Federal Bankruptcy Law in Florida
- Chapter 7 debtors must first pass a means test to qualify. The means test compares your median income for the previous six months against state median income levels by household size. For example, as of March 2011 a single debtor in Florida may earn a maximum median income of $39,383. If the debtor exceeds the median income limit, the bankruptcy court will look at their monthly income and expenses to determine whether they have sufficient disposable income to qualify for repayment under Chapter 13.
- To qualify for Chapter 13, you must be able to demonstrate to the court that your income is sufficient to allow you to make regular payments to your creditors. As of 2011, a Chapter 13 debtor may include a maximum of $360,475 in unsecured debt and up to $1,081,400 in secured debt in their bankruptcy filing.
- All debtors are required to undergo credit counseling with a court-approved agency in the 180 days before filing. This requirement may only be waived in emergency circumstances. All bankruptcy petitions must be filed with the Northern, Southern or Middle district federal bankruptcy court depending on where you live. All filing fees must be paid at the time you file, unless you plan to petition the court to pay these fees in installments or have them waived entirely. As of March 2011, the Chapter 7 filing fee was $299. The Chapter 13 filing fee was $274.
- In a Chapter 7 bankruptcy, you may exempt some of your property from seizure by the court. Both the state and federal governments offer an exemption system and you must choose which one you will use. In Florida, debtors are allowed to exempt an unlimited amount of home equity value, so long as the property does not exceed 1/2 acre within city limits or 160 acres elsewhere. You may also exempt a motor vehicle up to $1,000 and any miscellaneous personal property up to $4,000.
- Before receiving a discharge, you must complete a second course in financial education within 45 days of filing. You must also attend the meeting of creditors. At this meeting, the bankruptcy trustee in charge of administering your case will ask you a series of questions designed to verify the information included in your petition. Chapter 7 bankruptcies are typically discharged within two to six months of this meeting. Chapter 13 bankruptcy cannot be discharged until the repayment period is completed.
