If you are searching for how to file bankruptcy in Florida, the process begins with understanding your debts, income, property, expenses, and financial circumstances. Bankruptcy is a federal court process, but Florida exemption law can affect what property may be protected.
The right bankruptcy option depends on the facts of the individual case. Chapter 7 and Chapter 13 have different eligibility requirements, procedures, and consequences. A person considering bankruptcy should review the circumstances of the case before deciding whether to file or which chapter may apply.
This guide explains the basic bankruptcy filing process in Florida, what to gather before filing, and what generally happens after a bankruptcy case begins.
Important: This article provides general educational information and is not legal advice. Bankruptcy decisions are fact-specific. A consultation is appropriate before taking action on a particular case.
What Does Filing Bankruptcy in Florida Mean?
Bankruptcy is a federal legal process governed primarily by the U.S. Bankruptcy Code. For individuals, Chapter 7 and Chapter 13 are two of the most common forms of bankruptcy relief.
Filing a bankruptcy petition starts a court case and generally triggers an automatic stay, which can stop many collection actions against the debtor or the debtor’s property. The stay does not apply to every type of action, and exceptions can apply.
Bankruptcy can involve:
- Credit-card debt
- Medical bills
- Personal loans
- Collection lawsuits
- Certain tax obligations
- Vehicle loans
- Mortgage arrears
- Wage garnishments
- Other qualifying debts
Not every debt is treated the same way. Some debts may not be dischargeable, and secured debts involve additional considerations.
Step 1: Determine Whether Bankruptcy May Be Appropriate
Before filing, it is important to understand the financial problem that needs to be addressed.
Start by identifying:
- Who you owe money to
- How much you owe
- Whether debts are secured or unsecured
- Whether creditors have filed lawsuits
- Whether your wages are being garnished
- Whether your home is in foreclosure
- Whether a vehicle is at risk of repossession
- Your household income
- Your regular expenses
- The property and financial accounts you own
- Any recent transfers or sales of property
This information provides the foundation for evaluating possible bankruptcy options.
Bankruptcy should not be approached as simply a way to eliminate one particular debt. The bankruptcy schedules generally require a broader picture of the debtor’s financial affairs.
Step 2: Understand Chapter 7 and Chapter 13
Chapter 7 Bankruptcy
Chapter 7 is commonly described as a liquidation bankruptcy. A trustee is appointed to administer the bankruptcy estate, and certain nonexempt property may be available for creditors. In many Chapter 7 cases, however, there may be no nonexempt assets for the trustee to liquidate.
An individual may receive a discharge of certain qualifying debts after completing the required process. The Bankruptcy Code also contains exceptions to discharge, so filing Chapter 7 does not automatically eliminate every debt.
Chapter 7 eligibility can also involve the means test. The means test is used in applicable cases to determine whether a presumption of abuse arises under the Bankruptcy Code.
Chapter 13 Bankruptcy
Chapter 13 is designed for individuals with regular income who can repay some or all of their debts through a court-approved repayment plan.
A Chapter 13 plan generally lasts three to five years, depending on the circumstances and applicable requirements. Chapter 13 can also provide a mechanism for addressing certain mortgage arrears and other debts while allowing an eligible debtor to retain property.
Chapter 13 is not simply a longer version of Chapter 7. The eligibility requirements, payment calculations, treatment of debts, and consequences can differ substantially.
Which Chapter Is Right?
There is no universal answer.
The appropriate chapter depends on facts such as:
- Income
- Household size
- Expenses
- Type and amount of debt
- Property owned
- Equity in property
- Vehicle and mortgage obligations
- Recent financial transactions
- Ability to make payments
- The goals of the bankruptcy filing
A consultation should occur before choosing a chapter based solely on an online article or bankruptcy calculator.
Step 3: Review Florida Bankruptcy Exemptions
One of the most important Florida-specific issues is exempt property.
An exemption is a legal protection that may allow certain property to remain protected from creditors or from administration by a bankruptcy trustee, subject to the applicable law and the facts of the case.
