Myths and truths about bankruptcy in the state of Florida. 

Are you running out of options and thinking about filing for bankruptcy in Florida? You heard so many things about how bankruptcy is bad and will ruin your credit and you won't be able to buy anything for the next 7 to 10 years. I have been there and done that and here is my take. 

I am not sure why so many people think that bankruptcy is the end of the line, I certainly felt like that one day, but for me really was a life saver and the beginning of a fresh start. 

Now bankruptcy is not always the solution, but in my case I was so much in debt that it was the only solution. To make a long story short I bought to much house and was not able to make the payments in my mortgage. then I started to make late payments in everything else from my car to credit cards and that my debt grew to enormous proportions and all of sudden I could not make any payments. on top of that I lost my job, and the job market in the Orlando area is not that great. Then when I finally got a good job perspective, after 2 interviews and 4 or 5 of those tedious tests the recruiter told me that the last step was a credit check! needless to say I did not got the job. Okay, so what does this boring story has to do with bankruptcy in Florida, you ask... Well after that, I decided that was time to file for bankruptcy. I searched for a good bankruptcy lawyer here in central Florida, I filled for chapter 7 (the one that you do not have to repay, since my debt was beyond my means) and about 3 months after my bankruptcy was discharged I found a good credit repair agency to work on my credit.

Fast forward 2 years later, not only I feel relief, but I have a credit score of 655, which isn't great but is pretty good for only 2 years after bankruptcy and I can buy a house if I want and was able to reapply for that same job and got the position! 

Here is what you need to know about Bankruptcy in Florida. 

The bankruptcy process is very long. 

Not at all. in about 3 to 4 months you will be able to complete the process. 

I heard I cannot keep anything. 

Yes you can, you can keep your house if you want, your car and in the state of Florida even some other secure debt. I wouldn't but hey to each it's own. 

It will take me 10 years to start building a good credit again. 

This could not be further from the truth. As I stated before my credit was already pretty good only 2 years after I filed for bankruptcy. And to tell you the truth a credit card company or a bank will see you as a better future customer after bankruptcy. One because you do not have any debts and two because you cannot file for bankruptcy again during 6 years and they can sue you if they want.  

How long does the bankruptcy will stay in my credit. 

7 years for chapter 13 and 10 years for chapter 7, but really if you start building good credit right after your bankruptcy that really won't affect you much. 

I am not sure that I can file bankruptcy 

Everybody can file for bankruptcy, is a right that you have under the constitution. Now you might not need bankruptcy because you don't have much debt or something, but that you will only find out when you consult a lawyer. so go see a lawyer. 

What is the difference between chapter 7 bankruptcy and chapter 13 bankruptcy.

That's where a lot of people get confused.
Chapter 7 is probably the most common bankruptcy and the one that people identify with the most. Chapter 7 is a liquidation type of bankruptcy. This type of bankruptcy is when the court forgives all your debts and take all the assets that are not exempt.

Chapter 7 in most cases will allow you to eliminate all of your unsecured debt (I.E. Credit Cards and Medical Bills) while keeping some of your secure debt such as your house, car and appliances for instance.

Chapter 13 bankruptcy in the other hand, means that you will restructure your debt by negotiating with your creditors. the bankruptcy court will determine an amount that you could pay your debtors (in your means of course) and put you on a plan to repay your debt over a period of 3 to 5 years. By filing chapter 13 you commit yourself in repaying your debt on a slower rate and in turn you are allowed to keep personal property, and also limiting the damage on your credit report.

I need to clarify that not everyone will be eligible to file for a chapter 13 bankrupt in the state of Florida and probably in the rest of the United States. You must have sufficient disposable income after subtracting certain allowed expenses to meet your repayment requirements. If you have a ton of debt and your income is not sufficient the judge will not allowed you to file a chapter 13 and you will have to file a chapter 7, which is no big deal.

So, if you plan to file for bankruptcy in the state of Florida, consult a local attorney. Bankruptcy does not have to be the end of the road but a new beginning! 

Bankruptcy Cost/Fees - How much does it cost to file bankruptcy in Florida?

The actual filing cost with the court is:

Chapter 7 - $299.00 and Chapter 13 $274.00 (These are fixed costs.)

Since the 2005 change of the Bankruptcy laws you will have to undergo mandatory bankruptcy counseling course that will cost you approximately $100. Now if you decide to go with a lawyer, which is what I would do, than you can expect costs ranging from $999 to $2000. As I stated before, most bankruptcy lawyers will work with you in a payment plan, just ask.