Florida Bankruptcy
Florida Bankruptcy Law
Bankruptcy Code and Exemptions...
Although Federal Bankruptcy Code and U.S. Bankruptcy Laws apply to everyone, each state has its own Bankruptcy Code and Rules of Bankruptcy Property Exemption that apply specifically in that state.
Florida Bankruptcy Law
Florida Homestead Exemption Cap when Filing Bankruptcy...
One of the most unique features about Florida bankruptcy laws pertains to the unlimited value placed on state homestead exemptions. As of 2005 however, a new bankruptcy law reform act created a cap on all state homestead exemptions. In the past, many creditors considered Florida as a debtor's haven, yet filing statistics did not bear out creditor fears. Nevertheless, Floridians are now subject to federal restriction of their homestead exemption, and further restricted by income for qualification for Chapter 7.
To qualify for Chapter 7, debtors may not earn over the median state income, but are still entitled to file Chapter 13.
In all Florida bankruptcy cases, state law determines the extent of liability for transactions originating within the state. Divorce, tort claims, and even criminal responsibility for fines and restitution are also matters of state law. When filing, many cases include what lawyers refer to as a case within a case, that is, the necessity of litigating claim propriety before receiving a discharge.
Florida Bankruptcy Exemptions
Florida bankruptcy exemptions apply in all chapter 7 cases. The unlimited homestead value authorized by the state statutes received a high level of scrutiny for years, and ultimately, was the impetus for passage of new bankruptcy laws that cap maximum homestead value by federal preemption. Nevertheless, the Florida homestead exemption remains one of the highest in the country. To take advantage of the allowance however, new bankruptcy laws now require a minimum of 2 years state residency in Florida to claim the Florida bankruptcy exemptions.
Only Florida homestead exemptions are allowed. Federal exemptions are authorized in only fourteen states in the U.S.
Designating Florida Homestead Exemptions...
Anyone owning multiple tracts of land should formally designate their homestead. Ordinarily, the primary residence is presumed to be homestead property. But if renting a home and owning land, or owning multiple tracts, creditors notoriously dispute primary residence status and target the most valuable tract for liquidation. These frivolous tactics are easily defeated by filing a formal homestead designation with the clerk's office.
Pre-Bankruptcy Planning and Preparation
Pre-bankruptcy planning is a delicate topic with many transactions prohibited, but with the assistance of a progressive bankruptcy attorney, other allowable exemptions may be identified.
In practice, most people who file for bankruptcy will actually improve their credit rating within 18 months or less. In fact, in a chapter 13 filing, credit will begin to improve once late payment reports stop, and secured loans and credit lines begin reflecting timely payments.
Overall, filing for bankruptcy can, for many Americans in many different circumstances, be an important and integral step toward financial recovery and new found fiscal stability. Ultimately, bankruptcy creates opportunities and improves net worth, so long as the decision to file was made wisely.
To learn more about Florida State Bankruptcy Exemptions, simply go to our U.S. Bankruptcy Exemptions page.
In most states you can legally protect your personal residence in a bankruptcy. The interesting thing is homeowners are treated differently from state to state.
Learn more about the Homestead Act and how it affects you.
Florida Bankruptcy Code
All Florida Bankruptcy cases are governed by Title 11 of the United States Bankruptcy Code, by U.S. Bankruptcy Rules, and by local Florida State Bankruptcy Rules promulgated by Florida court.
The US bankruptcy court websites generally have links to both, the Federal US Bankruptcy Rules and specific Florida Bankruptcy Code. Clerks in the bankruptcy courts will not give debtors, or even attorneys for debtors, legal advice, including advice about which bankruptcy rules apply to a given case.
Locate a US Bankruptcy Court in your federal judicial district.
Since US Bankruptcy Code and Florida Bankruptcy Rules are very technical, and since the case load in the US Bankruptcy Courts makes judges very unforgiving of mistakes or missed deadlines, it's highly recommended to seek the advice of an experienced Florida Bankruptcy Attorney and Certified Credit Counsellor.
The most recent Changes to the Bankruptcy Code and Bankruptcy Rules came about on April 20, 2005 as President Bush signed the Bankruptcy Abuse Prevention and Consumer Protection Act. This new Bankruptcy Law came into effect October 17, 2005.
Learn more about the 25 Most Recent Changes to Personal Bankruptcy Law and how they affect you.
