Orlando Bankruptcy FAQ's

Can I get rid of credit card debt?

The answer to this question depends on (1) when you made the charges and (2) what you used the credit card for. Large cash advances shortly before the Florida bankruptcy filing raises a red flag with creditors, who may object to your discharge. Large balance transfers to pay off or pay down other debts will leave the last creditor unhappy. That creditor can also ask that a portion of the debt be exempted from discharged.

Can I stop the mortgage foreclosure on my Orlando Florida house?

Once a petition for Florida bankruptcy is filed, any foreclosure action is automatically halted. The law requires the mortgage company and its law firm to obtain permission from the Florida bankruptcy court to continue the foreclosure action. This is usually granted, but takes approximately two months. In most situations, a Chapter 7 bankruptcy will not allow you to keep your house, and the mortgage company will be permitted to complete the Florida foreclosure process. However, if you qualify for a Chapter 13 repayment and debt restructuring plan, you may be able to stay in your Orlando Florida home. You will need to keep your mortgage payments current while you complete your plan during the 3 to 5 year plan period. Your desire, and ability, to remain in your Orlando Florida home will be an important factor in choosing whether to file under Chapter 7 or Chapter 13.

Can I lose my car?

Yes. Florida law provides an exemption of $1,000 of value in an automobile. This means that most automobiles can be used by the trustee to pay creditors if you are filing for a liquidation Orlando Florida bankruptcy under Chapter 7. Although filing a bankruptcy petition puts a temporary halt to any repossession, the creditor may request permission from the Florida bankruptcy court to take the vehicle. A reaffirmation agreement may be used to keep a vehicle that is secured with debt. For example, if you owe $15,000 on a car that is worth only $10,000, the creditor may be willing to “refinance” the car by allowing you to agree to pay $10,000 and keep the car.

If you file for relief under Chapter 13, in Orlando Florida you will be required to pay value of the balance on any car loans above the $1,000.00 exemption amount. If you owe more on the car than it is worth, you may qualify for a “cram down” of the balance to reflect its actual value. This can be a benefit in either an Chapter 7 or a Chapter 13 filing.

Can I file bankruptcy in Orlando Florida if I have a good, steady paycheck?

Before obtaining a discharge in Chapter 7, you must pass the “means test.” This is essentially an evaluation of your monthly income and expenses. If your current monthly income is below the Florida adjusted median income, then you automatically qualify. If you income is above the Florida adjusted median income, you may still qualify after expenses such as care payments and retirement plan contributions are deducted from your income. Our firm will assist you in evaluating your monthly income and expenses to ensure that you pass the means test if you are able, so that you can obtain a discharge. If you can not satisfy the requirements of the means test, then a Chapter 13 may be the best option for you.

How do I pay for an Orlando Florida bankruptcy lawyer?

Most Orlando Florida bankruptcy lawyers charge a flat rate for assisting you in obtaining a discharge from the Florida bankruptcy court. The fees may be more if your case involves a business, or if there are complicated issues in your case that require additional legal work. If you are comparing Orlando bankruptcy attorneys for the fee charged for filing a Florida bankruptcy petition, you should ask what the flat rate fee includes. You should not be charged extra for events that are part of the basic Florida bankruptcy process, such as attending the meeting of creditors, or assistance with preparing or reviewing a reaffirmation agreement. However, there are some Orlando Florida bankruptcy cases which require additional legal services. These services bring you additional benefits that go beyond a successful discharge. Before retaining any Orlando Florida bankruptcy lawyer to assist you in an Orlando Florida bankruptcy proceeding, make sure you find out the total cost of the process and what services are included in the lawyer’s fees.

Please note that these fees do not include the filing fees, which in the Middle District of Florida are $299.00 for a Chapter 7 petition, and $276 for the filing of a Chapter 13 petition.

Because the Florida law considers Florida bankruptcy lawyers assisting consumers with their Orlando Florida bankruptcy filings to be providing debt relief services, a lawyer should not accept payment for assisting you with bankruptcy with credit cards. Likewise, an Orlando Florida bankruptcy lawyer should not counsel a client to go into further debt.

Can bankruptcy help me if I owe the IRS for unpaid income taxes?

Most taxes are not dischargeable but there are some exceptions. If you filed your taxes with the IRS on time, and you owe regular income taxes that are over three years old, they are generally dischargeable. However, there are exceptions to this and you will need to consult with a knowledgeable Orlando Florida bankruptcy attorney on this question to determine if a discharge would apply to your case. Chapter 13 does have advantages over a Chapter 7 in this area.

How long does a chapter 7 bankruptcy take?

Generally, a Chapter 7 discharge will be granted about five months after the petition is filed with the Florida bankruptcy court. Our Orlando Florida, bankruptcy lawyer office can assist you in preparing the petition as quickly as possible, but it usually takes most Orlando Florida clients about a week or two to provide us with all the information needed for the petition.

How long does a Chapter 13 bankruptcy take?

A Chapter 13 is a repayment plan with your creditors that is scheduled for three or five years, depending on your income level, and the value of your nonexempt assets.

How long does a Florida bankruptcy stay on my credit report?

A Florida bankruptcy will remain on your credit record for no longer than ten years.

Can I file bankruptcy more than one time?

Generally, a person can file a chapter 7 bankruptcy eight years after discharge, but discharge restrictions apply. This is an issue that needs to be reviewed with an experienced bankruptcy attorney. You can file a Chapter 13 or Chapter 11 bankruptcy immediately after a Chapter 7 discharge.

Can I get credit cards after a Florida bankruptcy?

Some credit card companies might consider you a good risk: you can not file Chapter 7 again for eight years and your debt to income ration is much better without all the payments that you had before your Florida bankruptcy. This will of course depend on your particular situation.

Will a Florida bankruptcy stop a repossession?

Once a Chapter 7 bankruptcy is filed, creditors are forbidden from taking any action to recover or repossess your assets. The law requires the creditor to obtain permission from the Florida bankruptcy court to repossess. This is usually granted, but takes approximately one to two months. The creditor may then repossess and sell the car or other collateral and apply the sale proceeds to the debt. However, if you are granted a discharge, the creditor cannot collect on any debt that remains after the repossession and sale.

Am I required to hire an Orlando Florida bankruptcy lawyer to file a bankruptcy?

If you are an individual, you may represent your self in a Florida bankruptcy court. However, the bankruptcy trustee is not responsible for giving you legal advice.

Let Us Make It Easy To Get a Fresh Start. Call Today For a Free Consultation! Contact Orlando Bankruptcy Lawyer: Jeff Badgley

As an experienced Orlando bankruptcy attorney, Jeff Badgley has over 20 years experience in helping Orlando and Central Florida residents with their financial matters. If you live in the Orlando, Altamonte Springs, Winter Springs, Winter Haven, Windermere, Ocoee, Winter Garden, Kissimmee, Clermont, Deltona, Oviedo, Winter Park or the Central Florida area and have any questions regarding an Orlando bankruptcy concern contact or call us at (866) 977-1544  for a FREE CONSULTATION.