Florida Statutory Debt Relief Comparison Guide
Florida Chapter 7 vs. Chapter 13 Bankruptcy
Understand the key legal distinctions between Chapter 7 debt liquidation and Chapter 13 mortgage reorganization. Compare Means Test eligibility, Florida Homestead home exemptions, and discharge timelines.
11 U.S. Code Statutory Comparison
Florida Chapter 7 vs. Chapter 13 Bankruptcy Comparison
Compare income requirements, home protection rules, timeline differences, and debt discharge scope.
| Comparison Factor | Chapter 7 (Liquidation) | Chapter 13 (Reorganization) |
|---|---|---|
Primary Objective 11 U.S. Code § 727 vs § 1322 | Complete liquidation and discharge of qualifying unsecured debts. | Court-supervised 3-to-5 year repayment plan to cure arrears and restructure debt. |
Income Eligibility (Means Test) 11 U.S. Code § 707(b) | Must pass Florida Means Test comparing household income to FL median limits. | Requires steady regular income to fund monthly plan payments (no Means Test cap). |
Duration to Discharge 11 U.S. Code § 1328 | Fast resolution: typical discharge issued in 3 to 4 months. | Longer timeline: discharge granted upon completing 36 to 60 monthly plan payments. |
Foreclosure & Mortgage Arrears 11 U.S. Code § 362 & § 1322(b) | Stops foreclosure temporarily via Automatic Stay, but cannot cure back payments. | Stops foreclosure AND allows debtor to pay past-due mortgage arrears over 3-5 years. |
Asset & Home Exemption FL Const. Art. X § 4 | Exempt assets (Florida Homestead Art. X § 4) protected; non-exempt assets sold by Trustee. | Debtor keeps ALL property (exempt and non-exempt) in exchange for monthly plan payments. |
Scope of Debt Discharge 11 U.S. Code § 523 | Discharges credit cards, medical bills, personal loans. Excludes taxes and child support. | Discharges broader debt categories and restructures priority tax debts. |
Credit Report Record Fair Credit Reporting Act 15 U.S.C. § 1681c | Remains on credit bureau reports for up to 10 years from filing date. | Remains on credit bureau reports for up to 7 years from filing date. |
Discuss Your Bankruptcy Options with an Attorney
Schedule a confidential debt relief evaluation with Granda & Associates at our Miami office (8900 SW 117th Ave).