Debtors filing bankruptcy without legal representation will be held responsible to know the requirements of the Bankruptcy Code and Federal Rules of Bankruptcy Procedure and the Local Rules of the Middle District of Florida and will be given no special consideration by the court. You should be aware that missing a deadline, failing to perform a required task, or failing to respond properly to an action could result in the dismissal of your case, denial of discharge, or losing property which you might otherwise have been entitled to keep. Further, bankruptcy fraud is investigated by the FBI and is punishable as a federal crime.

Questions concerning your particular case should be directed to an attorney. A bankruptcy petition preparer or a paralegal service is prohibited from giving legal advice. No one connected with the Court, including the Judge, is authorized to furnish legal advice with respect to your case. Only an attorney may give legal advice.

I. WHAT IS BANKRUPTCY?

Bankruptcy is a way for people or businesses who owe more money than they can pay right now, (a "debtor"), to either work out a plan to repay the money over time, under Chapter 11, 12 or 13, or for most of the bills to be wiped out ("discharged"), as in a chapter 7 case. While the debtor is either working out the plan or the trustee is gathering the available assets to sell, the Bankruptcy Code provides that creditors must stop all collection efforts against the debtor. When the bankruptcy petition is stamped "Relief Ordered" upon filing, you are immediately protected from your creditors.

II. WHO CAN START A BANKRUPTCY?

Any person, partnership, corporation or business trust may file a bankruptcy. A husband and wife may file a joint petition for bankruptcy. If the person or entity who owes the money, referred to as the debtor, starts the bankruptcy, it is called a voluntary bankruptcy. The people or entities that are owed money, referred to as the creditors, can also file a petition against a person or an entity who owes them money, and that is called an involuntary bankruptcy.

III. WHAT ARE THE DIFFERENT BANKRUPTCY "CHAPTERS"?

Chapter 7 cases are commonly referred to as "straight bankruptcy" or "liquidation" cases, and may be filed by an individual, corporation, or a partnership. Under chapter 7, a trustee is appointed to collect and sell all the debtor’s property that is not exempt under Florida law and to use any proceeds to pay creditors. In the case of an individual, the debtor is allowed to claim certain property as exempt. In exchange for this, the debtor gets a discharge, which means that the debtor does not have to pay certain types of debts.

Chapter 9 is only for municipalities and governmental units, such as schools, water districts, and so on.

Chapter 13 is the debt repayment chapter for individuals and sole proprietors with regular income whose debts do not exceed $1,347,550 ($336,900 in unsecured debts and $1,010,650 in secured debts). It is not available to corporations or partnerships. Chapter 13 generally permits individuals to keep their property by repaying creditors out of their future income.

Chapter 12 offers bankruptcy relief to those who qualify as family farmers or family fishermen. There are debt limitations for chapter 12, and a certain portion of the debtor's income must come from the operation of a farming or fishing business.

Chapter 11 is the reorganization chapter available to certain businesses and individuals who have substantial assets and/or income to restructure and repay their debts. There is no debt limit under chapter 11. However, due to the expense and complexity of chapter 11, the decision to file a chapter 11 petition should be made in consultation with an attorney.

The Official Bankruptcy Forms.