 7 bankruptcy petition and it is a “no asset” case, your spending after filing should reflect what you stated on your schedules. If either your income or your expenses change considerably while still in Chapter 7, again, you should consult with your attorney.
The filing fee for a Chapter 7 petition is $338. Filing fee for a petition that is electronically transmitted to the Clerk, must be remitted to the Clerk within 14 days by mailing a certified check or money order (no cash will be accepted by mail), in the exact amount, payable to Clerk, U.S. Court. Case number must be included on the certified check or money order. Filer should include a self-addressed stamped envelope if a receipt is requested. Alternatively, the debtor may:
The judges, judges’ staff, clerk, or clerk’s staff are not permitted to provide legal advice or speak with you in an ex parte communication (which means without the other side present).
Case number must be included on the certified check or money order. Filer should include a self-addressed stamped envelope if a receipt is requested. Alternatively, the debtor may: 1. Pay Filing Fee in Installments. Only individual debtors (including joint petitions filed) may apply to pay the filing fee in installments.
The average Chapter 7 bankruptcy petition is approximately 50 pages in length, so it shouldn't come as a surprise that you'll need a lot of information to complete the required forms. Being organized will help you complete the bankruptcy forms efficiently.
They'll be due at least seven days before the date set for the 341 meeting of creditors —the one hearing that all filers must attend. If you can, submit the forms earlier.
If the trustee asks for additional documents at the 341 meeting of creditors, the trustee will likely continue the meeting to allow enough time to review them. Many trustees will cancel the new date after receiving acceptable documentation.
Finish sooner. The trustee will schedule multiple debtors during the same hour. Some trustees reward people who submit documents early by hearing those cases first. Late submitters, or those with complicated cases, tend to be set later in the hour.
In a typical Chapter 7 case, you will make only one trip to the bankruptcy court, during which you’ll attest to the truthfulness and accuracy of your bankruptcy petition. The case will end shortly after you receive your discharge, and all your qualifying debts will be wiped out. Below, we provide an instructive guide on ...
The initial phase of any Chapter 7 bankruptcy case should be all about preparation and organization. You’ll need to gather all relevant financial documents (records of your debts, assets, etc.) in order to file your petition and so you can respond to important questions posed by either your attorney or the court.
Your case trustee’s responsibilities will be more hands-on and will include reviewing your bankruptcy disclosures, collecting certain financial documents from you, conducting your meeting of creditors (discussed more in the next section), liquidating your nonexempt assets and distributing the proceeds to your creditors.
A bankruptcy estate includes all of the property that is liquidated. This is property in which you have a legal interest but don’t necessarily own or have in your possession. Be very thorough with this step. You must not intentionally leave out any of your creditors on your creditor mailing list.
Step 4. Attend Your Meeting of Creditors (341 Hearing): Between 21 and 40 days after filing your petition, the court will notify you of the date and location of your meeting of creditors. During this mandatory hearing, you will respond under oath to questions posed by your creditors and trustee about your finances and petition disclosures. If you lie or fail to attend, your case will be dismissed and none of your debt will be discharged.
Get Credit Counseling: If you’re an individual with at least 50% consumer debt — as opposed to debts you incurred through your business, if you own one — you must complete a credit counseling course from a government-approved agency or education provider prior to filing your Chapter 7 petition (within 180 days).
The final stage of the bankruptcy filing process begins soon after you submit your petition and pay the bankruptcy court. Nevertheless, you are still months away from discharge at this point, so it’s crucial that you heed all orders from the court, your attorney and case trustee in the meantime so as not to imperil your case.
This threshold for Florida as of May 1, 2019 ranged from approximately $49,172 for a family of one to $78,833 for a family of four. If you are filing bankruptcy in another state, the median state income in that state will be used for this stage of the evaluation.
What is a chapter 7 means test? Your eligibility to file a chapter 7 bankruptcy case in Florida depends on your income. If your income is higher than the median income for your household size in Florida – you initially do not qualify for a chapter 7. But the means test may provide an exception. The means test looks at your income ...
If you do not qualify under the means test, you will be forced to file Chapter 13, which is less advantageous because you will not simply be relieved of your obligation to pay most unsecured debts like medical bills, credit cards, loans without security interests and other forms of non-priority unsecured obligations.
Debtors who do not qualify for Chapter 7 under the means test must make monthly payments toward a payment plan over a 3 or 5 year period. Their discharge will be received only if they successfully complete their payment plan so they will have to wait years for their discharge.
The debtor’s median income is determined by adding the gross income for the six months prior to filing, doubling the amount and dividing by twelve.
While the legislation did create a financial means test that limits the eligibility of some who would previously have qualified for a Chapter 7 discharge, there is no truth to the premise that people need to be close to the poverty level to qualify for Chapter 7. Many people with six figure incomes can satisfy the means test and obtain Chapter 7 bankruptcy relief.
Free Consultation is limited to individuals considering hiring an attorney. Not all situations qualify. Fee charged for appellate case evaluations.
Chapter 7: Commonly called liquidation bankruptcy. Chapter 7 involves the sale of non-exempt property to repay creditors. Not everyone is eligible for Chapter 7, as there are specific income limits that must be met. Chapter 13: Also known as a reorganization bankruptcy.
The fees will vary by Court. Some may be higher than others. For instance, the filing fee for Chapter 7 bankruptcy in Tampa is $335. If you needed to reopen a closed case, the Court would charge a fee of $260. There may be additional costs as well for your credit report and credit counseling class. Your lawyer will also charge a fee for their legal services.
