Bankruptcy in Florida
Bankruptcy isn’t a defeat—it’s a legal lifeline. If you’re buried under medical bills, credit card debt, or back payments on your home, bankruptcy could stop the bleeding.
But in Florida, what you keep depends on what you know. The state’s bankruptcy process includes powerful exemptions, like unlimited protection for your primary residence under the homestead exemption.
The right guidance makes all the difference. A Florida bankruptcy attorney can help you understand your options, protect your assets, and make smart decisions about your future.
Types of Bankruptcy in Florida
Bankruptcy is more than just a legal process—it’s a financial reset designed for people and businesses who need a way out. In , filing for bankruptcy may allow you to reduce or eliminate certain debts and stop ongoing collection efforts.
But approval isn’t automatic. You’ll need to show that you’re dealing with a genuine financial hardship that’s left you unable to keep up with your obligations. Even then, not everything can be wiped out—debts like child support, alimony, certain taxes, and most student loans remain.
There’s no one-size-fits-all approach to bankruptcy. The chapter you file—Chapter 7, Chapter 11, or Chapter 13—depends on your financial goals, income, and the assets you need to protect. Chapter 7 may help you clear debt quickly through liquidation, while Chapter 13 sets up a repayment plan. Chapter 11, often used by businesses or individuals with complex finances, focuses on reorganization.
In Florida, bankruptcy cases are handled by the United States Bankruptcy Courts for the Northern, Middle, and Southern Districts of Florida. Each district serves specific counties and has multiple court locations, including Jacksonville, Tampa, Orlando, Miami, and Tallahassee.
Chapter 7 Bankruptcy
Chapter 7 is often seen as the most straightforward path to debt relief—it can clear unsecured debts and give you a true financial reset. But it’s not for everyone. In , you’ll need to evaluate whether your income and financial situation meet the eligibility standards.
This chapter is best suited for people who have little or no disposable income and don’t expect their financial circumstances to improve soon. A qualified bankruptcy attorney can help you review the numbers and decide if liquidating non-exempt property in exchange for wiping out debt makes sense.
Those who qualify for Chapter 7 usually don’t have the means to repay their debts and may be dealing with unemployment, medical hardship, or reduced income. While the process can eliminate most unsecured debts, you might have to surrender certain assets, like a second car, high-value personal items, or home equity that exceeds exemption limits.
The means test is used to determine whether you qualify for Chapter 7 bankruptcy based on your income and ability to repay your debts. It starts by comparing your average monthly income over the past six months to the median income for a household of your size in your state. If your income falls below that threshold, you automatically pass. If it’s above, you’ll need to complete a second step that deducts specific living expenses to calculate your disposable income.
As of 2025, the median income figures for Florida, which are used in the Chapter 7 bankruptcy means test, are as follows:
- 1-person household: $65,801
- 2-person household: $81,109
- 3-person household: $93,983
- 4-person household: $107,712
For households larger than four, add $9,900 for each additional person.
Chapter 11 Bankruptcy
Chapter 11 bankruptcy is a more advanced form of debt relief, typically used by businesses or individuals with complex financial situations. It allows you to restructure your debts through a court-approved plan, often spread over four to eighteen months, without having to lose assets.
Instead of liquidating property to pay creditors, you work with them to negotiate new terms that make repayment more manageable. This option is ideal for those who need to stay operational or protect high-value assets while working toward long-term financial recovery.
Filing for Chapter 11 bankruptcy in Florida requires a detailed and highly organized submission of financial documents to the U.S. Bankruptcy Court. This chapter is complex and document-heavy, and accuracy is critical to avoid delays or dismissal. You’ll need to file several forms that outline your current financial situation and business operations (if applicable). These include:
- Voluntary Petition (Official Form 101)
- Schedules A/B through J (listing assets, debts, income, expenses, and financial obligations)
- Statement of Financial Affairs (Official Form 107)
- Creditor Matrix with full contact information for all creditors
- Disclosure of attorney compensation
- Recent business financials (balance sheet, cash flow statement, profit and loss)
- Proposed reorganization plan (filed after the petition is submitted)
Chapter 13 Bankruptcy
Chapter 13 bankruptcy, often called a wage earner’s plan, allows individuals in to restructure their debt while keeping their property. After you file, the court appoints a trustee to review your assets, liabilities, and income to determine what you can afford to repay. The repayment plan typically lasts three to five years.
The process also requires more long-term involvement with the court. Each month, you’ll make a single payment to the trustee, who distributes the funds to your creditors. You’re also expected to stay current on any new financial obligations during the life of the plan.
While it takes longer to complete than Chapter 7, Chapter 13 gives you time, structure, and protection, making it a good fit for those with steady income.
The Bankruptcy Process in Florida
There’s no perfect moment to file for bankruptcy—but if your debt is more than you can realistically pay off within five years, it may be time to consider it. Bankruptcy can stop collection efforts, provide legal protection for your assets, and give you the structure you need to start over financially.
To begin the process in , you’ll need to collect and organize your financial information. This includes your monthly expenses, total debts, assets, and income. The court uses this documentation to determine your eligibility and guide your case.
In Florida, the bankruptcy process follows federal law, but you’re required to use the state’s exemption system to protect your property. These exemptions determine what assets you can keep during a Chapter 7 or how much you’ll need to repay in a Chapter 13.
Florida’s exemptions are particularly strong in some areas, especially for homeowners. Key protections include:
- Homestead exemption: Unlimited equity in your primary residence (must meet size and residency requirements)
- Personal property: Up to $1,000 in personal items, or $4,000 if you don’t claim a homestead exemption
- Motor vehicle: Up to $1,000 in equity
- Wages: 100% exemption for head of household wages, under certain conditions
- Public benefits: Fully exempt, including unemployment, Social Security, and disability benefits
- Retirement accounts: Most tax-deferred retirement accounts and pensions are fully protected
- Tools of the trade: Up to $1,000 in work-related tools or equipment
Work With an Experienced Florida Lawyer
If you’re struggling with debt in Florida, bankruptcy may be the solution that helps you protect your home, regain control of your finances, and chart a path toward long-term stability. With strong state exemptions and multiple filing options, Florida residents have tools available to shield key assets while addressing overwhelming financial obligations.
The process can feel complex, but you don’t have to navigate it alone. A qualified Florida bankruptcy attorney can help you choose the right chapter, understand how state laws apply to your situation, and guide you through each step with confidence.
Submit a request online or call us today at (866) 345-6784 to speak with an experienced lawyer in your area!
About the Author
Aaron is a professional legal writer with a B.S. in English Education from Southern Illinois University – Carbondale. He has written, published, and edited thousands of legal articles for RequestLegalHelp, which has connected over 5 million people to legal help in the United States.
With over five years of experience writing thousands of legal articles for law firms across the U.S. and Canada, Aaron specializes in covering federal, state, and city-level legal issues ranging from auto accidents to wrongful terminations.
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