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Broward Bankruptcy

Means Testing – Median Income for Florida Changing on November 1st

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Median Income for Florida Changing on November 1st

In order to file for bankruptcy you must under go a “Means Test” analysis to determine if you qualify for filing a Chapter 7 Bankruptcy. The Means Test is a two part test, the first part of the test analyzes your income vs. the “Median Income” for the state you live in. For purposes of this blog post, I will be focusing on the State of Florida. If you are at or below the Median Income for a household/family size of “X” you pass the first part of the means test and do not have to under go further analysis under the second part of the Means Test. It is possible to fail the first part of the Means Test (Median Income) and still pass the second part of the means test and qualify to file for a Chapter 7 Bankruptcy. Discussions regarding the second part of the Means Test will be left to another day. We will keep our focus on Median Income.

The data used by the Department of Justice to determine the Median Income for Florida is obtained from the Census Bureau. This data is typically adjusted twice a year. The Median Income for Florida currently and up to October 31, 2015 is as follows:

 

FLORIDA

Household of one (1) 

$42,718

Household of two (2)

$52,421

Household of Three (3)

$57,977

Household of four (4)

$67,539

For each additional household/family member above four (4) an additional $8,100.00 is added to the Median Income. So for a household/family of six (6) the Median Income would be $75,639.00.

As of November 1, 2015 the Median Income for Florida will be:

 

FLORIDA

Household of one (1) 

$43,085

Household of two (2)

$53,590

Household of Three (3)

$57,012

Household of four (4)

$66,509

For each additional household/family member above four (4) an additional $8,100.00 is added to the Median Income. So for a household/family of six (6) the Median Income would be $74,609.00.

What does this mean for you?

For most people this change will not mean much, but for some folks it could mean the difference between qualifying for a Chapter 7 Bankruptcy and not qualifying for a Chapter 7 Bankruptcy. That is why it is important to know where you stand with the Means Test and which type of bankruptcy you qualify for. A Bankruptcy Attorney will help you perform the necessary analysis so that you can make an informed decision about when and if to file for bankruptcy. For more information on the Department of Justice Means Testing click here to go to Department of Justice website.

Are you considering filing for bankruptcy?

If you are considering filing for bankruptcy, it is important that you speak with a bankruptcy attorney who can help you evaluate your potential homestead exemption and issues that may impact your exemption status in bankruptcy. Every bankruptcy case is different, so what has worked for one debtor may not necessarily work for another. If you are in Miami-Dade County or Broward County, Florida, please feel free to contact us to set up a FREE consultation to discuss your specific situation.

This blog post is made available for educational and informational purposes only and to promote a general understanding of the law, and not to provide specific legal advice. Use of this blog does not create an attorney-client relationship. Reading this post is not a substitute for obtaining legal advice based on the unique facts of your situation from an attorney licensed to practice law in your state. No representation is made regarding the current state of the information contained in this post. Examples that may be provided in this post are merely for illustrative purposes; the results in your case may be different and no results are guaranteed.

Bankruptcy Question – Do Both Spouses Have to File for Bankruptcy?

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Do Both Spouses Have to File for Bankruptcy?

This question comes up a lot when I meet with married couples who are going through issues with debts and considering bankruptcy to resolve those issues. The quick answer is maybe. It will depend on whether or not each spouse has debts in common. For example if you are both on the mortgage and note for your house and you are behind and you want to keep your house, it is best for both spouses to file together. There may be some strategic reasons for not filing together but that is something that needs to be analyzed and decided on a case by case basis. There are many scenarios where only one spouse needs to file for bankruptcy and the other does not. However, it is important to remember for the purposes of the means test, that the non-filing spouse’s income and expenses will be taken into consideration for qualifying for bankruptcy.

The question of whether to file a joint bankruptcy or to file an individual bankruptcy can be a complex one that requires some detailed analysis by you and your bankruptcy attorney to make sure that you make the best decision for your specific situation. It is important that when you meet with any bankruptcy attorney that you take the time before the meeting to gather any documentation you have on your debts, credit card statements, mortgage documents, your credit report, etc. so that you know exactly what debts you have, whose name they are in. This will help you to ask the right questions during your consultation, so as to limit surprises once you start the bankruptcy process. Remember Bankruptcy is a team effort between you and your bankruptcy attorney.

 

Are you considering filing for bankruptcy?

If you are considering filing for bankruptcy, it is important that you speak with a bankruptcy attorney who can help you evaluate your potential homestead exemption and issues that may impact your exemption status in bankruptcy. Every bankruptcy case is different, so what has worked for one debtor may not necessarily work for another. If you are in Miami-Dade County or Broward County, Florida, please feel free to contact us to set up a FREE consultation to discuss your specific situation.

This blog post is made available for educational and informational purposes only and to promote a general understanding of the law, and not to provide specific legal advice. Use of this blog does not create an attorney-client relationship. Reading this post is not a substitute for obtaining legal advice based on the unique facts of your situation from an attorney licensed to practice law in your state. No representation is made regarding the current state of the information contained in this post. Examples that may be provided in this post are merely for illustrative purposes; the results in your case may be different and no results are guaranteed.

Qualifying for Florida’s Bankruptcy Exemptions

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I Am New To Florida And Need To File Bankruptcy, Do I Qualify to Use Florida’s Bankruptcy Exemptions?

Potential clients come in my office all the time, who are recently transplanted to South Florida. Most have moved because of economic reasons to start a new job or to live with family and look for work. Some of them realize that they are not going to be able to dig themselves out of the hole debt put them in without help. They see bankruptcy as a way to help them start their lives over in Florida.

Which Bankruptcy Exemptions Are You Qualified to Use?

