Miami Florida Bankruptcy Blog

Posts Tagged ‘Chapter 13 Bankruptcy Miami Florida’

The short answer is No. It is against the law. Under the Bankruptcy code, when you file for bankruptcy, you have to list all of your property and all of your debts.

If you want to keep paying on specific debts, you are able to do so. After you file, there are some debts that you have to keep paying. For example, if you have a car, even though it is listed as a debt in your bankruptcy, if you want to keep it you have to keep making your payments. As long as you stay current on the loan and keep the car insured, you are protected under the law and you get to keep it. This is called Reaffirming a debt.  Your creditor typically will want you to sign a new contract (reaffirm) for the vehicle.

With regard to your property, as stated above it has to be listed in your bankruptcy. However there are exemptions available to you to use  while in bankruptcy.  The following is a list of Florida Exemptions:

Homestead

222.01 – Real or personal property, including mobile or modular home and condominium, to unlimited value. Property cannot exceed: 1/2 acre in a municipality, or 160 acres elsewhere. Spouse or child of deceased owner may claim exemption. (Also refer to Florida Constitution, as “Fla. Const. 10-4.”). May file homestead declaration. Also, tenancies by the entireties in real property are exempt as to debts of one spouse [In re Avins, 19 B.R. 736 (S.D.FIa: 1982)].

Personal Property

222.22 – Prepaid hurricane savings accounts, prepaid medical savings account deposits, and prepaid college education trust deposits.

222.25 – Motor vehicle up to $1,000; prescribed health aids; federal income tax credits or refunds.

497.56 – Pre-need funeral contract deposits.

Other – Any personal property up to $1,000 total. (Refer to as “Florida Constitution 10-4″) – Subject to doubling, if filed jointly both the husband and wife can each take $1,000.00 personal property exemption.

Wages

222.11 – For head of family, 100% of earnings up to $500 a week; Applies to either unpaid or paid wages, or wages deposited in a bank account for up to 6 months.

222.21 – Federal government employees’ pension payments that are needed for support and were received up to 3 months prior to the bankruptcy.

Pensions

11 U.S.C. § 522 – Tax exempt retirement accounts. Traditional IRAs and Roth IRAs up to $1,095,000 per person.

121.131 – State officers and employees.

122.15 – County officers and employees.

175.241 – Firefighters.

185.25 – Police officers.

222.21 – ERISA – qualified benefits, IRAs and Roth IRAs.

238.15 – Teachers.

Public Benefits

222.201 – Public assistance, unemployment compensation, Veterans’ benefits, and social security.

440.22 – Workers’ compensation.

960.14 – Crime victims’ compensation unless seeking to discharge debt for treatment of crime related injury.

Alimony and Child Support

222.201 – Alimony and child support needed for support.

Insurance

222.13 – Death benefits payable to a specific beneficiary.

222.14 – Annuity contract proceeds excluding lottery winnings; life insurance cash surrender value.

222.18 – Disability or illness benefits.

632.619 – Fraternal benefit society benefits.

Misc.

769.05 – Damages to employees for injuries incurred in hazardous occupations

If you have more questions about Bankruptcy or exemptions and you live in Miami-Dade County or Broward County, Contact my firm for a free consultation.

Matthew E. Mazur, Jr. Esq., is the managing shareholder of Matthew Mazur, P.A., a Coral Gables, Florida based law firm that represents clients in Bankrutpcy matters. For more information please visit www.coralgablesbankruptcyattorney.com.

Florida residents have three  main options when it comes to filing for bankruptcy: Chapter 7 Bankruptcy, Chapter 13  Bankruptcy and Chapter 12 Bankruptcy. Chapter 7 bankruptcy is also referred to as “straight” or “clean slate” bankruptcy. This option wipes out all applicable debt immediately.

Chapter 13 bankruptcy allows the individual to create a payment plan to wipe out debt over several years of payment.  With the change in Bankruptcy Laws in 2005 many people who do not qualify for a Chapter 7 Bankruptcy utilize a Chapter 13 Bankruptcy to regain control of their financial situation and get back on the road to prosperity.

Chapter 12 bankruptcy is a special process only available for family farmers and fishermen and follows slightly different procedures than the more common Chapter 7 and Chapter 13 proceedings.

Additionally, an individual may in some rare circumstances file for a Personal Chapter 11 Bankruptcy. Chapter 11 Bankruptcy is typically reserved for businesses. Depending upon your situation, a Personal Chapter 11 Bankruptcy may be the best option.

No matter which option you choose in Bankruptcy, it is important to be well informed and find a law firm you are comfortable working with. A Bankruptcy is a very personal situation that requires a close relationship with the law firm that you choose to hire. It is important that you feel that you are being treated as an individual and not as a number. This is important because, no matter which option you choose, if you are not treated with dignity the process will not be pleasant and no matter what the outcome is you will not be satisfied.

Matthew E. Mazur, Jr. Esq., is the managing shareholder of Matthew Mazur, P.A., a Coral Gables, Florida based law firm that represents clients in Bankrutpcy matters. For more information please visit www.coralgablesbankruptcyattorney.com.