The Complete Guide To Filing For Bankruptcy In Florida: Everything You Need To Know

Bankruptcy is a legal process that helps people who can’t pay their debts get a fresh start. Filing for bankruptcy in Florida can be complex, so it’s important to understand the process and your options. In this guide, we’ll walk you through everything you need to know about filing for bankruptcy in Florida. We’ll cover topics such as eligibility, the different types of bankruptcy, and what to expect during the process.

If you’re considering filing for bankruptcy in Florida, this guide will provide you with the information you need to make an informed decision.

What Is Florida Bankruptcy Law

Bankruptcy is a legal process that seeks to provide relief to individuals and businesses who can no longer pay their debts. Article I, Section 8, Clause 4, of the United States Constitution authorizes Congress to establish uniform laws on Bankruptcy. Congress enacted the “Bankruptcy Code” in 1978 under the authority granted by the U.S. Constitution. Bankruptcy is governed by Federal Law codified under title 11 of the United States Code, which has been amended several times since its enactment.

Bankruptcy is regulated by the Federal Rules of Bankruptcy Procedure and the local rules of the applicable bankruptcy court. In Florida, federal law and guidelines govern all aspects of bankruptcy except when it comes to exemptions. Although Bankruptcy is federal law, Florida has opted out of the use of federal exemptions to protect property in bankruptcy and requires the use of Florida Bankruptcy Exemptions listed in Florida Statutes, Chapter 222.

Read More: Florida Chapter 7 Bankruptcy Exemptions

Note: If you haven’t resided in Florida permanently for at least 730 days immediately before you file, you will have to investigate the exemptions of the state in which you lived for 730 days before you filed or federal exemptions.

Federal Courts are divided into judicial districts across the United States. Each judicial district may contain more than one bankruptcy court. There are 90 bankruptcy districts across the Country. The State of Florida is divided into three judicial districts that are referred to as the Southern, Middle, and Northern Districts of Florida. Each Judicial District in Florida has one bankruptcy Court.

The main parties involved in a bankruptcy case are:

• The Debtor – The Debtor is the individual or business entity that filed for bankruptcy. A bankruptcy petition can be filed by an individual debtor or by a debtor and spouse. The latter is referred to as a joint filing. A Joint filing can only be filed by a legally married couple.  A Debtor must include a list of all assets and debts and to comply with all federal and local rules when filing for bankruptcy in Florida. 

• The bankruptcy judge – Bankruptcy cases are decided by a bankruptcy judge presiding over your case. A judge is appointed when the bankruptcy case is filed. The Judge’s name will be reflected in the Notice of Bankruptcy Filing. A bankruptcy judge has the authority to decide any bankruptcy matter including whether the debtor, the individual or entity that filed the case, will receive a discharge of the debts listed in the bankruptcy schedules. 

• The bankruptcy Trustee – Different that a judge, a bankruptcy trustee will handle the administerial aspects of a bankruptcy case including examining the debtor at the 341 meeting of creditors, requesting additional documents, and filing documents and reports concerning the bankruptcy case. Bankruptcy Trustees are not government employees and are appointed and supervised by the United States Trustee. The United States Trustee Program is part of the Department of Justice responsible for oversight of the administration of bankruptcy cases and private trustees, see 28 U.S.C. § 586 and 11 U.S.C. § 101. 

• The bankruptcy creditor. A creditor in bankruptcy is an individual or entity to whom the Debtor owes money. Creditors seeking to get paid must file a timely proof of claim with the bankruptcy court. A proof of claim should contain the name and address of the creditor, the amount of debt, the type of the debt, whether it’s secured or unsecured, and supporting documentation.

Bankruptcy filings in Florida are divided into consumer bankruptcies and business bankruptcies.

Consumer bankruptcies in Florida are filed by individuals seeking to liquidate or reorganize debt. Chapter 7 and Chapter 13 bankruptcies are the most common bankruptcies filed by individuals in Florida. 

Business bankruptcies are filed by business entities seeking an orderly liquidation of their assets under Chapter 7 or to reorganize their debts under Chapter 11 bankruptcy.

Filing for bankruptcy allows you to discharge most debts, which means you will not have to repay them.

There are six different types of bankruptcies, Chapter 7, Chapter 9, Chapter 11, Chapter 12, Chapter 13, and Chapter 15. Chapter 7 bankruptcy is the most common type of bankruptcy filed in Florida, followed by Chapter 13. In most cases, you will only be able to file for one type of bankruptcy.

What Does It Mean To File For Bankruptcy?

When a person files for bankruptcy, they are asking the court to declare that they are unable to pay their debts. 

This usually happens when someone is dealing with a lot of debt and can’t seem to make any progress in getting rid of it.

Filing for bankruptcy can be a way to get a fresh start and wipe the slate clean, so to speak. In 1934, in Local Loan Co. v. Hunt, 292 U.S. 234, 244 (1934), the United States Supreme Court, referring to bankruptcy, noted:

“It gives to the honest but unfortunate debtor…a new opportunity in life and a clear field for future effort, unhampered by the pressure and discouragement of preexisting debt.”

The Debtor accomplishes a “fresh start” through an Order of Discharge from the bankruptcy judge. The Order of Discharge explains that Creditors cannot collect discharged debts, as well as the consequences of violating the Order. Creditors who violate an Order of Discharge can be required to pay the debtor’s damages and attorney’s fees.

Note: The Order of Discharge informs the Debtor that they are not prevented from choosing to repay any debt “voluntarily” after the entry of the Order.

However, it’s important to understand that bankruptcy is not a magic solution and it may have some serious consequences.

For one, depending on the type of bankruptcy filed, you may have to turn some personal property over to your creditors. To learn more about the property you can keep or what property can be lost in bankruptcy, please refer to our section on Florida Bankruptcy Exemptions.

