What are the restrictions for filing for bankruptcy?

In Florida, there are a few restrictions to consider if you are planning to file for bankruptcy. The main restrictions are regarding the type of bankruptcy and the amount of debt that you have. First, if you are filing for bankruptcy in Florida, you must decide which type of bankruptcy to file. The two main types of bankruptcy are Chapter 7 and Chapter 13. Chapter 7 is the most common form of bankruptcy, and it allows individuals to discharge their unsecured debts; however, to qualify for Chapter 7, you must pass a “means test” that takes into account your income and debts. Chapter 13 bankruptcy requires individuals to complete a payment plan, usually over a three-to-five-year period, and pay back some or all of their debts. Second, when filing for bankruptcy in Florida, the amount of debt that you owe is important. If you have too much debt, you may not qualify for any type of bankruptcy. Chapter 7 bankruptcy requires that you have less than $250,000 in unsecured debt, not including mortgages or car loans. If you have more than $250,000 in unsecured debt, you will not qualify for Chapter 7. Chapter 13 bankruptcy does not have a debt limit; however, you must have a steady income and enough disposable income to make payments on your debt according to the payment plan established by the court. If you plan to file for bankruptcy in Florida, make sure that you understand the restrictions and qualifications for each type of bankruptcy. Being aware of these restrictions can help you to make an informed decision when filing for bankruptcy.

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What are the restrictions for filing for bankruptcy?

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