Financial hardship can happen to anyone — medical bills, job loss, or unexpected expenses can pile up fast. Bankruptcy can be a powerful legal tool to help you get back on track, but understanding the difference between Chapter 7 and Chapter 13 is key to choosing the right path.
Here’s what Florida residents should know.
Chapter 7 Bankruptcy: Starting Fresh
Often called “liquidation bankruptcy,” Chapter 7 allows individuals to eliminate most unsecured debts such as credit cards, personal loans, and medical bills.
You may have to sell (or “liquidate”) some assets, but Florida’s homestead exemption and other protections often let you keep your home, car, and essentials.
Best for:
- People with limited income and high unsecured debt
- Those seeking a faster debt resolution (usually 3–6 months)
Chapter 13 Bankruptcy: The Repayment Plan
Chapter 13, or “reorganization bankruptcy,” is designed for people who have steady income but need time to catch up on debt. It allows you to create a 3–5 year repayment plan to pay off part or all of your debt while keeping your assets.
Best for:
- Homeowners facing foreclosure
- People with valuable property they want to keep
- Those behind on car or mortgage payments
Choosing the Right Chapter for You
The main difference comes down to income, assets, and goals. Chapter 7 wipes out eligible debts quickly; Chapter 13 helps you repay over time while keeping what you own.
BCN Law Firm’s experienced Florida bankruptcy attorneys can help you evaluate which option provides the best financial restart for your situation.
Get Relief and Rebuild
If you’re overwhelmed by debt, you don’t have to face it alone. Contact BCN Law Firm for a confidential consultation and explore the best bankruptcy solution for you.