es, you may be eligible to file for Chapter 13 bankruptcy in Florida, provided you meet specific criteria established by federal and state laws. Here’s an overview of the key eligibility requirements:
✅ 1. Individual Status
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Only individuals (including sole proprietors) are eligible to file for Chapter 13 bankruptcy. Businesses, such as corporations or partnerships, are not permitted to file under Chapter 13. However, if you own a business as a sole proprietor, you can include both personal and business-related debts in your Chapter 13 filing.
✅ 2. Debt Limitations
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As of June 21, 2024, the debt limits for Chapter 13 bankruptcy reverted to the pre-2022 thresholds:
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Unsecured debts: must be less than $465,275
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Secured debts: must be less than $1,395,875
These limits are adjusted periodically to reflect changes in the consumer price index.
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✅ 3. Regular Income
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You must have a consistent and reliable source of income sufficient to fund a feasible repayment plan. This income can come from various sources, including wages, self-employment earnings, Social Security benefits, pensions, or other regular income streams.
✅ 4. Credit Counseling Requirement
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Before filing, you are required to complete a credit counseling course from an approved agency within 180 days prior to filing your bankruptcy petition. This is a mandatory step to ensure that you understand the implications of bankruptcy and explore alternative solutions.
✅ 5. Tax Filing Compliance
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You must be current with your tax filings. Specifically, you need to have filed all required federal and state tax returns for the four tax years preceding your bankruptcy filing. Failure to do so can result in dismissal of your case.
📍 Additional Considerations for South Florida Residents
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Residency: To file in the Southern District of Florida, you should have resided in the district for at least 91 of the 180 days preceding your filing.
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Exemptions: Florida has opted out of the federal bankruptcy exemptions, meaning you’ll use Florida’s state exemptions to protect your property. For instance, Florida’s homestead exemption can protect the full value of your primary residence, provided certain conditions are met.
If you’re considering filing for Chapter 13 bankruptcy in South Florida, it’s advisable to consult with a qualified bankruptcy attorney who can assess your specific situation and guide you through the process.
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