Do you know the bankruptcy laws in Florida? If you need help with your cash problems then find out the options available if you are considering bankruptcy. The laws in Florida are fairly standard and conform to Federal laws, as in most states. Changes have been made since 2005 and you should be aware.

The new laws in effect concerning bankruptcy were passed in 2005 by the United States Congress. The major changes that took effect are that bankruptcy applicants who wish to file under Chapter 7 must meet certain eligibility requirements which are called a ‘means test.’ This makes it somewhat more difficult to file for bankruptcy, especially for those that wish to rack up a lot of debt and then have it all wiped out by declaring bankruptcy.

Under this new ‘means test,’ if your current monthly income is less than the median income in your state, then you can file for bankruptcy under Chapter 7. However, if your current monthly income is greater than the median income in your state, and you can also afford to pay $100 per month toward paying off your debt, you cannot file under Chapter 7 and must file under Chapter 13. Whether you can afford to pay $100 per month (or $6,000 over a five-year period) is calculated on a formula that includes your monthly income, your expenses, and the total amount of your debt. Learn about declare bankruptcy for your benefit.

Another little-known fact is that if you haven’t paid your income taxes in the past few years, then you cannot file for bankruptcy until you at least file your tax returns. Whether you owe money or not, you must be up to date on the returns at least for Federal taxes, otherwise you can’t proceed. This is also a part of the new bankruptcy laws that took effect in 2005.

Another very important stipulation for filing for bankruptcy is that you must go through a type of credit counseling. There are now government approved programs that are setup in each state to educate potential bankruptcy candidates about their habits and how to curb spending. This is designed to help those whose spending habits have gotten them into this situation, although many people have reached these circumstances due to other problems such as medical bills, loss of jobs, or divorce. Another thing to keep in mind is that your debts (credit cards, loans, promissory notes, etc) may not be wiped out until you also participate in a government-approved financial management education program. These are setup through a court-appointed trustee, who will look at your individual situation and determine whether you are able to complete the bankruptcy terms set aside by the court.

In Florida, you can keep your home and other possessions if you are current on the payments. There are other certain exemptions, such as insurance, pensions, intellectual property, wages, and certain benefits such as social security. Also, if the property is secured by a loan such as a car or home, and you are current on the payments, the equity is covered by your exemptions, and you wish to keep making payments on the loan you normally can keep this property. If all the equity is not covered by your exemptions then the trustee could elect to sell these assets and distribute the money. In this case, you would be entitled to the value of your exemption in the asset as a cash payment.Don’t be without the facts, learn about Florida chapter 13 now.

In today’s economy, there are many people not only having financial difficulties, but also having problems with their home losing value. What happens when you can’t pay your bills any longer, including your own mortgage? One solution to consider is to file for foreclosure rather than bankruptcy. There are many reasons to file for foreclosure instead, here are a few.

Typically, the foreclosure process begins soon after a homeowner gets behind on their mortgage payments. This can happen immediately, but normally after a 60-90 day period has passed or at least three payments are missed. Obviously you will have some warning before the bank files the foreclosure in court and gives you some notice. The lender will later try to sell the home at an auction in order to recoup the money for the loan.

Usually a mortgage company won’t begin the foreclosure process until you’ve missed several payments, often three or four. That gives you time to try some other actions, such as selling the home, getting loan forbearance, or giving up the deed in lieu of foreclosure. Make sure you know the facts about declare bankruptcy.

Whether you file a Chapter 13 or Chapter 7 bankruptcy the court automatically issues an order called the Order for Relief that includes something known as the ‘automatic stay.’ The automatic stay directs your creditors to stop all their collection activities immediately. If your home is scheduled for a foreclosure sale, the sale will be postponed while the bankruptcy is pending, typically for three to four months. However, there are a couple of exceptions to this rule:
If the lender obtains the bankruptcy court’s permission to proceed with the sale by filing a ‘motion to lift the stay’, you may not get the full three to four months. However even then, the bankruptcy will most likely postpone the sale by at least two months or more if the lender is slow in pursuing the motion to lift the automatic stay. This is a matter of decision on the banks part, many are up to their eye-balls in foreclosures already and can’t make it in time.