You will also have a hard time getting credit in the future.

Note: Some clients start rebuilding their credit and begin getting decent credit offers within 6 months of receiving their bankruptcy discharge.

So, while bankruptcy can be helpful in some situations, it’s important to understand the pros and cons before deciding to file for Bankruptcy in Florida.

What Are The Advantages Of Filing Bankruptcy?

When people are struggling with overwhelming debt, they may feel like there is no way out. Filing for bankruptcy can provide much-needed relief, freedom, and a fresh start.

Bankruptcy can help you get a fresh start by wiping out your debts and giving you a new beginning. It can help you get rid of harassing phone calls from creditors, stop wage garnishments, and protect your assets.

Some of the benefits of filing for bankruptcy in Florida include:

• Stopping legal action or collection efforts. The filing of bankruptcy automatically stays certain collections and other actions against you and your property in most cases. See 11 U.S.C. section 362.
  • This typically refers to personal lawsuits, foreclosure lawsuits, foreclosure sales, wage garnishments, credit card lawsuits, collection calls, and most types of creditor communication. The filing of bankruptcy does not stop criminal proceedings and garnishment related to child support and student loans.
• Discharging unsecured debt such as credit card debt, personal loans, medical bills, judgments resulting from debt-related lawsuits, debts resulting from vehicle repossessions or voluntary surrenders, deficiency judgments – debts resulting from a foreclosed property.
• Discharge old IRS debts or tax liability. The resulting tax liability must be more than 3 years old and all subsequent tax returns must have been timely filed. 
• Reduce the interest rate on your financed vehicle or personal property. You may seek to reduce the interest rate to 5.25% resulting in a lower payment if your interest rate is higher. See Till et ux v. SCS Credit Corp.
• Cram down the amount of the debt of your financed vehicle or personal property down to the actual value of the asset as of the time of filing your bankruptcy case. This is called the 910-rule because if you wish to cram down the value of your car loan you must have purchased the car at least 910 days before the date you filed your bankruptcy. See In re Johnson, 337 B.R. 269 (Bankr. M.D.N.C. 2006).

Note: the Cramdown rule can apply in Chapter 13 bankruptcy, but not in Chapter 7.

• Curing arrears or catching up on your mortgage payments. This is one of the most common reasons why people file for Chapter 13 bankruptcy in Florida. Individuals behind on their mortgage payments can seek to catch up over a three or five-year period by filing a Chapter 13 bankruptcy in Florida. This is also referred to as a cure and maintain provision of your Chapter 13 plan. This means that your Chapter 13 plan payment will include your regular mortgage payment plus what you owe to get current (divided by 36 or 60 payments). 

Pro Tip: You must also account for other items paid through your Chapter plan including the Trustees Fees (typically around 10% of the funds paid out through your chapter 13 plan).

Pro Tip: A cure and maintain provision can also be used to catch up with HOA or condominium-related charges. 

• Reinstate Your Suspended Driver’s license. You can seek the reinstatement upon receiving the order of discharge or earlier by filing a motion and obtaining an order from the Bankruptcy court. Please note that this does not apply to Driver’s license suspensions resulting from individuals owing overdue support or failing, after receiving appropriate notice, to comply with subpoenas or warrants relating to paternity or child support proceedings. See 11 U.S.C. 362.
• Avoid a judgment lien against your homestead property. You can seek to remove liens attached to your homestead property by unsecured creditors.

Note: On many occasions, after obtaining a judgment against you, Credit Card companies or entities who purchase credit card debt, record and certify the judgment to attach a lien to your home.

• Lien Strip of Second Mortgages or Junior Liens. If your first mortgage balance is greater than the value of your home as of the time of filing your bankruptcy in Florida, you may seek to remove and discharge additionally secured liens such as a second mortgage or line of equity attached to the property.

• Cramdown of an Investment Property. You seek to reduce the secured loan amount on investment down to the value of the investment property as of the time of filing your bankruptcy case in Florida. This option may be available in Chapter 13 bankruptcy, but not in Chapter 7.

• Mortgage Modification Mediation Program (MMM). Individuals seeking to obtain a loan modification of their mortgage may seek to participate in a bankruptcy court-administered program where a neutral mediator is assigned to your case and where all communication between you and your lender is transmitted via a court-approved electronic portal. Through this program, debtors can efficiently provide all required loan modification documents or loan modification packets to their lender and participate in a mediation. 

Note. Debtors are required to use forms specific to this program and adhere to all guidelines.

• Bankruptcy Student Loan Program – This program was recently created to assist individuals looking to modify their student loan debt. Here are the forms specific to the Bankruptcy Student Loan Program.

Bankruptcy can also help you rebuild your credit rating. After you have filed for bankruptcy, you will have to rebuild your credit rating from scratch. But with responsible financial behavior, you can eventually raise your credit score and get approved for car loans, mortgages, and other types of financing.

Filing for bankruptcy is a big decision, and it is not something that you should take lightly. But if you are struggling with debt and you feel like you have nowhere else to turn, bankruptcy may be the best option for you.

What Is The Downside Of Filing Bankruptcy?

When you’re struggling with debt, bankruptcy might seem like the best way out. But before you file, it’s important to understand the potential downsides.

• Bankruptcy can damage your credit score for years, making it difficult to borrow money or get a job.
• It can also make it difficult to rent an apartment or buy a home.
• If you have assets, you may be forced to sell them to pay off your debts.

Filing for bankruptcy should not be taken lightly. It is a serious decision that can have long-term consequences, both financial and otherwise. Before you file, make sure you understand what those consequences are and whether they are worth the potential benefits. Bankruptcy is not always the best solution to your debt problems, so it’s important to weigh all your options before making a decision.

Is There A Cost Associated With Filing Bankruptcy?

