Florida Bankruptcy Laws

Bankruptcy law is the area of federal law that deals with the handling of bankrupt persons or businesses. Florida bankruptcy laws explain the federal bankruptcy process and common issues pertaining to residents of Florida.

According to Florida bankruptcy law, a permanent resident of Florida can file bankruptcy in a Florida bankruptcy court. Florida has three bankruptcy courts, one in every bankruptcy district. They are Florida Middle bankruptcy court, bankruptcy court northern Florida and southern Florida bankruptcy court. All counties in Florida courts come under one of these bankruptcy. Bankruptcy is filed in the district of residence.

Most bankruptcy claims are personal information which, pursuant to Chapter 7 and 13 of federal bankruptcy law. Chapter 7 is also known as liquidation or bankruptcy. Chapter 13 bankruptcy plan known as wage laborers. If a chapter 7 orChapter 13 bankruptcy is filed, a trustee takes all the non-exempt property and sells it for the benefit of the creditors. But exempted property cannot be taken. Florida bankruptcy laws make determinations regarding non-exempt and exempt property. If Florida bankruptcy laws render a person ineligible for any exemption, he is allowed to choose federal exemptions.

Florida bankruptcy laws deviate from the federal bankruptcy law mainly with regard to exempted property. Properties that can be exempted are included in the Florida bankruptcy exemptions chart. One can exempt any property that falls into any of the categories in the chart, up to the dollar amount listed. Florida bankruptcy laws allow liberal bankruptcy exemptions. Homestead (160 acres outside a municipality and ½ acre within a municipality), insurance, motor vehicle ($1,000), personal properties ($1,000), a portion of wages, life insurance policies, unemployment compensation benefits, disability benefits, pension and retirement funds, education funds, and health aid interest are among those exempted.

The new Florida bankruptcy law, effective from October 17, 2005, makes filing bankruptcy cases more complicated. It incorporates impediments to filing bankruptcy, new court rules, new forms, and additional work for debtors and attorneys. According to the new Florida bankruptcy law, the Florida exemption law is applicable to your bankruptcy only if you lived two years in Florida, immediately prior to the filing date. If not, for freedom, for in those of the 180 days before these two years, spent most are in Florida.

Insolvency to be the only solution for extreme financial burden may be. At the end of the bankruptcy proceedings, the court discharges the borrower from the debts. The bankrupt person can start over again with a clean slate financial, but a record of the bankruptcy stay onProfile of its loan up to ten years.