Let’s face it—money problems can keep you up at night. Maybe the bills are piling up faster than you can pay them. Maybe you’re dodging calls from creditors or watching your bank account go negative more often than not. If this sounds familiar, you might be wondering if bankruptcy could be a way out. The short answer? Yes—it might be. But let’s walk through it together.
Bankruptcy Isn’t the End—It’s a Way Forward
There’s a lot of stigma around the word bankruptcy, but the truth is, it’s just a legal tool. One that helps people who are overwhelmed by debt reset and rebuild. It’s not about failure—it’s about getting a second chance. Whether you lost your job, got hit with unexpected medical bills, or just fell behind, you deserve a fresh start.
The Two Main Routes: Chapter 7 and Chapter 13
Depending on your income and situation, you’ve got a couple of options in Fort Lauderdale:
Chapter 7 Bankruptcy
This is what people often think of when they hear “bankruptcy.” It wipes out many types of unsecured debts—like credit cards and medical bills—but you might have to give up non-essential property (like a second car or vacation home). The process is fairly quick—usually a few months—and can offer real relief if you’re struggling.
Chapter 13 Bankruptcy
Got a steady paycheck and want to keep your home or car? Chapter 13 might be the better option. Instead of wiping everything clean immediately, you set up a repayment plan that lasts 3 to 5 years. At the end of it, remaining qualifying debts can be discharged. It’s a good fit if you just need some breathing room to catch up.
What to Expect During the Process
Bankruptcy might sound intimidating, but here’s a glimpse at what actually happens:
You’ll meet with a Fort Lauderdale Bankruptcy Attorney who helps you choose the right type of bankruptcy.
Together, you gather paperwork—income, debts, expenses, assets, and so on.
You file your petition with the court.
Then, there’s a brief meeting with creditors (don’t worry—it’s usually quick).
If you’re on a repayment plan (Chapter 13), the court has to approve it.
Once everything’s done, you receive a discharge—and a chance to start fresh.
It’s a process, yes, but one that thousands of people successfully complete every year—with real results.
Will It Wreck Your Credit?
Here’s the honest truth: filing for bankruptcy will hurt your credit score at first. A Chapter 7 filing stays on your credit report for up to 10 years. Chapter 13? About 7 years. But here’s the part most people don’t realize—your credit might already be in rough shape before you file. Bankruptcy can actually be the start of rebuilding.
Many folks see their scores start to improve within a year or two after filing. You can start small—secured credit cards, paying bills on time, avoiding new debt—and work your way back up.
Who Qualifies for Bankruptcy?
To file under Chapter 7, you’ll need to pass a “means test.” That’s just a way of saying your income has to be below Florida’s median for your household size. If you make more than that, Chapter 13 might be your best bet.
To file Chapter 13, your debts must fall under a certain limit, and you’ll need steady income to stick with the payment plan.
What Debts Can (and Can’t) Be Wiped Out?
Bankruptcy can clear out a lot—credit card debt, medical bills, personal loans, and more. But not everything is dischargeable. You’ll still be on the hook for:
Student loans (in most cases)
Child support and alimony
Some back taxes
Criminal fines or court-ordered restitution
A qualified bankruptcy lawyer will explain what’s eligible and what’s not, based on your case.
Why Working with a Local Lawyer Matters
Let’s be real—bankruptcy law is complicated. You could try doing it on your own, but one mistake on the paperwork could delay your case—or worse, get it thrown out. A Fort Lauderdale-based attorney will understand not just federal law but also Florida-specific rules, exemptions, and court expectations.
They’ll take the stress off your shoulders so you can focus on what matters: getting your life back.