At Wallace Law, we understand that bankruptcy can be a complex and stressful process. Below are answers to some of the most common questions people ask us about bankruptcy to help you better understand your options and what to expect.
What is bankruptcy?
Bankruptcy is a legal process designed to help individuals or businesses eliminate or reorganize debt under the protection of the court. It provides a fresh financial start for those struggling with overwhelming debt.
What is the difference between Chapter 7 and Chapter 13 bankruptcy?
Chapter 7 Bankruptcy: Also known as liquidation bankruptcy, it involves selling non-exempt assets to pay creditors and typically discharges most unsecured debts quickly, often within a few months.
Chapter 13 Bankruptcy: Known as a reorganization bankruptcy for wage earners, it allows you to keep your assets while repaying debts over 3 to 5 years according to a court-approved payment plan.
Our attorneys can evaluate your financial situation and recommend the best option for you.
How do I know if I qualify for Chapter 7 bankruptcy?
Qualification for Chapter 7 depends on your income and expenses, evaluated through a means test. If your income is below the median income for the county in which you live, you generally qualify. If not, Chapter 13 may be a better fit.
How long does the bankruptcy process take?
Chapter 7: Usually 3 to 6 months from filing to discharge.
Chapter 13: Repayment plans last 3 to 5 years, but the initial filing and court proceedings take a few months.
Your attorney will guide you through every step to ensure a smooth process.
Will filing for bankruptcy stop foreclosure or repossession?
Yes. Filing bankruptcy triggers an automatic stay that immediately stops most collection activities, including foreclosure and repossession. This stay remains in effect throughout the bankruptcy case, giving you breathing room.
Can I keep my home and car if I file for bankruptcy?
Many filers keep their primary residence as Florida has an unlimited homestead exemption. Many filers also keep their cars provided they fit within the Florida exemption for vehicles
What debts can be discharged in bankruptcy?
Common dischargeable debts include credit card debt, medical bills, personal loans, and utility bills. However, certain debts like student loans, recent tax debts, child support, fraud claims and court fines typically cannot be discharged.
How will bankruptcy affect my credit score?
Bankruptcy will impact your credit score negatively initially, but it also stops collection actions and can help you rebuild your credit over time. Many clients see credit improvement within a few years after discharge.
Can I file for bankruptcy more than once?
Yes, but there are waiting periods: typically 8 years between Chapter 7 filings and 2 to 4 years for Chapter 13 filings depending on the circumstances.
How much does it cost to file for bankruptcy?
Filing fees vary by chapter ($338 for Chapter 7 and $313 for Chapter 13 as of 2025), plus attorney fees which depend on case complexity. At Wallace Law, we offer transparent pricing and payment plans to help you.
How do I get started with filing bankruptcy?
Contact Wallace Law to schedule a free consultation. Our experienced bankruptcy attorneys will review your case, explain your options, and help you make an informed decision.
Need More Answers?
If you don’t see your question here or want personalized advice, please contact us or call us at 561-400-3896 (Palm Beach County), 754-367-8375 (Broward and Miami-Dade) or 239-789-4999 (Southwest Florida) today. We’re here to help you regain financial control.