You qualify for Chapter 7 bankruptcy in Florida if you pass the means test, complete credit counseling within 180 days before filing, and have not received a Chapter 7 discharge in the past eight years. Most filers with household income below the Florida median pass automatically. Our Chapter 7 bankruptcy document preparation service in Ocala prepares your petition and means test forms, and our bankruptcy services page explains every option.
What Are the Requirements to File Chapter 7 in Florida?
Chapter 7 is open to individuals and married couples who meet a few federal rules. Before you file, you should be able to say yes to each of these:
- Your income passes the Chapter 7 means test.
- You completed a credit counseling course from an approved provider within the last 180 days.
- You have not received a Chapter 7 discharge in a case filed within the past eight years.
- You did not have a bankruptcy case dismissed in the last 180 days for certain reasons, such as disobeying a court order.
If any of these is a problem, Chapter 13 bankruptcy may still be available.
How Does the Chapter 7 Means Test Work?
The means test decides whether your income is low enough for Chapter 7. It has two parts.
Step 1: Compare Your Income to the Florida Median
Add up your household’s gross income from the six full months before you file, then convert it to a yearly figure. If that number is at or below the Florida median income for a household of your size, you pass and can file Chapter 7. The U.S. Trustee Program updates these median figures regularly, so always use the current table.
Step 2: Calculate Your Disposable Income
If your income is above the median, you complete the second part of the test. You subtract allowed expenses, such as housing, transportation, taxes, health insurance and secured debt payments, using national and local standards. If little disposable income remains, you may still qualify.
What If You Earn Too Much for Chapter 7?
If you fail the means test, you can usually file Chapter 13 instead. Chapter 13 sets up a three- to five-year repayment plan based on your income. It is also the better choice for many homeowners who are behind on their mortgage. Read how Chapter 13 can stop foreclosure to compare.
How Often Can You File Chapter 7?
You must wait eight years from the filing date of a past Chapter 7 case to receive another Chapter 7 discharge. If your earlier case was a Chapter 13, the wait is generally six years, with some exceptions for plans that repaid most of the debt.
Which Debts Does Chapter 7 Wipe Out?
Chapter 7 can discharge many unsecured debts, including:
- Credit card balances
- Medical bills
- Personal loans and payday loans
- Past-due utility bills
- Many deficiency balances after a repossession or foreclosure
Some debts usually survive a Chapter 7 discharge, such as child support, alimony, most student loans, recent income taxes, and debts from fraud.
Can You Keep Your Home in Chapter 7 in Florida?
Often, yes. Florida’s homestead exemption has no dollar limit for a qualifying primary residence. It does have size limits: up to one-half acre inside a city or town, and up to 160 acres outside one. A federal limit can apply to a home bought shortly before filing. If you are behind on your mortgage, Chapter 7 alone will not catch up the missed payments, so many homeowners choose Chapter 13.
Steps to File Chapter 7 Bankruptcy in Ocala
- Take a credit counseling course and save the certificate.
- Gather pay stubs from the last 60 days, recent tax returns, bank statements and a list of your debts.
- Complete the petition, schedules, statement of financial affairs and means test forms.
- File with the U.S. Bankruptcy Court for the Middle District of Florida. Cases from Marion County are assigned to the Jacksonville Division.
- Attend the 341 meeting of creditors and answer the trustee’s questions under oath.
- Complete a debtor education course before the court enters your discharge.
Do You Need a Lawyer to File Chapter 7?
No. You can file Chapter 7 on your own, and a bankruptcy petition preparer can type your forms. A preparer cannot tell you which exemptions to claim or whether to file. If your case involves a business, recent property transfers, or a pending lawsuit, speak with a bankruptcy attorney. Our guide to a bankruptcy petition preparer vs. attorney explains the difference.
Get Help With Chapter 7 Paperwork in Ocala
Court Source, Inc. has helped Marion County residents prepare bankruptcy forms since 2017. We type your Chapter 7 petition and schedules from the information you provide, and we offer free attorney referrals when you need legal advice. Contact our Ocala office to get started.
This article is general information and is not legal advice.