Florida’s exemption rules are important in bankruptcy planning. Florida law generally does not permit Florida residents to elect the federal bankruptcy exemptions listed in 11 U.S.C. § 522(d), while Florida law provides its own exemptions and makes certain federal exemptions available.
Potentially relevant property can include:
- A Florida homestead
- A vehicle
- Household personal property
- Certain retirement or pension interests
- Certain insurance or annuity interests
- Other property covered by applicable exemption laws
For example, Florida Statutes § 222.25 provides specific exemptions for certain personal property, including an exemption for a debtor’s interest in a single motor vehicle up to the statutory amount, subject to the law’s requirements and exceptions.
Do not assume that property is protected simply because it falls into a familiar exemption category. The value of the property, ownership, equity, timing, and other facts can matter.
Property and exemption analysis should therefore be completed before filing.
Step 4: Complete Required Credit Counseling
An individual debtor generally must complete credit counseling from an approved agency during the 180-day period before filing a bankruptcy petition.
The U.S. Bankruptcy Court for the Middle District of Florida confirms this pre-filing requirement.
Credit counseling and the post-filing financial-management course are separate requirements.
The counseling requirement should be handled carefully because failing to satisfy applicable pre-filing requirements can affect the bankruptcy case.
Step 5: Gather Your Bankruptcy Documents
Accurate bankruptcy schedules depend on accurate financial information.
Before filing, gather documents that can help establish your financial position, including:
Income
- Recent pay stubs
- Wage information
- Business income records, if applicable
- Retirement income
- Social Security or other benefit information
- Other regular income
Expenses
- Mortgage or rent
- Utilities
- Transportation
- Insurance
- Food
- Medical expenses
- Childcare
- Support obligations
- Other recurring household expenses
Debts
- Credit-card statements
- Medical bills
- Personal loans
- Collection letters
- Lawsuits
- Judgments
- Tax notices
- Student-loan information
- Mortgage statements
- Vehicle-loan statements
Property
- Deeds
- Vehicle titles
- Mortgage information
- Bank statements
- Retirement-account statements
- Investment-account information
- Insurance information
- Other records showing ownership or financial interests
Recent Financial Activity
Also identify significant recent transactions, including:
- Property sales
- Transfers to family members or others
- Large withdrawals
- Repayments to relatives or friends
- Significant purchases
- Changes in ownership
- Other unusual financial transactions
Do not leave out an asset or transaction simply because you believe it is insignificant. Bankruptcy filings require complete and accurate financial information.
Step 6: Prepare the Bankruptcy Petition and Schedules
A bankruptcy case begins with filing the appropriate petition and required documents with the bankruptcy court.
The filing generally includes detailed information about:
- Assets
- Debts
- Income
- Expenses
- Property
- Financial history
- Exemptions
- Creditors
The information must be accurate and complete.
A bankruptcy petition is not simply a form listing creditors. It is a formal court filing that requires the debtor to disclose financial information under penalty of the applicable federal rules and statutes.
This is one reason professional review can be important before filing.
Step 7: Pay the Bankruptcy Filing Fee
Bankruptcy cases generally require a filing fee.
The U.S. Bankruptcy Court for the Middle District of Florida currently lists a $338 Chapter 7 filing fee and a $313 Chapter 13 filing fee on its published fee schedule. Court fees can change, so the current court schedule should be checked before filing.
In qualifying circumstances, an individual debtor may be able to request payment of the filing fee in installments. The Middle District of Florida provides an application for payment of filing fees in installments.
Step 8: File the Bankruptcy Case
Once the required documents have been prepared, the bankruptcy petition and accompanying documents are filed with the appropriate federal bankruptcy court.
Filing generally creates the automatic stay.
The automatic stay can stop many collection activities, including certain lawsuits, garnishments, and collection calls. However, there are exceptions, and the stay can be limited or modified in some circumstances.
If a foreclosure, repossession, garnishment, lawsuit, or other collection action is already underway, timing can be especially important.
