Bankruptcy
Bankruptcy FAQ
Written by Blake Stewart | Florida Bar No. 84716 | Admitted 2010 | Florida Bankruptcy & Estate Planning Attorney
Bankruptcy can be a powerful tool for Florida residents struggling with overwhelming debt, foreclosure, wage garnishment, repossession, or persistent collection activity. Whether you're considering Chapter 7 or Chapter 13 bankruptcy, understanding your options is the first step toward making an informed decision.
Below are answers to some of the most common bankruptcy questions we receive from clients throughout Florida. If you don't find the answer you're looking for, contact Stewart Law to discuss your specific situation.
Most Common Bankruptcy Questions
These are the questions Florida residents ask most often when considering bankruptcy. Click "Learn More" on any topic to explore it in depth.
Can I Keep My Car If I File Bankruptcy in Florida?
In most cases, yes. Florida law allows a motor vehicle exemption of up to $1,000 in equity — or up to $4,000 if you are not claiming the homestead exemption. If your equity in the vehicle falls within the applicable exemption, you may be able to keep it. If you are current on your car loan, you can typically reaffirm the debt and continue making payments as before, preserving your vehicle through the bankruptcy process. Chapter 13 bankruptcy may offer additional options for keeping a vehicle even if you have fallen behind on payments, allowing you to address arrears through a structured repayment plan. The right approach depends on your equity, loan status, and the type of bankruptcy you file.
Learn More: Can I Keep My Car If I File Bankruptcy in Florida? →Will I Lose My House If I File Bankruptcy?
Most Florida homeowners who file bankruptcy do not lose their home. Florida's homestead exemption is one of the strongest in the country, protecting unlimited equity in a qualifying primary residence from creditors in bankruptcy. If you are current on your mortgage, you can generally keep your home through Chapter 7 bankruptcy by continuing to make your regular payments. If you have fallen behind on payments and are facing foreclosure, Chapter 13 bankruptcy may allow you to catch up on mortgage arrears through a court-approved repayment plan — while keeping your home and stopping foreclosure proceedings. The outcome depends on your equity, mortgage status, and the type of bankruptcy filed.
Learn More: Chapter 13 Bankruptcy →Can Bankruptcy Stop Wage Garnishment in Florida?
In most cases, yes. When you file for bankruptcy, an automatic stay goes into effect immediately — the moment your case is filed with the court. The automatic stay is a federal court order that stops most collection activity, including ongoing wage garnishments. Your employer must stop withholding garnished wages as soon as the bankruptcy is filed and the creditor is notified. This can provide immediate financial relief while your case proceeds. Depending on the outcome of your bankruptcy, the underlying debt driving the garnishment may be discharged entirely, eliminating the creditor's ability to pursue future collection efforts.
Learn More: Stop Wage Garnishment →Can Bankruptcy Stop Foreclosure in Florida?
Yes — filing for bankruptcy triggers an automatic stay that immediately halts foreclosure proceedings, giving you time to evaluate your options. Chapter 7 bankruptcy may delay foreclosure temporarily but does not address mortgage arrears directly. Chapter 13 bankruptcy is often the more powerful tool for homeowners facing foreclosure: it allows you to catch up on missed mortgage payments over a three-to-five-year repayment plan while keeping your home and stopping the foreclosure process. The right approach depends on your specific situation, the amount of arrears, your income, and your long-term goals for the property.
Learn More: Chapter 13 Bankruptcy →Do I Qualify for Chapter 7 Bankruptcy?
Qualification for Chapter 7 bankruptcy depends on several factors, including your income, household size, and monthly expenses. Most individuals must pass a means test, which compares your average monthly income over the past six months to the Florida median income for a household of your size. If your income is below the median, you generally qualify automatically. If it is above, additional calculations are required to determine whether your disposable income falls within the allowable threshold. Other factors — such as prior bankruptcy filings and whether certain debts were previously discharged — may also affect eligibility. A consultation can help determine whether Chapter 7 is the right option for your situation.
Learn More: Chapter 7 Bankruptcy →What Debts Can Bankruptcy Eliminate?
Bankruptcy can eliminate many types of unsecured debt, including credit card balances, medical bills, personal loans, utility arrears, certain judgments, and some older income tax debts. Chapter 7 bankruptcy discharges qualifying debts entirely at the conclusion of the case — typically within three to four months of filing. Chapter 13 bankruptcy discharges remaining eligible debts after successful completion of the repayment plan. Not all debts can be discharged: most student loans, recent tax obligations, child support, alimony, and debts arising from fraud or intentional wrongdoing generally survive bankruptcy. A review of your specific debts can help clarify what relief may be available.
Learn More: Chapter 7 Bankruptcy →All Bankruptcy Questions
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