If you support your children and parents and are feeling overwhelmed by debt, this blog explains how Florida bankruptcy law
Feb 16, 2026
Bankruptcy Posted on Mar 31, 2026
When people think about bankruptcy, they often imagine someone who spent too much, borrowed irresponsibly, or simply mismanaged money. But the reality we see every day at Hoskins, Turco, Lloyd & Lloyd is very different.
Many people who end up overwhelmed by debt didn’t get there because they were careless, but because life happened.
A parent gets sick and someone has to become the caregiver.
A marriage ends and one household suddenly becomes two.
A medical emergency wipes out savings in a matter of weeks.
If these sound familiar, this article is for you. Many people carry debt because they are caring for someone else, surviving a divorce, or navigating a medical crisis. And with these situations, many people hold guilt over believing they should have “handled things better.” However, financial hardship caused by life events is incredibly common.
Bankruptcy laws in Florida exist specifically to give people a fresh start when circumstances spiral beyond their control. If you are struggling financially, you may have more options than you realize.
Certain types of financial hardship appear again and again in bankruptcy cases. These situations share one common theme: the debt didn’t come from irresponsible behavior — it came from responsibility.
Bankruptcy for caregivers often arises when individuals have to financially support family members. For example, if you are taking care of an aging parent with Alzheimer’s, you may have to reduce your hours at work to take care of them; you may have to help cover the cost of medications, transportation, or assisted living expenses. Oftentimes, individuals in this situation use credit cards to bridge the financial gap; however, credit card debt grows, savings disappear, and bills pile up.
Chapter 7 bankruptcy in Florida is a legal process (liquidation) that discharges unsecured debts within 4–6 months, typically allowing residents to keep certain assets. It requires passing a “means test” to prove income is below the state median. If your income and assets fall within certain limits, Chapter 7 can eliminate many types of unsecured debt such as:
Florida also offers strong asset exemptions, including protections for:
For caregivers in Florida facing mounting debt, Chapter 13 bankruptcy can offer a structured path forward without losing essential assets. Unlike Chapter 7, Chapter 13 allows you to reorganize your debt into a manageable repayment plan—typically over three to five years—while keeping your home, car, and other necessities.
This option can be especially valuable for caregivers balancing medical expenses, reduced income, or financial strain from supporting a loved one. It can help stop foreclosure, prevent repossession, and consolidate debts into predictable monthly payments.
Divorce can create financial chaos. Even when a divorce settlement divides responsibilities clearly, reality doesn’t always follow the paperwork.
We often see situations like:
Chapter 7 is often the simplest and fastest option for individuals who are leaving a marriage with significant unsecured debt. If you qualify for Chapter 7 bankruptcy, you can eliminate unsecured debts such as credit cards, medical bills, personal loans, and some collection accounts. This works well for individuals going through a divorce because it helps people who have a lower household income, fewer assets and a large share of marital credit card debt.
However, bankruptcy cannot discharge child support or alimony (spousal support).
Chapter 13 bankruptcy in Florida allows individuals with regular income to reorganize debts and replay all or part of them through a court-approved plan typically spanning 3 to 5 years. This type of bankruptcy stops foreclosure, repossession, and creditor harassment via an automatic stay, helping individuals keep assets like homes and cars.
For individuals going through or impacted by divorce, Chapter 13 bankruptcy can be helpful to catch up on mortgage payments, protect assets that might not be exempt under Chapter 7, or if the individual has a higher income that disqualifies them from Chapter 7.
Medical debt is one of the leading causes of bankruptcy in the United States. And it doesn’t discriminate. People with good insurance, stable jobs, and strong credit can still be financially devastated by emergency surgery, cancer treatment, long hospital stays or chronic illness.
One of the main reasons Chapter 7 works well for medical debt is that medical bills are typically considered unsecured debt. Unsecured debts are obligations that are not tied to collateral, such as property or a vehicle.
Examples include:
Because medical providers usually cannot repossess property to collect the debt, these bills are often eligible to be discharged in Chapter 7 bankruptcy. In addition, Chapter 7 can immediately stop aggressive collection activity through an automatic stay, giving you peace of mind as you regain financial control. In some cases, Chapter 13 may be applicable. That’s why it’s best to consult with an experienced bankruptcy attorney.
Call 866-930-6435 to speak with bankruptcy attorneys who specialize in helping caregivers, individuals going through divorce, or those impacted by medical bills.
At Hoskins, Turco, Lloyd & Lloyd, we understand that many clients come to us after some of the hardest moments of their lives. Our goal isn’t to judge your situation, but to help you move forward.
Our experienced bankruptcy attorneys can help you:
You don’t have to face this alone. Contact us today for a free and confidential consultation by calling 866-930-6435.
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