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SMLC's Bankruptcy Services Extend Beyond
Our Normal Service Areas.

We Accept Bankruptcy Cases From
Every County in Florida.

Follow the link below, and complete our Bankruptcy Intake Application to request our free legal services. Read through the information on this page to learn more about the bankruptcy process, and what you can expect moving forward.

Request Free Legal Services

Florida Bankruptcy Basics

A plain-language guide to the bankruptcy process and who may be a good candidate in Florida.

What Is Bankruptcy?

Bankruptcy is a federal legal process that helps individuals and families eliminate or reorganize debt when repayment is no longer manageable. In Florida, bankruptcy cases are filed in the United States Bankruptcy Court, and are governed by federal law, with important Florida-specific exemptions.

Bankruptcy can:

  • Stop collection calls, lawsuits, wage garnishments, and foreclosures (through the automatic stay)
  • Eliminate certain unsecured debts (like credit cards and medical bills)
  • Provide a structured way to catch up on secured debts (like a mortgage or car loan)

The Florida Bankruptcy Districts

Florida is divided into three federal bankruptcy districts:

  • Northern District of Florida:
    Panama City, Tallahassee, Gainesville
  • Middle District of Florida
    Tampa, Orlando, Jacksonville, Fort Myers
  • Southern District of Florida
    Miami, Fort Lauderdale, West Palm Beach

Your case must be filed in the district where you live (or have lived most recently).

Florida-Specific Exemptions

Florida has some of the strongest debtor protections in the country.

Key exemptions include:

  • Homestead Exemption (unlimited equity, with restrictions)
  • Head of Household Wage Protection
  • Retirement Accounts (most are fully exempt)
  • Personal Property Exemptions

Exemptions determine what you can keep, even Chapter 7 (explained below).

Common Types of Consumer Bankruptcy

Chapter 7 - “Fresh Start” Bankruptcy

Best for:
People with low income and primarily unsecured debt

What it does:

  • Eliminates most unsecured debts
  • Usually lasts about 3-4 months
  • No repayment plan

Common debts discharged:

  • Credit cards
  • Medical bills
  • Personal loans
  • Old utility bills

Things to know:

  • You must pass the Means Test
  • Some property may be protected by Florida exemptions
  • You must complete a brief financial education course

Chapter 13 - Repayment Plan Bankruptcy

Best for:
People with regular income who need time to catch up

What it does:

  • Creates a 3-5 year repayment plan
  • Allows you to stop foreclosure and catch up on mortgage arrears
  • Can reduce or restructure certain debts

Common uses:

  • Saving a home from foreclosure
  • Catching up on car payments
  • Managing tax debt or child support arrears

Things to know:

  • Requires steady income
  • Monthly payments are made to a trustee
  • Some debts must be paid in full

Bankruptcy Candidates

Who Is a Good Candidate for Bankruptcy?

You may be a good candidate if:

  • Your debts greatly exceed your income
  • You rely on credit cards to pay for necessities
  • You are facing wage garnishment or lawsuits
  • You are behind on rent, mortgage, or car payments
  • Your debt is mostly unsecured

Bankruptcy is often appropriate when the financial problem is long-term, not temporary.

Who May NOT Be a Good Candidate (or Should Consider Alternatives)?

Bankruptcy may not be the best option if:

  • Your income is sufficient to repay debts
  • Most of your debt is recent or non-dischargeable
  • You only need short-term assistance
  • You have substantial non-exempt assets

Alternatives may include:

  • Negotiating directly with creditors
  • Payment plans
  • Debt management or settlement programs

Other Useful Information

The Bankruptcy Process - Step by Step

  • 1.

    Financial Review
    Income, expenses, assets, and debts are evaluated

  • 2.

    Credit Counseling
    Required course before filing

  • 3.

    Filing the Case
    Automatic stay begins immediately

  • 4.

    341 Meeting
    Brief meeting with the trustee (no judge present)

  • 5.

    Additional Requirements
    Documents or education course

  • 6.

    Discharge or Plan Confirmation
    Debts discharged or plan approved

What Bankruptcy Does NOT Do

Bankruptcy generally does not eliminate:

  • Child support or alimony
  • Most student loans
  • Recent taxes
  • Criminal fines or restitution

Life After Bankruptcy

Many people:

  • Begin rebuilding credit within months
  • Receive new credit offers (often at higher interest initially)
  • Experience relief from constant financial stress
  • Bankruptcy is a tool, not a failure.

Important Note

This guide provides general information only, and is not legal advice. Every situation is unique. A consultation with a qualified bankruptcy attorney or legal aid organization is essential before filing.

Important Note

This guide provides general information only, and is not legal advice. Every situation is unique. A consultation with a qualified bankruptcy attorney or legal aid organization is essential before filing.