michael-johnson

How Does Bankruptcy Work in Florida?

Thu, 02 Apr 2026 16:00:44 GMT

How Does Bankruptcy Work in Florida?

If you’re struggling with overwhelming debt, the idea of filing for bankruptcy can feel intimidating—especially if you don’t understand how the process works. Many people worry about losing their property, damaging their future, or making the wrong decision. The truth is that bankruptcy is a legal tool designed to help people regain control of their financial lives , not punish them.

At the Michael H. Johnson Law Offices ., we have helped individuals and families throughout Fort Lauderdale and West Palm Beach, Florida navigate the bankruptcy process for decades. Understanding how bankruptcy works is often the first—and most important—step toward relief.

What Is Bankruptcy?

Bankruptcy is a legal process governed by federal law that allows individuals to eliminate or reorganize debt when repayment is no longer manageable. In Florida, the two most common types of consumer bankruptcy are Chapter 7 and Chapter 13 .

Both options:

Stop creditor harassment
Halt wage garnishments
Pause foreclosure and repossession actions
Provide a structured path toward financial relief

The right option depends on your income, assets, and long-term financial goals.

The Automatic Stay: Immediate Protection

Once a bankruptcy case is filed, an automatic stay goes into effect immediately. This is one of the most powerful benefits of bankruptcy.

The automatic stay:

Stops collection calls and letters
Halts wage garnishments
Pauses foreclosure proceedings
Prevents repossession actions
Freezes most lawsuits related to debt

This protection gives you breathing room while your case moves forward.

How Chapter 7 Bankruptcy Works in Florida

Chapter 7 bankruptcy, often called liquidation bankruptcy , is designed for individuals with limited income who need fast debt relief.

The basic Chapter 7 process includes:

Filing a bankruptcy petition with the court
Appointment of a bankruptcy trustee
Attending a meeting of creditors
Discharge of qualifying unsecured debts

Chapter 7 can eliminate debts such as credit cards, medical bills, personal loans, and certain deficiency balances. Most cases are completed in a matter of months. Florida exemptions often allow filers to keep essential property, including a home or vehicle in many cases.

How Chapter 13 Bankruptcy Works in Florida

Chapter 13 bankruptcy, also known as debt reorganization , is designed for individuals with regular income who want to keep their assets while catching up on debt.

The Chapter 13 process includes:

Filing for bankruptcy
Completing required debtor education
Proposing a repayment plan to the court
Court approval of the plan
Making payments for three to five years
Discharge of remaining eligible unsecured debt

Chapter 13 allows individuals to consolidate debt into one manageable payment and can help stop foreclosure, cure mortgage arrears, and reduce certain secured or tax debts.

What Is the Means Test?

To qualify for Chapter 7 bankruptcy, you must pass the means test , which compares your income and expenses to state and federal guidelines. If your income is too high, Chapter 13 may be the better—or only—option.

An experienced bankruptcy attorney can review your financial situation and explain which chapter you qualify for and why.

Will You Lose Your Property?

One of the most common fears about bankruptcy is losing everything. In reality, Florida bankruptcy exemptions are designed to protect essential property .

Depending on your situation, you may be able to keep:

Your home
Your car
Personal belongings
Retirement accounts

Proper use of exemptions and careful planning are key, which is why legal guidance matters.

Why Working With a Bankruptcy Attorney Matters

Bankruptcy involves detailed paperwork, strict deadlines, and legal strategy. Errors can delay your case or put assets at risk.

At the Law Offices of Michael H. Johnson, P.A., we help clients:

Understand their bankruptcy options
Choose between Chapter 7 and Chapter 13
Protect property using Florida exemptions
Complete filings accurately and efficiently
Navigate the process with confidence

With decades of experience helping South Florida residents, our firm focuses on clear guidance and practical solutions.

Get Answers About Bankruptcy in Florida

If you are dealing with overwhelming debt, you don’t have to figure it out alone. Understanding how bankruptcy works can help you make informed decisions and move forward with confidence.