There are several costs associated with filing, including attorney fees, court fees, filing fees, and credit counseling fees. 

The most common fees associated with filing for bankruptcy in Florida are court filing fees, attorney’s fees, and costs. There are also some miscellaneous fees which can be found here. 

Florida Bankruptcy Filing Fees

1. Chapter 7 Filing Fee in Florida is $338.00
2. Chapter 13 Filing Fee in Florida is $313.00
3. Chapter 11 Filing Fee in Florida is $1,738.00
4. Chapter 12 Filing Fee in Florida is $278.00

The Court filing fees are due at the time of filing your bankruptcy petition. If you cannot afford to pay the filing fee, you may request to pay the filing fee in installments paying a portion of the fee at the time of filing and the balance within a court-designated time frame. Each Florida bankruptcy court may have its own procedures concerning paying the court filing fee in installments. 

The Bankruptcy Court for the Southern District of Florida has established the below guidelines for paying filing fees in installments:

BANKRUPTCY TYPE	PETITION FILING FEE	INITIAL INSTALLMENT PAYMENT	FINAL INSTALLMENT PAYMENT
Chapter 7	$388.00	$169.00	$169.00
Chapter 11	$1,738.00	$869.00	$869.00
Chapter 12	$278.00	$139.00	$139.00
Chapter 13	$313.00	$156.50	$156.50

If you cannot afford to pay the fees associated with filing for Chapter 7 bankruptcy, you may be able to apply for a fee waiver by filing an application with the bankruptcy court to waive the fee. See Official Bankruptcy Form 103B. You must meet meeting certain poverty guidelines to qualify for this fee waiver.

Bankruptcy Attorney’s Fees in Florida

Bankruptcy attorneys in Florida will charge you different rates depending on the complexity of your case and the type of bankruptcy you are filing. Most bankruptcy lawyers will offer you a free bankruptcy consultation to discuss if bankruptcy is recommended, information about the process, what to expect, and how much they will charge for their services. 

On average Chapter 7 fees range from $1200 to $1800. With an understanding that you are facing financial difficulties, many attorneys will offer you payment plans to pay their fees. Some firms offer $0 down options. At Stiberman Law our typical Chapter 7 fees range from $900 to $1500 to file your case with available payment plans.

Different than Chapter 7, Chapter 13 attorney’s fees are governed by court guidelines. Many chapter 13 lawyers will structure a portion of their fees as part of your Chapter 13 plan payment to the bankruptcy trustee.

The total cost of filing bankruptcy will vary depending on your location and the type of bankruptcy you file.

How Bankruptcy Works in Florida

Filing for bankruptcy can be a confusing and complex process. However, once you understand the basics, it’s relatively straightforward. We’ll explain how bankruptcy works in Florida and provide some tips on what to expect.

When you file for bankruptcy, you are asking the court to declare that you are unable to pay your debts. This may happen because of job loss, medical expenses, or other financial difficulties.

Who Can File For Bankruptcy in Florida?

To file for bankruptcy in Florida the Debtor must have lived, had its principal place of business, or have its principal assets within a Florida district longer than in any other district over the last 180 days before filing the bankruptcy petition or must have another reason under 28 U.S.C section 1408. 

You may file a bankruptcy case as an individual where you are referred to as the Debtor or you may file the case jointly with your spouse. 

Frequently Asked Questions

Do I Have to File for Bankruptcy with my Spouse?

The answer is no. A married couple is not required to file for bankruptcy together. 

Factors to consider in a married couple filing for bankruptcy together:

• One bankruptcy petition is filed for both resulting in only paying one filing fee and usually, the attorney’s fee will remain the same.
• Both spouses have debt that they would like to eliminate in bankruptcy.
• The bankruptcy will only affect the credit of the person filing. The non-filing spouse’s credit will not be affected if only the other spouse files.

What Debts Can I Eliminate In Bankruptcy?

To understand what debts can be eliminated in bankruptcy, you must understand the difference between dischargeable and non-dischargeable debts. 

A dischargeable debt is a debt that you are no longer responsible for. It is important to note the distinction between discharging a debt vs eliminating or erasing a debt. Filing for bankruptcy will not erase your debts but rather remove your responsibility from debts that are dischargeable in bankruptcy. In applying this principle, if you and another person signed a personal guarantee on a debt, and you file for bankruptcy and obtain an Order of Discharge from the court, you will no longer be responsible for that debt, but the person whom you co-signed with will be responsible. 

Most debts are dischargeable when you file for bankruptcy in Florida. These include debts related to:

• Credit Cards
• Medical Bills
• Personal Loan
• Civil Judgments
• Vehicle Repossessions
• Voluntary surrender of property
• Foreclosures
• Deficiency Judgments

Non-Dischargeable debt includes:

• Alimony
• Child support
• Marital settlement obligations
• Debts resulting from fraud
• Student Loans (they are only dischargeable in very rare circumstances)
• IRS Debt – There is a specific exception involving more than 3-year-old tax liability where all filings were timely filed.

Secured Debt vs Unsecured Debt

When you’re considering bankruptcy, it’s important to understand the difference between secured debt and unsecured debt.

Secured debt is debt that is backed by an asset. The most common types of secured debt are mortgages and car loans.

Unsecured debt is debt that is not backed by an asset. The most common types of unsecured debt are credit cards and medical bills.

Bankruptcy can help you discharge or get rid of your unsecured debts. However, if you have any secured debts, you will still be responsible for making payments on those debts if you intend to avoid the lender from seizing those assets.

When filing for bankruptcy in Florida you will have to list all of your debts in the bankruptcy schedules and you must indicate your intention with regards to how you will “treat” or deal with property that is subject to secured debt such as a vehicle that you are financing or the mortgage on your home. 

