Chapter 7 Bankruptcy in Florida: Qualifications, Exemptions, and Process

Filing Chapter 7 bankruptcy in Florida lets qualifying residents wipe out most unsecured debts through a court-supervised process that usually finishes in three to four months, and because Florida’s exemption laws are among the most generous in the country, most filers keep everything they own.¹ A court-appointed trustee reviews your assets, sells anything not protected by an exemption, and distributes the proceeds to creditors. In practice, most Florida cases are “no-asset” cases where exemptions cover everything and the trustee sells nothing.

Who Qualifies to File

Three rules decide whether Chapter 7 is open to you: where you live, how much you earn, and when you last received a bankruptcy discharge.

Residency and the Right District

Florida has three federal bankruptcy districts (Northern, Middle, and Southern), and you file in the one where you’ve lived for the greater part of the 180 days before filing.² A separate rule controls which state’s exemptions you can use. To claim Florida’s exemptions, you must have been domiciled in Florida for at least 730 days (about two years) before filing. Fall short of that, and the applicable exemptions are those of the state where you lived for the majority of the 180 days before the 730-day window started.³ For recent arrivals, this is a crucial detail: you can file in Florida long before you can use its exemptions.

The Means Test

The means test asks whether your income is low enough to justify liquidation rather than a repayment plan. The number that matters is your average monthly income from all sources over the six calendar months before filing, not just wages.⁴ You annualize that figure and compare it to the Florida median for your household size. As of April 2026, the medians are:⁵

One earner: $69,876
Two-person household: $86,523
Three-person household: $97,540
Four-person household: $114,761

Fall below the median and you pass. Above it, the test moves to a second step that subtracts IRS-standardized living expenses from your income. If that calculation shows enough disposable income to pay back a threshold share of your unsecured debts over five years, the court presumes the filing is abusive and will likely steer you toward Chapter 13.⁶ The Department of Justice publishes the Census and IRS figures the calculation relies on.⁷

The Eight-Year Rule

You cannot receive a Chapter 7 discharge if you already got one in a case filed within the past eight years.⁸ The clock runs from the filing date of the earlier case, not the discharge date. If your prior discharge was under Chapter 13, the wait shortens to six years from that earlier filing, with exceptions when you paid all unsecured claims or at least 70% under a good-faith plan.

What You Keep: Florida’s Exemptions

Florida has opted out of the federal exemption scheme, so state law alone defines what the trustee can and cannot sell.⁹ This is the heart of why Chapter 7 works out so well for most Floridians.

The Homestead Exemption

Florida protects unlimited equity in your primary residence, as long as the property sits on no more than half an acre inside a municipality or 160 acres in an unincorporated area.¹⁰ A homeowner with $500,000 in equity on a qualifying property keeps all of it.

One catch applies to newer homeowners. If you acquired the property within 1,215 days before filing (about three years and four months), federal law caps the equity you can protect at an amount that adjusts for inflation.³ Beyond that window, the unlimited exemption is fully available.

Vehicles, Personal Property, and the Wildcard

The Florida Constitution protects up to $1,000 in personal property for any individual.¹⁰ A separate statute protects up to $5,000 of equity in a single motor vehicle.¹¹ Owe $15,000 on a car worth $18,000, and the $3,000 of equity sits inside the exemption.

Filers who do not claim the homestead exemption unlock a $4,000 wildcard that can be applied to any personal property. Stacked on top of the vehicle exemption, that produces up to $9,000 of combined protection for a car. The wildcard does not shield against child support or spousal support debts.

Retirement, Wages, and Benefits

Retirement accounts qualifying for tax-exempt status under the Internal Revenue Code are fully protected with no dollar limit, including 401(k)s, IRAs, Roth IRAs, and 403(b) plans.¹² Social Security, disability payments, unemployment, and veterans’ benefits are also protected.

Head-of-household wages get strong protection. If you provide more than half the support for a child or other dependent, and your weekly disposable earnings are $750 or less, those earnings are fully exempt from garnishment. Anything above the threshold can only be garnished if you’ve signed a written waiver meeting statutory requirements.¹³ Exempt wages deposited into a bank account remain protected for six months after deposit, as long as the funds can be traced.

