Florida Bankruptcy Lawyers

In days past nearly anyone could file a Chapter 7 bankruptcy. New laws were implemented that included a formula called ‘the means test”. This helps the court decide who is eligible for filing a Chapter 7 bankruptcy. The test will confirm how your debts were incurred. Credit card debt, mortgages, consumer loans are examples. Many people have incurred debts from failed business, or business related judgments. That being the case, those people would not qualify for a Chapter 7 bankruptcy filing.

The means test will determine whether the debtor has the financial means to repay the debt through a Chapter 13 bankruptcy. If your income suggests you may be able to pay a portion of your debt back, filing a Chapter 7 will be denied. However you may be eligible for a Chapter 13 filing in bankruptcy court. This law eliminated abuse of the system by the unscrupulous individual.

How Does the Means test Work?

The means test determines and evaluates your income in comparison to the median income for households in Florida as reported by the Bureau of Census. The median income base increases with the size of your household. The means test will determine your current monthly income and this is significant. Your current monthly income is defined as the average monthly gross income received during the six full months just prior to your filing bankruptcy. You are allowed living expenses. The formula determines what are actual expenses and what is allowed. The formula starts with your current monthly income and then deducts from categories of allowed expenses to calculate your “net monthly income” which would be available to pay unsecured creditors. Your current monthly income, less your allowed expenses, is your Net monthly income.  If your net monthly income is more than the law allows, you fail the means test, which means there is a situation of abuse applied to your filing a Chapter 7 bankruptcy. Not all is lost and a consultation with your bankruptcy lawyer will help you determine whether or not you qualify for a Chapter 7 filing. No matter what lawyer you choose all will have to follow the same laws. Information is carefully calculated and determined by the formula . Failing the means test isn’t the end of the world as judges can apply special circumstances in each individual case. The burden of proof for extenuating circumstances is on the debtor. Plan to document your claim for special considerations

Is The Means Test Complicated

It absolutely can be hard for most people to understand. That why you need a Florida bankruptcy lawyer.  Bankruptcy statutes are in place to help prevent abuse of the system. If your situation is legitimate you need not fear the means test. These steps are a necessary component of filing bankruptcy in any state.It is part of the process and remember, it is a means to an end.

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One of the first questions you will have in filing a bankruptcy in Florida is; how much will it cost? Most people who file bankruptcy can pay for the gas in the car to get to a lawyer. In the past bankruptcy filing were relatively simple keeping cost low and affordable. New statutes in bankruptcy increase significantly the documentation and preparation. Consequently the fees are now higher. Much of the fee you will pay is based on how complex your individual bankruptcy filing present for your bankruptcy lawyer Typically fees for people filing a Chapter 7 petition with a below the Florida median level will pay around $1700.00. The court itself charges 299.00 for filing fees. If your income is above the Florida median level expect to pay 300-400 more. Additionally you will pay for mandatory Bankruptcy counseling courses totaling approximately $100.00

Chapter 13 filings are much more complex and fees totaling $350.00 or more can and will be approved by Florida Bankruptcy judges. The bonus is you can may be able to pay some of your fees through your repayment plan as outlined by the court

Most Florida Bankruptcy lawyers understand your financial situation. Many will suggest a small retainer to start the process. This insures you can stop creditor calls systematically one by one as they make collection calls. Your lawyer will advise you to make one simple statement to stop the harassing interrogation style  calls that creditors sometimes make.

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Many people faced with the decision to file for bankruptcy protection are faced with the added pressure of a moral dilemma. They believe filing bankruptcy is wrong and immoral. They have been taught that you pay what you owe. Certainly many in the Christian community believe in their hearts this is correct. And it is , You should pay what you owe and most people never intended to find themselves in the financial difficulty they are experiencing. Most people intended to pay their debts and sometimes circumstances and events out of their control can overwhelm even the most well intended borrower.  We neither endorse nor condemn those considering bankruptcy. It is a law that was put n place by the government to help people; It is the law of the land.

Why Do Bankruptcy Laws Exist

We live in the greatest country in the world. Our government recognizes that individuals in debt, unable to ever pay what they owe won’t be very productive citizens. Our economy thrives and prospers because of productive citizens. Drowning in debt you will never be able to pay back wont help anyone, most importantly yourself or your family. I suspect you have an obligation to them as well. The Bankruptcy statues in place are their to help, not harm.

Settling the Issue Of Bankruptcy Being Immoral

No one will be able to settle this issue except you. At some pint you need a place to begin a fresh start. Filing bankruptcy in Florida court may be that place. Many people faced with the moral dilemma of bankruptcy, get on their feet and pay back their creditors at some point tin the future. You can make plans to do just that. Others file Chapter 13 reorganization bankruptcy and the court sets up a repayment plan to creditors, albeit at a fraction of your original balances. This works to solve the issue for many Floridians.

