Understanding Bankruptcy
When you file for bankruptcy, your property becomes part of a bankruptcy estate. Florida law allows exemptions to protect much of your personal property. Once filed, creditors must stop trying to collect, giving you space to breathe and reorganize.
Two Common Types of Bankruptcy
Chapter 7 – Debt Discharge
Chapter 7 is for individuals with limited income. It allows you to eliminate most unsecured debts like credit cards or medical bills. Most filers keep their property through Florida exemptions.
Chapter 13 – Debt Reorganization
Chapter 13 is for people with regular income. You repay a portion of your debts through a 3–5 year plan approved by the court, while keeping your assets and stopping foreclosures or garnishments.