What Is Chapter 7 Bankruptcy — And Is It Right for You?

If you're overwhelmed by credit card bills, medical debt, or personal loans, you're not alone—and you're not out of options. At Mosakowski Law, P.A., we help individuals and families across Florida use Chapter 7 bankruptcy to eliminate unsecured debt and regain control of their finances.

In this blog post, we’ll explain how Chapter 7 works, who qualifies, and why working with a trusted bankruptcy attorney can make all the difference.

What Is Chapter 7 Bankruptcy?

Chapter 7 bankruptcy—often called "liquidation bankruptcy"—is designed to give debtors a clean financial slate. It works by discharging (wiping out) most unsecured debts, such as:

• Credit card balances

• Medical bills

• Personal loans

• Utility bills

• Certain judgments

Unlike Chapter 13 bankruptcy, which involves a repayment plan, Chapter 7 can eliminate debt in as little as 3–6 months. Learn more about Chapter 7 Bankruptcy here.

Who Qualifies for Chapter 7 Bankruptcy in Florida?

To file for Chapter 7, you must pass the "means test," which compares your income to the median income for a household of your size in Florida. If your income falls below the threshold, you likely qualify. Even if it's above the threshold, you may still qualify after allowable expenses are deducted.

You must also meet these basic requirements:

✅ You haven’t filed Chapter 7 in the last 8 years✅ You’ve completed a credit counseling course within 180 days of filing✅ You’re filing in good faith (not to hide assets or abuse the system)

At Mosakowski Law, P.A., we can help you determine if you qualify during your free consultation.

What Happens to My Property in Chapter 7?

Many people fear they'll lose everything in bankruptcy—but that’s rarely the case. Florida offers generous bankruptcy exemptions that protect many assets, including:

• Your primary residence (under Florida’s homestead exemption)

• Certain personal property

• Retirement accounts

• A vehicle (up to a certain value)

In most cases, clients keep all or most of their property when filing Chapter 7.

How Chapter 7 Bankruptcy Works – Step-by-Step

Here’s a simplified breakdown of the process:

1. Free consultation with a bankruptcy attorney

2. Gather documents: income, assets, debts, expenses

3. Complete credit counseling course

4. File your bankruptcy petition

5. Attend a 341 Meeting of Creditors (a short hearing)

6. Wait for discharge, usually within 60–90 days of the hearing

With Mosakowski Law, P.A. by your side, we’ll handle the legal paperwork, communicate with creditors, and guide you every step of the way.

Will Chapter 7 Bankruptcy Ruin My Credit?

Filing for bankruptcy does impact your credit—but not forever. For many people already struggling with missed payments or collections, Chapter 7 can actually help improve credit over time by eliminating debt and stopping negative reporting.

Many of our clients begin rebuilding their credit within months after discharge.

Why Choose Mosakowski Law, P.A.?

Filing for bankruptcy is a big decision. At Mosakowski Law, P.A., we provide personalized, judgment-free legal support to help you move forward with confidence. With years of experience in Florida bankruptcy law, our team will:

• Evaluate your eligibility for Chapter 7

• Explain all your options

• Help protect your assets

• File all necessary documents accurately and on time

• Represent you at hearings and communicate with the court

We’re committed to helping you achieve long-term financial relief—not just a quick fix.

Talk to a Florida Chapter 7 Bankruptcy Attorney Today

If you’re drowning in debt and looking for a way out, Chapter 7 bankruptcy might be your best path forward. Let Mosakowski Law, P.A. help you take the first step toward financial freedom.

📞 Call us today for a free consultation📧 Or contact us online to get started📍 Proudly serving clients across Central Florida