FLORIDA Chapter 7 Bankruptcy LAWYER
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. Orlando bankruptcy Attorney Carolina Nunez 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 - FLORIDA BANKRUPTCY MEANS TEST Qualifications
Under current bankruptcy laws, to qualify for Chapter 7 bankruptcy, your income must either fall below the median income level for your area or you must pass a “means test.” This test is designed to ensure that only those truly unable to pay their debts qualify for Chapter 7.
The “means test” is a detailed calculation that examines your income, allowable expenses, and any disposable income. The test compares your average monthly income over the past six months to specific allowable living expenses and financial obligations. If your disposable income after these calculations is too high, you may not be eligible for Chapter 7 and may need to consider a Chapter 13 bankruptcy, which involves a structured repayment plan instead of immediate debt discharge.
The “means test” serves as a screening process to determine which form of bankruptcy best suits an individual’s financial situation, ensuring that Chapter 7 is reserved for those with limited ability to repay their debts.
2024 Florida Bankruptcy 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 may potentially qualify for Chapter 7 bankruptcy in Orlando, Florida's Middle District Bankruptcy Court. If it is above, further calculations are required to determine disposable income.
Florida Median Income Levels for 2024
Household of 1: $62,973
Household of 2: $77,639
Household of 3: $89,908
Household of 4: $104,069
Each Additional Person: Add $9,900
Steps in the Means Test
Calculate Current Monthly Income (CMI)
-
Determine your average monthly income for the six months prior to filing.
Compare to Median Income
-
If your CMI is below the median income for your household size in Florida, you qualify for Chapter 7 bankruptcy.
Calculate Allowable Expenses
-
If your CMI is above the median, subtract allowable expenses (based on IRS standards) to determine disposable income.
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).
Orlando Chapter 7 bankruptcy Attorney Carolina Nunez and 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. Don't try to do it yourself -- it is possible that you may lose protections available to you in a bankruptcy proceeding. Orlando Chapter 7 Bankruptcy Attorney Carolina Nunez, Esq. can help guide you -- call us today at 407-900-FIRM. Para el servicio de abogado de bancarrota del Capítulo 7 en Español llame 386-PLEITOS. Our offices are located near Orlando / Winter Park / Daytona Beach.
How Much Does It Cost to File for Bankruptcy in Florida?
Attorney Carolina Nunez believes in transparency and honesty when representing clients which is why we, unlike other law firms, publish our prices. It's also important to point out that at The Law Offices of Carolina Nunez, P.A., we reduce our fees to support veterans, military, police officers, and firefighters as a way to honor their service. If you wish to get more information, please let us know in our intake form.
-
The legal representation cost for a Chapter 7 bankruptcy in generally costs between $1,700 and $3,000, depending on the complexity of the case and specific services provided.
-
For straightforward cases with fewer assets, fees tend to be on the lower end.
-
However, cases with more complex finances—like high debt amounts, multiple creditors, or unique financial circumstances—often require additional work, which can increase attorney fees.
Step 2 - Credit Counseling BANKRUPTCY COURSE
Before filing for bankruptcy in the Middle District of Florida, there is an essential prerequisite: you must complete budget and credit counseling through an agency approved by the U.S. Trustee Program. This requirement ensures that individuals consider alternative options and understand the potential financial impacts of filing for bankruptcy. The counseling session must take place within 180 days before you file your bankruptcy case. This timeframe allows you to explore other debt management solutions and provides a clearer picture of your financial situation.
Select an Approved Credit Counseling Agency
-
Only agencies approved by the U.S. Trustee Program are authorized to provide the credit counseling required for bankruptcy filers. These agencies offer sessions that typically cover:
-
Budget analysis and financial planning, possible, alternatives to bankruptcy, and more.
-
The Middle District of Florida provides a list of approved agencies for easy reference, ensuring you can confidently select a legitimate provider.
Obtain Your Counseling Certificate
-
Once you complete the session, the agency will issue a certificate of completion.
-
This document is a critical piece of your bankruptcy filing, as it proves you have fulfilled the counseling requirement.
-
Be sure to keep it readily accessible, as it will need to be filed with your bankruptcy petition to avoid delays in processing.
Taking these steps ensures compliance with bankruptcy filing requirements, prepares you for the process ahead, and may even help you discover alternative solutions to manage your debt.
Step 3 - CHAPTER 7 FLORIDA Bankruptcy EXEMPTIONS
In a liquidation bankruptcy (Chapter 7 bankruptcy), a trustee is appointed to oversee your case, evaluate your assets, and determine if any can be sold to repay your creditors. This process, while straightforward, often raises concerns about the potential loss of personal property. Fortunately, bankruptcy exemptions are designed to protect essential assets, ensuring many people can keep their homes, vehicles, and other necessary items.
Understanding the Role of the Trustee
The trustee's primary role in a Chapter 7 bankruptcy is to manage the liquidation of non-exempt assets. This may include:
-
Reviewing your assets and financial records.
-
Determining which assets are non-exempt and eligible for liquidation.
-
Using the proceeds from any sales to pay off creditors according to legal priority.
While this can seem intimidating, the majority of Chapter 7 filers are able to retain most, if not all, of their property thanks to federal and state exemption laws.
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 IN A BANKRUPTCY
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
-
Secured debts, like mortgages and car loans, are tied to specific assets as collateral. If you wish to keep the property, such as your home or vehicle, you must continue making payments even after bankruptcy.
-
However, if you choose to surrender the collateral (e.g., return the car to the lender), you may no longer be responsible for the debt.
Child Support and Alimony
-
Obligations for child support and spousal maintenance.
Other Secured Loans
-
Loans with collateral that you wish to keep.
Student Loans
-
Student loans are a hot topic, especially when it comes to bankruptcy. Many people are confused about how Chapter 7 bankruptcy impacts student debt.
-
Generally, student loans are difficult to discharge in bankruptcy, but there are exceptions. In certain cases, if a borrower can prove that repaying their loans would cause "undue hardship," it may be possible to get relief through bankruptcy.
-
Different strategies and legal methods can help, but it's essential to understand the specific requirements and consult with a knowledgeable attorney to explore options for managing student loans in Chapter 7 bankruptcy.
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 an Orlando, Florida bankruptcy attorney to look over your petition. Having an Orlando Chapter 7 bankruptcy lawyer will provide you with a more secure way to protect your property from the liquidation process.
BANKRUPTCY RELIEF - HIRING A LAWYER IN ORLANDO FLORIDA TO GUIDE YOU
While a Chapter 7 bankruptcy in Orlando and Central Florida 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. Orlando Chapter 7 Bankruptcy Attorney Carolina Nunez, Esq. can help guide you -- call us today at 407-900-FIRM. Para el servicio de abogado de bancarrota del Capítulo 7 en Español llame 386-PLEITOS. Our offices are located near Orlando / Winter Park / Daytona Beach.
My Commitment
As Your Orlando Florida Bankruptcy 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.
=