Entireties Property for Married Couples

Property held as tenants by the entireties, which is the default for real property titled jointly by Florida spouses, is exempt from the individual debts of either spouse. Only joint debts of both spouses can reach it. The protection extends to personal property and to bank accounts titled in both names. When only one spouse files Chapter 7, entireties property typically stays outside the trustee’s reach.

Tax Refunds

Tax refunds are part of the bankruptcy estate, and Florida has no specific exemption for them. The Earned Income Credit portion is fully exempt, and filers who skip the homestead can use the $4,000 wildcard to cover some or all of a refund. Trustees typically prorate refunds based on the filing date within the year, so timing your filing relative to tax season can meaningfully change how much you keep.

Debts Chapter 7 Will Not Erase

Chapter 7 wipes out most unsecured debt, but federal law carves out categories that survive no matter what.¹⁴ People sometimes file expecting a clean slate and find their biggest obligation untouched.

Child support and alimony. All domestic support obligations survive, and the automatic stay doesn’t even pause wage garnishment for current child support.
Most recent income taxes. Older tax debts can sometimes be discharged if the return was due more than three years ago, was filed more than two years ago, and the tax was assessed more than 240 days ago. Taxes involving fraud or willful evasion are never dischargeable.
Student loans. Federal and private student loans survive unless you file a separate lawsuit within your bankruptcy and prove repayment would impose “undue hardship” on you and your dependents.¹⁵
Debts from fraud, embezzlement, larceny, or willful and malicious injury to another person or property.
Criminal restitution, court fines, and most government-imposed penalties.
Any debt for death or personal injury caused by driving while intoxicated.
Consumer debts over $500 for luxury goods charged within 90 days of filing, and cash advances over $750 taken within 70 days of filing. Both are presumed non-dischargeable.

Debts you accidentally leave off your schedules can also survive if the creditor didn’t receive notice in time to file a claim. Accurate paperwork directly determines which debts actually get discharged.

What Happens to Your House and Car

Chapter 7 discharges your personal liability on a debt, but it does not erase a lien on your property. Your mortgage lender or car lender can still foreclose or repossess after discharge unless you take action. You have three choices: surrender the property, reaffirm the debt, or redeem the property.

A reaffirmation agreement is a new contract where you voluntarily agree to stay personally liable on a debt that would otherwise be discharged. If you reaffirm and later default, the creditor can repossess and pursue you for any deficiency as if you had never filed.¹⁶ The agreement must be filed within 60 days after the first date set for the creditors’ meeting, and you can rescind within 60 days after filing or until discharge, whichever is later. If an attorney represents you, they must certify the deal won’t create undue hardship. If you’re self-represented, a judge decides at a hearing whether the agreement is in your interest and whether you can afford it. Reaffirmation does not apply to mortgage debts secured by real property; those are handled differently.¹⁷

Redemption lets you keep tangible personal property used for household purposes by paying the creditor the current fair market value in a single lump sum, even if you owe more. A car with a $12,000 loan balance that is worth $7,000 can be redeemed for $7,000.¹⁸ The hard part is producing the lump sum, though some lenders specialize in redemption financing.

The Filing Process and Timeline

Before you can file, you must complete a credit counseling course from an agency approved by the U.S. Trustee Program.¹⁹ The certificate is valid for 180 days and must be included with the petition.²⁰ Most approved courses are offered online for roughly $20.

The case starts when you file the petition and schedules with the clerk of the bankruptcy court in your district. The filing fee is $338.²¹ If you can’t afford it, you can apply to pay in installments or request a fee waiver if your income is below 150% of the federal poverty guidelines. Your paperwork includes schedules listing every asset and its exemption, every creditor (secured, priority unsecured, and general unsecured), your monthly income and expenses, and a Statement of Financial Affairs covering the past two years.²² Pay stubs from the 60 days before filing and your most recent federal tax return go to the trustee. Underreporting assets or omitting transfers is where filers get into real trouble; penalties range from denial of discharge to criminal fraud charges.

The moment the petition is filed, an automatic stay freezes nearly all collection activity. Creditor calls stop, lawsuits pause, garnishments halt, and foreclosures are temporarily stayed.²³ The stay doesn’t cover criminal proceedings, child support collection from non-estate property, or tax audits. If you had a bankruptcy dismissed within the past year, the stay only lasts 30 days unless the court extends it.