To learn whether Chapter 7 or Chapter 13 bankruptcy is right for you, contact the Law Offices of Michael H. Johnson, P.A. for a free initial consultation .

Chapter 13 Bankruptcy Attorney in Fort Lauderdale & West Palm Beach: Is Debt Reorganization the Right Solution for You?

Thu, 05 Mar 2026 17:00:43 GMT

Chapter 13 Bankruptcy Attorney in Fort Lauderdale & West Palm Beach: Is Debt Reorganization the Right Solution for You?

Financial hardship can happen to anyone. A job loss, medical emergency, or unexpected life change can quickly lead to missed payments, mounting debt, and constant pressure from creditors. If you still have income but can’t keep up with your financial obligations, Chapter 13 bankruptcy may offer a structured and realistic path forward.

At the Law Offices of Michael H. Johnson Law Offices , we help individuals in Fort Lauderdale and West Palm Beach use Chapter 13 bankruptcy to regain control of their finances, protect their assets, and work toward long-term stability. Bankruptcy is not about failure—it is about using the law to create a solution that fits your life.

What Is Chapter 13 Bankruptcy?

Chapter 13 bankruptcy is often referred to as debt reorganization bankruptcy . Instead of eliminating debt all at once, Chapter 13 allows you to restructure what you owe into a single, court-approved monthly payment.

Under Chapter 13:

Your debts are consolidated into one manageable payment
Payments are made over three to five years
The payment amount is based on your income, expenses, and assets
Remaining eligible unsecured debt may be discharged at the end of the plan

This approach allows individuals with regular income to catch up on overdue obligations while keeping important property.

Who Is Chapter 13 Bankruptcy Designed For?

Chapter 13 may be the right option if:

You earn too much to qualify for Chapter 7 bankruptcy
You are behind on mortgage or car payments
You want to stop foreclosure or repossession
You have non-exempt assets you want to protect
You need time to catch up on secured debts

Many people choose Chapter 13 because it offers structure, predictability, and the opportunity to repay debt without losing everything they’ve worked for.

How Debt Reorganization Can Help You Get Back on Track

One of the biggest advantages of Chapter 13 is its flexibility. The repayment plan is tailored to your financial situation, allowing you to:

Catch up on past-due mortgage payments
Reorganize car loans and other secured debts
Eliminate or reduce certain unsecured debts
Avoid interest and penalty fees during repayment

Once your plan is approved, creditors must accept the terms, and you make payments directly through the bankruptcy trustee.

Immediate Protection After Filing

As soon as a Chapter 13 case is filed, the automatic stay goes into effect. This legal protection immediately stops:

Foreclosure actions
Wage garnishments
Repossessions
Creditor lawsuits and collection calls

This gives you breathing room to focus on rebuilding without constant financial pressure.

Additional Benefits of Chapter 13 Bankruptcy in Florida

Chapter 13 offers several powerful benefits beyond basic debt reorganization, including:

The ability to eliminate second mortgages or home equity lines of credit in some cases
“Cramdown” options for vehicles or investment properties
Reducing or restructuring certain IRS tax debts
Retaining more assets than under Chapter 7
Catching up on secured debts while staying protected

For many Florida residents, Chapter 13 provides a balanced approach between responsibility and relief.

Is Chapter 13 the Right Solution for You?

Chapter 13 bankruptcy is not right for everyone, but it can be an excellent solution for individuals who want to:

Keep their home or vehicle
Repay debts in a structured way
Avoid liquidation
Create a realistic path toward financial recovery

Determining eligibility and designing a workable repayment plan requires careful legal analysis. That’s why speaking with an experienced Chapter 13 bankruptcy attorney is critical.

How a Chapter 13 Bankruptcy Attorney Can Help

Filing Chapter 13 bankruptcy involves detailed financial disclosures, court approval, and ongoing compliance. Mistakes can delay relief or jeopardize your case.