Unfortunately, bankruptcy’s automatic stay won’t stop the countdown on the advance notice that many states require before a foreclosure sale can be held or a motion to lift the stay can be filed. Before selling a home in most states, a lender is required give the owner at least three months’ notice. So if you receive a three-month notice of default, and later file for bankruptcy after month have passed, the three-month period would elapse after you’d been in bankruptcy for only one month. At that time the lender could file a motion to lift the stay and ask the court for permission to schedule the foreclosure sale.
Many people will do whatever is necessary to stay in their home for as long as possible. If you in this situation and you’re behind on your mortgage payments with no possible way to get current, the best way to keep your home is to file a Chapter 13 bankruptcy.

Chapter 13 bankruptcy lets you pay off your late payments over the length of a repayment plan you propose, from three to five years in most cases. But you’ll need enough income to at least meet your current mortgage payment at the same time you’re paying off the back debts you owe. If you make all the required payments up to the end of the repayment plan set up by the court, you’ll avoid bankruptcy lawyer and keep your home.

If you are thinking about file for bankruptcy due to a financial hardship, think again? You’re not alone; many thousands of Americans are experiencing financial pain in this economy. If you do declare bankruptcy you shoujld know it will really effect your credit score for a long time?

This may be a touch choice for you to consider, with the housing market crashing and many losing their jobs. What else can you do when the bills aren’t getting paid on time and you can’t take out more loans? Job loss is the worst, since in a bad economy it can easily take a year or more to replace a job. It seems as if the only thing to do is to declare bankruptcy and wipe out your debts, then start clean. But things have certainly changed, and there are more hurdles to bankruptcy than before. Weigh your options carefully before filing for bankruptcy. Learn more about declare bankruptcy first.

The new bankruptcy laws put into effect in 2005 make it more difficult to declare bankruptcy, since guidelines are in place to prevent people from taking it lightly. You must meet certain income guidelines for one thing, so if you are making a lot of income then bankruptcy is not an option. If you have lost your job, then certainly it is much easier to qualify. However there are still hurdles to cross.

You must also pass a “means test” to see if you have income left over after paying off your bills at the end of the month. Anything over a certain amount and you may not qualify. Again, if you are not making any income due to job loss, you would have not problem with this requirement. There is still a simple matter of taking a required credit counseling class, which must be done through an agency that is accredited by the government. This is a new stipulation added in 2005 to help people understand that it is a serious matter, and perhaps teach them to avoid this step in the future. It is also a way to develop a plan to pay off debts which is offered to the court for approval. Having a debt payment plan is a necessity and the court will go over this plan with you.

If you finally pass all the requirements and file for bankruptcy, what is next? If you have filed for Chapter 7, which is the way to wipe out your current debts including credit cards, personal loans, certain medical bills, and even taxes, then after the bankruptcy is discharged you are ready to start again. This means of course you must learn to be very frugal with your money, as any loans you do get will cost much more for at least the first several years. It is possible to build up your credit rating and FICO score again, with time. However a bankruptcy will stay on your record for 10 years, so do you really want that? Don’t file until you get more information about Florida bankruptcy laws.

The better solution if you can possibly do it is to call all of your credit card companies and finance companies and work out a repayment schedule. Many times they will offer you some sort of a deal to lower your payments temporarily, lower the interest rate in some cases, and work with you to repay the amount. Getting help from a verified credit counseling service will make this much faster since most finance companies will take you more serious if you are working with a counseling service. But you must make payments on time, every time, in order to move forward with such a plan. Discipline is the key to any repayment plan, but it’s the best thing for your financial future so it may be a better solution in the long run.