The Worst Possible Decision for Filing Bankruptcy

Perhaps the worst decision you can make to file bankruptcy in Florida is to not make a decision at all. Moral decisions are among the toughest decisions to make. Delaying a decision is only going to prolong your fate. The sooner you make a decision the better for everyone involved.

In Summary

The moral dilemma surrounding filing bankruptcy is a real component of the decision and should not be taken lightly. The Laws of this land are in place for protection of its citizens. Romans 13:1-7 states: “Everyone must submit himself to the governing authorities, for there is no authority except that which God has established.
There is no law that says you cannot pay your creditors when you are able. Many people have repaid their debts years after the fact. You can get a mortgage after bankruptcy and you can rebuild your creditability

Carefully consider your options that the law provides and seek the counsel of a reputable Florida bankruptcy lawyer who can explain Florida bankruptcy laws and federal bankruptcy statutes

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Without question the number one mistake people make with bankruptcy is waiting too long. No one especially those who have been responsible bill paying citizens their entire life wants to file bankruptcy. Creating opportunity for creditors to take further action only complicates your issues. I have personally made this mistake. You know if you are in financial difficulty, avoiding the inevitable prolongs the misery.

Securing a second mortgage in hopes of relieving your financial strain is usually not a good idea. Remember you have only transferred your debt to a second mortgage; you’re still on the hook for the balance and not being able to repay those loans can result in you losing your home. I have made this mistake as well.

It is ill advised to deplete your retirement accounts, 401 k plans and other retirement t vehicles to pay your debts. These resources are protected assets in bankruptcy court in Florida. I have not made this mistake. These funds may be available to you after the bankruptcy is complete to help you restore some measure of normalcy to your life of you and your family.

Finally, not listing all your debts. A creditor you forgot to list on your bankruptcy petition may not be discharged. Check you list over and over and make sure they all are included. Remember this is your opportunity to start fresh. You don’t want notices filling your mailbox or voice mail with forgotten creditors requests.

The process of filing bankruptcy is complex and laborious. Follow the advice of your bankruptcy lawyer closely. You will be requested to do some things that are just uncomfortable. They will rub against your very pride and nature. You need not be embarrassed or feel miserable during the process. Walk the steps one by one never losing focus of the finish line. A fresh start. You can be assured the first time you tell a creditor you have retained a Florida Bankruptcy lawyer for the purpose of filing bankruptcy , you feel like you have been released from jail

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Personal bankruptcy can be a traumatic life-changing event, but that event doesn’t have to be a negative. Our country and in particular Florida in the midst of a housing crisis, Mortgage companies are failing with the same regularity as American families. When a mortgage company loans money for a mortgage it assumes a risk of the money not being paid back. Personal credit by it very nature is exactly the same. Depending on economic forecast is pointless and often incorrect. Many Florida homeowners have assumed risk based on future earnings either in their employment status or projected equity increases in their homes. At some point someone has to be repaid. Unpaid mortgages have become a large contributor to the number of persons filing personal bankruptcy.

So here you are, well intended but with creditors calling with regularity and more month at the end of the money. Many people have a moral resistance to filing bankruptcy. That is understandable. Sometimes it is necessary to relive the physical and emotional strain from the situation. Federal bankruptcy laws exist to protect you not to hurt you.  Federal laws protect business the same way.

Chapter 7 Bankruptcy, Liquidation

Chapter 7 Bankruptcy provides individuals and couples an opportunity to discharge debts, bills and financial obligations, while allowing you to keep exempt personal property. In most cases, this will allow most people to keep most of their assets. Consider  Chapter 7 bankruptcy ,a fresh financial start without being burdened by credit cards, bills and judgments. Recently laws have become more stringent with Chapter 7 and laws continue to change. In the past Chapter 7 was not nearly as hard to qualify for as it is now. Federal guidelines provide formulas to decide reasonable living expenses and Bankruptcy judges make the final determination whether Chapter 7 bankruptcy will be permitted.

Chapter 13 Bankruptcy, Reorganization

Chapter 13 bankruptcy permits those is need to restructure their debt and repay creditors according to their ability to do so. Persons repay their debt without and generally only a percentage of what it owed. Again bankruptcy laws determine these formulas and your lawyer can help you determine where you may stand on Chapter 13 Liquidation.

Perhaps one of the worst answers to your financial burden is to do nothing. Seldom does an economic financial strain happen all at once. Struggling and trying to make ends meet may only spiral your situation out of control. If you are struggling , see a Florida Bankruptcy lawyer today. Consultations are usually free and he or she can let you know where you stand in the Bankruptcy courts eyes with a simple interview.

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