At the Law Offices of Michael H. Johnson, P.A., we help clients:

Evaluate whether Chapter 13 is the best option
Design a repayment plan that fits their income
Protect assets using Florida exemptions
Navigate the bankruptcy process with confidence

With more than a decade of experience helping South Florida residents, our firm provides honest guidance and practical solutions.

Talk to a Chapter 13 Bankruptcy Attorney Today

If you are struggling with debt but still have income, Chapter 13 bankruptcy may give you the structure and protection you need to move forward. The sooner you explore your options, the more solutions may be available.

To find out whether debt reorganization is right for you, contact the Law Offices of Michael H. Johnson, P.A. for a free initial consultation .

Is Liquidation Bankruptcy Right for You?

Thu, 05 Feb 2026 17:00:25 GMT

Is Liquidation Bankruptcy Right for You?

When debt becomes overwhelming and there’s no realistic way to keep up with monthly obligations, many people begin searching for real solutions—not quick fixes. For individuals in Fort Lauderdale and West Palm Beach, Florida, Chapter 7 bankruptcy , also known as liquidation bankruptcy, may offer a true financial reset.

At the Law Offices of Michael H. Johnson Law Offices ., we help individuals understand whether Chapter 7 bankruptcy is the right path forward and guide them through the process with clarity and compassion. Bankruptcy is not a failure—it is a legal tool designed to help people regain control of their financial lives.

What Is Liquidation (Chapter 7) Bankruptcy?

Chapter 7 bankruptcy is the most common and straightforward form of bankruptcy for individuals. Its primary purpose is to eliminate unsecured debt and give you a fresh financial start.

Through a Chapter 7 filing, qualifying individuals can discharge debts such as:

Credit card debt
Medical bills
Personal loans
Deficiency balances from repossessions
Certain debts related to foreclosure

Once the process is complete, these debts are legally wiped out, allowing you to move forward without the constant pressure of unpaid bills.

Will You Lose Everything If You File Chapter 7?

One of the most common concerns people have is the fear of losing all their property. In reality, most Chapter 7 filers in Florida are able to keep their essential assets .

Florida bankruptcy exemptions are designed to protect:

Your primary residence (in many cases)
Your vehicle, within exemption limits
Personal property and household items
Retirement accounts

As long as you remain current on your mortgage or car payments, it is often possible to keep your home and vehicle. An experienced Chapter 7 bankruptcy attorney can evaluate your situation and explain how exemptions apply to you.

Immediate Benefits of Filing Chapter 7 Bankruptcy

Filing for Chapter 7 provides immediate legal protection through the automatic stay , which stops most collection activity right away.

This means:

Wage garnishments must stop
Creditor calls and harassment end
Foreclosure and repossession actions are paused

For many people, this immediate relief alone provides much-needed breathing room while working toward long-term financial stability.

Who Qualifies for Chapter 7 Bankruptcy in Florida?

Not everyone automatically qualifies for Chapter 7. Eligibility is determined through the means test , which compares your income, expenses, assets, and debt to state and federal guidelines.

During a free initial consultation, the Law Offices of Michael H. Johnson, P.A. will:

Review your income and household size
Analyze your debts and assets
Determine whether you qualify for Chapter 7
Discuss alternatives, including Chapter 13 bankruptcy, if needed

If Chapter 7 is not an option, other forms of bankruptcy may still provide effective debt relief.

Is Chapter 7 the Right Choice for Your Situation?

Chapter 7 bankruptcy may be a good option if:

Your unsecured debt is unmanageable
You have little to no disposable income
You are facing wage garnishment or foreclosure
You need fast and effective debt relief

However, bankruptcy is not a one-size-fits-all solution. That’s why speaking with an experienced Florida bankruptcy attorney is essential before making any decisions.

