Chapter 7 vs. Chapter 13 in Florida: Which Bankruptcy Option Is Right for You?
If you’re overwhelmed by debt, you may already be considering bankruptcy—but one of the first questions most people ask is: Which type is right for me?
In Florida, the two most common consumer bankruptcy options are Chapter 7 and Chapter 13. While both are designed to provide relief from crushing debt, they work in very different ways. Choosing the wrong option can cost you time, money, and peace of mind.
At McGuire Law Offices, we help clients throughout Clearwater, St. Petersburg, and Pinellas County understand their options and choose the strategy that protects their future—not just their present.
If you’re starting this year feeling overwhelmed by debt, you are not alone—and you are not out of options.
At McGuire Law Offices, we help individuals and families throughout Clearwater, St. Petersburg, and Pinellas County use bankruptcy as a legal tool to regain control, stop creditor harassment, and rebuild with confidence.
Understanding the Goal of Bankruptcy
Bankruptcy exists to give honest people a fresh start when life becomes financially unmanageable. Job loss, medical emergencies, divorce, inflation, and rising living costs can all push people into debt they never planned for.
The goal is not punishment—it’s relief.
But relief looks different depending on your income, assets, and long-term goals.
What Is Chapter 7 Bankruptcy?
Chapter 7 is often called “liquidation bankruptcy,” but many people lose no property at all thanks to Florida’s generous exemption laws.
Chapter 7 Can:
• Eliminate credit card debt
• Discharge medical bills
• Erase personal loans
• Stop collection lawsuits
• End wage garnishments
• Provide fast relief (usually 3–4 months)
This option is best for people who:
• Have limited income
• Do not need to catch up on mortgage or car payments
• Want a quick discharge of debt
• Do not own significant non-exempt assets
What Is Chapter 13 Bankruptcy?
Chapter 13 is a repayment-based bankruptcy designed for people who want to keep their home, car, and assets.
Instead of liquidating property, you propose a court-approved repayment plan lasting 3 to 5 years.
Chapter 13 Can:
• Stop foreclosure
• Catch up on missed mortgage payments
• Recover repossessed vehicles
• Pay tax debt without interest
• Protect valuable assets
• Discharge some debts that Chapter 7 cannot
This option is ideal for people who:
• Have steady income
• Are behind on secured payments
• Want to protect property
• Need time—not liquidation
Which Is Better?
There is no universal answer.
Chapter 7 is better for:
• People with mostly unsecured debt
• Those who want fast relief
• Those without assets to protect
Chapter 13 is better for:
• Homeowners facing foreclosure
• People behind on car payments
• Those with steady income
• People needing long-term structure
Why Choosing the Wrong Chapter Can Hurt You
Filing the wrong type of bankruptcy can lead to:
• Loss of property
• Dismissed cases
• Missed opportunities
• Higher costs
• Unnecessary stress
That’s why speaking with an experienced attorney first matters.
How McGuire Law Offices Helps
We don’t believe in one-size-fits-all solutions.
We take the time to:
• Analyze your finances
• Explain your options
• Protect your assets
• Stop harassment immediately
• Build a long-term strategy
• Guide you through every step
Our mission is not just to file paperwork—it’s to restore stability.
Start the New Year With Answers
If you’re struggling with debt, the worst thing you can do is guess. Let us help you choose the right path forward. Call McGuire Law Offices today at 727-446-7659. Serving Clearwater, St. Petersburg, and all of Pinellas County.