Sarasota Bankruptcy Advice & Help − Frequently Asked Questions

If you are in the Southwest Florida area and considering filing bankruptcy, have questions on how it works, or what the outcome will be then this guide can help. To assist you we have put together a list of frequently asked questions for Florida residents. If you need more bankruptcy help, please call R. John Cole, II, & Associates, P.A. at 941-365-4055.

(Q) What do the new bankruptcy laws enacted in 2005 mean?

The new bankruptcy laws have placed limits on eligibility for filing Chapter 7.
Under the new bankruptcy laws, filers with high incomes may have to file for Chapter 13 or Chapter 11 bankruptcy and pay off some of their debts. In addition, new bankruptcy laws may require you to receive budget counseling, credit counseling, and debt management education.

(Q) What is Florida bankruptcy?

If a person or business does not have enough money to pay their bills, they may file for bankruptcy in federal court. Bankruptcy is a legal way for people and businesses to either: (a) work out a plan to repay their debts over time, or (b) completely eliminate debts. These proceedings occur under the protection of bankruptcy law and the court. You can receive further protection and advice from a Florida bankruptcy attorney.

Bankruptcy in Florida (and the rest of the nation) is governed by federal law contained in Title 11 of United States Code. Individual states such as Florida are not allowed to regulate bankruptcy, but state law may affect other things such as the property you are allowed to keep after a bankruptcy.

(Q) What do Chapter 7, Chapter 11 and Chapter 13 bankruptcy mean?

Chapter 7-this is a "liquidation" bankruptcy for individuals or businesses.
By filing a Chapter 7 bankruptcy, your non-exempt assets may be sold to pay down your debt. You will be able to keep any property that is exempt under Florida and federal law. Most people who file Chapter 7 do not have any non-exempt assets to sell; therefore, they lose no property at all and their unsecured debt (i.e., unsecured credit cards) is erased.

Chapter 11-this bankruptcy is typically used by businesses that need to reorganize their finances because of monetary distress. In rare cases, Chapter 11 bankruptcy may be used by high-income, high-debt individuals.

Chapter 13-this is a "reorganization" or "wage earner" bankruptcy. People who file Chapter 13 bankruptcy must earn enough of a reliable income to pay off some of their debts. Once you file for Chapter 13, you will have to submit a payment plan showing how you will pay debts over the next 3-5 years. The amount of debt you repay will depend on your income, your expenses, and other factors.

(Q) How much does it cost to file for bankruptcy in Florida, and how do I pay that amount?

The filing fee for bankruptcy is the same in every state, including Florida. The current nationwide filing fees are as follows:

Chapter 7: $299
Chapter 11: $1,039
Chapter 12: $239
Chapter 13: $274

In addition to the above filing fee, there will also be attorney fees and possibly minor fees for credit counseling, etc. 

Contact us today

For immediate legal assistance with resolving your bankruptcy or estate planning issues, contact R. John Cole, II, & Associates, P.A. at (941) 365-4055 today.