Real answers to the questions people ask most before deciding to file.
Maybe — but credit counseling agencies are limited in what they can do. They don't actually negotiate on your behalf; they work from a preestablished set of standards the creditors accept. Debt management plans rarely reduce minimum monthly payments on credit cards and may even result in a higher payment. These plans typically only reduce the number of years you have to repay by cutting interest rates and eliminating late fees. If you're already struggling to make minimum payments, debt management plans are unlikely to help. Studies estimate that only about 4% of debt management plans survive the first year of what is usually a 3-to-5-year period.
No — absolutely not. People should repay their debts when they can. But there is clear historical and religious precedent for debt forgiveness when people cannot find another way out of financial trouble. In Deuteronomy 15:1–2, creditors were instructed to grant release from debt to anyone who had borrowed money — regardless of whether the borrower had made mistakes. The debt was to be forgiven. Period.
Debt forgiveness serves two purposes: it shows compassion to those in need, and it leads to more economic stability for families and communities. Being weighed down by debt is not a productive way for any family to live. Filing bankruptcy to get out from under that burden is neither sinful nor immoral — especially when the cause is almost always beyond the debtor's control (medical problems, job loss, divorce). And when creditors charge upwards of 30% interest — a rate most people would consider usury — no one should feel guilty for seeking lawful relief.
You will complete a detailed questionnaire about your income, assets, expenses, and creditors. In addition, you'll typically need:
We provide a complete list of required documents during your consultation.
Yes. Debtors with primarily consumer debts may not qualify for Chapter 7 if they earn more than the state median income. Income is based on gross average income for the past 6 months, but does not include Social Security or unemployment benefits.
If you earn more than Florida's median income and have significant disposable income after living expenses, you may need to file Chapter 13 instead. This is called the "means test."
Often, you can keep both. Generally, to do so, you should continue making your regular mortgage or loan payments. If a lender insists on a reaffirmation agreement for a vehicle, you may be required to attend a hearing before the judge. Consult a licensed attorney about your specific situation.
From filing to discharge in a Chapter 7 — or confirmation of a Chapter 13 Plan — the process generally takes about 6 months. Most of that time, nothing much is happening except waiting for required time periods to pass. Most debtors finish actively participating within about a month after filing.
It depends on how long ago you filed and what type of bankruptcy it was:
Many people have filed bankruptcy more than once. Talk to a licensed attorney about your specific timing.
In general, the following are typically not dischargeable:
There are exceptions. Talk to a licensed attorney about how these rules apply to your situation.
Costs vary depending on the chapter, the complexity of your case, and the court's current filing fee schedule. Court filing fees change periodically — always check with the bankruptcy court for the current amount. With the court's permission, individual debtors may pay filing fees in installments (typically up to 4 payments).
Our document preparation fee is separate from court fees. Call us for a flat-fee quote: (754) 777-0807.
It's impossible to say for certain. The only hard rule is that bankruptcy can remain on your credit report for up to 10 years. Beyond that, every creditor has its own policy about lending to someone with a previous bankruptcy.
Your future ability to obtain credit will depend on your income, whether you've had late payments or other problems since the bankruptcy, and how long it's been. Paying bills on time and not overextending yourself is often the best way to rebuild a good credit record.
Filing for bankruptcy stops the foreclosure process. In most cases, once you file, an automatic stay goes into effect, stopping most lawsuits — including foreclosures.
However, to keep your home long-term, you'll need to take additional steps — possibly filing Chapter 13 instead of Chapter 7. Consult a licensed attorney about your specific situation.
Most of the time, a Chapter 7 or Chapter 13 bankruptcy does not involve a hearing before the bankruptcy judge. Debtors are usually only required to attend the Meeting of Creditors, where the trustee and any creditors present may ask questions about your assets and liabilities.
Hearings before the judge only happen when there are disputes with creditors or the trustee. Even then, debtors are rarely required to attend.
It might, depending on where you live. Some newspapers publish the names of bankruptcy filers. It's not something we can control. But remember — thousands of other names are listed too, and this is a routine legal filing, not a scandal.
NOTICE: The information on this page is accurate as of the date of publication but should not be cited or relied upon as legal authority. Legal advice should be obtained from a licensed attorney. For filing requirements, refer to the United States Bankruptcy Code (Title 11, United States Code), the Federal Rules of Bankruptcy Procedure, and the Local Rules of the U.S. Bankruptcy Court for the Southern District of Florida.
Call us. We'll answer what we can — and point you to an attorney for legal advice.