Note: If you file for Chapter 7 bankruptcy and you are not current with your secured debt payments, your lender can request permission from your bankruptcy judge to lift the automatic stay and commence or continue proceedings to seize the property. Usually, the lender will only be able to go after the property and not you personally. This is referred to as in rem proceedings, meaning that your lender is going after the property to recoup their loan and not you personally. 

Pro Tip: If you are behind on a secured debt and want to keep your property, you may want to explore filing Chapter 13 bankruptcy in Florida instead of Chapter 7. Chapter 13 has reorganization or repayment provisions for purposes of getting current with past due secured debt payments such as mortgage payments, car payments, past due property taxes, and past due HOA or condominium dues.

Do I Have to List all My Debt when I File for Bankruptcy or Can I Keep some Credit Cards?

At Stiberman Law we are often asked this question. You are required to list all of your debts including all of your credit cards. You cannot use credit cards nor make any payments towards any credit cards while you are in bankruptcy and also at least during the four months immediately prior to filing for bankruptcy.

What Property Can I Keep In Bankruptcy?

The property you can keep when filing for bankruptcy in Florida will depend on the exemptions applied to the property and which Chapter of Bankruptcy you file. Luckily, Florida has some of the best exemptions or protections in the country.

Florida bankruptcy exemptions only apply when you have lived in Florida for at least 730 days immediately before filing bankruptcy. Florida exemptions must be properly claimed and are not automatic. Click here to learn more about Florida Exemptions.

In Chapter 7, the Trustee assigned to your case will seek to liquidate or sell any non-exempt property. As an example, if you own a car that is worth $7500 and is paid in full at the time of filing bankruptcy, by applying the Florida Motor Vehicle Exemption you can only protect $1000 of the car’s value. Unless you can apply for another exemption, the Trustee can force you to turn over the vehicle so that it can be liquidated to pay your creditors. If you want to keep the vehicle, you will have to pay the Trustee $6500 (the difference between the car’s value and the exemption) within a timeframe agreeable to the Trustee.

In chapter 13 you can keep the vehicle as long as you pay the Chapter 7 liquidation value ($6500 in the above example) over the life of your Chapter 13 plan.

A Florida bankruptcy attorney can advise you in detail as to what property you can keep, what exemptions to apply, and which bankruptcy chapter is best suited for your situation.

Which Florida Bankruptcy Chapter Is Right For You?

Several different types of bankruptcy can be filed in Florida, depending on your financial situation and needs. The most common types include Chapter 7 bankruptcy, Chapter 13 bankruptcy, and Chapter 11 bankruptcy.

As an individual, you will likely be considering Chapter 7 or Chapter 13. Chapter 11 is generally reserved for businesses or for individuals who are not eligible for Chapter 13 bankruptcy.

Types Of Bankruptcies And Eligibility Requirements

Chapter 7 Bankruptcy

In Florida, Chapter 7 bankruptcy is the most common form of personal bankruptcy. If you’re struggling to make ends meet, you might be considering filing for Chapter 7 bankruptcy.

In Chapter 7 Bankruptcy, the debtor’s non-exempt assets are liquidated to pay creditors. The debtor is then discharged from all personal liability for those debts.

Chapter 7 bankruptcy is also known as straight bankruptcy or liquidation bankruptcy. It is the simplest and quickest form of bankruptcy. In most cases, the entire process can be completed in as little as four to six months.

Qualifying for Chapter 7 Bankruptcy

Here are some of the elements that have to be considered:

• To qualify, your family’s gross income must be lower than the median income for the same size family in your state.
• Add all gross income earned during the last six months and multiply it by two. Compare the figure to the income charts on the U.S. Trustee’s website.

Want an easy way to do this online? Use the Quick Median Income Test

• The means test helps determine if the Debtor has disposable income to be applied towards debt repayment instead.
• If you find that you make too much, you still might qualify after taking the second part of the “means test.” If, after subtracting expenses, you don’t have enough remaining to pay into a Chapter 13 plan, you’ll qualify for Chapter 7. If abuse is presumed and you fail to overcome the presumption, you will not be eligible to file Chapter 7 bankruptcy but may still be eligible to file Chapter 13. 

Note: If the majority of your debts are business debts, then you are not required to pass the means test.

• To file for Chapter 7 Bankruptcy in Florida and be eligible to receive a discharge you cannot have a received a prior discharge in a case filed within the preceding 8 years. 

Here are Some Benefits to Filing Chapter 7 Bankruptcy in Florida

• Quick bankruptcy process – the process usually takes between 4 to 6 months to complete.
• Florida has some of the most generous bankruptcy exemptions to protect your property.
• Different than Chapter 13, filing for Chapter 7 does not involve a 36- or 60-month period to repay creditors. 

When Filing a Chapter 7 Bankruptcy May Not Be a Good Idea:

• You have unexempt assets that you want to keep.
• You have funds that can be used to repay creditors
• You are expecting an inheritance
• You are expecting to receive money from a lawsuit such as a personal injury lawsuit.
• You transferred property to someone else sometime prior to filing bankruptcy
• You own or have an interest in non-homestead property that you do not want to lose.
• You have received or are expecting a tax refund and do not have any available exemptions.
• You repaid debts to friends or family prior to filing for bankruptcy

Chapter 13 Bankruptcy

Chapter 13 Bankruptcy is a form of personal bankruptcy that allows the debtor to reorganize their debts and repay them over a period of time. Chapter 13 Bankruptcy is available to individuals who do not meet the eligibility requirements for Chapter 7 Bankruptcy or who are seeking to benefit from relief available in Chapter 13 that may not be available in a Chapter filing. 

Chapter 13 bankruptcy is also known as reorganization bankruptcy, meaning it can be a good option for individuals who are behind on their payments and want to catch up.