How a Chapter 7 Bankruptcy Attorney Can Help

Filing bankruptcy involves more than submitting paperwork. Mistakes can lead to delays, loss of assets, or even dismissal of your case. Working with an experienced Chapter 7 bankruptcy attorney ensures:

Proper application of Florida exemptions
Accurate and complete filings
Protection of your property whenever possible
Clear guidance through every step of the process

The Law Offices of Michael H. Johnson, P.A. has more than a decade of experience helping clients in Fort Lauderdale and West Palm Beach use bankruptcy law to rebuild their financial lives.

Get a Fresh Financial Start Today

If debt is controlling your life, it may be time to explore your legal options. Chapter 7 bankruptcy can eliminate unsecured debt, stop creditor harassment, and give you a true opportunity to start over.

To find out whether liquidation bankruptcy is right for you, contact the Law Offices of Michael H. Johnson, P.A. for a free initial consultation .

What Happens to Your Car and Home in a Florida Bankruptcy?

Thu, 04 Dec 2025 17:30:01 GMT

What Happens to Your Car and Home in a Florida Bankruptcy?

For many people considering bankruptcy in Florida, the biggest concern is what will happen to their car and home . These are not just assets — they are essential to daily life. Fortunately, Florida has some of the strongest property protections in the country, and depending on the type of bankruptcy you file, you may be able to keep both.

This guide explains how Florida bankruptcy laws affect your house and vehicle under Chapter 7 (liquidation) and Chapter 13 (repayment plan) .

Your Home in a Florida Bankruptcy:

The Florida Homestead Exemption

Florida law provides one of the most generous homestead exemptions in the United States. This exemption protects the equity in your primary residence, regardless of its value, as long as you meet certain requirements.

The property must be your primary residence.
The lot size cannot exceed half an acre in a city or 160 acres in a rural area.
You must have owned the property for at least 1,215 days (about 3.3 years) before filing to claim the full exemption.

This means that in most cases, your home will be safe when filing for bankruptcy in Florida.

Chapter 7 vs. Chapter 13 and Your Home

Chapter 7 Bankruptcy: If you are behind on your mortgage, Chapter 7 may not stop foreclosure. However, if you are current on payments and your equity is protected under the homestead exemption, you can usually keep your home.
Chapter 13 Bankruptcy: This option is often used by Florida residents who are behind on mortgage payments. It allows you to create a repayment plan that helps you catch up and avoid foreclosure.

Your Car in a Florida Bankruptcy:

The Florida Motor Vehicle Exemption

Florida allows you to protect up to $1,000 of equity in a vehicle . Married couples filing jointly may double this amount. If you do not claim the homestead exemption, you may also qualify for a $4,000 “wildcard” exemption that can be applied to your car or other property.

Chapter 7 vs. Chapter 13 and Your Car

Chapter 7 Bankruptcy: If your car loan is current and your equity is within exemption limits, you can usually keep your vehicle. However, if you are behind on payments, the lender may still repossess it unless you reaffirm the loan or redeem the vehicle.
Chapter 13 Bankruptcy: Filing Chapter 13 may allow you to catch up on missed car payments through your repayment plan. In some cases, you may even be able to reduce the loan balance or interest rate (called a “cramdown”) if certain conditions are met.

Protecting What Matters Most

Bankruptcy does not automatically mean losing everything you own. Florida’s exemptions are designed to help people maintain stability while they resolve overwhelming debt. Whether you are most concerned about your home, your car, or both, you have legal rights and protections.

Why Work With a Florida Bankruptcy Attorney

Every case is unique. Your income, the amount of equity in your assets, and the type of bankruptcy you choose all affect whether your home and car are protected. Navigating these rules can be challenging, which is why it’s important to have the right legal guidance.

At the Law Offices of Michael H. Johnson, P.A. , we help individuals and families across Fort Lauderdale, West Palm Beach, and South Florida understand their options and protect what matters most. From stopping foreclosure to preventing repossession, our firm is here to guide you through the bankruptcy process.

Take Action Today

If you’re worried about losing your car or home during bankruptcy, take the first step toward clarity and relief.

