Chapter 7 Bankruptcy Information for Florida Residents
Jacksonville Chapter 7 Attorney
Chapter 7 of the United States Bankruptcy Code describes liquidation bankruptcy. By filing under this chapter, you have the opportunity to get a fresh start and become debt free. The trustee will sell any of your assets and pay the creditors with the proceeds. Certain types of debt cannot be discharged, however, such as:
- Fraudulent debts
- Certain taxes
- Child support
- Student loans
In most cases, Chapter 7 has the potential to completely wipe out most, if not all, of the filer's debts. If you would like to pursue this type of bankruptcy, speak with our Jacksonville lawyers from the Albaugh Law Firm.
We Help Determine Your Eligibility with the Bankruptcy Means Test
The bankruptcy means test evaluates a debtor's income compared with the official median income for households in the state of Florida. If your current monthly income (CMI) is higher than the median income in the state, the means test will apply a complex expense formula to determine whether you are eligible to file under Chapter 7. If you fail the means test, you may still be eligible to file for Chapter 13 bankruptcy. If your income is less than the state's minimum, you will likely be eligible to file under Chapter 7.
If you are eligible for Chapter 7, you will then have to decide whether it is the best option for your circumstances. This decision will first require a strong understanding of the bankruptcy laws in Florida. The court forgives individuals their debts by taking assets that are not exempt. One special provision in the state is that the court cannot take a debtor's home because equity in a home is protected under the Florida Constitution. Your secured debts, such as your home, vehicle, and a certain amount of secured purchases, also can be exempted. If you want legal guidance through what is often a complex process, contact our firm at once!