Port St Lucie Bankruptcy Lawyer

Everyone deserves a fresh financial start Feeling overwhelmed with debt? Unsure of what to do next? Our Port St. Lucie bankruptcy lawyers have decades of experience helping Port St. Lucie residents regain control of their finances for a fresh start in life. Take the first step by scheduling a free, no-obligation consultation with our experienced Port St. Lucie bankruptcy lawyers.

 

Take control of your finances with our Port St. Lucie Bankruptcy Attorneys

If you’re overwhelmed with debt, facing creditor harassment, or impending home foreclosure, repossession, or wage garnishment, help is one phone call away. Our experienced Port St. Lucie bankruptcy lawyers specialize in Chapter 7 and Chapter 13 bankruptcies, developing personalized strategies to best meet your goals. It’s time for a new beginning – take control of your life with our Port St. Lucie bankruptcy law firm by your side. Ready for a fresh financial start? Call us today at (772) 344-7770 for your free consultation.

Overwhelmed with debt? You are not alone.

Debt is a significant source of stress for many Americans. The weight of unpaid bills, mounting credit card balances, unmanageable student loans, and monster mortgages can create a constant undercurrent of anxiety and fear. This financial burden often leads to sleepless nights, strained relationships, and a feeling of being trapped in an unending cycle of repayment. If you’re struggling with mounting debt, know that you are not alone.

• 8 out of 10 Americans have some form of debt.
• The average debt in America is $104,215 (as of 2024).
• Debt peaks between ages 40 and 49.

Debt relief: How bankruptcy can help rebuild your life

Bankruptcy is a powerful legal tool that can help individuals struggling with significant financial hardship. In fact, there are many benefits of filing for bankruptcy, including debt discharge or elimination, asset protection, and the cessation of credit harassment. However, the first step in filing for bankruptcy is to understand the different types of bankruptcy and determine whether you qualify. Below, our Port St. Lucie bankruptcy attorneys explain the different types of bankruptcy and the eligibility criteria for individuals considering bankruptcy in Port St. Lucie.

Understanding the types of bankruptcy available in Port St. Lucie

In Port St. Lucie, there are several types of bankruptcy available to individuals and businesses, each designed to address specific financial situations. However, the two main types of bankruptcy available in Port St. Lucie are Chapter 13 and Chapter 7. Below, we break down the differences between these two types of bankruptcy.

What is Chapter 13 bankruptcy?

Chapter 13 bankruptcy, known as “reorganization bankruptcy,” is intended for individuals with regular income who can pay back at least a portion of their debts through a repayment plan. Filing for Chapter 13 bankruptcy in Port St. Lucie forms an arrangement between you, the courts, and your creditors, allowing you to restructure your debt and pay it off in monthly installments over 3 to 5 years.

How does filing for Chapter 13 bankruptcy in Port St. Lucie work?

1. Eligibility: To qualify for Chapter 13, your secured and unsecured debts must be below specific limits set by the federal government. As of 2024, these limits are $1,257,850 for secured debt and $419,275 for unsecured debt. You must also have a regular income to make monthly payments under the repayment plan.
2.  Filing process: Like Chapter 7, you must file a petition with the bankruptcy court along with detailed financial disclosures.
3. Automatic stay: An automatic stay is also put in place, stopping most collection efforts against you once you file.
4. Repayment plan: You propose a repayment plan that lasts three to five years, outlining how you will pay off your debts. This plan must be approved by the bankruptcy court and will prioritize certain debts, like secured debts and priority debts (e.g., taxes and child support).
5. Trustee appointment: A trustee is assigned to your case to review your repayment plan, collect your monthly payments, and distribute them to creditors.
6. Plan confirmation: After a court hearing, your repayment plan is either confirmed or modified. Once confirmed, you must stick to the plan and make regular payments to the trustee.
7. Debt discharge: At the end of your repayment plan, any remaining unsecured debts are discharged. You must have completed all payments under the plan for this to happen.

What is Chapter 7 bankruptcy?

Chapter 7 bankruptcy, often referred to as “liquidation bankruptcy,” is designed for individuals and businesses who are unable to repay their debts. Filing for Chapter 7 bankruptcy in Port St. Lucie will require you to hand over any assets that you currently own that have active debts; however, once the bankruptcy is complete, you will be cleared of most debt. Creditors will no longer be able to pursue you, and any foreclosure proceedings will halt.

How does filing for Chapter 7 bankruptcy in Port St. Lucie work?

1. Eligibility: To qualify for Chapter 7 bankruptcy, you must pass the “means test,” which compares your income to the median income in Florida for a household of your size. If your income is below the median, you qualify. If it is above, further calculations are done to determine if you have enough disposable income to pay back some of your debts.
2.  Filing process: You must file a petition with the bankruptcy court along with several forms that disclose your financial situation, including assets, liabilities, income, and expenses.
3. Automatic stay: Once you file for bankruptcy, an automatic stay is put in place, which stops most collection actions against you, including lawsuits, wage garnishments, and phone calls from creditors.
4. Trustee appointment: A bankruptcy trustee is appointed to oversee your case. The trustee’s role includes reviewing your paperwork, selling non-exempt assets, and distributing the proceeds to creditors.
5.  Exempt vs. non-exempt assets: Florida law allows you to keep certain “exempt” property, such as your primary residence (homestead exemption), a vehicle up to a certain value, and personal items like clothing and household goods. Non-exempt assets can be sold by the trustee to pay off your debts.
6. Debt discharge: At the end of the process, most of your unsecured debts, such as credit card debt, medical bills, and personal loans, are discharged, meaning you are no longer legally required to pay them. However, certain debts, like student loans, child support, and some tax obligations, are typically not dischargeable.