Contact the Law Offices of Michael H. Johnson, P.A. today at 954-737-5800 to schedule a consultation. Serving clients in Fort Lauderdale, West Palm Beach, and surrounding communities, w e are ready to help you move forward.

�� Learn more at: www.attorneydebthelper.com

How to Decide Between Debt Liquidation and a Repayment Plan in Florida

Thu, 30 Oct 2025 17:00:08 GMT

How to Decide Between Debt Liquidation and a Repayment Plan in Florida

Debt can quickly become overwhelming, leaving many Florida residents unsure of their options. If you are struggling to keep up with bills, two of the most common solutions are Chapter 7 bankruptcy (debt liquidation) and Chapter 13 bankruptcy (repayment plan) . Both options are available under federal law, but Florida has unique rules and exemptions that affect how they work.

Understanding the difference between these two paths can help you decide which one fits your financial situation and long-term goals.

Chapter 7 Bankruptcy: Debt Liquidation

Chapter 7 , also known as liquidation bankruptcy, is designed to give individuals a fresh start by eliminating most unsecured debts. Credit cards, medical bills, and personal loans are often discharged, meaning you are no longer legally required to pay them.

In Florida, many residents are able to keep essential assets due to strong exemption laws, such as:

Homestead exemption to protect your primary home
Vehicle exemption up to a certain equity limit
Personal property exemption covering everyday items
Wages and retirement savings that are generally safeguarded

Chapter 7 is typically best for individuals with limited income who cannot realistically pay back their debts.

Chapter 13 Bankruptcy: Repayment Plan

Chapter 13, often called the “wage earner’s plan,” allows you to restructure your debts into a manageable repayment schedule. Instead of eliminating debt outright, you commit to making monthly payments for three to five years based on your income and budget.

Benefits of Chapter 13 include:

The ability to stop foreclosure and catch up on mortgage payments
Protection of assets that might not be exempt under Chapter 7
Consolidation of debt into one monthly payment
The opportunity to pay a reduced portion of unsecured debts

This option works well for individuals with a steady income who want to keep their property and have the ability to pay back some of what they owe.

Choosing the Right Option

The choice between Chapter 7 liquidation and Chapter 13 repayment depends on your income, debt type, and financial goals. Questions to consider include:

Do you need immediate relief from debt with no repayment obligations?
Do you have assets you want to protect that might not be exempt under Chapter 7?
Do you have regular income that could support a structured repayment plan?

Bankruptcy is a powerful tool, but it must be matched to your circumstances.

Why Work With a Florida Bankruptcy Attorney

Bankruptcy law can be complex, and every situation is different. That’s why working with a knowledgeable attorney is so important. At the Law Offices of Michael H. Johnson, P.A. , we’ve helped individuals and families across Fort Lauderdale, West Palm Beach, and South Florida understand their choices and move forward with confidence.

We will review your income, assets, and debts to determine whether liquidation or a repayment plan is in your best interest, while ensuring your rights are protected throughout the process.

Take the First Step Today

Debt does not have to define your future. Whether liquidation under Chapter 7 or repayment under Chapter 13 is right for you, Florida law gives you options to find relief.

Contact the Law Offices of Michael H. Johnson, P.A. today at 954-737-5800 to schedule a consultation. Serving Fort Lauderdale, West Palm Beach, and surrounding communities, we are committed to helping you take control of your financial life.

�� Learn more at: www.attorneydebthelper.com

Understanding What Debts Can Be Discharged in Chapter 13 Bankruptcy in Florida

Tue, 14 Oct 2025 04:00:29 GMT

Understanding What Debts Can Be Discharged in Chapter 13 Bankruptcy in Florida

Filing for Chapter 13 bankruptcy in Florida can be a strategic way to regain financial stability while protecting valuable assets. Unlike Chapter 7, which involves liquidating non-exempt property to repay creditors, Chapter 13 sets up a structured repayment plan that lasts three to five years. At the end of the plan, certain remaining debts can be discharged, giving you a fresh start.

