Who Should File Chapter 7 Bankruptcy in Florida?

If you're overwhelmed by debt and struggling to stay afloat financially, you may be wondering: “Is Chapter 7 bankruptcy the right choice for me in Florida?”

Chapter 7 bankruptcy—also known as “liquidation bankruptcy”—is one of the most common types of bankruptcy filed in Florida. It allows you to wipe out most unsecured debts and get a fresh start, but it’s not right for everyone.

In this article, we’ll explain:

• What Chapter 7 bankruptcy is

• Who qualifies in Florida

• Who benefits most

• Who should consider other options

What Is Chapter 7 Bankruptcy?

Chapter 7 bankruptcy is a federal process that eliminates many types of unsecured debt, including:

• Credit card debt

• Medical bills

• Personal loans

• Utility bills

• Payday loans

In exchange, a court-appointed bankruptcy trustee may sell your non-exempt property to repay your creditors. However, Florida has generous bankruptcy exemptions, and most people who file don’t lose anything.

Once your case is completed—usually within 4 to 6 months—you’ll receive a discharge and a fresh financial start.

Who Should File Chapter 7 Bankruptcy in Florida?

1. You're Overwhelmed by Unsecured Debt

If you’re buried in debt like credit cards, medical bills, or payday loans—and you can’t see a way to catch up—Chapter 7 can give you fast relief.

Example: You owe $40,000 in credit card debt and earn $2,500/month after taxes. Even making minimum payments isn't helping. Chapter 7 can eliminate those debts.

2. Your Income Is Below Florida’s Median

To qualify for Chapter 7, you must pass the “means test.” In Florida, this means your household income must be below the state median or you must not have enough disposable income to pay creditors after basic living expenses.

As of 2025, the median income levels in Florida (subject to change) for households are approximately:

• 1 person: ~$61,000

• 2 people: ~$75,000

• 3 people: ~$85,000

• 4 people: ~$100,000

Even if you earn more, you might still qualify after applying deductions.

3. You Don’t Own a Lot of Valuable Property

Chapter 7 is a good fit for people who:

• Rent their home or have limited home equity

• Drive modest vehicles

• Don’t own luxury items or multiple properties

Florida Bankruptcy Exemptions:

Florida has some of the strongest property protection laws in the country, including:

• Unlimited homestead exemption (for primary residences, with some conditions)

• Up to $1,000 in personal property, or $4,000 if you don’t claim the homestead exemption

• $1,000 vehicle exemption

• Wages, retirement accounts, and certain personal items may also be protected

In many cases, you can keep your home, car, and belongings.

4. You Need Quick Relief

Chapter 7 is typically much faster than Chapter 13. Most Florida cases are completed in 4–6 months.

If you want a clean break from debt without a long repayment plan, Chapter 7 is likely your best option.

5. You’re Being Sued or Garnished

Filing Chapter 7 in Florida puts an automatic stay on:

• Wage garnishments

• Debt collection lawsuits

• Bank levies

• Creditor harassment

This legal protection gives you room to breathe and stops creditors in their tracks.

Who Should Not File Chapter 7 in Florida?

❌ You’re Behind on a Mortgage or Car Loan You Want to Keep

Chapter 7 does not help you catch up on payments. If you’re behind and want to keep the property, Chapter 13 may be a better option.

❌ You Have Significant Non-Exempt Assets

If you own:

• A second home

• High-value personal property

• Expensive vehicles not fully protected by exemptions

…the trustee may liquidate them. Chapter 13 or debt negotiation may be better suited.

❌ You Have Mostly Non-Dischargeable Debts

Chapter 7 doesn’t eliminate:

• Most student loans

• Recent tax debt

• Alimony or child support

• Court fines and penalties

If these are your main debts, filing may not provide the relief you need.

Not Sure If You Qualify for Chapter 7 in Florida?

Every bankruptcy case is different. The best way to know if you qualify for Chapter 7 in Florida is to speak with a local bankruptcy attorney who can evaluate your income, assets, and financial goals. Learn more about Chapter 7 Bankruptcy here.

Speak With a Florida Bankruptcy Lawyer Today

At Mosakowski Law, we’ve helped hundreds of clients across Florida wipe out debt and rebuild their lives through Chapter 7 bankruptcy.

We’ll help you:

• Determine if you qualify

• Maximize your exemptions

• Guide you every step of the way

Call us schedule your free consultation online today.