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:

1. Filing a bankruptcy petition with the court
2. Appointment of a bankruptcy trustee
3. Attending a meeting of creditors
4. 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:

1. Filing for bankruptcy
2. Completing required debtor education
3. Proposing a repayment plan to the court
4. Court approval of the plan
5. Making payments for three to five years
6. 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.