We moved from New York to Florida last June. The house in NY is in foreclosure and we owe the utility companies money up in NY. We are strug...

Question

We moved from New York to Florida last June. The house in NY is in foreclosure and we owe the utility companies money up in NY. We are struggling now in Fla to make ends meet. My husband is permanently disabled. I know I have to claim bankruptcy, but I am not sure if it is chapter 7 or 11. I do not want any creditors coming after us, even credit card companies which we are paying one at the present time $50.00 a month for 17 years. We also have doctor and hospital bills. What is the best solution?

Answer

Unfortunately it is difficult to advise you fully on Bankruptcy issues without knowing all of the facts. While there are several forms of bankruptcy, the 2 forms most common to consumers are Chapter 7 and Chapter 13. Chapter 7 is the "liquidation" and 13 involves a repayment plan approved by the court for a period of 3-5 years. In either form of bankruptcy you must report all debt, all income, and all assets (this includes household furnishings, cars, clothing, jewelry, cash, etc.). This doesn't mean that you necessarily have to surrender all of your possessions, as there are certain allowable exemptions which protect some of your property. You really should schedule an appointment to speak with a Bankruptcy attorney to discuss the specifics of your situation. Every single case is different and has different sets of issues that must be addressed.

Keep in mind, if you have lived in Florida for less than 2 years you should inform the attorney you speak with, as you will not "qualify" for the exemptions that Florida has chosen to use with regard to personal property. In many cases this is actually a good thing because the exemptions allowed in Florida are extremely minimal. However, the attorney you speak with should be able to better advise you. If you have lived in Florida for less than 2 years ask the attorney how that will impact your case.

Most bankruptcy attorneys do not charge for brief initial consultations and some may even conduct the initial consult (or at least a pre-screening) over the phone. If they do charge a small fee for the first meeting, ask them if they will apply the consultation fee toward attorneys fees if you decide to hire them.