CHAPTER 7

Can I still file a Chapter 7 bankruptcy with the change in bankruptcy laws?
Yes. 85% to 90% of the people still qualify to file for Chapter 7 bankruptcy under the new bankruptcy laws. There are added requirements under the new laws, but otherwise everything is basically the same.

What is the difference between a Chapter 7 and Chapter 13?
Chapter 7 is called a "Straight Liquidation." In a Chapter 7, we usually eliminate unsecured debts, such as credit cards, medical bills, repossession deficiencies and signature loans. Chapter 13 is a "Debt Consolidation," or "Wage Earners Plan." Chapter 13 is primarily designed to allow you to stop foreclosures and repossessions, and it allows you to make up the back payments in a 36 to 60 month plan.

Do I qualify for a Chapter 7 bankruptcy?
There is no specific dollar amount of debts to qualify for bankruptcy. The main requirement for filing a Chapter 7 bankruptcy is that you not have a great deal of excess income after the payment of regular living expenses and that your gross income be under the Florida median income.

What is non-dischargeable debt?
The most common non-dischargeable debts are student loans, alimony, child support, property settlement agreements and certain income tax liabilities.

Will I lose any property?
So long as your assets are within the exemptions provided by law, you should not lose any property.

Do I have to list all my creditors?
Yes. The bankruptcy laws require you to list all of your creditors, even if you intend to keep paying them after the bankruptcy. Bankruptcy schedules are signed under the penalty of perjury, and you will be under oath at the Meeting of Creditors.

Can I transfer ownership of my assets to someone else prior to filing bankruptcy so I don't lose them in bankruptcy?
No. These types of transfers within two years of filing Chapter 7 bankruptcy will almost always be considered fraudulent and you could also be subjected to criminal prosecution.

CHAPTER 13

I heard the bankruptcy laws changed. Can I still file a Chapter 13 bankruptcy?
Yes. Anyone can file for Chapter 13 bankruptcy under the new bankruptcy laws. There are added requirements under the new laws, such as providing copies of your tax returns, pay stubs, completing a budget with a consumer credit agency prior to filing bankruptcy and completing a two-hour financial management class after you file for bankruptcy. Otherwise, everything is basically the same.

What is the difference between a Chapter 7 versus a Chapter 13?
Chapter 7 is a "Straight Liquidation." In a Chapter 7, we can usually eliminate unsecured debts, such as credit cards, medical bills, repossession deficiencies and signature loans, which allows you to get a fresh start and financial independence.

Chapter 13 is a "Debt Consolidation," or "Wage Earners Plan." Chapter 13 is primarily designed to allow you to stop foreclosures and repossessions, and it allows you to make up the back payments in a 36 to 60 month plan. In a Chapter 13, we can also consolidate other bills, such as your car payment, whereby you may be able to pay the value of the car and not the loan balance. Other debt that can be consolidated includes tax debts, student loans and child support or alimony arrears.

Do I qualify for a Chapter 13 bankruptcy?
As long as you have a regular source of income, you should qualify to file a Chapter 13 bankruptcy.

Are certain debts dischargeable in Chapter 13 that are not dischargeable in Chapter 7?
Yes. Credit card fraud, embezzlement, larceny, conversion and certain IRS debt can be discharged in a Chapter 13 bankruptcy.

Will I lose any property?
You shouldn't lose any property in a Chapter 13 bankruptcy.

Do I have to list all my creditors?
Yes. The bankruptcy laws require you to list all of your creditors. Bankruptcy schedules are signed under the penalty of perjury, and you will be asked under oath at the Meeting of Creditors if all debts were listed.

Can I transfer ownership of my assets to someone else prior to filing bankruptcy, so I don't lose them in bankruptcy?
You don't lose assets in a Chapter 13, so you would not want to transfer any assets prior to filing bankruptcy.

If I am married, can I file separately, even if a foreclosure has begun and both names are on the mortgage?
Yes. If one of the spouses does not need to be in bankruptcy other than for the foreclosure, that spouse can remain out of the bankruptcy.