Jacksonville Chapter 7 Bankruptcy Attorney

What Is Chapter 7 Bankruptcy?

Chapter 7 is a federal bankruptcy proceeding under 11 U.S.C. Chapter 7 that eliminates most unsecured debt in exchange for the potential liquidation of non-exempt assets. In practice, however, the vast majority of Chapter 7 cases are “no-asset” cases — meaning the filer keeps everything they own because all of their property falls within Florida’s exemption limits.

Chapter 7 is sometimes called “straight bankruptcy” or “liquidation bankruptcy,” but that name is misleading. In Florida, strong state exemptions protect your home, your car, your retirement accounts, and most personal property. For most people filing Chapter 7 in Jacksonville, the outcome is straightforward: your eligible debts are eliminated, and your daily life continues.

In 2025, 356,724 Chapter 7 cases were filed nationally — representing 62% of all bankruptcy filings (U.S. Courts). It’s the most common form of consumer bankruptcy because it works: debts are discharged in 3 to 6 months, and filers can begin rebuilding immediately. If your income exceeds the limits for Chapter 7, Chapter 13 bankruptcy offers an alternative through a structured repayment plan.

Do You Qualify for Chapter 7 in Florida?

Eligibility for Chapter 7 depends primarily on the means test, a calculation that compares your household income to the median income for a family of your size in Florida. If your income falls below the threshold, you have a presumption of eligibility. The current median income limits for Florida are:

If your income is above these thresholds, you may still qualify. The second part of the means test deducts certain expenses — mortgage or rent, vehicle payments, health insurance, childcare, taxes, and other IRS-allowed amounts — from your income. If your remaining disposable income is low enough, you can still file Chapter 7.

Additional eligibility requirements include:

• You must not have received a Chapter 7 discharge within the past 8 years (11 U.S.C. § 727(a)(8))
• You must complete an approved credit counseling course within 180 days before filing
• You must file all required tax returns for the past 4 years

The court filing fee for Chapter 7 is $338 (U.S. Courts). Fee waivers and installment payment plans are available for qualifying filers. A free consultation with our office can determine whether you meet the requirements.

What Debts Can Chapter 7 Eliminate?

Chapter 7 discharges most types of unsecured debt — meaning the debt is permanently eliminated and the creditor can never collect on it again. However, certain debts survive bankruptcy by federal law. Understanding the difference is critical before filing.

Debts That Can Be Discharged

• Credit card debt — Visa, Mastercard, store cards, all unsecured revolving debt
• Medical bills — hospital, doctor, dental, and other healthcare debts
• Personal loans — unsecured bank loans, payday loans, online lending
• Utility bills — past-due electric, water, gas, phone, and internet
• Deficiency balances — remaining debt after a car repossession or home foreclosure
• Old judgments — most civil lawsuit debts and collection judgments
• Business debts — debts of a sole proprietor (the business itself doesn’t file)

Debts That Cannot Be Discharged

• Child support and alimony — domestic support obligations always survive
• Most student loans — unless you prove “undue hardship” (the Brunner test), which is a high bar
• Recent tax debts — income taxes less than 3 years old (older tax debts may be dischargeable)
• Criminal fines and restitution
• Debts from fraud or willful injury — including fraudulent credit card charges
• DUI-related injury debts
• HOA/condo fees — dues that accrue after filing are not dischargeable

For most Jacksonville residents considering Chapter 7, the debts causing the greatest hardship — credit cards, medical bills, and personal loans — are fully dischargeable.

What Property Can You Keep in a Chapter 7 in Florida?

Florida has opted out of the federal bankruptcy exemption system, which means you must use Florida state exemptions when filing Chapter 7. The good news: Florida’s exemptions are among the most generous in the nation. In most cases, Chapter 7 filers in Jacksonville keep everything they own.

The homestead exemption is Florida’s most valuable protection. It covers unlimited equity in your primary residence as long as the property is no larger than half an acre in a municipality or 160 acres in a rural area. You must have owned the home for at least 1,215 days before filing; otherwise, a federal cap of $214,000 applies.

An experienced bankruptcy attorney can evaluate your specific assets and determine which exemptions apply to your situation — ensuring you don’t lose property that should be protected.

What Happens After You File Chapter 7 in Jacksonville?

Chapter 7 cases in Jacksonville are filed in the Middle District of Florida, Jacksonville Division — the 3rd busiest bankruptcy court of 90 federal districts in the nation. The process is structured and predictable.