Between 21 and 60 days after filing, the trustee holds the meeting of creditors (the “341 meeting”). Creditors rarely attend. The trustee puts you under oath, verifies your identity, and asks straightforward questions about your schedules, recent transfers, and pending lawsuits. If your paperwork is clean, it’s usually over in under ten minutes. The trustee also investigates asset transfers; federal law allows a clawback of transfers made within two years of filing, and Florida’s fraudulent transfer statute extends the lookback to four years for transfers meant to defraud creditors.²⁴

After filing but before discharge, you must complete a second course on personal financial management from an approved provider. If you don’t file the certificate (Official Form 423) within 60 days after the first creditors’ meeting date, the court will close your case without a discharge, and reopening it costs an additional fee.⁸ It’s easy to satisfy and a surprisingly common reason cases fall apart.

Assuming no objections, the court enters the discharge order roughly 60 days after the creditors’ meeting. The order permanently bars creditors from any collection action on the covered debts, including calls, letters, and lawsuits. From filing to discharge, a straightforward case runs about three to four months.

Cost and Credit Afterward

Attorney fees for a Florida Chapter 7 case generally run from $1,000 to $3,500 depending on complexity. Combined with the $338 filing fee and roughly $20 per required course, most filers spend between $1,400 and $4,000 out of pocket. Some attorneys offer payment plans. Filing without an attorney is legal, but the means test and exemption planning make professional help worthwhile for most people.

A Chapter 7 bankruptcy stays on your credit report for ten years from the filing date.²⁵ The practical weight fades well before that; most filers see scores begin recovering within a year or two as they rebuild payment history. For FHA-insured mortgages, the standard wait is two years from discharge, with limited hardship-based exceptions as short as 12 months.²⁶ Conventional loans typically require four years and VA loans two.

1
United States Courts. Discharge in Bankruptcy – Bankruptcy Basics
2
Office of the Law Revision Counsel. 28 U.S. Code 1408 – Venue of Cases Under Title 11
3
Office of the Law Revision Counsel. 11 U.S. Code 522 – Exemptions
4
Office of the Law Revision Counsel. 11 U.S. Code 101 – Definitions
5
U.S. Trustee Program. Census Bureau Median Family Income By Family Size
6
Office of the Law Revision Counsel. 11 U.S. Code 707 – Dismissal of a Case or Conversion to a Case Under Chapter 11 or 13
7
United States Department of Justice. Means Testing
8
Office of the Law Revision Counsel. 11 U.S. Code 727 – Discharge
9
The Florida Legislature. Florida Code 222.20 – Nonavailability of Federal Bankruptcy Exemptions
10
FindLaw. Florida Constitution Art. X, Section 4 – Homestead Exemptions
11
The Florida Legislature. The Florida Legislature. Florida Code 222.25 – Other Individual Property of Natural Persons Exempt From Legal Process
12
The Florida Legislature. Florida Code 222.21 – Exemption of Pension Money and Certain Tax-Exempt Funds or Accounts From Legal Process
13
The Florida Legislature. Florida Code 222.11 – Exemption of Wages From Garnishment
14
Office of the Law Revision Counsel. 11 U.S. Code 523 – Exceptions to Discharge
15
Federal Student Aid. Discharge in Bankruptcy
16
Office of the Law Revision Counsel. 11 U.S. Code 524 – Effect of Discharge
17
United States Bankruptcy Court. Reaffirmation Agreements
18
Office of the Law Revision Counsel. 11 U.S. Code 722 – Redemption
19
United States Department of Justice. Credit Counseling and Debtor Education Information
20
Office of the Law Revision Counsel. 11 U.S. Code 109 – Who May Be a Debtor
21
United States Bankruptcy Court. Clerk’s Summary of Fees
22
United States Courts. Bankruptcy Forms
23
Office of the Law Revision Counsel. 11 U.S. Code 362 – Automatic Stay
24
The Florida Legislature. Florida Code 726.110 – Extinguishment of Cause of Action
25
Office of the Law Revision Counsel. 15 U.S. Code 1681c – Requirements Relating to Information Contained in Consumer Reports
26
HUD. How Does a Bankruptcy Affect a Borrowers Eligibility for an FHA Mortgage