Step 9: Attend the Meeting of Creditors
After filing, the debtor generally must attend a meeting of creditors, sometimes called a §341 meeting.
The bankruptcy trustee uses the meeting to ask questions about the debtor’s bankruptcy filing and financial circumstances.
This is one reason the information in the petition and schedules must be accurate. The debtor should be prepared to answer questions about the information provided to the court.
Step 10: Complete the Required Financial Management Course
After filing, individual debtors generally must complete an approved financial-management course, also known as debtor education, before receiving a discharge.
This requirement is separate from the pre-filing credit counseling requirement.
Failing to complete the required post-filing course can affect the ability to receive a discharge.
Step 11: Complete the Bankruptcy Process
What happens next depends on the chapter filed and the circumstances of the case.
In Chapter 7
The trustee reviews the bankruptcy estate, including the debtor’s assets and claimed exemptions. If there are nonexempt assets that can be administered, the trustee may take appropriate action under the Bankruptcy Code.
If the requirements for a discharge are satisfied, the debtor may receive a discharge of qualifying debts.
In Chapter 13
The debtor must comply with the Chapter 13 plan and make required payments for the applicable plan period.
The Chapter 13 trustee administers payments under the plan, and the debtor must comply with the requirements of the bankruptcy case.
A discharge generally comes after successful completion of the applicable requirements.
What Debts Does Bankruptcy Eliminate?
Bankruptcy can provide relief from many types of unsecured debt, but not every debt is necessarily dischargeable.
Depending on the circumstances and applicable law, issues can arise involving:
- Certain taxes
- Domestic support obligations
- Certain student-loan obligations
- Certain fines and penalties
- Certain debts arising from fraud
- Certain debts involving intentional wrongdoing
- Certain debts involving other statutory exceptions
The exact treatment depends on the debt and the facts.
Do not assume that a debt is either automatically dischargeable or automatically nondischargeable without reviewing the circumstances.
What Happens to Your House or Car?
Filing bankruptcy does not automatically mean that you lose your home or vehicle.
The analysis depends on factors including:
- Whether the property is exempt
- The amount of equity
- Whether there is a mortgage or vehicle loan
- Whether payments are current
- The applicable bankruptcy chapter
- The terms of the loan
- The debtor’s intentions concerning the property
Florida homestead and other exemption rules can be particularly important when evaluating a home.
If keeping a home or vehicle is one of the primary goals of the bankruptcy filing, that goal should be identified before the case is filed.
What Should You Do If You Are Being Sued or Garnished?
Do not ignore court papers or collection notices while researching bankruptcy.
Keep:
- The original notice
- The date received
- Court case information
- Deadlines
- Collection correspondence
- Garnishment information
- Contact information for the creditor or creditor’s attorney
A pending lawsuit, wage garnishment, foreclosure, or repossession can make timing an important part of bankruptcy planning.
Common Mistakes to Avoid Before Filing Bankruptcy
1. Hiding or transferring property
Do not transfer property to a relative or another person simply because you are considering bankruptcy.
Recent transfers can become relevant to the bankruptcy case and should be disclosed and reviewed.
2. Leaving out creditors
Make a complete creditor list. A debt should not be omitted simply because the creditor has not contacted you recently.
3. Assuming all debts disappear
Bankruptcy does not necessarily discharge every debt.
4. Assuming all property is protected
Florida exemptions can protect certain property, but the applicable exemption and the amount protected depend on the facts and law.
5. Waiting until a foreclosure or lawsuit is complete
Bankruptcy planning can become more complicated when a creditor has already taken significant legal action.
If a deadline is approaching, do not assume that reading more articles will preserve your rights.
6. Providing incomplete financial information
Bankruptcy requires financial disclosure. Gather records and provide complete information to the attorney handling the case.
What to Bring to a Florida Bankruptcy Consultation
A productive consultation starts with organized information.
