Basic Bankruptcy Information That Debtors Need to Know
Considering whether to file for bankruptcy is a difficult decision for most people. Bankruptcy laws and procedures are intricate and confusing. Below is some helpful basic knowledge of basic bankruptcy laws and procedures:
1. Who can file for bankruptcy?
Any natural person residing, domiciled or having property or a place of business in the United States may file a Chapter 7 bankruptcy. Businesses may also file a Chapter 7. A "means test" is used under Chapter 7: an income vs. expense test is used. If the means test indicates you, as the debtor, have enough disposable income to pay a significant portion of your unsecured debts, then you must file a Chapter 13 bankruptcy.
2. Who can file for bankruptcy in Florida? In the Middle District - Orlando Division?
If you plan to file in the Middle District - Orlando Division of Florida, than you must be an individual who resides in one of Florida's central counties. Florida's central counties include Orange County, Seminole County, Volusia County, Lake County and other surrounding counties. Asset exemption in Florida only applies to those debtors who have resided in Florida for the previous two years. If you do not meet the requisite residential requirement then the exemptions of the state where you previously lived for two years is used.
3. What if I'm married? Can I file for bankruptcy jointly with my spouse?
Yes. Married debtors are permitted to file a bankruptcy petition jointly. In fact, married couples who have acquired a significant amount of debt jointly are encouraged to file jointly.
4. What bankruptcy petition should I file?
The most common consumer bankruptcy petitions are Chapter 7 and Chapter 13. Those who are borderline insolvent will typically qualify for a Chapter 7. If you have a sufficient amount of funds or income under the means test and meet the Chapter 13 debt ceilings, you may have to file a Chapter 13. Each chapter has different procedures for eliminating or repaying your debt.
If you have questions about Florida Divorces or Bankruptcy Law contact a Florida Attorney
Greg Gilbert
Keith Maynard
