BANKRUPTCY MAY ASSIST IN FINANCIAL STRESS

Bankruptcy is an option for some people who are overwhelmed by their debt. At times, stress is caused from debt related issues. This stress can lead to illness, loss of employment or even divorces. One could possibly avoid all the above mentioned issues by relieving their stress. Many times, filing bankruptcy is ones best option. It is important to understand filing for bankruptcy is not the end of the world. Filing bankruptcy provides an opportunity for one to repair and build credit. When filing a Chapter 7 bankruptcy all your debt is discharged, allowing you the opportunity to start fresh. In this economy, many people need the opportunity to start over.
In Florida, there are certain exemptions for residents who have lived in Florida over two (2) years. These exemptions would include the following:
Homestead exemption: A home which you own is considered ones homestead. If you wish to continue living in your home, you are “retaining” your homestead. Retaining your homestead allows you to exempt all of the equity in it, if in fact there is equity in the property.
Personal property exemption: In Florida, a person filing bankruptcy is allowed $1,000 in personal property if you are claiming your homestead exemption or $4,000 in personal property if you are not claiming your homestead exemption.
Vehicle exemption: In Florida, a personal filing bankruptcy is allowed $1,000.00 in exemption for a vehicle. If you do not use the total personal property exemption allowed, one may then use the balance towards the vehicle.
Retirement/Life Insurance benefits: Are 100% exempt in a bankruptcy, meaning that money will not be a part of the bankruptcy estate, meaning no one will touch your money.
Some debt that would not be dischargeable in a bankruptcy would include:
Student loans
Income taxes that are LESS than three (3) years old
Child support dues and/or divorce settlements
When considering this option, it is important to have an attorney whom you trust and feel comfortable with. If you have any questions concerning this matter, please feel free to contact the Law Office of Ray Garcia, P.A. for a free consultation at 305-227-4030.

Ray Garcia, Esq.
Board Certified in Real Estate Law
By the Florida Bar
www.raygarcialaw.com

Comments

  1. It truly is not the end of the world. I have had to do this twice. My first time was because of medical bills due to the birth of my first child with Spina Bifida. The second was due to a divorce from a husband who charged everything. Did not think paying off his bad decisions for the next twenty years was worth doing. Living single with kids is hard enough. Thank God for supportive parents and a strong will to survive.