Here are Some Benefits of Filing Chapter 13 Bankruptcy in Florida vs Chapter 7 

• Curing arrears or catching up with missed secured payments – Chapter 13 allows you to get current with your mortgage, property taxes, IRS debt, and HOA or condominium association dues. 
• Catching up on your mortgage is one of the main reasons why people file for Chapter 13 bankruptcy in Florida.
• Participating in the bankruptcy Student Loan Program – This program is only available in Chapter 13 and not in Chapter 7 bankruptcy.
• It can help protect property that might be at risk in a Chapter 7 bankruptcy. Different than in Chapter 7 which involves the liquidation of your non-exempt assets to repay your creditors, the Chapter 13 Trustee will not seek to take away or liquidate your car, home, or other assets to repay your debts. 

To file for Chapter 13 Bankruptcy in Florida and be eligible to receive a discharge, here are the requirements to consider before filing:

• You cannot have filed a previous Chapter 7, Chapter 11, or Chapter 12 bankruptcy in the past four years where you received a Discharge. See 11 U.S.C. section 1328.  
• You must wait at least two years from the date you filed your last chapter 13 bankruptcy where you received a discharge. See 11 U.S.C. section 1328.  
  • Note: The above limitations apply if you are seeking a discharge. If your main objective is to save your home from foreclosure by catching up on missed mortgage payments or with other secure debt and are you are not seeking a discharge as to unsecured debt (such as credit cards, medical bills, etc.), you can still file for Chapter 13, reorganize your secured debts and not get a discharge.
• You need to have a regular income
• Different than Chapter 7, since Chapter 13 involves making plan payments for a 3-to-5-year period, you need to have the regular income necessary to present a feasible plan of reorganization. Regular income can be from employment, self-employment, social security income, income from rental property, and even family member support.
• Your secured debt cannot exceed $1,395,875 and your unsecured cannot be more than $466,275.
• Also different than in Chapter 7, although chapter 13 does not have income limitations, Chapter 13 has debt limitations. Individuals who exceed the Chapter 13 debt limits may want to consider filing Chapter 11 bankruptcy instead.
• You need to have filed all required tax returns. Failure to file your tax returns may result in the dismissal of your bankruptcy case. 

If you meet these qualifications, Chapter 13 may be a good option for you.

Here are the requirements to receive a discharge after filing for Chapter 13 bankruptcy in Florida:

• You must comply with all filing requirements. Unless the court grants you an extension, if you filed a skeletal filing or an emergency bankruptcy petition, you will have 14 days to submit all documents necessary to file your case. 
• You must attend the 341 Meeting of Creditors and comply with all requirements.
• The repayment plan must last for three to five years, and the debtor must make monthly payments to their creditors. If the debtor misses a payment, they may be subject to a dismissal of the bankruptcy case.
• You must complete and file a financial management course from an approved agency.

Note: The financial management course is different than the Credit counseling course required before you field your case.

Once the repayment plan is complete, the debtor is discharged from all remaining personal liability for their debts.

Chapter 11 Bankruptcy

Chapter 11 Bankruptcy is a form of bankruptcy that is available to individuals and businesses. In Chapter 11 Bankruptcy, the debtor reorganizes their debts and repays them over a period of time. The repayment plan must last for three to five years, and the debtor must make monthly payments to their creditors. If the debtor misses a payment, they may be subject to enforcement proceedings.

Once the repayment plan is complete, the debtor is discharged from all remaining personal liability for their debts.

If you are a business, you may want to consider filing for Chapter 11 Bankruptcy. This type of bankruptcy can help you reorganize your debts and catch up on payments.

When deciding which type of bankruptcy to file, it is important to speak with an experienced bankruptcy attorney who can evaluate your situation

Considerations Before Filing for Bankruptcy in Florida

Filing for bankruptcy in Florida is an important decision that you might have been putting off for quite some time. Here are some things to consider when you are getting ready to file:

Choose A Bankruptcy Attorney

A bankruptcy attorney will help you to understand the process of filing for bankruptcy, which type of bankruptcy is best for your situation, and will work to get the best possible outcome for your case. A bankruptcy attorney will also be knowledgeable about federal and local rules to ensure you comply will all requirements and avoid unnecessary pitfalls or the possible loss of property. 

They can also help to protect your interests if your creditors try to take advantage of you. Although there may be costs or fees when hiring a bankruptcy attorney, they can also be worth the investment. Many attorneys offer payment plans and affordable solutions.

A good attorney will guide you through the process and make sure that everything goes as smoothly as possible. They will also help you to understand your options and make smart decisions.

Take A Credit Counseling Course

You will be required to take a credit counseling course from a credit counseling agency at least 180 days before you file for bankruptcy.

This course will help you make good financial decisions after your bankruptcy proceedings are over.

Choose A Bankruptcy Type

There are two main types of bankruptcy: Chapter 7 and Chapter 13. Chapter 7 is known as liquidation bankruptcy, while Chapter 13 is known as a reorganization bankruptcy.

In a Chapter 7 bankruptcy, the trustee will sell your non-exempt assets and use the proceeds to pay off your creditors. In a Chapter 13 bankruptcy, you will repay your debts over a three to five-year period.

Read More: Chapter 7 vs Chapter 13 Bankruptcy: Which Is Right For You

Documents That Will Come In Handy Before You File for Bankruptcy

Filing for Bankruptcy in Florida requires completing more than 80 pages of forms that seek to present your financial picture. You will be required to list all of your assets and debts as well as historic information including transfers of property, debt repayment, gifts, closed bank accounts, and previous businesses.  

Gathering the following documents will assist you in preparing the Bankruptcy Petition and Schedules. 

