Yes, You Can Still File for Bankruptcy!
Mary Lippincott, Jay Weller P. A. - March 2006

The weeks leading up to October 17, 2005 had Americans running to the local bankruptcy courts to file for bankruptcy before the laws changed. Many feared that if they did not get their case filed by this time, then they would not be able to rid themselves of their huge consumer debts.

The fact of the matter is that you can still file for either Chapter 7 or Chapter 13 Bankruptcy. Chapter 7 is sometimes referred to as straight liquidation because all of the debts are discharged, but if you are over on any of your personal property exemptions, you may be required to surrender some personal property to pay creditors. Chapter 13 is used to reorganize your debts, and based on your income; you pay some or all of what you owe creditors over time.

The new bankruptcy law changes still allow a person to file for bankruptcy, but a debtor must qualify to file a Chapter 7. The bankruptcy court has set up a means test that a person must pass in order to qualify for a chapter 7, based on the Monthly Median Family Income in Florida, compared with how much the Debtor has made over the past six months, and the size of their family. Also, a debtor may not qualify for a Chapter 7 if they have filed received a Discharge in the last six to eight years. If a debtor does not qualify for a Chapter 7, then they can usually do a Chapter 13 repayment plan.

If you are planning to file for Bankruptcy under the new Bankruptcy Laws, be prepared to gather a lot of personal information that the courts will require. Be prepared documentation of all sources of income for the past six months prior to filing, which are called pay advices. If you have been collecting social security, than we will need an award letter stating how much you receive. We will need a copy of your income tax returns for the past three years. If you have not filed them, then you should do so before we file your case. A list of all of your debts, and the creditors' addresses will be needed. If a debtor is unsure of all of their creditors, a credit report can be pulled for around $40.00 from all three credit bureaus. The Debtor will also need to provide a copy of deeds to any real property, and cops of any titles to automobiles.

Debtors are also now required to go through an approved Credit Counseling Program. There are two courses that must be completed, one before filing, and another before the debtor is discharged. A list of approved programs can be obtained from your attorney.

Chapter 7 usually takes about four to six months to receive a discharge, and the filing fee is currently $274.00. Filing a Chapter 13 bankruptcy can take anywhere from three to five years to repay creditors depending on the individual case, and the filing fee is $189.00.

Bankruptcy is not something that you want to attempt to do on your own. It is very easy to get into debt, and very difficult to get out. You should seek professional legal assistance such as the Law Office of Weller, Wynn, & Morales, PA.

Julian Credit Management is a firm that practices exclusively in the area of Bankruptcy and Debt Consolidation and has offices in Clearwater (Pinellas County), Port Richey (Pasco County), Tampa (Hillsborough County), Lakeland (Polk County) and Orlando (Orange County). We represent persons throughout the State of Florida.

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