Bankruptcy in St. Petersburg, FL

Are you contemplating bankruptcy or hiring a bankruptcy attorney in St. Petersburg, Florida? Are you tired of creditors calling for payments you can’t make? Maybe looking for a way to get out of debt and have you exhausted all other options? Then bankruptcy might be the solution you seek. It is a legal option that can erase a portion or all of your debts.

Types of Bankruptcy in St. Petersburg, Florida

Bankruptcy is a legal process that helps individuals and businesses get a fresh financial start. It eliminates a portion of or all of their debts or financial liabilities. In St. Petersburg, FL to be approved, individuals must prove they have a hardship that prevents them from staying current on their financial obligations.

Keep in mind that not all debts qualify. Some liabilities, such as child support arrears, delinquent taxes, alimony, and student loans generally do not qualify for discharge. Consumers who find themselves falling behind in debt can file either Chapter 7, 11, or 13. To determine which option is right for you, you’ll need to assess your goals, assets, and income. You should also consider working with an experienced bankruptcy attorney.

St. Petersburg bankruptcies are under the jurisdiction of the U.S. Bankruptcy Court for the Middle District of Florida. Unfortunately, there is no court location in St. Petersburg. However, the court is located nearby in Tampa.

Chapter 7 Bankruptcy

Many people find Chapter 7 to be the right solution for their circumstances because it provides them with the opportunity to start over financially. However, before filing for Chapter 7 bankruptcy, you should thoroughly assess your income and ability to repay what you owe. You should also speak with a bankruptcy attorney in St. Petersburg  who can help you decide if a liquidation plan is right for you.

Typically, individuals approved for Chapter 7 lack stable income or have experienced a change in circumstances that has resulted in an inability to manage their debts. Though Chapter 7 erases debts, the tradeoff is you may have to give up certain possessions, such as your home, car, or some other assets. However, once you file your petition, an automatic stay goes into effect that requires all collection activity against you like foreclosures and garnishments, to stop temporarily. However, the automatic stay does not prevent all collection attempts. For example, if you owe child support or restitution for a criminal case, you are still liable for those payments.

Before filing a Chapter 7 bankruptcy in St. Petersburg, you must pass a Means Test. In short, your family’s income must be lower than the median income of Florida families of the same size. When you file a bankruptcy petition in St. Petersburg, an automatic stay prevents your creditors from continuing their attempts to collect your debt. However, under Local Bankruptcy Rules, a creditor can request an exemption from the court to continue collecting the debt.

Bankruptcy law also requires that you undergo credit counseling before you file. Fortunately, this can typically be completed online. The Department of Justice maintains a list of approved providers for the Middle District of Florida.

Chapter 11 Bankruptcy

Chapter 11 bankruptcy is more complex than other types of bankruptcy. It is often used by businesses and certain types of people. It allows petitioners to restructure their debts with a reorganization plan, so they are easier to manage over a determined length of time, usually four to 18 months. The main benefit of Chapter 11 bankruptcy is that it does not require petitioners to sell off or liquidate their assets to pay what they owe. It does allow debtors to negotiate with their creditors a reorganization plan that enables them to stay current on their debts moving forward.

The Middle District of Florida provides a list of  Chapter 11 forms for St. Petersburg filers. Some of the requirements include:

• File petition and pay fee of $1,738
• List of creditors
• Summary of property, exempt and nonexempt
• Statement of Income and Expenses
• Summary of Assets and Liabilities

Chapter 13 Bankruptcy

Chapter 13 Bankruptcy is a debt restructuring or wage earners plan. In St. Petersburg, FL after you file, the courts will assign a trustee to examine your liabilities and assets and ability to pay bills. Unlike other types of bankruptcy, Chapter 13 involves you restructuring your debt with a three to five-year repayment plan. The flexibility of this repayment plan will depend on what property you want to keep and how steady your income is. It may also allow you to have some or most of your debts discharged.

The filing requirements for a Chapter 13 bankruptcy in St. Petersburg include:

• File a petition and pay the fee
• List of creditors
• Certificate of credit counseling
• Summary of assets and liabilities
• Schedule of income and expenses
• Chapter 13 plan

The Bankruptcy Process in St. Petersburg, Florida

Filing for bankruptcy is never easy, and there’s no perfect time to do so. However, if you’re unable to pay off your debts within five years, bankruptcy can offer relief and help you regain control of your finances.

To start the filing process in , you need to gather all relevant financial documents, such as monthly expenses, debts, assets, and income. This is essential for providing the courts with an accurate overview of your situation. If any necessary information is missing, your petition could be rejected.

Unlike some states, Florida does not allow filers to choose between federal and state exemptions. However, St. Petersburg residents benefit from generous state exemptions, including:

• Unlimited equity in your home (subject to acreage and ownership requirements)
• Up to $1,000 in vehicle equity, with the amount doubled for jointly filing spouses
• Pensions and retirement benefits
• A wildcard exemption for personal property up to $1,000, or $4,000 if the homestead exemption is not used

It’s important to note that Florida’s exemptions apply only if you’ve lived in the state for at least 730 days (about two years). If you haven’t, you’ll still be able to file, but you’ll need to follow the exemptions from your previous state.

Before filing, make sure to reduce unnecessary spending and avoid increasing your credit balances. You’ll also need to complete an approved credit counseling course, either online or over the phone. This course helps improve financial literacy and budgeting habits. Upon completion, you’ll receive a certificate, which is required for your filing. If you fail to provide this certificate, the court will reject your petition.

Work With an Experienced St. Petersburg, Florida Lawyer

Hiring a local bankruptcy lawyer in St. Petersburg during this process can help reduce the costly risks of self-representation in court. An experienced bankruptcy lawyer understands state and federal bankruptcy laws. He or she can help you understand which laws apply to your case, especially which debts that can be discharged or can’t be discharged. An experienced Florida attorney can also offer you guidance to improve the outcome of your case.

Keep in mind that there are debt management alternatives and financial resources that may benefit you more than bankruptcy, such as debt consolidation. Though bankruptcy is an attractive solution, it is best as a last resort. Do you need immediate help? Then one of our experienced lawyers in St. Petersburg can guide you through the entire bankruptcy process. We can even help you connect with an attorney across Florida state lines.

Submit a request online or call us today at (866) 345-6784 to get in touch with an experienced lawyer in your area!

About the Author

Aaron is a professional legal writer with a B.S. in English Education from Southern Illinois University – Carbondale. He has written, published, and edited thousands of legal articles for RequestLegalHelp, which has connected over 5 million people to legal help in the United States.

With over five years of experience writing thousands of legal articles for law firms across the U.S. and Canada, Aaron specializes in covering federal, state, and city-level legal issues ranging from auto accidents to wrongful terminations.