If you live in Daytona Beach and money problems keep you up at night, bankruptcy might give you a way out. It can stop collection calls, wipe out certain debts, or help you catch up on payments you have fallen behind on. The process has clear steps, and knowing what comes next can make it feel less scary. Here is a full look at how bankruptcy works in Florida, from your first move to the day your debts get discharged.
Step 1: Look at Your Debts and Assets
Before you file anything, take stock of where you stand. This means writing down every debt you owe, who you owe it to, and how far behind you are on payments. You will also want a clear picture of your income, your monthly bills, and what you own, including your car, your home, and other property of value.
This step is not just paperwork. It helps you and your attorney figure out whether bankruptcy is the right move, and which chapter fits your situation. Some people find that once they see their full financial picture in writing, the decision to file becomes much clearer.
Step 2: Meet With a Bankruptcy Attorney
Once you have your numbers together, sit down with a bankruptcy attorney. Most firms offer a free first meeting where you talk through your debts, your income, and your goals. A good attorney will walk you through how bankruptcy law applies to your case and explain which chapter makes sense for you.
This meeting is a two-way conversation. You share your situation, and the attorney explains your options in plain language. By the end, you should understand what bankruptcy can and cannot do for you, along with what happens next if you decide to move forward.
Step 3: Complete Credit Counseling
Florida law requires anyone filing for bankruptcy to complete credit counseling within 180 days before filing. This session is usually done online or by phone through an approved agency. A counselor will review your finances and go over other options, such as a repayment plan outside of bankruptcy, before confirming that bankruptcy is the right path.
The session typically takes one to two hours. Once it is done, you get a certificate of completion. You need this certificate to file your bankruptcy petition, so do not skip this step.
Step 4: Decide Between Chapter 7 and Chapter 13
Most people filing in Florida choose one of two options. Your attorney can help you decide which one fits your income, your property, and your goals.
Chapter 7 Bankruptcy
Chapter 7 wipes out most unsecured debts, such as credit card balances and medical bills. In exchange, a trustee may sell property that is not protected by an exemption and use the proceeds to pay creditors. Many filers keep most or all of their belongings because Florida exemption laws protect a wide range of property.
Chapter 13 Bankruptcy
Chapter 13 works differently. Instead of selling the property, you agree to a repayment plan that usually lasts three to five years. This option often fits people who want to keep a house or car that they are behind on, since it lets you catch up on missed payments over time while keeping the property.
Step 5: Gather Your Paperwork and File Your Petition
Filing for bankruptcy takes a lot of detail. You will need creditor names and addresses, account numbers, pay stubs or income records, bank statements, tax returns, and a list of what you own, including deeds and titles. A free copy of your credit report can help you find debts you may have forgotten about, though credit reports are not always complete or accurate, so use them as one tool among several.
Your attorney puts this information into the official bankruptcy forms, which include your petition, schedules of debts and assets, and a statement of financial affairs. These documents often run 50 pages or more. Once everything is signed, your attorney files your case with the bankruptcy court. Residents of Daytona Beach file through the United States Bankruptcy Court for the Middle District of Florida, Orlando Division.
As soon as your case is filed, you get a case number. This matters because federal law now stops most collection calls and lawsuits against you. If a creditor calls after your case is filed, you can tell them your case number and that they need to stop contacting you.
Step 6: Attend the Meeting of Creditors
Roughly 20 to 40 days after you file, the court schedules a meeting of creditors, often called a 341 meeting. You will need to attend, along with your bankruptcy trustee. Your attorney is usually there with you too.
Despite the name, creditors rarely show up. The trustee runs the meeting and asks you questions about your income, your expenses, your debts, and your property. Most of these meetings are short, often lasting just a few minutes, since trustees handle many cases in a single day.
Here is what to expect at this meeting:
- You answer questions under oath about your finances.
- The trustee checks that your paperwork matches what you told them.
- Creditors have the right to attend and ask questions, though this is rare.
- You get a notice with the date, time, and location well ahead of the meeting.
Step 7: Sort Out Exempt and Non-Exempt Property
Florida law protects a set amount of property from being sold in a Chapter 7 case. This is called your exempt property. Anything above that limit is non-exempt, and in theory, the trustee could sell it to pay your creditors.
In many cases, filers who want to keep non-exempt items work out an agreement with the trustee to pay the value of that property instead of giving it up. This lets you hold onto belongings that matter to you while still satisfying the trustee’s duty to creditors. Not every case involves non-exempt property, since Florida exemptions cover a wide range of everyday items and equity amounts.
Step 8: Finish the Discharge Process
Chapter 7 Timeline After the Meeting
After your meeting of creditors, your Chapter 7 case enters a waiting period. Creditors get 30 days to object to your claimed exemptions and 60 days to object to your discharge. Objections are uncommon. Once the waiting period ends without a problem, the court grants your discharge. From start to finish, most Chapter 7 cases in Florida wrap up in about four to six months.
Chapter 13 Timeline After the Plan Is Approved
In Chapter 13, you start making payments to the trustee about 30 days after you file, even before the court formally approves your plan. Your attorney negotiates the plan terms with the trustee, who reviews whether your proposed payment matches what you can afford. Once your plan runs its course, usually three to five years, and you have made all your payments, the court grants your discharge of any remaining eligible debt.
Step 9: Complete Debtor Education Counseling
Every filer must take a second counseling course after filing, known as debtor education. Unlike the first credit counseling session, you cannot take this course until your case is already filed. It is usually done online and takes a couple of hours.
It pays to take this course early. If you do not file your certificate of completion before your case closes, the court will not grant your discharge, and the discharge is the whole reason most people file in the first place.
Step 10: Get Your Discharge and Move Forward
Once the court grants your discharge, you are no longer personally responsible for the debts included in your case. Creditors cannot call you, sue you, or try to collect on those debts anymore. For many people in Daytona Beach, this is the moment their financial stress starts to lift.
Filing for bankruptcy does not erase every debt. Certain obligations, such as most student loans, recent taxes, and child support, usually are not discharged. Your attorney can tell you exactly which of your debts qualify before you file, so there are no surprises later.
Frequently Asked Questions About Bankruptcy in Florida
How long does the bankruptcy process take in Florida?
Chapter 7 cases usually take about four to six months from filing to discharge. Chapter 13 cases take longer because they involve a repayment plan, typically three to five years, though the case is considered active as soon as it is filed, and your protections start right away.
Will I lose my house or car if I file bankruptcy in Daytona Beach?
Not necessarily. Florida has generous exemption laws that protect a home and other property up to certain limits. Many Chapter 7 filers keep everything they own. If you are behind on your mortgage or car loan, Chapter 13 lets you catch up through your payment plan while keeping the property.
Will bankruptcy stop collection calls right away?
Yes. Once your case is filed and you have a case number, federal law puts an automatic stop on most collection calls, lawsuits, and wage garnishments. If a creditor contacts you after that point, you can tell them about your filing and ask them to stop.
Do I have to go to court in person during my bankruptcy case?
Most filers only have to appear in person at the meeting of creditors, not before a judge. That meeting is usually short and focused on a handful of questions about your finances. Your attorney can tell you what to expect and prepare you ahead of time.
Talk to a Bankruptcy Attorney in Daytona Beach
Bankruptcy can feel like a lot to take in, but you do not have to figure it out on your own. My Affordable Attorney helps Daytona Beach individuals and couples understand their options and file with confidence. Call (866) 4-ONLY 25 to set up a consultation and take the first step toward getting your finances back on track.