A Step-by-Step Guide to Bankruptcy in Florida

Bankruptcy is a legal tool that offers relief to individuals and families facing insurmountable debt. In Florida, many people turn to bankruptcy to stop creditor harassment, avoid foreclosure, or simply get a fresh financial start. Whether you’re exploring Chapter 7 or Chapter 13, it’s important to understand the process before you file.

This step-by-step guide serves as a practical Guide to Florida Bankruptcy Laws, helping you navigate every phase of the process with clarity and confidence.

Step 1: Decide If Bankruptcy Is the Right Choice

Before jumping in, it’s essential to take an honest look at your financial situation. Bankruptcy may be the best option if you’re behind on bills, being sued by creditors, or facing foreclosure. However, it’s not the only option, and it can have long-term consequences for your credit and future borrowing ability.

Consider bankruptcy if you:

• Are overwhelmed with credit card or medical debt

• Are behind on your mortgage or car payments

• Are facing wage garnishment or lawsuits

• Have tried debt settlement or credit counseling without success

Step 2: Choose the Right Bankruptcy Chapter

In Florida, the most common bankruptcy filings for individuals are Chapter 7 and Chapter 13. The right chapter depends on your income, assets, and financial goals.

Chapter 7 – Liquidation

• Wipes out most unsecured debts

• Quick process (about 3–4 months)

• You may lose non-exempt property

• Income must pass the Means Test
  

Chapter 13 – Reorganization

• You repay part or all of your debts over 3–5 years

• Good for people trying to keep their home or car

• Requires regular income

• Debts are reorganized into a manageable plan
  

Understanding which chapter suits your case is a key part of any Guide to Florida Bankruptcy Laws, as it determines how your debt will be handled and whether you can keep certain assets.

Step 3: Gather Your Financial Information

To prepare your case, you’ll need to collect and organize your financial documents. This will help you (or your attorney) complete the bankruptcy forms accurately and avoid delays.

Documents to gather include:

• Pay stubs or income records (last 6 months)

• Federal tax returns (last 2 years)

• Bank account statements

• Monthly household budget (income and expenses)

• List of debts and creditors

• List of property and assets

Step 4: Complete Required Credit Counseling

Before you can officially file for bankruptcy, you’re required by federal law to complete a credit counseling course from an agency approved by the U.S. Trustee Program. This course typically takes about an hour and can be done online or by phone.

What you’ll need to do:

• Choose an approved provider

• Complete the session within 180 days before filing

• Receive your certificate of completion

Step 5: File Your Bankruptcy Petition

Once everything is prepared, your petition will be filed with the U.S. Bankruptcy Court in your district. This is a formal legal document outlining your financial situation and the type of bankruptcy you’re pursuing.

The petition will include:

• Personal information and contact details

• A complete list of creditors

• Income, expenses, and assets

• Copies of required documents

• Filing fee or request for waiver/payment plan
  

This is a pivotal moment in the Florida bankruptcy process and a significant step in following the legal guidance laid out in Florida’s bankruptcy laws.

Step 6: Benefit from the Automatic Stay

One of the immediate benefits of filing bankruptcy is the automatic stay, which protects you from most collection actions while your case is active.

What the automatic stay stops:

• Foreclosures

• Repossessions

• Lawsuits and judgments

• Creditor calls and letters

• Wage garnishments
  

Step 7: Attend the 341 Meeting (Meeting of Creditors)

Roughly a month after filing, you’ll attend the 341 Meeting, where the bankruptcy trustee will ask questions about your petition and finances. It’s not a court trial and usually lasts less than 15 minutes.

What to expect:

• You’ll need to bring photo ID and proof of Social Security number

• The trustee may request additional documents

• Creditors may attend but usually don’t

• Your attorney (if you have one) will attend with you
  

Step 8: Complete the Debtor Education Course

Before you receive your discharge, you must complete a second financial management course called the Debtor Education Course. This course helps you develop long-term budgeting and credit habits.

Steps to complete:

• Use a court-approved education provider

• Complete the course after filing

• Submit the certificate of completion to the court

Step 9: Receive Your Discharge

If everything goes smoothly and no objections are raised, the court will issue a discharge order that officially eliminates your dischargeable debts.

Timeline:

• Chapter 7: ~3–4 months after filing

• Chapter 13: After completing the 3–5 year repayment plan
  

Debts like credit cards, personal loans, and medical bills are usually discharged. Some debts, like student loans and child support, are not.

This step is where the benefits of understanding the Florida bankruptcy laws become clear—you’re officially released from most of your legal obligation to repay your eligible debts.

Step 10: Rebuild Your Credit

Bankruptcy gives you a fresh start—but rebuilding your credit afterward is key. With time and responsible financial habits, you can improve your credit score and financial standing.

Tips for rebuilding:

• Review your credit reports for accuracy

• Make on-time payments on all bills

• Consider secured credit cards or small loans

• Avoid high-interest payday or title loans

• Create a budget and stick to it

Final Thoughts

This Guide to Florida Bankruptcy Laws outlines the essential steps to take when considering and filing for bankruptcy. While the process may seem intimidating, thousands of Florida residents use bankruptcy each year to reclaim control of their finances.

If you’re unsure whether bankruptcy is the right path, don’t hesitate to consult with a Florida bankruptcy attorney. A legal expert like U.S. Bankruptcy Help can guide you through the process, ensure your rights are protected, and help you make decisions that support your long-term financial health.