Personal Bankruptcies in Pensacola

Filing a Pensacola FL Personal Bankruptcy

In filing bankruptcy, you are seeking to stop your creditors from harassing you or restructure your obligations, so your payments become more manageable. There may come a time when you find yourself swamped in debt. Fortunately, bankruptcy is a way out.  

Bankruptcy filing options for individuals

Individuals generally file chapter 7 or chapter 13 bankruptcies. With chapter 7, the proceeds from the liquidation of assets will be used to offset debts. Filing a chapter 13 bankruptcy allows you to catch up missed payments, restructure debt, and possibly allow you to pay lower amounts by installments.

Chapter 7 bankruptcy filing

For personal bankruptcy, Chapter 7 could be suitable for you if you want a fresh start. You may have to liquidate some of your assets. To be eligible, you must indicate that your income is not above the Florida median family income, if it is, then you will undergo a ‘means test’ to ascertain your net disposable income for the month. High disposable income after expenses may render you ineligible for Chapter 7.

We can help you determine if you are eligible for a Chapter 7 bankruptcy. Call us for a free consultation.

The Chapter 13 bankruptcy process

If you own nonexempt assets, you may want to consider Chapter 13 in order to protect your property. Unlike the Chapter 7 process. Chapter 13 bankruptcy reorganizes the debtor’s finances and monthly payments thereby making it easier for them to repay their debts without accruing additional interest. This is of course dependent on the size of the disposable income of the debtor’s family.

The good thing is that you get to pay a lower percentage of unsecured debts to your creditors if your disposable income is lower. This payment spans the duration of the Chapter 13 plan and whatever outstanding debt there is after the period will be discharged.

Bankruptcy exemptions in Florida

  • Homestead exemption gives you the right to keep your primary home. However, the size of the property is a factor.
  • General personal property and household goods are exempt including furniture, electronics and art.There is an additional $4,000 exemption for those without the Florida homestead exemption benefit. Also, there is personal property exemption of $1,000 or double for spouses.
  • Limited exemption of wages applies too.
  • Vehicle exemption of $1,000.

Other exemptions include annuity, retirement benefits, life insurance, unemployment benefits, and workers’ compensation benefits. Note that the Florida bankruptcy exemption laws will only apply to you when you have lived in the state for up to two years.

Before you file for bankruptcy, you need to ascertain your eligibility and whether you actually need bankruptcy at all. You should consult a bankruptcy attorney. The process can be complicated. You do not want to navigate these waters alone.


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