Can Chapter 7 Bankruptcy Stop Foreclosure in Florida?
If you’re facing foreclosure in Florida, you may have heard that filing for Chapter 7 bankruptcy can help. But how exactly does it work—and is it the right choice for you?
In this post, we’ll break down what Chapter 7 bankruptcy can (and can’t) do to stop foreclosure, with a focus on the automatic stay, your rights under Florida law, and key factors to consider before taking action.
What Is Chapter 7 Bankruptcy?
Chapter 7 bankruptcy is often called “liquidation bankruptcy.” It allows individuals to discharge many types of unsecured debts—like credit cards, personal loans, and medical bills—by liquidating non-exempt assets. In Florida, however, most Chapter 7 filers keep all or most of their property due to generous state exemptions.
The Automatic Stay: Your Temporary Shield Against Foreclosure
When you file for Chapter 7 bankruptcy, an automatic stay goes into effect immediately. This is a powerful legal protection under federal law that temporarily halts most collection actions, including:
- Foreclosure proceedings
- Lawsuits
- Wage garnishments
- Harassing creditor calls
What This Means for Florida Homeowners
If your lender has started the foreclosure process, the automatic stay can stop or delay the foreclosure temporarily. The keyword is temporarily—because Chapter 7 doesn’t offer a long-term solution for keeping your home if you’re behind on mortgage payments.
The automatic stay buys time. It may delay a foreclosure sale by several weeks or months, giving you a window to explore your options or prepare for next steps.
When Chapter 7 Does Not Stop Foreclosure Permanently
Chapter 7 bankruptcy does not eliminate secured debts like mortgages. Even if your unsecured debts are discharged, your lender still has the right to foreclose on the home if you’re behind on payments.
Here’s what to understand:
- Missed mortgage payments are still due after Chapter 7.
- If you can’t catch up, the lender can request that the court lift the automatic stay and resume foreclosure.
- Chapter 7 is not designed to restructure mortgage debt—for that, Chapter 13 may be a better fit.
When Might Chapter 7 Make Sense for Florida Homeowners?
Despite its limits, Chapter 7 can still be a useful tool in the right situation. It might help if:
- You don’t want to keep the home and want to walk away without being liable for the mortgage or deficiency balance.
- You need time to delay foreclosure and make alternative housing arrangements.
- You have overwhelming unsecured debt and need a clean financial slate.
Every case is different. The right choice depends on your goals and your financial situation.
Florida’s Homestead Exemption and Chapter 7
Florida law offers one of the most generous homestead exemptions in the country. If you’ve lived in your home for more than 1,215 days, your home may be fully protected from liquidation in Chapter 7—regardless of its value.
This means you might be able to keep your home and discharge unsecured debt—but only if you’re current on your mortgage or can catch up quickly.
The Bottom Line
Chapter 7 bankruptcy can temporarily stop foreclosure in Florida, but it won’t eliminate mortgage debt or allow you to catch up on missed payments. It offers a powerful pause via the automatic stay, but not a long-term foreclosure solution.
If you’re behind on mortgage payments and want to stay in your home, Chapter 13 may be a better path.
Talk to a Trusted Chapter 7 Lawyer in Tampa Bay
At the Debt Relief Law Offices of Tampa Bay, we’ve helped Florida residents for over 35 years find practical, legal solutions to overwhelming debt. Whether you want to stop foreclosure, discharge credit card debt, or understand your bankruptcy options, we’re here to help.
Serving clients in Tampa, New Port Richey, Wesley Chapel, and beyond.
Schedule a confidential consultation today to get clarity on your rights and options.
Ziona Kopelovich, Esq. is a Board-Certified Consumer Bankruptcy Attorney and founder of Debt Relief Law Offices of Tampa Bay. Since 1996, she has helped Floridians navigate Chapter 7 and Chapter 13 filings, lien stripping, foreclosure defense, and post-discharge credit rebuilding. Passionate about second chances, Ziona blends deep legal expertise with genuine compassion to guide clients toward brighter, debt-free futures.