Under bankruptcy law, the meeting of the creditors must take place between 20 and 40 days after the order for relief. The debtor will be required to attend the meeting and answer questions of the Trustee and creditors under oath. Only creditors and the Trustee will be allowed to question the debtor. The judge assigned the case, and equity security holders of a debtor corporation may not attend the meeting of creditors. In most cases, creditors do not attend the 341 meeting, and the Trustee will be the only party in attendance. The Trustee will typically inquire about the debtor’s income, expenses, assets, and debts. Debtors have the right to have their Tampa bankruptcy lawyer at their side during the meeting. Borrowers should take full advantage of this right to ensure they are not asked any improper questions.
Bankruptcy allows borrowers to stop all collection efforts and get a fresh start immediately. Phone calls, wage garnishments, foreclosure sales, and collections notices all must stop immediately after a bankruptcy is filed. Bankruptcy also provides for a discharge of debt to give people the fresh start they need to rebuild. Bankruptcy has a lot of benefits, but it is not right for every situation. If you are considering bankruptcy, contact a bankruptcy lawyer in Tampa to schedule a consultation.
Bankruptcy is filed in federal court. For individuals, the case is usually filed in the district where the borrower lives. For instance, if you reside in Tampa, the case may be filed in the U.S. Middle District of Florida. The residence will be based on the most recent 180 days before filing the case.
In a tenancy by the entireties, the property is owned by the marital union, rather than by the individual spouses.
For June 2019, there were 852 new bankruptcy cases filed in Tampa alone. Medical bills are a significant factor in the number of bankruptcy cases filed. A study by the American Journal of Medicine found that 62.1% of all bankruptcy cases are attributable to medical reasons.
Avoiding bankruptcy because you believe your credit will be wrecked forever.
Don’t forget to bring your photo identification and some sort of proof of your Social Security number to the meeting.
Failing to file your income tax returns. If you have neglected to properly file your income taxes for at least two years before the time you file Florida bankruptcy, you will have effectively put a total halt to your Florida bankruptcy. Without your tax returns, you will be unable to complete the necessary schedules and statement ...
It is extremely important that you avoid doing any of these things for at least six months (preferably a year) prior to filing for bankruptcy. You could be charged with bankruptcy fraud if you artificially attempt to reduce your level ...
Getting a cash advance within 70 days of filing for Florida bankruptcy. Should you get a cash advance prior to filing bankruptcy, you may find that debt ineligible for discharge during your bankruptcy. Using a credit card to pay the fees for your Florida bankruptcy filing as well as your attorney’s fees.
This could be an issue in a Chapter 13 case, since it will last 3-5 years, while a Chapter 7 case will last only 90 days.
There are significant differences between Chapter 7 bankruptcy and Chapter 13 bankruptcy. Both forms of bankruptcy allow you the opportunity to get out of debt, but they are entirely different processes. Discuss your financial situation completely with your Florida bankrupt cy attorney, leaving nothing out.
DO NOT ignore any lawsuit that's filed, even if it does not have a case number on it. Provide a copy to your attorney right away.
DO NOT transfer any assets (real estate, car, money, or anything of value) to family or friends, without first contacting your attorney. You may be able to do so, but certain requirements must be met or your family and friends can be affected.
The bank may close your account when you file bankruptcy, so it's a good idea to already have a new bank account set up when you file. DO refer collection calls to your attorney, once you have retained one. You are free to speak with your creditors, but you retained an attorney for a reason.
After the meeting, you will receive your Chapter 7 bankruptcy discharge papers in the mail. The papers will typically arrive 90 days from the first meeting of creditors, eliminating all dischargeable debts. Once the trustee has completed their work on your case, the bankruptcy court will close your case.
The Chapter 7 bankruptcy process is much faster than the Chapter 13 bankruptcy process. The total process only lasts about four months. Most people who file Chapter 7 will only need to attend their 341 meeting. At the 341 meeting of creditors, the trustee will ask you questions about your petition and your amended schedules. While you don’t need to complete a whole new petition, you will need to make amendments to your schedules when converting your case to Chapter 7. The trustee will want to see that you can’t afford to pay back your debts and should no longer be in a repayment plan. After the meeting, you will receive your Chapter 7 bankruptcy discharge papers in the mail. The papers will typically arrive 90 days from the first meeting of creditors, eliminating all dischargeable debts. Once the trustee has completed their work on your case, the bankruptcy court will close your case.
In Chapter 7 bankruptcy, all assets become part of the bankruptcy estate. Assets that are part of the bankruptcy estate after your case has been converted are all assets that are still in your possession as of the date of conversion.
What Happens After My Case is Converted? After your Chapter 13 bankruptcy case is converted, you will have a new Chapter 7 trustee assigned to your case. The bankruptcy court will then schedule a new 341 meeting of creditors. The creditors’ meeting takes place about 30 days after the conversion of your case.
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In Chapter 7 bankruptcy, all assets become part of the bankruptcy estate. Assets that are part of the bankruptcy estate after your case has been converted are all assets that are still in your possession as of the date of conversion. One exception to this rule is if the court finds the conversion was done in bad faith.
Aside from amended Schedules I and J, all you have to do to convert your Chapter 13 case to one under Chapter 7 is file a “Notice of Conversion” that provides notice to the court and your creditors about the change. You will also be required to pay a one time $25 conversion fee. Typically, the notice to convert will be processed automatically and you won't have to attend any court hearing on the matter.