Filing Bankruptcy in Florida

When filing bankruptcy in Florida, there are two very distinct types of bankruptcy that individuals seek shelter under. The first is Chapter 7 bankruptcy which is often called a liquidation bankruptcy. The second type is a Chapter 13 bankruptcy which is often called a repayment or reorganization bankruptcy. Your Clearwater bankruptcy attorney will be able to review your goals and financial situation and offer you guidance on which type of bankruptcy is right for you.

Not everyone will be eligible to file for a Chapter 7 or a Chapter 13 bankruptcy. The laws have specific rules and guidelines that must be met in order to qualify. For a person to file a Chapter 7 bankruptcy, they will be required to pass a means test.

Will You Be Filing Bankruptcy in Florida Under Chapter 7 or Chapter 13?

The means test is a simple formula that compares a person’s gross and net income to that of the median income of that person’s state. Should their income exceed the state’s median income they will not be eligible to file for Chapter 7 bankruptcy in most cases. There is a debt threshold that a person cannot exceed if they are seeking to file for bankruptcy under the Chapter 13 codes. Their unsecured debts cannot exceed $336,900, and their secured debts must be under the level of $1,010,650. If your debts exceed these current levels, you will more than likely be ineligible to file for a Chapter 13 bankruptcy.