1. Tax Returns for the past 2 years
2. Proof of Income for the last 6 months, such as: 
3. Paystubs 
4. Social Security Benefits Letter
5. Pension records
6. Unemployment Compensation 
7. Self-Employment income
8. Child Support and alimony payments
9. Six (6) months of bank account statements from all accounts where your name appears on.
10. Copies of your vehicle registration for all your vehicles
11. Retirement/Pension account statements
12. Mortgage Statements
13. Valuation or appraisal of your Real Estate Property
14. Valuation or appraisal of your Vehicles
15. List of your household goods and furnishings

Read more: Complete list of documents needed to file Chapter 7 Bankruptcy. 

Note: The same information will assist you if you will be filing for Chapter 13 bankruptcy in Florida.

Filing for Bankruptcy in Florida

Where to File For Bankruptcy In Florida

When filing for bankruptcy in Florida, you must choose the Florida district in which you are filing and the reason for selecting that district.

You must choose the district in which you have lived longer than any other district over the last 180 days or based on another reason pursuant to 28 U.S.C. section 1408.

Florida is divided into three federal districts, each with its own bankruptcy court:

• The Southern District of Florida comprises the counties of Broward, Miami-Dade, Highlands, Indian River, Martin, Monroe, Okeechobee, Palm Beach, and St. Lucie.
• The Middle District of Florida comprises the counties of Baker, Bradford, Brevard, Charlotte, Citrus, Clay, Collier, Columbia, De Soto, Duval, Flagler, Glades, Hamilton, Hardee, Hendry, Hernando, Hillsborough, Lake, Lee, Manatee, Marion, Nassau, Orange, Osceola, Pasco, Pinellas, Polk, Putnam, St. Johns, Sarasota, Seminole, Sumter, Suwannee, Union, and Volusia.
• The Northern District of Florida comprises the counties of Alachua, Bay, Calhoun, Dixie, Escambia, Franklin, Gadsden, Gilchrist, Gulf, Holmes, Jackson, Jefferson, Lafayette, Leon, Levy, Liberty, Madison, Okaloosa, Santa Rosa, Taylor, Wakulla, Walton, and Washington.

File a Bankruptcy Petition

A bankruptcy petition is a document that you give to the court to say that you want to go bankrupt. It must contain information about your assets, debts, income, expenses, and other financial details. Click here for more information on the official bankruptcy forms necessary to file. 

Depending on your jurisdiction, you may be required to file Local Forms as well.

It is important to work closely with an experienced bankruptcy attorney throughout the process to help ensure a smooth and successful bankruptcy filing.

In addition, you will need to provide supporting documents such as credit card statements and tax returns.

Gather The Funds Necessary To Pay The Court Filing Fee

If you are unable to pay the full fee in a lump sum, you may apply to pay the filing fee in installments. You may also apply for a waiver of the filing fee which is based on the poverty guidelines set by the IRS.

What To Expect After You File Bankruptcy

Filing for bankruptcy will stop most collection actions against you. This includes wage garnishment, repossession, and foreclosure. However, some debts cannot be discharged in bankruptcy, such as child support, alimony, student loans, and taxes.

What Is A Suggestion Of Bankruptcy?

Although, when applicable, filing for bankruptcy invokes the automatic stay in accordance with 11 U.S.C. section 362, stopping collections and legal actions, you must take steps to ensure the court on which you have pending action is aware of your bankruptcy filing. This is accomplished by filing a Suggestion of Bankruptcy. A Suggestion of Bankruptcy is a legal document filed in the Court where you have a pending action advising the court of your bankruptcy case number, the date and time of your bankruptcy filing, and information pertaining to the Automatic Stay.

The Court Appointed Trustee

The United States Trustee, which is part of the Department of Justice, will appoint a trustee, who is not a government employee to administer your case. 

The bankruptcy Trustee is typically the main point of contact with the Court. In most cases, unless there are unresolved disputes or matters required to be brought before your bankruptcy judge, you will likely not have to appear before the bankruptcy judge.

The Trustee will communicate information you will need to provide at least 7 days prior to your meeting of Creditors. This may include:

1. Copies of the last two (2) years of Federal Tax Returns
2. Six (6) months of Banks statements including the bank statement for the month of filing. (For example, if you filed your case on July 15th, you must provide the statements from January through July). 
3. Vehicle Registration and the payoff at the time of filing if the vehicle is financed. 
4. Domestic Support Obligation Sheet- if you are required to pay Child Support.
5. If you own a Business, the Trustee will also require:
6. Business Tax Returns for the last 2 years
7. 6 months of Business Bank statements
8. Profit and Loss for Business for the last 6-month period
9. Balance Sheet and List of Assets

The Trustee will conduct your 341 meeting of creditors, typically within 30 days of filing your bankruptcy petition. During the meeting, the Trustee will ask you a series of questions including, questions pertaining to your assets, debts, financial history, expected income, and also concerning settled, potential, and active lawsuits. 

Note: The Trustee will seek to understand if there are assets that can be applied to repay your creditors.

Creditors who wish to examine you or ask you questions will also have a limited opportunity to ask a few questions during your meeting of creditors.

Note: Most creditors never show up. 

The trustee will perform most of the administrative activities of your case including, conducting the 341 meeting of creditors, reviewing your assets and liabilities, determining if there are assets available for distribution to repay your creditors, proving status updates to the parties and the court, and filing necessary reports and court documents related to your case. 

The 341 Meeting Of Creditors

Once you have filed for bankruptcy, you will be issued a bankruptcy case number and a notice of your 341 Meeting of Creditors.

A meeting of creditors is a meeting where your creditors can ask questions about your assets and liabilities. This meeting is mandatory for all individuals who file for bankruptcy.

If you hired a bankruptcy attorney, your lawyer will:

1. Ensure all requested information is delivered to the Trustee in a timely manner.
2. Attend the meeting with you and advise you as to what to expect. 
3. Explain to you the outcome of the meeting and comply with any outstanding requests resulting from the meeting, including:
4. Amending the bankruptcy schedules as may be required.
5. Provide additional documents or requested clarifications.
6. Respond to issues raised by creditors during the meeting of creditors.
7. Work towards the best possible outcome.

