AAA BANKRUPTCY PETITION PREPARERS ARE EXPERIENCED PREPARERS WHO WILL WORK WITH YOU. ALL CHAPTER 7 PETITIONS FILED IN THE U.S. BANKRUPTCY COURT, MIDDLE DISTRICT OF FLORIDA HAVE A MAXIMUM FEE SET BY COURT RULE OF $150.00. 321-271-0415 [email protected]
DID YOU KNOW BY LAW A PETITION PREPARER CAN ONLY CHARGE $150.00 IN THE MIDDLE DISTRICT OF FLORIDA? BEWARE OF ANYONE CHARGING OR ATTEMPTING TO CHARGE MORE THAN $150.00 FOR PREPARING PETITIONS. PREPARERS MUST FILE A DECLARATION UNDER PENALTY OF PERJURY THAT NO FEES IN EXCESS OF $150.00 WERE CHARGED!!
Most debtors who file bankruptcy, and many of their creditors, know very little about the bankruptcy process. The following is designed to assist the general public by providing basic answers to some of the most commonly asked questions.
What is Bankruptcy?
Bankruptcy is a legal process which allows a person (a "Debtor"), who owes more money than he or she can currently repay, to either (1) repay a portion of the money over time under Chapter 11, 12, or 13, or (2) have the entire debt forgiven ("discharged") under chapter 7. Under chapter 7, a Debtor may be required to surrender assets to a trustee. Bankruptcy is also available to businesses, corporations, and partnerships. Even municipal governments can file bankruptcy (under Chapter 9).
After a Debtor has filed a case (i.e., "petition"), creditors must stop all collection efforts against the Debtor for a period of time, unless they get permission from the bankruptcy court to continue. This protection from collection efforts is referred to as the "automatic stay."
The Bankruptcy Code and Federal Rules of Bankruptcy Procedure determine which chapter one is eligible to file, which debts can be eliminated, how long repayment must continue, which possessions can be kept, etc. A Debtor must abide by these federal laws and rules.
What is the Bankruptcy Code?
The Bankruptcy Code refers to Title 11 of the United States Code (11 U.S.C. sections 101-1330).
28 U.S.C. 1930(f)(1) provides that the court may waive filing fee in a case under Chapter 7 for an individual if the Court determines that such individual has income less than 150 percent of the income official poverty line applicable to a family of the size involved and is unable to pay that fee in installments. The Bankruptcy Rules do provide for individuals to pay the filing fee in installments. To pay the fee in installments, you must submit an application, and the application must be approved by the Court.
What is the difference between a chapter 7, 13 and 11?
Chapter 7 -- In a Chapter 7, Debtors are permitted to retain certain "exempt" property, while the remaining assets are liquidated by the trustee. The trustee will distribute the funds from the liquidation to holders of claims (creditors) in accordance with the provisions of the Bankruptcy Code. Accordingly, potential Debtors should realize that the filing of a petition under chapter 7 might result in the loss of non-exempt property.
Chapter 13 -- Chapter 13 is designed for individuals with regular income to repay a portion or all of their debt over an extended period of time. Chapter 13 may be appropriate for Debtors who seek to retain certain assets through a repayment plan.
Chapter 11 -- Chapter 11 allows corporations, partnerships, and certain individuals who do not qualify under Chapter 13, to reorganize without having to liquidate all assets. As in a Chapter 13, the Debtor (called the "debtor-in-possession" because a trustee is not normally assigned) is required to present a repayment plan. If the plan is accepted by the creditors and subsequently approved ("confirmed") by the Court, this allows the Debtor to reorganize his/her/or its personal, financial, or business affairs.
Generally, all debts listed on the petition are dischargeable. However, certain types of debt listed in 11 U.S.C. §523 are not dischargeable. The non-dischargeable debts listed in Â§523 include, but are not limited to:
a. Certain taxes and fines;
b. Debts arising from certain fraudulent conduct;
c. Debts not listed in your bankruptcy petition;
d. Alimony, child maintenance or support, and certain other related debts arising out of a divorce decree or separation agreement;
e. Debts caused by the Debtor's willful and malicious injury to another;
f. Government guaranteed student loans;
g. Debts caused by a death or personal injury related to your operation of a motor vehicle while intoxicated; and
h. Post-bankruptcy condominium or cooperative owner's association fees.
This list includes only examples of non-dischargeable debts; see 11 U.S.C. Â§ 523 for a complete list. Under Â§ 523, a creditor or party in interest may also file a complaint to have their debt declared nondischargeable.
In a chapter 13 case, the discharge is broader under 11 U.S.C. Â§ 1328(a).