Bankruptcy Attorney Serving Rockledge, Florida

Chapter 7 bankruptcy can discharge many unsecured debts, including credit-card balances, medical bills, personal loans, and qualifying judgments. Many consumer debtors must complete a means-test analysis based on income, household size, expenses, and other factors.

The property review is equally important. Before filing, an attorney should identify the value and ownership of the home, vehicles, bank accounts, tax refunds, retirement accounts, business interests, legal claims, and other assets. Florida exemptions may protect significant property, but filing first and investigating later is the wrong order.

Chapter 13 bankruptcy uses a court-approved repayment plan, usually lasting three to five years. It may help a homeowner cure mortgage arrears, address missed vehicle payments, reorganize certain tax debt, or protect assets that could be exposed in Chapter 7.

Chapter 13 is not simply a longer Chapter 7. The debtor must have regular income and a feasible budget that covers ongoing expenses, current secured payments, and the required plan payment. The proposed plan also must satisfy the Bankruptcy Code's confirmation requirements.

Florida's homestead protections can be powerful, but they are not automatic answers to every bankruptcy question. The analysis may include acreage, municipality limits, ownership history, residency, liens, and the chapter filed. Homestead protection does not erase a mortgage or prevent a mortgage lender from enforcing its lien after payment default.

If the mortgage is current, Chapter 7 may discharge other qualifying debt and free money for ongoing payments. If the homeowner is behind and wants to keep the property, Chapter 13 may provide a method to cure arrears over time while current payments continue. Filing before a scheduled sale generally triggers the automatic stay and stops the sale, subject to exceptions and repeat-filing rules. Read more about whether bankruptcy can stop foreclosure in Florida.

Florida law currently protects up to $5,000 of a debtor's interest in one motor vehicle. A separate personal-property exemption of up to $4,000 may be available if the debtor does not claim or receive the benefits of the homestead exemption. Because these exemptions protect equity, not total market value, the loan balance matters.

A lender's lien is not eliminated merely because the vehicle is exempt. Keeping a financed vehicle may require current payments, Chapter 13 treatment, redemption, reaffirmation, or surrender, depending on the chapter and facts. Learn more about how to keep a car in bankruptcy.

Filing a bankruptcy petition generally creates an automatic stay under federal law. It stops most collection calls, lawsuits, wage garnishments, bank levies, foreclosure actions, and repossession efforts. It does not apply to every proceeding, and prior dismissed bankruptcy cases can limit or eliminate the stay unless additional relief is obtained.

If a Rockledge resident is already facing a garnishment or collection deadline, timing should be reviewed immediately. Bankruptcy may stop wage garnishment, while Florida exemption law may provide a non-bankruptcy defense in some cases.

Rockledge is in Brevard County. Under Local Rule 1071-1, Brevard County is part of the Orlando Division of the U.S. Bankruptcy Court for the Middle District of Florida. Stewart Law is based in Melbourne and serves Rockledge, Brevard County, and clients throughout Florida.