Bankruptcy laws in florida
The people those in Florida who are still not familiar with the new bankruptcy law that was imposed during the year 2005 it is important that you find out what the process is to file a bankruptcy in Florida. This new bankruptcy law in Florida has been made much more complicated. The new decided bankruptcy laws includes obstructions to filing a bankruptcy, new forms, new bankruptcy court system and an extra work for the attorneys and their debtors. Apart from this there are also new laws that are uncertain and are subject to multiple explanations and due to this there is some uncertainty and risk about how the new bankruptcy law might crash on your assets.
The new bankruptcy laws would become even clearer as the judge clarifies and interprets the law through the court decisions. As there are a number of courts located around the country, even if one judge interprets a part of the new law it would however take time for the interpretation of the judge to be tested on the appeal and for the new law to rule the legal community of Florida.
Eligibility for Filing Bankruptcy in Florida
Any individual who is a permanent resident of Florida is eligible to file a bankruptcy at Florida bankruptcy court. There are three Florida bankruptcy districts the Northern district, middle district and southern district and each district in Florida are assigned these bankruptcy courts. You can only file bankruptcy in your bankruptcy district court.
Bankruptcy Chapter 7 and 13
One of the most important concepts in bankruptcy chapter 7 and 13 is exempt property or exemptions. If you choose the bankruptcy chapter 7 then the trustee would take all your non exempt property and would sell it for your unsecured creditors. However the trustee will not take your exempt property and you can protect all your exempt property not considering its amount and value. The property that is non-exempt and the property that is exempt are actually decided by the law of the particular state. Every state has its own laws regarding what assets are non exempt and exempt with regards to bankruptcy. Therefore, before you can file bankruptcy you with your bankruptcy attorney should determine which state law would determine the exempt assets.
The state of Florida has liberal bankruptcy exemptions that include an unlimited farmhouse exemption. The people who reside in Florida and ones who meet the residency requirements can be eligible for exemptions in Florida. However, because you are a resident of Florida it does not mean that you can entitle for the Florida exemptions for bankruptcy. According to the new bankruptcy law in Florida the state exemption law that is applicable for your bankruptcy would be determined by the state in your were domiciled for 730 days or two years which would instantly precede your filing date. However if you are not a permanent resident of Florida for atleast2 years them again your bankruptcy filing date would be instantly proceeded. Your bankruptcy filing date can also be held back if you have stayed for less than two years in Florida.
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