Can Bankruptcy Help with Credit Card Debt in Florida?
Credit card debt is one of the most common financial challenges facing residents of Florida. High interest rates, late fees, and aggressive collection tactics can make it nearly impossible to catch up once you fall behind.
If you’ve reached the point where minimum payments barely make a dent—or you’re relying on credit cards for basic expenses—it may be time to consider bankruptcy as a solution. Here’s how filing for bankruptcy can help eliminate credit card debt, and what to expect under Florida law.
Why Credit Card Debt Is Hard to Escape
Unlike secured debts (such as mortgages or car loans), credit card debt is unsecured—meaning it isn’t tied to collateral. While that may sound less risky, it often comes with:
- High interest rates that compound quickly
- Penalty fees for late or missed payments
- Aggressive collection efforts once accounts are delinquent
Without a legal intervention, you could face lawsuits, judgments, and wage garnishment.
How Bankruptcy Treats Credit Card Debt
The good news is that most credit card balances are fully dischargeable in bankruptcy—meaning they can be wiped out entirely. The process of how this happens depends on the type of bankruptcy you file.
Chapter 7 Bankruptcy and Credit Card Debt
A Chapter 7 bankruptcy allows eligible filers to discharge unsecured debts, including credit card balances, in as little as 3 to 4 months.
Benefits:
- Immediate stop to collection calls, lawsuits, and garnishments through the automatic stay
- Complete elimination of qualifying credit card balances
- No requirement to repay creditors
Considerations:
- You must pass the means test to qualify
- Recent large purchases or cash advances could be challenged as fraudulent
- Secured debts like car loans or mortgages are handled separately
Chapter 13 Bankruptcy and Credit Card Debt
A Chapter 13 bankruptcy is a repayment plan that lasts 3 to 5 years, but it still offers significant relief for credit card debt.
Benefits:
- Combines all debts into one affordable monthly payment
- Often repays only a fraction of unsecured debt, with the remainder discharged at the end
- Stops lawsuits and collection efforts while the plan is in place
Considerations:
- Requires regular income to support plan payments
- Better suited for those who also need to catch up on secured debts like mortgages or car loans
Myths About Bankruptcy and Credit Card Debt
Myth #1: You’ll lose all your property if you file bankruptcy.
Reality: Florida’s exemption laws protect most people’s homes, vehicles, and personal property.
Myth #2: You can’t use bankruptcy if you’ve recently used your credit cards.
Reality: You can still file, but large or luxury charges made shortly before filing may be excluded from discharge.
Myth #3: Your credit will never recover.
Reality: Many people begin rebuilding their credit within a year after discharge by paying bills on time and using secured credit responsibly.
Is Bankruptcy the Right Choice for Your Credit Card Debt?
Bankruptcy can be a powerful tool for eliminating credit card debt—but it’s not right for everyone. You may want to explore alternatives, such as debt consolidation or negotiating directly with creditors, if your debt is manageable.
However, if you are:
- Several months behind on payments
- Facing lawsuits or wage garnishment
- Paying only interest without reducing balances
…it’s time to speak with an experienced bankruptcy lawyer in Tampa about your legal options.
Talk to a 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 lasting relief from credit card debt. We provide honest evaluations, affordable payment options, and representation that protects your rights at every step.
Offices in Tampa and New Port Richey
Schedule a confidential consultation with a trusted bankruptcy lawyer today.
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.
