Chapter 7 vs Chapter 13 Bankruptcy in Florida: Which Should You File for?
If you’re considering bankruptcy in Florida, one of the first decisions you’ll face is whether to file under Chapter 7 or Chapter 13. Both are designed to help you eliminate or manage debt, but they work in very different ways.
The best option depends on your income, assets, and goals. In this article, we’ll break down the differences between Chapter 7 and Chapter 13 in plain language, so you can understand what each offers, and which one may be right for your situation.
Chapter 7 Bankruptcy: Quick Debt Relief
Chapter 7 is often referred to as “liquidation” bankruptcy, but most people who file for it keep all their property, thanks to exemptions under Florida law.
Who Qualifies?
- Your income must be below Florida’s median income for your household size, or
- You must pass the means test, which looks at your income, expenses, and debt
What It Does:
- Eliminates most unsecured debt (credit cards, medical bills, personal loans)
- Takes about 3 to 4 months from start to finish
- Provides a fresh start if you’re unable to repay debts
What It Doesn’t Do:
- It doesn’t help you catch up on mortgage or car payments
- It doesn’t protect you from losing secured property if you’re behind on payments
Best For:
- People with low or no income
- Those facing lawsuits, garnishments, or overwhelming unsecured debt
- Individuals who don’t need to catch up on a home or car loan
Chapter 13 Bankruptcy: Repayment with Protection
Chapter 13 is commonly referred to as a “reorganization” bankruptcy. It allows you to propose a 3 to 5-year repayment plan to catch up on debt while keeping your property.
Who Qualifies?
- You must have a regular income (employment, self-employment, pension, etc.)
- Your total debt must fall within certain limits (currently around $2.75 million combined for secured and unsecured debt)
What It Does:
- Let’s help you catch up on missed mortgage or car payments
- Consolidates debts into one monthly payment to a court-appointed trustee
- Stops foreclosure and repossession as long as you follow the plan
What It Doesn’t Do:
- It doesn’t eliminate debt immediately
- Requires 3 to 5 years of consistent payments
- Some creditors may still receive partial repayment
Best For:
- Homeowners trying to stop foreclosure and keep their home
- Individuals who earn too much to qualify for Chapter 7
- Those with nondischargeable debts, like taxes or domestic support
What If You’re Not Sure?
It’s normal to be unsure. Many people begin by consulting with a bankruptcy lawyer in Tampa to review their income, debts, and goals before making a decision.
Some clients are eligible for both Chapter 7 and Chapter 13. Others don’t qualify for Chapter 7 due to income or recent filings—but Chapter 13 gives them a structured way to resolve debt while protecting valuable property.
The right chapter depends on your unique financial picture—not a one-size-fits-all checklist.
A Word About Florida’s Bankruptcy Exemptions
Florida has strong exemption laws, including:
- An unlimited homestead exemption (subject to acreage and time requirements)
- Protection for retirement accounts
- Exemptions for personal property, vehicles, and wages
These protections apply whether you file Chapter 7 or 13, and they play a big role in your case strategy. An experienced bankruptcy lawyer can help you apply exemptions properly and protect your assets.
Talk to a Bankruptcy Lawyer in Tampa Bay
At the Debt Relief Law Offices of Tampa Bay, we help you determine which chapter of bankruptcy is best suited to your financial needs and goals. With over 35 years of experience helping Floridians navigate the process, we offer honest answers, personalized plans, and compassionate guidance.
Serving Tampa, New Port Richey, and nearby communities
Schedule a consultation to determine which chapter, Chapter 7 or Chapter 13, is the best option for you.
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.
