Chapter 7 Bankruptcy in Florida
Chapter 7 is liquidation bankruptcy: a trustee can sell nonexempt property to pay creditors, and you receive a discharge releasing personal liability for most unsecured debts (11 U.S.C. § 727). You must pass the means test and complete credit counseling. Because Florida's exemptions protect typical property, most Florida filers keep everything they own.
By Find Local Law Editorial Team · Last reviewed: May 26, 2026
Researched and drafted with AI assistance and verified against primary sources (statutes, Judicial Council forms, and official court websites). This is general information, not legal advice.
This is general information, not legal advice. Whether Chapter 7 is right for you depends on your income and assets — talk to a Florida bankruptcy attorney.
Chapter 7 is often called liquidation bankruptcy. It is the most common consumer bankruptcy, and for many Florida filers it is the fastest path to a fresh start.
How Chapter 7 works
In a Chapter 7 case, a trustee can sell your nonexempt property to pay creditors. In exchange, you receive a discharge that releases your personal liability for most unsecured debts — like credit cards and medical bills (11 U.S.C. § 727).
The catch many people fear — losing everything — rarely happens. Most filers keep all of their property because Florida’s exemptions protect typical property, including a home, a vehicle, and basic personal property.
What you must do to qualify
Two requirements stand out:
- The means test. You must pass the means test, which compares your income to the median income for your household size in Florida (11 U.S.C. § 707(b)).
- Credit counseling. You must complete an approved credit counseling course before filing.
The discharge — and its limits
A discharge is powerful, but it does not erase every debt. Some debts are non-dischargeable — for example, most recent taxes, student loans (absent undue hardship), child support, and alimony. See Automatic Stay & Discharge for the full picture.
If Chapter 7 doesn’t fit — for instance, if you’re behind on a mortgage and want to keep the home — Chapter 13 may be the better tool.
To get matched with a local Florida bankruptcy attorney, connect with a lawyer.
Connect with a local attorney
Tell us about your situation and we'll match you with a local California attorney who handles matters like yours. Free, no obligation.
Start your free intakeFrequently asked questions
- Will I lose my property in Chapter 7?
- Usually not. A trustee can only sell nonexempt property, and Florida's exemptions — including an unlimited-value homestead — protect typical property, so most Florida filers keep everything (11 U.S.C. § 727).
- What debts does Chapter 7 wipe out?
- Chapter 7 discharges most unsecured debts like credit cards and medical bills (11 U.S.C. § 727). Some debts are non-dischargeable, such as most recent taxes, child support, and student loans (absent undue hardship).
- Do I have to qualify for Chapter 7?
- Yes. You must pass the means test, which compares your income to the Florida median for your household size (11 U.S.C. § 707(b)), and complete required credit counseling before filing.
Sources
Related guides
- Chapter 13 Bankruptcy in Florida Chapter 13 is reorganization for individuals with regular income: you repay some or all of your debts through a court-approved plan over 3 years (if below the state median income) or generally 5 years (if at or above median), with no plan exceeding 5 years (11 U.S.C. § 1322(d), § 1325). It lets you catch up on a mortgage or car and keep property. Debt limits apply (11 U.S.C. § 109(e)).
- Florida Bankruptcy Exemptions Florida opted out of the federal bankruptcy exemptions (Fla. Stat. § 222.20), so Florida filers use Florida exemptions. The homestead is exempt with no dollar cap on value (limited by acreage), though a federal rule caps recently acquired homestead equity. Florida also exempts a motor vehicle, head-of-family wages, and a wildcard for personal property if you don't use the homestead exemption.
- The Automatic Stay & Discharge in Florida Filing bankruptcy triggers the automatic stay (11 U.S.C. § 362) — an immediate halt to most collection, including lawsuits, wage garnishment, repossession, and foreclosure. A discharge (11 U.S.C. § 524, § 727) permanently bars creditors from collecting discharged debts. But some debts are non-dischargeable (11 U.S.C. § 523): most recent taxes, student loans (absent undue hardship), child support and alimony, and debts from fraud or willful/malicious injury.
- The Bankruptcy Means Test in Florida The Chapter 7 means test (11 U.S.C. § 707(b)) compares your current monthly income to the median income for your household size in Florida. Below median, you generally qualify for Chapter 7. Above median, a disposable-income calculation may create a presumption of abuse, pushing you toward Chapter 13. The U.S. Trustee updates the Florida figures periodically — check the current numbers.