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Bankruptcy FAQ

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Clear Answers to Your Bankruptcy Questions in Florida

Facing financial hardship can feel overwhelming, but understanding your options is the first step toward relief. Our Bankruptcy FAQ addresses the most common questions Florida residents have about the bankruptcy process, eligibility, and what to expect. Each answer is provided by experienced bankruptcy attorneys dedicated to helping you find a fresh financial start.

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The Law Offices of Travis R. Walker, P.A. Guides You Through Bankruptcy
When financial pressure becomes unmanageable, The Law Offices of Travis R. Walker, P.A. is here to help residents of Treasure Coast, FL and surrounding areas explore their legal options. Our experienced bankruptcy attorneys will work with you to find the right path toward financial relief. Below are frequently asked questions about bankruptcy law in Florida.
Bankruptcy is a federal legal process that allows individuals and businesses struggling with debt to either eliminate or restructure what they owe under the protection of a federal court. In Florida, bankruptcy cases are handled in the U.S. Bankruptcy Court for the applicable district. Filing for bankruptcy triggers an automatic stay, which immediately halts most collection actions, wage garnishments, foreclosures, and creditor harassment, giving you breathing room to reorganize your finances.

The most common types of bankruptcy for Florida residents include:

  • Chapter 7 (Liquidation Bankruptcy): Known as straight bankruptcy, this chapter allows eligible individuals to discharge most unsecured debts such as credit cards and medical bills. Non-exempt assets may be sold by a trustee to repay creditors. In most cases, filers keep their essential property under Florida’s generous exemptions.
  • Chapter 13 (Reorganization Bankruptcy): This chapter allows individuals with regular income to create a 3–5 year repayment plan to catch up on debts while keeping their assets. It is often used to stop foreclosure and save a home.
  • Chapter 11 (Business Reorganization): Typically used by businesses, Chapter 11 allows companies to restructure their debts and continue operating while repaying creditors over time.
To qualify for Chapter 7, you must pass the Means Test, which compares your average monthly income over the last six months to Florida’s median income for a household of your size. If your income is below the median, you automatically qualify. If it is above, further calculations will determine eligibility based on your disposable income and allowable expenses. You must also complete an approved credit counseling course within 180 days before filing.

Many common debts can be discharged in bankruptcy, including credit card balances, medical bills, personal loans, utility arrears, and certain older tax debts. However, some debts generally cannot be discharged, including:

  • Child support and alimony obligations
  • Most student loans
  • Recent federal, state, and local tax debts
  • Debts arising from fraud or intentional wrongdoing
  • Criminal fines and restitution
Florida offers one of the most powerful homestead exemptions in the country. If you have owned your home for at least 1,215 days (approximately 3.33 years) before filing, there is no cap on the equity you can protect in your primary residence. This means that even if your home has substantial equity, it may be fully protected in a Chapter 7 bankruptcy. There are acreage limitations, but for most Florida homeowners, this is an extraordinarily valuable protection.
Bankruptcy will have a negative impact on your credit score and will remain on your credit report for 7 years (Chapter 13) or 10 years (Chapter 7). However, many filers find that their credit score begins to improve relatively quickly after discharge because their debt-to-income ratio improves significantly. With responsible financial habits following bankruptcy, many people rebuild their credit to acceptable levels within 2–3 years.
Filing for bankruptcy immediately triggers the automatic stay, which can temporarily halt a foreclosure proceeding. Chapter 13 bankruptcy is especially powerful in this regard, as it allows homeowners to catch up on missed mortgage payments through a structured repayment plan over 3–5 years while keeping their home. Chapter 7 may only delay foreclosure unless the mortgage arrears can otherwise be resolved.
A Chapter 7 bankruptcy typically takes approximately 4–6 months from the date of filing to discharge. Chapter 13 takes 3–5 years because of the repayment plan. The timeline can be affected by the complexity of your case, the volume of cases in your district, and whether any creditors raise objections.

While individuals are permitted to file bankruptcy on their own (known as filing pro se), it is strongly advisable to work with an experienced bankruptcy attorney. Bankruptcy law is complex, and mistakes can result in the dismissal of your case, loss of exemptions, or even allegations of fraud. An attorney ensures your paperwork is accurate, your exemptions are maximized, and your rights are protected throughout the process.

Contact The Law Offices of Travis R. Walker, P.A. today to schedule a consultation with our experienced bankruptcy attorneys serving Treasure Coast, FL and surrounding areas.

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