The Trustee will advise if the meeting is concluded without further need for information or if additional information is required. The Trustee will inform you if a follow-up meeting of creditors date or further examination is needed.

Report of No Distribution

Usually within a few days after the meeting of creditors, if the Trustee determines that there are no assets to liquidate, the Trustee will file a Report of No Distribution with the Court. This is one of the best possible outcomes in a Chapter 7 bankruptcy in Florida since it means that the Trustee will not be seeking to liquidate your property.

Notice of Assets and Notice of Deadline to File Claims

In Florida, if the Trustee determines that there are assets to liquidate, the Trustee may file a Notice of Assets and Notice of Deadline to File Claims to allow creditors to file claims with the Court for distribution. Unless an extension is sought and granted, Creditors will have 90 days in which to file a claim from the date of the Notice.

Personal Financial Management Course

Within 90 days from the date you file your case, you must complete a Personal Financial Management Course from an approved agency and file a Certificate of Completion with the bankruptcy court. Failure to do so will result in your bankruptcy case being closed without the entry of an order of discharge.

Order Of Discharge

If everything goes well and you have filed a Certificate of Completion of Financial Management Course, the Court will file an Order of Discharge and your bankruptcy case will be closed.

Bankruptcy can be a difficult process, but it’s important to know that there is help available for those who need it. With the right guidance, you can successfully file for bankruptcy and move on with your life.

Florida Bankruptcy Checklist:

Educate yourself on Chapters 7 and Chapter 13

Check whether bankruptcy will erase the type of debt you have

Determine whether you can retain your personal property

Determine whether you qualify to file for bankruptcy

Consider hiring a bankruptcy lawyer

Stop paying qualifying debts

Gather necessary financial documents

Take a credit counseling course

Fill out and file paperwork

Turn over financial documents

Attend the 341 Creditor’s Meeting

Attend the confirmation hearing and make plan payments (Chapter 13 only)

File a debtor’s education course certificate

Receive your debt discharge

Florida Bankruptcy Exemptions Allow Protection Of Property

If you are in debt, you may be wondering if bankruptcy is a good option for you.

The different types of bankruptcy each offer different protections, but in Florida, some exemptions allow you to protect your property.

Here are the most important exemptions to know:

• The Florida Homestead Exemption protects an unlimited amount of equity in a residential home, but the home cannot be larger than half an acre in a municipality or 160 acres elsewhere. (Florida Statutes Annotated § 222.01-02)
• The Florida Motor Vehicle Exemption allows you to protect up to $1,000 in one motor vehicle. (Florida Statutes Annotated § 222.25(1))
• The Florida Wildcard Exemption allows you to protect up to $4,000 of any property of your choice. (Florida Statutes Annotated § 222.25(4))

• Click here for a complete list of Florida Bankruptcy Exemptions.

If you are considering filing for bankruptcy in Florida, it is important to understand how these exemptions work and whether they will be able to help protect the property that you own. By doing your research and seeking experienced legal advice, you can make an informed decision about whether bankruptcy is right for you.

Preventing Bankruptcy Exemption Problems

If you are planning to file for bankruptcy, it is important to understand the exemptions available in your state. Exemptions protect your assets from being seized by creditors. In some states, you can choose between using the state exemption list or the federal bankruptcy exemption list. However, Florida bankruptcy only allows the use of the state exemption list and has some of the best exemptions in the country. To use Florida Exemptions when filing for bankruptcy, you must have resided in Florida at least 730 days immediately prior to filing bankruptcy. 

There are a few things you can do to prevent problems with your Florida bankruptcy exemptions:

1. Review the state exemption list in Chapter 222 Florida Statues and make sure you know which assets are protected. 
2. Make a list of your assets and their values so you can determine which ones are protected by exemptions.
3. Talk to an attorney about your specific situation and find out if there is anything you can do to protect your assets.
4. If you are planning to move to another state, research the exemption laws in that state and make sure you will still be able to protect your assets.
5. Keep up with the changes in bankruptcy law and exemptions so you can update your asset protection plan if necessary.

Financial And Other Documents Required For Filing Your Bankruptcy in Florida

When you file for bankruptcy in Florida, you will need to provide several documents to support your case. Here is a comprehensive list of the documents required throughout the bankruptcy process.

After Filing for Bankruptcy in Florida

Now that you have filed for bankruptcy in Florida, there are a few things you will need to do to complete the process.

The debtor’s education course

The debtor’s education course is required to help individuals understand the basics of personal finance and money management.

The course will provide information on how to create a budget, how to save money, and how to get out of debt.

It is important to complete this course so that you can learn how to rebuild your credit and financial future.

You need to complete and file the Financial Management certificate obtained from an approved provider in order to receive your bankruptcy discharge.

Update your credit report after filing for bankruptcy

After filing for bankruptcy, it is important to update your credit report so that potential creditors can see that you have taken the steps necessary to rebuild your financial future.

Updating your credit report shows potential creditors that you are working to improve your credit rating and that you are serious about getting back on track financially.

It is also important to keep updated on your credit score so you can track your progress as you work to rebuild your credit.

By taking these steps, you will be putting yourself in a better position to obtain new lines of credit in the future.

What Should you Do to Ensure a Smooth Bankruptcy Process?

There are a few things you can do to ensure a smooth bankruptcy process.

First, make sure to gather all of the necessary documents and provide them to your attorney. This will help to ensure that your case is filed accurately and that all of your bases are covered.

Second, make sure to complete the debtor’s education course. The course will provide valuable information on how to rebuild your credit and financial future.

Finally, stay organized and keep track of all communications with your attorney. This will help to ensure that there are no misunderstandings and that you are keeping on track with your case.

