Legal Question in Bankruptcy in Florida

What is included in a bankruptcy?

We may have to file due to medical bills we cannot pay. My question is what do I have to ''declare'', so to speak.

I would prefer not to include credit cards, but know that I have to, but what about credit cards with a $0 balance? Can I keep them?

Our cars are both paid for in full, will I have to sell them?

Our childrens 529 college funds, will we have to cash them out?

2 small savings accounts, 1 joint & my own personal one, will we have to use that money to pay down the debt before a bankruptcy?

The same question for minor childrens savings accounts on which my husband is listed jointly?

Will we have to sell our home?

We have no problems paying our bills, but there is just no extra money to pay large monthly payments on these bills. Since neither the hospital or insurance company will combine the totals, andsince each section of the hospital has it's own billing, (i.e., radiology, pharmacy, respitory therapy) if I split up the payment I can afford among the 11 different bills, it is so small a payment as to not be accepted.

If they would combine all the bills, and I could make 1 payment the amount I can pay would probably be fine.

Thank you for your assitance.


Asked on 10/17/07, 9:32 am

1 Answer from Attorneys
Thomas Rosenblum Rosenblum Law Offices

Re: What is included in a bankruptcy?

Hello: I just read your questions...those certainly are thorough. So much so, that I don't have time to explain the law on each issue. However, as an overview, a chapter 7 will discharge al unsecured debts...sometimes, I have left off certain credit card accts. the client wanted to keep and there was no problem. You do have a limit on the amount of property you can keep under a chap 7. If you're married, it's $2,000 of personal property and $1,000 for your car. If you're single it's $1,000. The new laws require those with higher incomes (there is a state means test) to file a chap. 13. Also, if you have a lot of assets (over the above mentioned amounts) you would want to file a chap. 13 to keep your personal property.

A chap. 13 is simply a way to keep property and secured debts (car, house, etc.)even if they are in default. Basically, the debtors make monthly payments to the trustee for three years. The amount to be paid will not be the full amount of the unsecured debts.

I believe your child's college accts. would be exempt. There is a cap on the equity in your house, that is if it is over the cap, you would need to pay a little more each month to unsecured creditors. I would need to check the Statute, but it may be $135,000. Like I stated, these are somewhat involved matters which require more time to explain. 'Hope this helped. If my office can be of assistance to you in North Fla., please give us a call. Tom Rosenblum

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Answered on 10/17/07, 9:53 am


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