Considering Bankruptcy in Florida: What to Know Before You File
Chapter 7 vs. Chapter 13, in plain terms
Chapter 7, sometimes called “liquidation,” involves a trustee reviewing your assets — anything that isn’t protected by an exemption can be sold to pay creditors — and typically results in remaining eligible debt being discharged within a few months. Chapter 13, “reorganization,” is for people with regular income who want to keep property (often a home facing foreclosure) by repaying debts, in full or in part, over a court-approved 3-to-5-year plan.
The means test — whether you qualify for Chapter 7
To file Chapter 7, your household income is compared to Florida’s median income for a household your size. If you’re below the median, you generally pass automatically. If you’re above it, additional disposable-income calculations apply and may point you toward Chapter 13 instead.
Don’t treat any income figure as fixed
Florida’s exemptions — why people say Florida is generous
Florida is what’s called an “opt-out” exemption state, meaning filers generally use Florida’s own exemptions instead of the federal bankruptcy exemption list. A few stand out:
Homestead — unlimited value, with limits on size and a residency requirement
Motor vehicle — $5,000 in equity
Personal property — $4,000 if you’re not claiming homestead
Required steps before and after filing
You must complete credit counseling from a U.S. Trustee Program-approved agency within 180 days before filing, and a debtor education course after filing but before your debt is discharged. Only agencies on the approved list count — see our verified nonprofit credit counseling directory as a starting point, and confirm approval status directly with the agency.
What happens the moment you file
The “automatic stay” takes effect immediately — it halts most collection actions against you, including lawsuits, foreclosure, repossession, wage garnishment, and creditor phone calls, until the court says otherwise or the case concludes.
What it costs, and what if you can’t afford it
Current federal filing fees are $338 for Chapter 7 and $313 for Chapter 13 — these are set nationally and adjusted periodically, so confirm the current amount before filing. If your income is low enough, you can apply for a full fee waiver on Chapter 7, or request to pay in installments on any chapter.
Free and low-cost help in Miami-Dade
Real, verified options exist if you can’t afford a private attorney: the Southern District of Florida’s Bankruptcy Pro Se Assistance Clinic runs free monthly clinics with volunteer attorneys, and the University of Miami School of Law operates a referral-based Bankruptcy Pro Bono Assistance Clinic. Legal aid organizations serving Miami-Dade also handle bankruptcy-related cases. See our full verified directory.
Frequently asked questions
Will I lose my house if I file for bankruptcy in Florida?
Not necessarily — Florida’s homestead exemption is one of the most protective in the country for a primary residence you’ve established real, permanent residency in, subject to the acreage and federal-cap details above. This is highly fact-specific, so confirm your situation with a bankruptcy attorney.
Does bankruptcy erase all debt?
No. Certain debts — including most student loans, recent taxes, child support, and alimony — are generally not dischargeable. Which debts qualify depends on the specifics of your case.
How long does bankruptcy stay on my credit report?
Up to 10 years, longer than the standard 7-year window for most other negative information.