Chapter 7 and Chapter 13 are the two most common types of personal bankruptcy in Florida. Chapter 7 wipes out most unsecured debts in a few months but may require liquidating non-exempt assets. Chapter 13 keeps your property and reorganizes what you owe into a 3–5 year repayment plan. The right choice depends mainly on your income, the type of debt, and the assets you want to protect.
Chapter 7: the “fresh start”
Chapter 7 is a liquidation bankruptcy. A court-appointed trustee reviews your assets, and most unsecured debts—credit cards, medical bills, personal loans—are discharged, usually within about three to four months of filing. Florida’s generous exemptions, including the homestead exemption, allow many filers to keep their home, a vehicle, and essential personal property. To qualify, your income must fall below the applicable state median or pass the “means test.”
Chapter 13: reorganization and protection
Chapter 13 suits people with regular income who want to keep assets that Chapter 7 might put at risk—or who need time to catch up on a mortgage or car loan. Instead of liquidation, you propose a repayment plan lasting three to five years. At the end of the plan, remaining eligible balances are discharged. Chapter 13 is often the better tool for stopping foreclosure or dealing with certain tax debts.
How to decide: key questions
- Is your income above or below the Florida median? This drives means-test eligibility for Chapter 7.
- Do you have non-exempt assets you want to keep? Chapter 13 protects them; Chapter 7 may not.
- Are you behind on a mortgage or car payment? Chapter 13 lets you cure the arrears over time.
- What type of debt do you have? Some obligations—recent taxes, student loans, child support—are treated differently in each chapter.
What both chapters have in common
Filing either type triggers the automatic stay, a court order that immediately halts most collection actions: creditor calls, wage garnishment, lawsuits, and foreclosure sales. Both also require completing approved credit-counseling and debtor-education courses.
Frequently asked questions
Will I lose my house? Often no. Florida’s homestead exemption protects primary residences within statutory limits, and Chapter 13 specifically helps homeowners catch up on missed payments.
How long does bankruptcy stay on my credit? Chapter 7 generally reports for up to ten years and Chapter 13 for up to seven, though many people begin rebuilding credit much sooner.
Can I choose either one? Not always—eligibility depends on income, debt type, and prior filings. A consultation clarifies which path is actually available to you.
This article is general information, not legal advice. Speak with a licensed Florida bankruptcy attorney about your specific situation.
