Five Things You Wanted to Know About Chapter 7 Bankruptcy in the State of Florida

Fri, Jan 27, 2012

Bankruptcy

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1. How long does the Chapter 7 Bankruptcy process take in Florida?

Typically, a Florida bankruptcy case can take four to six months. However, no case is the same and timelines vary depending on the specific circumstances of the case. Your attorney’s schedule, the trustee’s schedule, and the timing of when you take your educational courses are also variables that come into play in your case.

2. How will my credit be affected after filing Chapter 7 Bankruptcy in Florida?

Many people fear their credit will be irreparable after a bankruptcy. Luckily, this is usually not the case. In fact, many people will see their credit scores and credit ratings increase about a year after bankruptcy. This is because the debt load is lessened or cleared; creating a credit report that is much improved.

3. What property or money can I keep when I file Chapter 7 Bankruptcy in Florida?

For a person filing singly there are a few guaranteed exemptions:

  • An automobile equity exemption of $1,000.
  • A personal property exemption of $1,000.
  • A homestead exemption of up to $137,000.
  • Certain types of income like disability, social security, and retirement income.

An attorney is the best person to advise you of what property you are able to keep in your specific case, as certain circumstances might allow you to keep more than you expected.

4. In the state of Florida, is bankruptcy the only solution for getting rid of my debts?

Bankruptcy is often seen as the only solution to overwhelming debt. This comes after years of trying to pay down debt with no success or after a financial crisis creates a situation that a debtor feels they cannot escape. However, debt mitigation is one other option that might work for certain people. Debt mitigation is negotiating with creditors to try to lessen debts by reducing the amount owed, the interest rate, or the length of a loan. If you feel uncomfortable about pursuing bankruptcy, consider discussing debt mitigation with a qualified professional. You can read more about debt mitigation on our website using this link.

5. How much will it cost me to file Chapter 7 Bankruptcy in the state of Florida?

Including fees, expenses, and the cost of your attorney you are typically looking at about $2,000 to $10,000. This amount will vary depending on the circumstances of your case and the cost of your attorney.

Deciding whether or not to file Chapter 7 bankruptcy can be a difficult and stressful decision. It is not required that you have attorney representation during a bankruptcy case. However, an experienced attorney is usually the best way to have the most accurate case filing and a quicker discharge.

Image credit: 401K

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