 Debts Commonly Discharged in Chapter 13

Chapter 13 bankruptcy can discharge a broader range of debts than Chapter 7. In Florida, these may include:

Credit Card Debt: Balances and interest charges that are not fully paid during your repayment plan can be eliminated.
Medical Bills: Unpaid medical expenses are typically unsecured debts that can be discharged.
Personal Loans: Unsecured personal loans, including payday loans, may be forgiven after the repayment period.
Deficiency Balances: If a home or car was repossessed or sold and the sale did not cover the loan balance, the remaining debt may be discharged.
Some Legal Judgments: Civil judgments, except for those related to fraud or certain intentional acts, can be wiped out.

Debts That Usually Cannot Be Discharged

Certain debts remain even after Chapter 13 completion. These often include:

Child support and alimony
Most student loans
Certain tax debts
Debts from fraud or intentional misconduct

Why Legal Guidance Matters

Navigating Chapter 13 bankruptcy requires understanding which debts are eligible for discharge and how to structure a repayment plan that meets court requirements. At the Law Offices of Michael H. Johnson, P.A., we assist Fort Lauderdale residents in determining the best approach for their unique financial situations, ensuring they take full advantage of Chapter 13 protections and relief options.

Florida Bankruptcy Laws Explained: A Guide for Fort Lauderdale & West Palm Beach Residents

Thu, 02 Oct 2025 19:53:25 GMT

Florida Bankruptcy Laws Explained: A Guide for Fort Lauderdale & West Palm Beach Residents

If you are struggling with overwhelming debt, you are not alone. Thousands of Florida residents face financial hardship every year. The good news is that bankruptcy laws in Florida provide options for relief, allowing individuals to reset their finances and move forward with confidence. Whether you live in Fort Lauderdale or West Palm Beach, understanding how these laws work can help you make informed decisions about your future.

What Bankruptcy Means in Florida

Bankruptcy is a legal process designed to help individuals or families who can no longer keep up with their debts. It can either eliminate certain debts altogether or restructure them into a manageable repayment plan. In Florida, residents typically file under Chapter 7 or Chapter 13 of the U.S. Bankruptcy Code.

Chapter 7 Bankruptcy (Liquidation): This option may allow you to wipe out unsecured debts, such as credit cards or medical bills, by liquidating non-exempt assets. Florida has generous exemption laws, meaning many people can protect their home, vehicle, and personal property while still discharging qualifying debt.
Chapter 13 Bankruptcy (Repayment Plan): This option lets you keep your assets while restructuring debt into a repayment plan lasting three to five years. Many individuals choose Chapter 13 to catch up on past-due mortgage or car payments while avoiding foreclosure or repossession.

Florida’s Bankruptcy Exemptions

Florida law offers some of the strongest exemptions in the country. These exemptions determine what property you can keep during bankruptcy:

Homestead Exemption: Protects your primary residence, regardless of value, as long as you meet residency and property size requirements.
Motor Vehicle Exemption: Allows you to keep up to a certain amount of equity in your vehicle.
Personal Property Exemption: Covers household items, clothing, and other essentials.
Wages and Retirement Accounts: In most cases, wages and retirement savings are protected.

These exemptions are particularly important for residents of Fort Lauderdale and West Palm Beach, where property values and cost of living can be higher than other areas of Florida.

Why Work With a Florida Bankruptcy Attorney

Bankruptcy is not a one-size-fits-all process. Choosing between Chapter 7 and Chapter 13 requires a careful review of your income, debts, and long-term financial goals. Having an attorney guide you through the process can make a significant difference in protecting your property, stopping creditor harassment, and ensuring that all paperwork is handled properly.

At the Law Offices of Michael H. Johnson, P.A. , we have helped individuals and families across South Florida navigate bankruptcy with compassion and skill. Located conveniently for Fort Lauderdale and West Palm Beach residents, our firm is committed to finding the best solution for your financial challenges.