What are the key differences between Chapter 13 and Chapter 7 bankruptcy?

• Asset retention: Chapter 7 may require you to sell non-exempt assets to pay off creditors, whereas Chapter 13 allows you to keep your assets and repay debts over time.
• Income requirements: Chapter 7 is for individuals with little to no disposable income, while Chapter 13 is for those with a regular income who can afford to make monthly payments.
• Duration: Chapter 7 is typically quicker, often taking a few months, while Chapter 13 involves a repayment plan that lasts three to five years.

Choosing between Chapter 7 and Chapter 13 bankruptcy in Port St. Lucie depends on your financial situation, income, and goals. While our next section covers the key eligibility requirements for each type of bankruptcy, the best thing you can do is consult with a knowledgeable bankruptcy attorney in Port St. Lucie to better understand your options and determine the best path forward to regain financial stability.

What are the eligibility requirements for bankruptcy in Port St. Lucie?

Below, we provide high-level eligibility requirements for bankruptcy in Port St. Lucie. However, it’s important to understand that each case is different. The best way to know whether you qualify for bankruptcy and if bankruptcy is a good option for you is to call our experienced Port St. Lucie bankruptcy lawyers for a free consultation. Call our St. Port Lucie bankruptcy law firm today at (772) 344-7770.

1. Chapter 7 Bankruptcy eligibility

• To qualify for Chapter 7 bankruptcy, individuals must meet specific income criteria based on the means test. This test compares your household income to the median income in Florida, considering factors such as family size.
• If your income falls below the median, you likely qualify for Chapter 7. If it exceeds the median, further analysis is conducted to determine eligibility based on allowable expenses and disposable income.
• Certain debts, such as tax obligations, child support, and student loans, may impact eligibility for Chapter 7.

2. Chapter 13 Bankruptcy eligibility

• Chapter 13 bankruptcy involves creating a repayment plan to settle debts over a specified period, typically three to five years.
• Eligibility for Chapter 13 is not solely income-based, but individuals must have a reliable source of income to meet repayment obligations.
• There are debt limits for Chapter 13, with secured debts capped at a certain amount and unsecured debts subject to different thresholds.

3. Florida-specific exemptions

Florida has specific bankruptcy exemptions that determine what property individuals can keep when filing for bankruptcy.

• The Florida homestead exemption is particularly noteworthy, allowing individuals to protect their primary residence up to a certain value.
• Understanding these exemptions is crucial to preserving essential assets during the bankruptcy process.

4. Credit counseling requirement

• Before filing for bankruptcy in Florida, individuals must complete a credit counseling course from an approved agency within 180 days.
• This requirement aims to provide financial education and alternatives to bankruptcy.

5. Documentation and paperwork

• Bankruptcy filings require comprehensive documentation, including income details, a list of assets and liabilities, recent financial transactions, and current contracts and leases.
• Accurate and thorough paperwork is essential for a successful bankruptcy petition.

How much does it cost to file for bankruptcy in Port St. Lucie?

Bankruptcy allows individuals and businesses in debt to make a fresh start. However, this start will come at a price. Our Port St. Lucie bankruptcy law firm receives many calls from the public, and one common question is, “How much does it cost to file for bankruptcy in Port St. Lucie?” To file a bankruptcy petition in Port St. Lucie, you need to pay a filing fee:

• The filing fee for Chapter 7 bankruptcy in Port St. Lucie is $338. However, if you earn less than $1,595 per month, you can ask the bankruptcy court to waive the filing fee. If you’re not eligible to have your filing fee waived, you can request to pay your filing fee in installments. This enables you to file your bankruptcy petition and stop all collection actions against you while your bankruptcy proceeding is pending in court.

 

• The filing fee for Chapter 13 bankruptcy in Port St. Lucie is $313. While you cannot have a Chapter 13 bankruptcy filing fee waived in Port St. Lucie, you can request the court to pay your fee in installments. Note that when filing for Chapter 13 bankruptcy, you may have to pay additional fees, such as a $45 fee for a mortgage modification request or a $25 fee if you change your Chapter 13 claim to Chapter 7.

When filing for either Chapter 7 or Chapter 13 bankruptcy in Port St. Lucie, you may have to pay additional costs, such as fees for obtaining your credit report or attending a credit counseling class. That’s why it is important to seek help from an experienced Port. St. Lucie bankruptcy law firm. Although our Port St. Lucie bankruptcy attorneys will charge a fee for their legal services, having a bankruptcy expert guide you through the process will ensure you receive the best possible bankruptcy protection and can help save you money in the long run. Our Port St. Lucie bankruptcy attorneys will make sure you understand the complete bankruptcy process, and they can help you eliminate paying certain debts.

Get help from a Port St. Lucie Bankruptcy Law Firm

Ready to learn more about your options for managing debt? Want to find out what you would need to do to file for bankruptcy? You can begin working with a trusted bankruptcy attorney in Port St. Lucie when you reach out to Hoskins, Turco, Lloyd & Lloyd today. We will guide you through all of your options and help you feel less overwhelmed by them. Call now at (772) 344-7770 or contact our Port St. Lucie bankruptcy law firm online to schedule a free first appointment where you can discuss your case with a licensed Port St. Lucie bankruptcy lawyer.