What are the Different Types of Bankruptcy in Florida?

Bankruptcy Options in Florida: Which One is Right for You?

Navigating bankruptcy can be overwhelming, but understanding your options can make it easier. In Florida, you can file for different types of bankruptcy based on your financial situation. Here’s a simple breakdown of the main types:

Chapter 7 Bankruptcy: Liquidation

• Who it’s for: Individuals with low income, few assets, and high unsecured debts (like credit cards and medical bills).
• Process: A trustee may sell your non-exempt assets to pay off your creditors.
• Requirements: You must pass a financial “means test” to qualify.
• What you keep: You can keep exempt assets, such as equity in your home and car, household goods, and retirement accounts.
• Outcome: Most of your debts are discharged (eliminated) about four months after filing.
• Key Steps: File a petition and detailed financial information with the court, attend a meeting with creditors, and cooperate with the appointed trustee.

Chapter 13 Bankruptcy: Reorganization

• Who it’s for: Individuals with regular income who want to keep their non-exempt assets and catch up on missed payments over time.
• Process: You propose a 3 to 5-year repayment plan to repay your debts using future income.
• Requirements: Your debts must be within certain limits, and you need sufficient income to follow the repayment plan.
• What you keep: All your assets, as long as you adhere to the repayment plan.
• Outcome: Debts are reorganized and repaid over time, with zero interest and late charges on most unsecured debts.
• Key Steps: File a petition, submit a repayment plan, attend a meeting with creditors, and make payments according to the plan approved by the court.

Chapter 11 Bankruptcy: Business Reorganization

• Who it’s for: Mostly businesses looking to restructure their debts and operations, but also individuals with massive debts who don’t qualify for Chapter 13.
• Process: The business continues operating while reorganizing its debts, often through renegotiation or asset sales.
• Requirements: No specific income or debt limits, but it’s complex and costly.
• Outcome: The business or individual restructures debts and may emerge stronger after the reorganization.
• Key Steps: Submit a reorganization plan, get it approved by the court, and make significant business decisions under court supervision.

How We Can Help

Considering bankruptcy can be stressful, but you don’t have to do it alone. At the Law Office of Christopher G. Frey, Esq., we offer a free initial consultation to help you understand your options and choose the best path forward. Located in Tampa, we assist clients throughout Tampa Bay and Central Florida. Contact us to take the first step toward financial relief.