Take the First Step Toward Financial Relief

If debt is weighing you down, you don’t have to face it alone. Understanding Florida bankruptcy laws is the first step to regaining control of your financial future. The next step is speaking with an attorney who can evaluate your unique situation and walk you through your options under Chapter 7 or Chapter 13.

Contact the Law Offices of Michael H. Johnson, P.A. today at 954-737-5800 to schedule a consultation. Serving clients i n Fort Lauderdale, West Palm Beach, and throughout South Florida , we are here to help you move forward toward a brighter financial future.

What Happens to Your Home if You File for Chapter 7 Bankruptcy in Florida?

Wed, 13 Aug 2025 17:41:05 GMT

What Happens to Your Home if You File for Chapter 7 Bankruptcy in Florida?

Filing for Chapter 7 bankruptcy in Florida can be a major step toward financial relief, but many homeowners are concerned about whether they will lose their house in the process. The answer depends on factors such as your mortgage status, equity in the property, and Florida’s bankruptcy exemptions.

Florida has one of the most generous homestead exemptions in the country. Under this exemption, if your home is your primary residence, you may protect its entire value from creditors—regardless of how much equity you have—provided you meet certain requirements. To qualify, you generally must have owned the property for at least 1,215 days (about 3 years and 4 months) before filing, and the property must be no larger than half an acre in a municipality or 160 acres elsewhere.

However, even if your equity is fully protected, your mortgage lender still has rights. If you are behind on payments, Chapter 7 will not remove the lender’s lien. While bankruptcy can temporarily delay foreclosure, it will not erase your obligation to pay your mortgage if you wish to keep the home. Staying current on payments is critical.

If your equity is not fully covered by the homestead exemption, the bankruptcy trustee could sell the property to pay creditors. In such cases, working with an attorney to explore alternatives—such as Chapter 13 bankruptcy—may help you keep your home.

At Law Offices of Michael H. Johnson, P.A., we can guide Fort Lauderdale residents through the bankruptcy process and explain how Florida’s exemptions may apply to their situation. Understanding your rights before you file can help you make informed decisions about your home and financial future.

How to Qualify for Chapter 7 Bankruptcy in Florida

Wed, 13 Aug 2025 17:37:38 GMT

How to Qualify for Chapter 7 Bankruptcy in Florida

Chapter 7 bankruptcy offers a fresh financial start for individuals struggling with overwhelming debt, but it’s not available to everyone. In Florida, you must meet specific legal and financial requirements before you can file. Understanding these rules can help you determine if this form of debt relief is the right option for you.

 1. Meeting the Means Test

The means test is the first step in qualifying for Chapter 7 bankruptcy. It compares your household income to Florida’s median income for a family of your size. If your income is below the median, you generally qualify. If your income is above the median, further calculations will determine if you have enough disposable income to pay back some of your debts through a Chapter 13 repayment plan instead.

2. Residency Requirements

To file in Florida, you must have lived in the state for at least 91 days before filing. However, to use Florida’s bankruptcy exemptions — which protect certain assets like your home, vehicle, and personal property — you must have lived in the state for at least 730 days (two years).

3. Credit Counseling Requirement

Before filing, you must complete a credit counseling course from an approved provider within 180 days of your bankruptcy petition. This course helps you explore alternatives to bankruptcy and ensures you understand the process.

4. No Recent Bankruptcy Discharges

If you’ve received a Chapter 7 discharge within the past eight years or a Chapter 13 discharge within the past six years, you may not be eligible to file Chapter 7 again.

5. Honest and Complete Financial Disclosures

Bankruptcy requires full transparency about your income, debts, assets, and financial history. Failing to provide accurate information can result in dismissal of your case or legal penalties.

At the Law Offices of Michael H. Johnson, P.A. , we help Fort Lauderdale residents navigate the Chapter 7 process from start to finish. We can review your financial situation, determine if you qualify, and guide you toward the best path for debt relief.