How to Prepare to File for Chapter 13 Bankruptcy in Florida
Filing for any type of bankruptcy can be complicated, but there are some additional complications in Chapter 13 bankruptcies that it is important for consumers to consider as they are getting ready to file. In addition to a recent change in the law that reduces the debt ceiling for a Chapter 13 filing, there are also a range of documents and other planning steps that must go into any preparation for a Chapter 13 bankruptcy case. Given that these types of bankruptcy cases last from three to five years, it is critical to understand the process and to get everything right. The best way to prepare for a bankruptcy case is to work with an attorney from the very start who understands your specific financial circumstances, but in the meantime, our St. Petersburg bankruptcy lawyers can tell you more about the general steps you must take to prepare for a Chapter 13 filing.
Determine Your Eligibility for Chapter 13 Bankruptcy
First, you will need to determine whether or not you are eligible to file for Chapter 13 bankruptcy. Most significantly, are your debts below the debt ceiling such that you are permitted to file for Chapter 13 bankruptcy?
You should know that the law recently changed. Beginning in 2022, debtors could be eligible for Chapter 13 bankruptcy as long as they had secured and unsecured debts below a threshold of $2,750,000. However, that provision in the Bankruptcy Threshold Adjustment and Technical Corrections Act “sunsetted,” or ran out, in June 2024. Accordingly, the bankruptcy threshold for Chapter 13 cases has reverted. In the present, you will need to comply with the dual debt ceilings of $465,275 for unsecured debt and $1,395,875 for secured debt to be eligible for Chapter 13 bankruptcy.
Take a Credit Counseling Course Before Filing
You must complete a credit counseling course within the 180-day period prior to the date you file for Chapter 13 bankruptcy.
Complete All Schedules, Required Documents, and Your Bankruptcy Petition
Finally, you will need to work with a lawyer to prepare and complete all necessary documents to file for Chapter 13 bankruptcy. In addition to the bankruptcy petition that you will file to initiate your Chapter 13 bankruptcy case, you will also need to complete schedules and other materials that will be filed with your bankruptcy petition. To identify all required documents and to complete them properly, you should get in touch with a bankruptcy attorney as soon as possible.
Contact a Dedicated Bankruptcy Lawyer in St. Petersburg, Florida
Given the recent changes to bankruptcy law impacting the Chapter 13 debt limit, it is extremely important to work on your case with an experienced lawyer from the start. A dedicated St. Petersburg bankruptcy attorney at the Law Offices of Stephen Barszcz can ensure that you meet all of the requirements for Chapter 13 bankruptcy, and we can assist you with all preparatory steps in advance of your filing. Once you are ready to file, we will prepare the necessary materials and guide you through the bankruptcy process. Contact us today to ask any questions you have about personal bankruptcy or to begin working on your bankruptcy petition and accompanying materials.
Sources:
uscourts.gov/services-forms/bankruptcy/bankruptcy-basics/chapter-13-bankruptcy-basics
congress.gov/bill/117th-congress/senate-bill/3823