How Long Will the Bankruptcy Process Take from Start to Finish?

For Chapter 7, the bankruptcy process can take anywhere from four to six months to complete. Some cases take longer depending on complexity and issues relating to assets and dischargeability of debts.

For Chapter 13, the process can take from 36 to 60 months to complete.

It is important to stay organized and keep track of all communications with your attorney to ensure a smooth process.

What are the Consequences of Not Following Through with the Required Steps after Filing for Bankruptcy in Florida?

If you do not follow through with the required steps after filing for bankruptcy in Florida, you could face consequences such as:

• Your case could be dismissed
• Unnecessary delays and additional costs or expense
• Loss of property
• Legal penalties including fines or jail time 

It is important to make sure that you complete all of the required steps to ensure a smooth bankruptcy process. By following the tips above, you can help to ensure that your case goes as smoothly as possible.

Florida Bankruptcy Court Locations

The United States Bankruptcy Court for the Southern District of Florida comprises the counties of Broward, Dade, Highlands, Indian River, Martin, Monroe, Okeechobee, Palm Beach, and St. Lucie.

• Court Locations for the United States Bankruptcy Court for the Southern District of Florida are:
• Miami Division located in C. Clyde Atkins United States Courthouse, 301 North Miami Avenue, Room 150, Miami, Florida 33128 (305) 714-1800
• Ft. Lauderdale Division is located in United States Courthouse
• 299 East Broward Blvd., Room 112, Ft. Lauderdale, FL 33301 (954) 769-5700
• West Palm Beach Division located in Flagler Waterview Building, 1515 North Flagler Drive, Suite 801, West Palm Beach, FL 33401 (561) 514-4100

The United States Bankruptcy Court for the Middle District of Florida comprises the counties of Baker, Bradford, Brevard, Charlotte, Citrus, Clay, Collier, Columbia, De Soto, Duval, Flagler, Glades, Hamilton, Hardee, Hendry, Hernando, Hillsborough, Lake, Lee, Manatee, Marion, Nassau, Orange, Osceola, Pasco, Pinellas, Polk, Putnam, St. Johns, Sarasota, Seminole, Sumter, Suwannee, Union, and Volusia.

Court Locations for the United States Bankruptcy Court for the Middle District of Florida are:

• Fort Myers Division is located in the United States Courthouse & Federal Building, 2110 First Street, Fort Myers, FL 33901 Main Line: (813) 301-5162.
• Jacksonville Division located in Bryan Simpson United States Courthouse, 300 North Hogan Street, Suite 3-150, Jacksonville, FL 32202 Main Line: (904) 301-6490
• Orlando Division is located in George C. Young United States Federal Building and Courthouse, 400 West Washington Street, Suite 5100
• Orlando, FL 32801 Main Line: (407) 237-8000
• Tampa Division located in Sam M. Gibbons United States Courthouse, 801 North Florida Avenue, Suite 555, Tampa, FL 33602
• Main Line: (813) 301-5162

The United States Bankruptcy Court for the Northern District of Florida comprises the counties of Alachua, Bay, Calhoun, Dixie, Escambia, Franklin, Gadsden, Gilchrist, Gulf, Holmes, Jackson, Jefferson, Lafayette, Leon, Levy, Liberty, Madison, Okaloosa, Santa Rosa, Taylor, Wakulla, Walton, and Washington.

Court Locations for the United States Bankruptcy Court for the Northern District of Florida are:

• Tallahassee Division located in United States Bankruptcy Courthouse, 110 East Park Avenue, Suite 100, Tallahassee, FL 32301
• Pensacola Division located in Winston E. Arnow Federal Building, 100 N. Palafox St., Pensacola, FL 32502
• Gainesville Division located in United States Courthouse, 401 SE First Ave., Gainesville, FL 32601 
• Panama City Division located in U.S. Bankruptcy Court, 110 East Park Avenue, Suite 100, Tallahassee, FL 32301

Florida Chapter 7 bankruptcy Trustees

Trustee(s) in the middle district of Florida:

Trustee(s) covering the northern district of Florida:

Trustee(s) covering the southern district of Florida:

Florida Bankruptcy Judges

Below is a list of the Florida Bankruptcy Judges. A bankruptcy judge is appointed to your case once the bankruptcy is filed. 

United States Bankruptcy Court Southern District of Florida Judges:

Mami Division

Chief Judge Laurel M. Isicoff

Judge A. Jay Cristol

Judge Robert A. Mark

Fort Lauderdale Division

Judge Scott M. Grossman

Judge Peter D. Russin

Palm Beach Division

Judge Erik P. Kimball

Judge Mindy A. Mora

United States Bankruptcy Court Middle District of Florida Judges:

Orlando

Judge Grace E. Robson **NEW**

Judge Tiffany Geyer **NEW**

Judge Karen S. Jennemann (RETIRED)

Judge Lori V. Vaughan

Judge Arthur B. Briskman (RETIRED)

Tampa

Judge Roberta A. Colton

Chief Judge Caryl E. Delano

Judge Catherine Peek McEwen

Judge Michael G. Williamson

Jacksonville

Judge Jacob A. Brown **NEW**

Judge Jason A. Burgess **NEW**

Judge Jerry A. Funk

Judge Cynthia C. Jackson (RETIRED)

Fort Myers

Chief Judge Caryl E. Delano

United States Bankruptcy Court Northern District of Florida Judges:

Chief Judge Karen K. Specie

Contact The Stiberman Law Firm Today To See If Bankruptcy Is Right For You

If you’re tired of debt collection harassment, feeling overwhelmed, or don’t know where to start, don’t worry. We’re here to help. Our team of experts can help guide you through every step of the process and make sure that everything goes smoothly. Give us a call today and let us help you get started on your road to financial recovery.