Chapter 13 Bankruptcy Florida

We are focusing on filing for bankruptcy in Florida because there are things that are state-specific and things that are nationally specific. We wrote an article covering the Chapter 13 bankruptcy process that covers some of the national specific elements.  

We will cover the following elements of filing for bankruptcy in Florida:

• Chapter 7 vs Chapter 13 Bankruptcy in Florida
• Chapter 13 Bankruptcy Plan Payment in Florida
• Florida Bankruptcy Exemptions
• Bankruptcy Trustees in Florida
• Florida Bankruptcy Districts and Court Locations
• Alternatives to Bankruptcy in Florida
• Florida Bankruptcy FAQs
• Should I pursue a Chapter 13 or Chapter 7 Bankruptcy in Florida?  

Chapter 7 vs Chapter 13 Bankrutpcy in Florida 

Before we jump into state-specific information, I would like to provide a little information about Chapter 13 bankruptcy and a few of the key differences to Chapter 7 Bankruptcy Florida.

Chapter 13 Bankruptcy: Chapter 13 bankruptcy is also known as the “wage earners” bankruptcy. It is a voluntary reorganization of debts by the individuals according to the IRS. In this chapter, debtors (often with the help of attorneys) propose an installment repayment plan over three to five years. Many people do a Chapter 13 because they make too much money to file a Chapter 7, they have assets that are valuable, or they just prefer to do a Chapter 13. In Chapter 13, you will have a plan payment every month. To be eligible, you need to have regular income and not have over a certain amount of debt according to the bankruptcy code.

Chapter 7 Bankruptcy: A chapter 7 bankruptcy is also known as a “liquidation” bankruptcy. In this chapter, a debtor is often unable to pay his/her debts, so they enter this bankruptcy to attempt to discharge the debts. You must qualify for a Chapter 7 as it can be completed in as little as 120 days and it’s also generally less expensive. To qualify, you often have to be under the income limit for Chapter 7 bankruptcy. Our calculator below can help you estimate your Chapter 13 plan payment and also estimate whether you qualify for a Chapter 7.  

Now that you have an understanding of the differences, let’s get into Chapter 13 Bankruptcy in Florida. 

Chapter 13 Bankruptcy Plan Payment in Florida 

The Chapter 13 bankruptcy Florida plan payment estimate considers the IRS national expense figures and the state-specific expenses such as the Florida Administrative Expense Multiplier and the Florida Bankruptcy Allowable Living Expenses.  

Most people are interested to understand whether they qualify for Chapter 7 and what his/her Chapter 13 plan payment would in Chapter 13. Estimating a more precise Chapter 13 bankruptcy plan payment on your own can be complicated because of the complex bankruptcy forms used. To aid, we build the following calculator to help estimate whether you qualify for a Chapter 7 AND to help estimate what your plan payment would be in a Chapter 13 bankruptcy

How the Chapter 13 Calculator Works:

One of the most important aspects of a Chapter 13 bankruptcy is to understand your plan payment. As such, we built a free Chapter 13 payment calculator below based on your unique financial situation and where you live. The calculator is based on the official US bankruptcy forms.

Florida Means Testing

The calculator above considers Florida means testing data that uses location, household size and income to estimate whether you would qualify for a Chapter 7. 

I have also included the information for the Florida Means Test on or after May 15, 2021 in the table below. Please note that there is an additional $9,000 for each individual after a household size of 9 people. 

Florida Bankruptcy Exemptions

One of the things to consider to decide whether to pursue a Chapter 13 is whether you have assets above the exemptions. You may qualify via the Florida Bankruptcy Means Test for Chapter 7, but have such a large equity position in an asset then a Chapter 13 or Debt Settlement solution becomes a more feasible option.  

Florida has certain statutes and bankruptcy exemptions that you must consider when filing a bankruptcy. If you have an asset that is above the Florida exemption, that asset could be liquidated. We wrote an extensive article titled Florida Bankruptcy Exemptions that covers the nuances of Florida exemptions and added those exemptions below. For the full list, we would recommend the Florida Statutes Government site.

Below is the written version of some of the Florida bankruptcy exemptions.

• Homestead Exemption: Infinite if the debtor is able to use Florida exemptions and has owned the specific property for more than 1,215 days. If the debtor has not owned the property for more than 1,215 days then only $170,350 is exempt.
• Personal Property Exemption: $4,000 If a debtor does not receive the benefit of Florida’s homestead exemption. This understanding is important because Florida has a statute that gives 100% exemption for vehicles/vessels that qualify for homestead. A debtor can use the statutory homestead and also the expanded wildcard exemption.
• Automobile Exemption: Up to $1,000 per debtor in one vehicle. (example: If the bankruptcy case is a joint case then a married couple can exempt $2,000 in one vehicle, but they can’t exempt $1,000 each in 2 vehicles).
• IRA: Exempt
• Annuities: Exempt
• Health Savings Account: Exempt
• Unemployment Compensation and Benefits: Exempt
• 401(k) Plan: Exempt
• Alimony: Exempt
• Social Security Benefits: Exempt
• 403(b) Plan: Exempt
• Worker’s compensation: Exempt
• Disability Income and Benefits: Exempt

Floria Bankruptcy Trustees

A trustee administers the bankruptcy case and liquidates the debtor’s nonexempt assets. There are many Chapter 7 trustees in Florida, but there are fewer Chapter 13 trustees in Florida. See the tables below for who the trustees are and the contact information for them.

