As many people are becoming farther and farther behind in paying off their bills nowadays, filing for bankruptcy is an all too common occurrence, and if you find yourself in this situation, keep in mind that you definitely aren't alone.



Many people have to do this painful process everyday. The good news is, you are in some very elite company. You see, the average millionaire has had to file for bankruptcy three times in their lifetime, so you are actually on the right track, assuming you learn form it and don't make the same mistakes again.

Therefore, making mistakes is actually beneficial, because it's something you can learn from and make different decisions the next time. Here is some important information to help you sort through the clutter and know what to do when you file for bankruptcy in Florida.

First of all, there are basically three different chapters of bankruptcy you can file for, depending on whether you are filing on a personal or business status. If you are filing for personal bankruptcy, you will need to file for either chapter 7 or 13, depending on your income level.

If you are filing for business bankruptcy in Florida, you have the additional option of filing for chapter 11 if you are a business or a high debt individual, which is probably the best way if you can get it, albeit it a more expensive alternative.

While there are many logistical rules to keep in mind about all of them, the most important facts to know is that chapter 7 requires you to give up your personal assets to pay off your debts, whereas chapters 11 and 13 do not.

Chapters 11 and 13 require you to follow a 3-5 year plan to pay off your creditors, and while your debt is not discharged, you can keep possession of your belongings, which chapter 7 does not allow you to do.

Note that this might or might not be a bad thing. For example, if many of your assets are exempt, this means they are not subject to be taken away, and therefore you don't have to worry about losing them in the bankruptcy process.

If you don't know which assets are exempt and non-exempt, don't worry-your lawyer will be able to help you sort through this process. Just keep this in mind.

However, if your income is over a certain point, your only options are to file for either chapters 11 or 13. Most times, you want to do this, as you aren't at risk for losing your possessions, and again, which one you decide to go with depends on whether you are filing for personal bankruptcy or business bankruptcy.

Keep this in mind-all the bankruptcy chapters will damage your credit, so there really isn't an easy way out as far as this.

Your lawyer will be able to help you sort through all this. So now comes the tough part: finding a good lawyer to help you cut through the clutter of filing for bankruptcy in Florida.