Simple Questions, Tough Decision: Are You Eligible to File for Bankruptcy in Florida? And, if so, Should You?
Eligibility:
Any individual residing domiciled or having property in the United States may file a Chapter 7 Bankruptcy. To file for bankruptcy in Florida, you must have lived in the state for 180 days (6 months) prior to filing the bankruptcy petition.
Should You File?:
The decision to file for bankruptcy is not easy. It would be wise to contact a Florida Bankruptcy Attorney to discuss whether or not bankruptcy is the best option for you. Before deciding to file, you and your attorney should carefully weigh the pros and cons of filing.
Here are some things to consider in your decision making process:
1. Do you owe a small amount of debt?- If you only owe a small amount of debt bankruptcy is probably not the best option for you. Try working out a payment plan or arrangement with your creditors.
2. Are you considered "collection proof?"- An individual who is considered "collection proof" is a person who does not own any property that a creditor can take to satisfy the debt, does not have any wages that can be garnished, or has wages that are exempt from garnishment.
3. Do you foresee any continuing debts?- Because you cannot discharge debts incurred during bankruptcy and if you anticipate going into debt in the future, you may want to delay filing for bankruptcy. This does not mean to commit fraud by obtaining goods or services on credit without the intent to pay.
4. Your credit score will be affected.- A Chapter 7 Bankruptcy stays on your credit history for 10 years. The debts discharged as a result of the bankruptcy will be noted on your credit record as discharged.
5. Know your non-dischargeable debts.- Some debts are non-dischargeable, meaning that your obligation to pay is not removed by the bankruptcy. If most of your debts are non-dischargeable bankruptcy may not be the best option for you.
6. Non-exempt Property.- Limits exists as to how much property you can exempt from the bankruptcy. If you own valuable property that cannot be exempt because you are over the exemption limits, you risk losing that property in your bankruptcy.
7. Last Resort.- The decision to file for Chapter 7 bankruptcy should be discussed with a Jacksonville Bankruptcy Attorney prior to filing.
These are just some factors that need to be weighed in your decision to file for bankruptcy. A Florida Bankruptcy Attorney can be an asset in your decision whether or not to file. An attorney is knowledgeable with the applicable laws and statutes in your area and can provide sound guidance throughout the bankruptcy proceedings.