Florida Chapter 13 Trustees

Florida Chapter 7 Trustees

Florida Bankruptcy Districts and Court Locations

There are three bankruptcy districts in Florida: Northern District, Middle District and Southern District. Below is a map of the Florida districts from the US bankruptcy courts website.

Now that you have an understanding of the districts, let’s see where you would go specifically if you pursued a Chapter 13 Bankruptcy in Florida.

Alternative to Bankruptcy in Florida

There are a few main alternatives to a Chapter 13 bankruptcy. A Chapter 7 bankruptcy is an alternative if you qualify and if you wish to choose that path. The other alternatives are debt settlement, debt management, and trying to do it yourself without debt relief. Each has its own list of pros and cons and costs/fees, so feel free to write to us if you have any questions.  

Debt Settlement: This is the method where a company or you would negotiate to lower the total amount owed to reduce your monthly debt payment each month.  

Debt Management: This is the method where a company would negotiate to lower the interest rates to reduce your monthly debt payment each month. We wrote a comparison piece of debt management vs debt settlement as people often wonder about the differences between the two options.  

Do it Yourself: We would recommend writing out all of your income and expenses each month to the nearest dollar then use a debt payoff method to help you get out of debt efficiently. It's not easy to stick with a debt payoff method, which is why we built the Savvy Deby Payoff App on iOS and Android to show you how much you can afford and where to put extra each month and to encourage you to stick with the program.  

How Much Does it Cost to File Chapter 13 in Florida

The cost to file a Chapter 13 in Florida is currently $310 per Form 2010. This does not include the bankruptcy attorney fees. You may want to read our entire article devoted to this subject titled Florida Bankruptcy Attorney Fees.

Below is a picture of the entire all in costs for a Chapter 13 bankruptcy that includes the attorney fees. Now this is often covered within the Chapter 13 plan, so you do not have to often pay this entire amount up front.

Florida Bankruptcy FAQs

Below are some common questions and answers about a Chapter 7 or Chapter 13 bankruptcy in Florida that may be helpful to you

1) What are the pros and cons of Chapter 13 Bankruptcy in Florida?

Below is a list of pros and cons of filing Chapter 13 bankruptcy in Florida. Check the Pros and Cons of Chapter 13 Bankruptcy article for more detailed list.

2) What happens when you file a bankruptcy in Florida?

There are a few things that kick off when you declare bankruptcy:

• Bankruptcy Automatic Stay: The automatic stay is effective upon the filing of a bankruptcy petition. It allows relief from your creditors to stop contacting you.
• Debtor Education Course: You are required to attend two courses for your bankruptcy filing.
• Attend the Meeting of Creditors: You are required to attend the meeting of creditors. Often this is just a meeting between the trustee, your attorney, and you with various questions.

Please see our article covering what happens when you declare bankruptcy for more detailed information.

3) How much does it cost to file Chapter 7 in Florida?

The cost to file a Chapter 7 bankruptcy in Florida is $335.00 per form 2010. This includes a $245 filing fee, a $75 administrative fee, and a $15 trustee surcharge.

4) How do I qualify for Chapter 13 in Florida?

An individual qualifies for a Chapter 13 bankruptcy in Florida as long as the individual's unsecured debts are below $419,175 and the individual's secured debts are less than $1,257,850 according to the American Bankruptcy Institute. This is for cases filed on or after April 1, 2019. Chapter 13 eligibility is quite a bit different, so many individuals are eligible for a Chapter 13 bankruptcy in Florida who may not be eligible for a Chapter 7 bankruptcy.

5) Can I keep my car if I file a Chapter 7 bankruptcy in Florida?

You can often keep your car in a Chapter 7 bankruptcy in Florida. There are numerous things to consider when making that decision. You may want to read our article covering how to keep your vehicle after filing bankruptcy.

Should I pursue a Bankruptcy in Florida? 

Chapter 13 bankruptcy in Florida is a legitimate option for those who are struggling with debt and either do not qualify or do not want to pursue a Chapter 7. There are alternatives to bankruptcy such as debt management or debt settlement, so it is wise to consider all of your options and the pros and cons of those options before making a decision. Our Chapter 13 calculator compares your options and provides pros and cons, so you can use the calculator as a resource or do your own research about those options.  

Debt can cause seemingly endless amounts of stress and anxiety, so we hope this article provided beneficial information to help aid you in your decision to achieve debt freedom.

You may also be more of a visual learner, so we developer a video to summarize a Chapter 13 bankruptcy in Florida below.

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