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Florida Bankruptcy: Where to Start

Florida may be one of the prime vacation spots in the world but the state suffers from the same problems found elsewhere. Florida bankruptcy continues to climb as more people find themselves unable to sustain the "American way of life" with cars, property and credit card debt. As more jobs are outsourced or the economy continues to decline, the rate of bankruptcies will continue to climb as well.

Florida bankruptcy laws fall under the United States Justice Department's legislation. Anyone or business wishing to file bankruptcy must go through a set of steps in order to become solvent on their debt. Florida bankruptcy begins with a genuine need. Bankruptcy is not the solution for everyone and it should not be considered lightly. It is a very serious action that can damage credit for years and prevent owning some things without paying a very high interest rate.

The first step for Florida bankruptcy is to undergo consumer credit counseling at least six months prior to filing. This is a way for the individual to try to work through their debt problems with creditors without having to resort to filing. For many people it is a way to see their debts and assets in a different light. If the credit counseling is ineffective then the next step is contacting a Florida bankruptcy attorney. It is extremely important to pick one that is a) knowledgeable about current bankruptcy laws; b) is willing to take the time to sit down and discuss each case individually and c) can ensure that the process is completed from beginning to end.

A good Florida bankruptcy lawyer will review the accumulated debts, all of them, and then make the determination if there are sufficient grounds to warrant bankruptcy.

Florida bankruptcy proceedings are very lengthy and even though it seems an irony, they are expensive. In order to determine eligibility for Chapter 7 or Chapter 13 an itemized list of all income, assets, property and even two years worth of taxes must be gathered together and thoroughly reviewed by the attorney.

There is a formula used in Florida bankruptcy to determine whether or not Chapter 7 bankruptcy can be filed. Chapter 7 is where all of the unsecured debts remain unpaid and basically the slate is wiped clean for the individual. Florida bankruptcy courts have determined that if a person is able to pay out more than $6000 over the next three years once their living expenses are met, they will be denied the option of Chapter 7 bankruptcy.

Florida bankruptcy courts, if Chapter 7 is not allowed, will rule for a payment plan to the creditors. The judge and appointed trustee will review income, deduct for standard living expenses, and will then arrive at a monthly payment amount. The length of time it takes to repay the debts will vary depending upon how much debt is owed. It may not be the immediate clean slate many hope for but it is a chance at a fresh start.