Automatic stay takes effect immediately. The moment your petition is filed, the automatic stay under 11 U.S.C. § 362 halts all collection activity: wage garnishment stops, foreclosure proceedings pause, repossession is blocked, lawsuits are stayed, and creditor phone calls must cease. For many filers, this immediate relief is the single most important benefit of filing.

341 Meeting of Creditors — Approximately 30 to 45 days after filing, you attend a brief meeting where the bankruptcy trustee asks questions about your finances and verifies the accuracy of your filings. In Jacksonville, these meetings typically last 5 to 10 minutes. Creditors rarely attend.

Trustee review — The appointed trustee reviews your assets to determine if any non-exempt property exists. In the majority of Chapter 7 cases, the trustee files a “no-asset report,” meaning nothing is liquidated and you keep everything.

Discharge — Approximately 60 to 90 days after the 341 meeting, the court issues a discharge order eliminating your eligible debts. From filing to discharge, a Chapter 7 case in Jacksonville typically takes 3 to 6 months.

How Much Does Chapter 7 Cost in Jacksonville?

The total cost of a Chapter 7 bankruptcy in Jacksonville includes court fees, attorney fees, and required educational courses. According to Nolo (2026), the average total cost for a Chapter 7 case in Florida ranges from $1,500 to $2,500.

• Court filing fee: $338 (U.S. Courts). Fee waivers and installment plans available.
• Attorney fees: $1,500-$2,500 for a standard Chapter 7 in Jacksonville.
• Credit counseling: $15-$50 (required before filing).
• Debtor education course: $15-$50 (required before discharge).

At The Law Offices of Sacks & Sacks, P.A., we offer a free initial consultation to review your financial situation and explain your options. Call (904) 396-5557 to schedule.

Frequently Asked Questions

Can I keep my car if I file Chapter 7 in Florida?

In most cases, yes. Florida’s motor vehicle exemption protects up to $5,000 in equity in one vehicle. If your car is worth less than $5,000 after subtracting what you owe on it, it’s fully protected. If you’re still making car payments and are current on them, you can typically keep the vehicle by signing a reaffirmation agreement with the lender.

How long does Chapter 7 bankruptcy take?

A Chapter 7 case in the Middle District of Florida, Jacksonville Division, typically takes 3 to 6 months from filing to discharge. The 341 Meeting of Creditors is scheduled about 30-45 days after filing, and the discharge order follows approximately 60-90 days after that meeting.

Will Chapter 7 stop wage garnishment?

Yes, immediately. The automatic stay under 11 U.S.C. § 362 takes effect the moment your bankruptcy petition is filed. All wage garnishment, bank levies, creditor lawsuits, and collection calls must stop. If the underlying debt is dischargeable, the garnishment ends permanently.

Can I file Chapter 7 if I own a home in Florida?

Yes. Florida’s homestead exemption protects unlimited equity in your primary residence (up to half an acre in a municipality). As long as you’ve owned the home for at least 1,215 days and are current on your mortgage, you can keep your home in Chapter 7. Florida has one of the most protective homestead exemptions in the nation.

What is the means test for Chapter 7?

The means test compares your household income to the median income for your family size in Florida. If your income is below the median ($66,284 for a single person, $82,708 for two), you qualify. If above, a second calculation deducts allowable expenses. If your remaining disposable income is still low enough, you can still file Chapter 7.

How soon can I rebuild credit after Chapter 7?

You can begin rebuilding credit immediately after discharge. Chapter 7 stays on your credit report for 10 years, but many filers receive credit card offers within months of discharge. Using secured credit cards, making payments on time, and keeping utilization low can help you rebuild to a good credit score within 2 to 3 years.

Talk to a Jacksonville Chapter 7 Bankruptcy Attorney

If overwhelming debt is affecting your ability to pay bills, answer the phone, or plan for the future, Chapter 7 bankruptcy may provide the relief you need. Florida’s exemption laws are designed to let you keep what matters most while eliminating debts you can’t repay.

At The Law Offices of Sacks & Sacks, P.A., attorney Melanie Sacks has helped thousands of Jacksonville residents navigate Chapter 7 bankruptcy in the Middle District of Florida. We understand the local process, the local trustees, and the strategies that produce the best outcomes for our clients.

Call us at (904) 396-5557 or fill out the form for a free consultation. We can start your path to a debt-free future today.

Related: Jacksonville Bankruptcy Lawyer | Chapter 13 Bankruptcy | Personal Bankruptcy | Business Bankruptcy | Debt Consolidation | 7 Steps to a 720 Credit Score