Consider bringing or gathering:
- Recent income records
- Bank statements
- Mortgage statements
- Vehicle-loan information
- Credit-card statements
- Medical debt information
- Collection letters
- Lawsuit documents
- Wage-garnishment information
- Tax records
- A list of assets
- Vehicle information
- Retirement-account information
- Information about recent transfers or property sales
- A list of your major financial concerns
- Questions about Chapter 7 and Chapter 13
You do not need to understand every bankruptcy form before speaking with an attorney. The purpose of the consultation is to apply the law to the facts of your situation.
Questions to Ask During a Bankruptcy Consultation
Consider asking:
- Could Chapter 7 be an option based on my income and circumstances?
- Could Chapter 13 be an option?
- How could Florida exemptions affect my property?
- What debts may not be dischargeable in my situation?
- Could filing affect my home or vehicle?
- How could a pending lawsuit or garnishment affect the timing?
- What documents are still needed before filing?
- What are the expected costs and filing requirements?
- What happens after the petition is filed?
- What should I avoid doing before filing?
These questions can help make a consultation more focused and productive.
Frequently Asked Questions About Filing Bankruptcy in Florida
How do I file bankruptcy in Florida?
An individual generally begins by evaluating their financial circumstances, determining which bankruptcy chapter may be available, completing required pre-filing credit counseling, gathering financial records, preparing the required bankruptcy documents, and filing the case with the appropriate federal bankruptcy court.
The specific documents and requirements depend on the case.
Is bankruptcy filed in Florida state court?
No. Bankruptcy is handled through the federal bankruptcy court system. Florida law can still be important, particularly when determining applicable exemptions and other state-law issues.
Do I have to take credit counseling before filing bankruptcy?
Generally, yes. An individual debtor must complete an approved credit-counseling briefing during the 180-day period before filing, subject to limited statutory exceptions.
What is the difference between Chapter 7 and Chapter 13?
Chapter 7 generally involves liquidation of nonexempt assets and can result in a discharge of qualifying debts. Chapter 13 generally involves a court-approved repayment plan for an individual with regular income.
Can I keep my house if I file bankruptcy in Florida?
Possibly. Filing bankruptcy does not automatically require a person to give up a home. The analysis can involve Florida exemptions, equity, mortgage obligations, payment status, and the bankruptcy chapter.
Can bankruptcy stop a wage garnishment?
The automatic stay generally stops many collection actions after a bankruptcy case is filed, including certain wage garnishments. There are exceptions, however, so the effect of filing depends on the circumstances.
Does bankruptcy erase all debt?
No. Some debts are not discharged or can receive different treatment under the Bankruptcy Code.
Should I wait until a creditor sues me before filing?
Not necessarily. A lawsuit, garnishment, foreclosure, or repossession can make timing important. If you have received court papers or another legal notice, keep the documents and seek advice promptly.
Is filing bankruptcy the same as receiving a discharge?
No. Filing starts the bankruptcy case. A discharge is a later court order that releases an individual debtor from personal liability for certain qualifying debts, assuming the requirements for discharge are satisfied.
Related Bankruptcy Resources
Official Resources
For general information, readers can consult:
- U.S. Courts — Bankruptcy Basics
- U.S. Bankruptcy Court, Middle District of Florida
- Florida Statutes — Chapter 222, Homestead and Exemptions
Talk With The DeVries Law Firm, P.A.
If you are considering bankruptcy in Florida, a consultation can help you understand how the general bankruptcy process may apply to your income, debts, property, and financial circumstances.
Bring your notices and financial records to the consultation, particularly if you are facing a lawsuit, wage garnishment, foreclosure, repossession, or another time-sensitive collection action.
Schedule a consultation with The DeVries Law Firm, P.A.
Call (904) 348-0030.
Important Legal Disclaimer
Attorney Advertising.
This article is general educational information for Florida readers and is not legal advice. Bankruptcy law involves federal law, Florida law, court rules, and individual facts. The information on this page does not create an attorney-client relationship. A consultation is necessary to evaluate the facts and circumstances of a particular situation.
We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.