Chapter 7 Bankruptcy in Florida
Bankruptcy is a way for you to get your life back and start fresh.
Here is a quick guide to bankruptcy in Florida.
There are times in life where credit cards, medical bills, car payments, and other financial obligations simply cannot be fulfilled. This happens usually as a result of job loss, wage reduction, illness, and a variety of other factors. Many individuals at this point in their lives consider filing for bankruptcy.
A Chapter 7 bankruptcy may be filed in order to try to get a “fresh start.” While many people opt to do it on their own, it is best to hire experienced attorneys that can protect as much of your assets as possible. Here, at the Florida bankruptcy attorney and staff at The Law Offices of Carolina Nunez, P.A. -- we help guide you through the process and make sure we protect as much of your property as possible. Many debts such as medical bills, credit cards, and other unsecured debts may be discharged. Many individuals feel relief after a Chapter 7 filing because they know it may lead to a new beginning to make things “right” again.
Whenever you decide to call our offices, the first step would be to determine whether filing a Chapter 7 would be right for you. A Chapter 7 bankruptcy is known as the “liquidation” bankruptcy.
Step 1
Qualifications for a Bankruptcy in Florida
Under current bankruptcy laws, your income has to be below the “median income” for your area or you have to pass a “means test.” The bankruptcy “means test” is a calculation of your income and expenses.
2024 Florida Means Test Calculation
The means test compares your average monthly income over the last six months to the median income for a household of your size in Florida. If your income is below the median, you qualify for Chapter 7 bankruptcy. If it is above, further calculations are required to determine disposable income.
Florida Median Income Levels for 2024
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Household of 1: $62,973
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Household of 2: $77,639
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Household of 3: $89,908
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Household of 4: $104,069
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Each additional person: Add $9,900
Steps in the Means Test
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Calculate Current Monthly Income (CMI): Determine your average monthly income for the six months prior to filing.
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Compare to Median Income: If your CMI is below the median income for your household size in Florida, you qualify for Chapter 7 bankruptcy.
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Calculate Allowable Expenses: If your CMI is above the median, subtract allowable expenses (based on IRS standards) to determine disposable income.
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Disposable Income Analysis: If your disposable income is below a certain threshold, you qualify for Chapter 7. If above, you may need to file for Chapter 13 bankruptcy instead.
For more detailed information on the means test, you can refer to the U.S. Trustee Program here (Justice Gov).
Our Florida bankruptcy attorney and department at The Law Offices of Carolina Nunez, P.A., we will help guide you through this process as our team will have a consultation with you to go over your monthly income and obligations.
Step 2 - Credit Counseling
Before filing a bankruptcy in the Middle District of Florida, you must receive budget and credit counseling from an approved credit counseling agency within 180 days before your case is filed. Upon completion of your counseling bankruptcy course, you will be given a certificate. The Florida bankruptcy attorney and staff at The Law Offices of Carolina Nunez, P.A. will be able to guide you through this process before your bankruptcy is formally filed.
Step 3 - Exemptions in a Bankruptcy Case
A liquidation bankruptcy means that there is a trustee assigned to each case and the trustee is able to seize and liquidate assets in order to pay off your creditors. Many people worry that their cars or homes will be seized, but there are exemptions available to protect your assets.
Exemptions to Protect Your Assets
Many people worry about losing essential assets like their car or home. However, bankruptcy laws provide exemptions that protect certain assets from liquidation. In Florida, these exemptions include:
Homestead Exemption: Protects equity in your primary residence up to an unlimited amount, provided the property does not exceed half an acre in a municipality or 160 acres elsewhere (Florida Constitution Article X, Section 4).
Personal Property Exemption: Up to $1,000 in personal property, and if you do not claim the homestead exemption, you can claim an additional $4,000 in personal property exemptions (Fla. Stat. § 222.25).
Motor Vehicle Exemption: Up to $1,000 in equity in one motor vehicle (Fla. Stat. § 222.25(1)).
Wage Exemption: Head of family wage exemption protects wages up to $750 per week (Fla. Stat. § 222.11).
Other Exemptions: Including pensions, retirement accounts, and certain benefits like Social Security, disability, and unemployment compensation.
Step 4 - Debt That Cannot Be Discharged
It is very important to note that certain types of debt cannot be discharged by a Chapter 7 bankruptcy. These include:
Some Tax Debt: Federal, state, and local taxes that do not meet specific criteria for dischargeability.
Secured Loans: Such as mortgages and automobile loans, unless you surrender the collateral (house or car).
Child Support and Alimony: Obligations for child support and spousal maintenance.
Other Secured Loans: Loans with collateral that you wish to keep.
Some tax debt, secured loans such as a mortgage or an automobile loan, child support, alimony, and other types of secured loans. This is why it is important to hire a bankruptcy attorney in Florida to look over your petition. Having a bankruptcy attorney will provide you with a more secure way to protect your property from the liquidation process.
Benefits of a Bankruptcy
While a Chapter 7 bankruptcy may relieve your unsecured debts, if you qualify, filing for a Chapter 7 also brings you benefits. A filing may halt the process of wage garnishment, repossession of an automobile, residential foreclosure, and creditor calls. If there are any issues with creditors after you file for a Chapter 7 bankruptcy in Florida, you simply have to inform our bankruptcy attorney as soon as possible.
The biggest benefit of them all, however, is being able to have a fresh start.
Don't try to do it yourself -- it is possible that you may lose protections available to you in a bankruptcy proceeding. Our Florida bankruptcy attorney at The Law Offices of Carolina Nunez, P.A. can guide you -- call us today at 407-376-2229. Our offices are located near Orlando in Winter Park and Daytona Beach.
My Commitment
As Your Attorney -- Where Personalized Service is Valued
I am Attorney Carolina Nunez, and I am dedicated to ensuring that our offices provide exceptional legal representation in accident cases. Our commitment is to explore every possible avenue to achieve justice for our clients, whether it involves negotiating settlements or aggressively pursuing litigation in court.
We understand that each case is unique and deeply personal, and we strive to offer a personalized approach to legal representation. Our goal is to provide not only expert legal advice but also compassionate support to guide you through every step of the legal process. We are here to listen to your concerns, answer your questions, and work tirelessly to protect your rights and secure the best possible outcome for your case.
At The Law Offices of Carolina Nunez, P.A., we believe in building strong attorney-client relationships based on trust, transparency, and a shared commitment to achieving justice.
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