One of the big questions with potential clients like this is “How long have you lived in Florida?” This is important to know because it will determine if these clients can use Florida’s Bankruptcy Exemptions or if they are going to have to use their prior state’s exemptions or federal exemptions. The exemptions available to a potential bankruptcy filer are very important as they impact the course of their bankruptcy.

Qualifying for Florida’s Bankruptcy Exemptions

To qualify to use Florida’s Exemption, a potential bankruptcy filer must have been must be domiciled (Lived  full time, paid taxes, voted, etc.) in Florida for at least 730 days prior to filing of their  bankruptcy petition. If a potential bankruptcy filer has not been living in any one state continuously for the last two years prior to filing for bankruptcy the exemptions available for them will depend upon where they resided for the 180 days prior to the two year period before their filing for bankruptcy. That’s confusing! That is why it is important to consult with a bankruptcy attorney to make sure you utilize the correct exemptions when filing for bankruptcy.

Are you considering filing for bankruptcy?

If you are considering filing for bankruptcy, it is important that you speak with a bankruptcy attorney who can help you evaluate your potential homestead exemption and issues that may impact your exemption status in bankruptcy. Every bankruptcy case is different, so what has worked for one debtor may not necessarily work for another. If you are in Miami-Dade County or Broward County, Florida, please feel free to contact us to set up a FREE consultation to discuss your specific situation.

This blog post is made available for educational and informational purposes only and to promote a general understanding of the law, and not to provide specific legal advice. Use of this blog does not create an attorney-client relationship. Reading this post is not a substitute for obtaining legal advice based on the unique facts of your situation from an attorney licensed to practice law in your state. No representation is made regarding the current state of the information contained in this post. Examples that may be provided in this post are merely for illustrative purposes; the results in your case may be different and no results are guaranteed.

Florida’s Bankruptcy Exemptions – Motor Vehicle Exemption

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Will I Lose My Car if I File for Bankruptcy ?

One of the most important questions potential client’s have when they come in to see me is whether or not they are going to lose their car (motorcycle) if they file for bankruptcy. Florida has a $1,000.00 exemption that can be applied to protect the equity in your car.  If you are filing jointly and the car is titled in both your names you will get a $2,000.00 exemption that can be applied to protect the equity of your car.  See Fla. Stat. Ann 222.25.

It is important to remember that a car (or motorcycle) that is leased does not fall under this exemption, as you have no equity in that vehicle. You are just using the vehicle and at the end of the lease you typically have no ownership interests in the vehicle.

What if I have more equity than $1,000.00 or $2,000.00 in my car?

In a lot of cases folks have more than $1,000.00 or $2,000.00 in equity. All is not lost, there are options to deal with this situation. For example, if you do not own a home and have the Florida Wild Card Exemption, you can use part of that $4,000.00 exemption to protect the additional equity in your vehicle above the $1,000.00 auto exemption. If you are filing jointly and both of you are on the vehicle title then you can use a portion of the $8,000.00 Florida Wild Card Exemption to protect your additional equity in your vehicle.

If you don’t have the Florida Wild Card Exemption available, you have options as well, however the analysis of what options you have will need to be done on a case by case basis. That is why it is important to do a detailed analysis of your assets before filing for bankruptcy.

Are you considering filing for bankruptcy?

If you are considering filing for bankruptcy, it is important that you speak with a bankruptcy attorney who can help you evaluate your potential homestead exemption and issues that may impact your exemption status in bankruptcy. Every bankruptcy case is different, so what has worked for one debtor may not necessarily work for another. If you are in Miami-Dade County or Broward County, Florida, please feel free to contact us to set up a FREE consultation to discuss your specific situation.

This blog post is made available for educational and informational purposes only and to promote a general understanding of the law, and not to provide specific legal advice. Use of this blog does not create an attorney-client relationship. Reading this post is not a substitute for obtaining legal advice based on the unique facts of your situation from an attorney licensed to practice law in your state. No representation is made regarding the current state of the information contained in this post. Examples that may be provided in this post are merely for illustrative purposes; the results in your case may be different and no results are guaranteed.

Florida’s Bankruptcy Exemptions – Wildcard Exemption

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What is the Wildcard Exemption?

If you are not claiming a homestead exemption in your bankruptcy, you are allowed to claim a $4,000.00 “wildcard” exemption. See FL Stat. 222.25 This exemption can be used to protect your personal property or motor vehicles. It is in addition to the $1,000.00 Personal Property Exemption you are entitled to under Florida’s Constitution.  What that means is that a single debtor, not claiming a homestead exemption has $5,000.00 in exemptions available to protect personal property or vehicles. If join debtors are filing together that means they have $10,000.00 in exemptions available to protect their personal property or vehicles.

Use Fair Market Values not Replacement Values for Personal Property valuations in Bankruptcy

It is important to remember that when valuing personal property for bankruptcy purposes, replacement value is not the basis of valuation. The basis of valuation should be fair market value or as I advise my clients what you could sell the specific piece of property for on craigslist or at a yard sale.

Are you considering filing for bankruptcy?

If you are considering filing for bankruptcy, it is important that you speak with a bankruptcy attorney who can help you evaluate your potential homestead exemption and issues that may impact your exemption status in bankruptcy. Every bankruptcy case is different, so what has worked for one debtor may not necessarily work for another. If you are in Miami-Dade County or Broward County, Florida, please feel free to contact us to set up a FREE consultation to discuss your specific situation.

This blog post is made available for educational and informational purposes only and to promote a general understanding of the law, and not to provide specific legal advice. Use of this blog does not create an attorney-client relationship. Reading this post is not a substitute for obtaining legal advice based on the unique facts of your situation from an attorney licensed to practice law in your state. No representation is made regarding the current state of the information contained in this post. Examples that may be provided in this post are merely for illustrative purposes; the results in your case may be different and no results are guaranteed.