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.