St. Petersburg Chapter 13 Bankruptcy Attorneys
Chapter 13 bankruptcy rules are consistent across the United States, but each state uses a different exemption list for individuals needing financial protection. Chapter 13 is a bankruptcy filing that requires qualification for the extra benefits of a Chapter 13 claim. Chapter 7 normally is used for individuals with excessive unsecured debt, while Chapter 13 allows protection for real estate property in some situations. Qualification for the right bankruptcy chapter is determined by the same test, but the results indicate the chapter according to filing rules. Chapter 13 bankruptcy is a debt reorganization plan instead of the unsecured debt discharge purpose of a Chapter 7 filing.
What is the Chapter 13 Bankruptcy Process in Florida?
FLORIDA MEANS TEST
One of the Chapter 13 bankruptcy rules states that everyone filing bankruptcy is required to complete the means test first. The means test results in an income ranking according to the median income within the state. Individuals who rank above the median will be required to file a Chapter 13 five-year repayment plan. Individuals who rank high on the means scale may also be required to pay a portion of the unsecured debts included. The means test also indicates the financial ability of the filer when the bankruptcy trustee evaluates the repayment plan for completion possibility.
EXEMPTION LISTS IN ST. PETERSBURG
When filing bankruptcy Florida law states that both bankruptcy chapters are subject to similar lists, but Chapter 13 is a repayment plan. This means that keeping certain property under a Chapter 13 filing can be easier if the property is used as loan collateral, providing the property has built equity. Equity is the difference between the value of the property minus the remaining amount of debt owed on the loan.
St. Petersburg also has a significant homestead exemption. Property with a clear title can be kept by the filer, so there is a definite possibility for some individuals to keep their home. In addition, there are specific items exempted by federal law that are included in addition to state allowances. Federal exemptions also include public service employees who have employment-based exemptions, along with restrictions on wage garnishment.
These exemptions can be significant for many debtors, so having an experienced bankruptcy attorney who understands all exemptions can make a huge difference in retaining personal property in a successful filing.
Chapter 13 bankruptcy rules are not solely focused on property that can be kept or debt that may be discharged. There are also forms of debt that cannot be discharged, a large number of which are unsecured. However, several of these debts are associated with illegal activity, such as debts assigned due to an auto accident while driving impaired. Fines also cannot be discharged, as well as student educational loans. Debts that have been omitted from the filing are also normally non-dischargeable. This condition is an excellent reason for making sure that all debts are included, even when they are paid up and in good standing.
RESIDENCY RULES FOR ST PETERSBURG
Bankruptcy rules require an individual to file the petition in the state in which the filer has lived the largest part of the past 180 days. This means that when filing bankruptcy Florida may be the best option for individuals who have recently moved to the state if the process can be postponed for a short period. This also allows sufficient time to consult with a bankruptcy attorney and develop an acceptable and complete repayment plan.
The bankruptcy professionals at Berkowitz & Myer understand all of the rules regarding a Chapter 13 bankruptcy petition and will work diligently to provide the best legal advice available, while helping the client develop a court submission that will be accepted with minimum resistance from creditors. When filing bankruptcy in Florida the client needs honest and valuable information. That is exactly what BerkMyer Law can provide you, including protection from creditors who attempt continuing harassment tactics after filing. To claim a free, no-obligation consultation, call us today at (727) 344-0123 or fill in the form on this page and we’ll call you to schedule a time to come in.