Find Bankruptcy Lawyers Near You in Melbourne, FL

The cost of hiring a bankruptcy lawyer in Melbourne, Florida varies based on case complexity and the chapter filed. For a standard Chapter 7 case, attorney fees typically range from $1,200 to $2,500, with the $338 court filing fee paid separately. Chapter 13 cases involve higher fees, usually between $3,000 and $4,500, because of the extended duration and more complex paperwork. Many lawyers offer payment plans, allowing you to pay fees in installments before filing, and some may include attorney fees in the Chapter 13 repayment plan. Pro bono options exist through Brevard County Legal Aid for those who qualify based on income.

It is important to note that these figures are general estimates and may not reflect your specific situation. Filing fees are set by federal courts and are non-refundable. You should discuss all costs, payment arrangements, and potential additional expenses, such as credit counseling course fees, directly with a bankruptcy lawyer during your consultation. This information is for educational purposes only and does not constitute legal advice.

Bankruptcy law provides individuals and businesses in Melbourne, Florida with a legal pathway to address overwhelming debt. The most common forms are Chapter 7, Chapter 13, and Chapter 11. Chapter 7, often called liquidation bankruptcy, involves the sale of non-exempt assets by a trustee to pay creditors, with most remaining unsecured debts discharged. This option suits individuals with limited income and few assets who cannot afford a repayment plan. Chapter 13, or reorganization bankruptcy, allows debtors with regular income to propose a three-to-five-year repayment plan to catch up on secured debts like mortgages or car loans while keeping their property. It is ideal for those with above-median income who do not qualify for Chapter 7 or who want to protect non-exempt assets. Chapter 11 is primarily for businesses, partnerships, or high-net-worth individuals seeking to restructure debts while continuing operations. In Melbourne, a local bankruptcy lawyer can evaluate your financial situation, including income, assets, and debt type, to determine which chapter aligns with your goals.

Florida law offers specific exemptions that significantly impact what property you can keep in bankruptcy. Unlike some states, Florida does not allow debtors to choose between state and federal exemptions; you must use Florida state exemptions if you have lived in the state for at least two years. The Florida homestead exemption is among the most generous in the nation, protecting an unlimited amount of equity in your primary residence, provided the property is on half an acre or less in a municipality or 160 acres or less in a rural area. For vehicles, Florida exempts up to $1,000 of equity in one motor vehicle, though you can combine this with the wildcard exemption for additional protection. The Florida wildcard exemption allows you to protect up to $4,000 of any personal property, including cash or bank accounts, if you do not use the homestead exemption. Specific state statutes governing these exemptions include Florida Statutes Section 222.01 (personal property), Section 222.05 (homestead), and Section 222.25 (wildcard). A Melbourne bankruptcy lawyer can help you apply these exemptions to shield your assets from liquidation.

The means test is a critical step in determining eligibility for Chapter 7 bankruptcy. This test compares your current monthly income, averaged over the six months before filing, to the median income for a household of your size in Florida. As of 2024, the median income for a single-person household in Florida is approximately $60,000, for a two-person household around $75,000, for a three-person household about $85,000, and for a four-person household roughly $100,000. If your income is below the median, you automatically qualify for Chapter 7. If it exceeds the median, you must complete a more detailed calculation of your disposable income after deducting allowed expenses, such as housing, food, transportation, and taxes. If your disposable income over five years is less than $8,000, you still qualify for Chapter 7. If it is between $8,000 and $13,500, you must pass a second test comparing it to a percentage of your non-priority unsecured debt. If your disposable income exceeds $13,500, you are presumed to have the ability to pay creditors and will be required to file under Chapter 13 instead. An experienced bankruptcy lawyer in Melbourne can perform this calculation accurately and advise on your eligibility.

When you file for bankruptcy, an automatic stay goes into effect immediately, stopping most collection actions against you. This means creditors must cease phone calls, letters, lawsuits, wage garnishments, and foreclosure proceedings. The stay provides immediate relief and breathing room to work with your lawyer on the next steps. From filing to discharge, a Chapter 7 case typically takes four to six months, while a Chapter 13 case lasts three to five years as you complete your repayment plan. During this time, you must complete two mandatory courses: a pre-filing credit counseling session from an approved agency within 180 days before filing, and a post-filing debtor education course before your debts can be discharged. Failure to complete either course can result in your case being dismissed. In Melbourne, local bankruptcy lawyers guide clients through these requirements, ensuring all paperwork is filed correctly and deadlines are met. The discharge order, which legally eliminates your obligation to pay most unsecured debts, is usually entered shortly after the completion of your case.

The costs of bankruptcy include court filing fees and attorney fees. As of 2024, the filing fee for Chapter 7 is $338, and for Chapter 13 it is $313. These fees are set by the federal courts and are non-refundable. Attorney fees in Melbourne vary based on the complexity of your case. For a straightforward Chapter 7, fees typically range from $1,200 to $2,500, while Chapter 13 fees are higher, often between $3,000 and $4,500, because of the longer duration and more complex paperwork involved. Many bankruptcy lawyers offer payment plans, allowing you to pay attorney fees in installments before filing. Some may also allow you to include attorney fees in your Chapter 13 plan. For those with limited income, pro bono resources are available through organizations such as the Brevard County Legal Aid or the Florida Bar’s Lawyer Referral Service, which may provide reduced-cost or free representation for qualifying individuals. It is important to discuss fee structures upfront with any lawyer you consult.

Life after bankruptcy involves both challenges and opportunities for rebuilding. A Chapter 7 discharge remains on your credit report for ten years from the filing date, while a Chapter 13 discharge stays for seven years. Despite this, many individuals find they can qualify for new credit within one to two years after discharge, often through secured credit cards or credit-builder loans. Strategies for rebuilding credit include making all payments on time, keeping credit utilization low, and monitoring your credit report for errors. It is also important to understand that not all debts are dischargeable. Student loans are generally not dischargeable unless you can prove undue hardship in an adversary proceeding, which is difficult to win. Most tax debts, including recent income taxes, are not dischargeable, though older taxes may qualify under strict conditions. Child support and alimony obligations are never dischargeable, and debts from fraud, willful injury, or drunk driving may also survive bankruptcy. A Melbourne bankruptcy lawyer can provide guidance on which debts in your specific situation may be eliminated and which will remain.