If you are considering bankruptcy in Florida, the first big decision is which chapter to file. For individuals, the two choices are almost always Chapter 7 — a relatively fast liquidation that wipes out qualifying debts — and Chapter 13, a three-to-five-year repayment plan that lets you keep property and catch up on missed payments. Both are filed in federal court under the Bankruptcy Code (11 U.S.C.), but in Florida both use Florida's exemptions because the state opted out of the federal system (Fla. Stat. § 222.20).
This guide compares the two chapters so you can understand which one fits your situation. It is general legal information, not legal advice; the right choice depends on your income, assets, and goals, and a Florida bankruptcy attorney can run the numbers for you. For the full picture, start with our main guide to Bankruptcy in Florida.
Chapter 7: a fresh start through liquidation
Chapter 7 is often called "straight bankruptcy" or "liquidation." A court-appointed trustee can sell your non-exempt property to pay creditors, then the court discharges your remaining qualifying debts. In Florida, because the state's exemptions are so generous — particularly the unlimited homestead exemption under Fla. Const. Art. X § 4 — most consumer cases are "no-asset" cases. The trustee sells nothing, you keep your protected property, and unsecured debts are wiped out in roughly three to four months.
Chapter 7 is best for filers who have mostly unsecured debt (credit cards, medical bills, personal loans), limited non-exempt assets, and income at or below the Florida median on the means test (11 U.S.C. § 707(b)). It does not, however, help you catch up on a defaulted mortgage or car loan — it gives you a clean discharge, not a repayment structure.
Chapter 13: reorganization and repayment
Chapter 13 is a court-supervised repayment plan lasting three years (if your income is below the Florida median) or five years (if above). You keep all your property and pay creditors out of future income according to a plan the bankruptcy judge confirms. At the end of a completed plan, remaining qualifying unsecured balances are discharged.
Chapter 13 shines when you need to cure a mortgage arrearage to stop a foreclosure and keep your home, when you have non-exempt assets you want to protect from liquidation, when your income is too high to pass the means test for Chapter 7, or when you need to pay off non-dischargeable debts (like recent taxes or support arrears) over time. To file, you must have regular income and debts within the Chapter 13 limits.
Side-by-side comparison
| Feature | Chapter 7 | Chapter 13 |
|---|---|---|
| Basic concept | Liquidation & discharge | Repayment plan |
| How long | ~3–4 months | 3–5 years |
| Income limit | Means test (11 U.S.C. § 707(b)) | Must have regular income; debt limits apply |
| Cure mortgage default? | No | Yes — arrears paid through the plan |
| Non-exempt assets | Trustee may sell them | Kept; you pay their value over time |
| Credit report | Up to 10 years | Up to 7 years |
How Florida exemptions affect the choice
Florida's generous exemptions make Chapter 7 viable for many people who would face liquidation elsewhere. The unlimited homestead exemption (Fla. Const. Art. X § 4) often lets homeowners keep a home with significant equity in Chapter 7. The $1,000 vehicle exemption (Fla. Stat. § 222.25(1)), the $1,000 personal-property exemption (Art. X § 4(a)(2)), the $4,000 wildcard for those not claiming homestead (Fla. Stat. § 222.25(4)), and protections for retirement accounts and life insurance (Fla. Stat. §§ 222.13–.14, 222.21) cover most consumers' assets.
Where exemptions fall short — say, a paid-off rental property, a boat, or substantial savings — Chapter 13 lets you keep the asset by paying unsecured creditors at least what they would have received in a Chapter 7 liquidation. For a full breakdown, see Florida Bankruptcy Exemptions and Homestead.
Which chapter is right for you?
As a rough guide, Chapter 7 makes sense if you are at or below the Florida median income, have mostly unsecured debt, and your property fits within Florida's exemptions. Chapter 13 makes sense if you are behind on a mortgage and want to keep the home, your income is above the median and you fail the means test, you have valuable non-exempt assets, or you need to repay priority debts like recent taxes or domestic-support arrears over time. The means test is often the deciding factor — see The Florida Bankruptcy Means Test.
Frequently asked questions
Is Chapter 7 always better because it is faster?
Not necessarily. Chapter 7 is faster and discharges debt without repayment, but it cannot cure a mortgage default and can require surrendering non-exempt assets. If keeping a home you are behind on, or protecting valuable property, matters more than speed, Chapter 13 may be the better tool.
Can I switch from one chapter to the other?
Often yes. A debtor can usually convert a Chapter 7 case to Chapter 13 or vice versa, subject to eligibility and court approval (11 U.S.C. §§ 706, 1307). For example, someone who fails the Chapter 7 means test might file Chapter 13, or a Chapter 13 filer whose income drops might convert to Chapter 7.
Will I keep my home in either chapter?
Florida's unlimited homestead exemption (Fla. Const. Art. X § 4) protects home value in both chapters, but only Chapter 13 lets you cure missed mortgage payments over time. In Chapter 7 you must already be current (or reaffirm and stay current) to keep the home. See Florida Bankruptcy Exemptions and Homestead.
What if I do not pass the means test?
If your income is above the Florida median and the disposable-income calculation shows you can repay creditors, you generally cannot file Chapter 7 and will file Chapter 13 instead. The details are in The Florida Bankruptcy Means Test.
Find a Florida bankruptcy attorney
Choosing between Chapter 7 and Chapter 13 turns on the means test, your exemptions, and your goals for your home and other property. A Florida bankruptcy attorney can run the means-test calculation, value your assets against Florida's exemptions, and recommend the chapter that protects the most. Many offer free consultations, and you can find one through The Florida Bar's lawyer referral service or a local legal aid office.