Living on the Space Coast should be about enjoying the Florida sunshine, not dodging calls from debt collectors. If you’re a resident of Palm Bay, FL, and your monthly bills exceed your take-home pay, you aren’t alone. Many hard-working families in Brevard County find themselves underwater due to medical emergencies, job loss, or rising interest rates.
Chapter 7 bankruptcy is a powerful federal tool designed to halt the cycle of debt. Often referred to as a "fresh start" filing, it allows you to legally eliminate unsecured debts while protecting the assets you need to live and work. At our firm, we provide the localized legal guidance Palm Bay residents need to navigate the Middle District of Florida bankruptcy courts with confidence.
Bankruptcy is a constitutionally authorized process intended to provide relief to honest people burdened by debt they cannot repay. It isn’t a sign of failure; it is a strategic financial tool used to re-establish stability.
In Florida, most individuals choose between Chapter 7 Bankruptcy (a total discharge of debt) and Chapter 13 (a structured repayment plan). For those who qualify, Chapter 7 Bankruptcy is often the preferred route because it is fast, effective, and does not require a multi-year payment commitment.
The moment our firm files your bankruptcy petition, a legal shield called the Automatic Stay is activated. This is perhaps the most immediate benefit of filing. It legally forbids creditors from:
Calling your home or workplace.
Initiating or continuing lawsuits.
Garnishing your wages.
Proceeding with a foreclosure or repossession.
If a collector violates this stay after being notified of your filing, they can be held in contempt of court and may even be required to pay you damages.
Not everyone is eligible for Chapter 7 Bankruptcy. To ensure the system is used by those in genuine need, the court applies a Means Test.
This test looks at your average income over the six months prior to filing and compares it to the median income for a Florida household of your size. If you are below the median, you qualify. If you are above, we perform a secondary calculation deducting IRS-approved living expenses. Many residents in Palm Bay with higher incomes still qualify for Chapter 7 bankruptcy once their necessary expenses—like mortgages and transportation—are factored in.
One of the biggest myths about Chapter 7 bankruptcy is that you will lose everything. In reality, most Palm Bay filers keep all of their possessions. Because Florida has "opted out" of federal exemptions, we use Florida state law to protect your assets:
The Homestead Exemption: Florida has one of the best homestead laws in the nation. Your primary residence in Palm Bay is generally 100% protected from creditors, regardless of its value, provided you’ve lived there for at least 40 months.
Motor Vehicle Protection: You can protect up to $5,000 of equity in your car.
The "Wildcard" Exemption: If you don't claim the homestead exemption, you can protect an additional $4,000 in any property you choose—including cash, tax refunds, or additional vehicle equity.
Retirement & Social Security: Your 401(k), IRA, and Social Security payments are almost always fully exempt.
Education First: Credit Counseling
Before filing, you must complete a brief Credit Counseling Course from an approved agency. This ensures you understand all available options before committing to bankruptcy.
The 341 Meeting of Creditors
About 30 to 45 days after filing, you will attend the 341 Meeting. Don't let the name intimidate you; for most Palm Bay residents, this is a 5-minute meeting conducted via Zoom or telephone. A trustee will ask a few questions to verify the information in your petition. While creditors are invited, they rarely show up.
Reaffirmation Agreements
If you have a car loan or a mortgage you wish to keep, you may sign a Reaffirmation Agreement. This is a contract that "waives" the bankruptcy discharge for that specific debt, allowing you to keep the asset as long as you continue making payments. We will help you determine if reaffirming a debt is in your best financial interest.
The Final Step: Debtor Education
Before your case closes, you’ll take a second short online course on financial management. This provides you with the tools to manage your new, debt-free life effectively.
The Discharge Injunction: Your Permanent Peace of Mind
At the end of your case (usually 4–6 months after filing), the court issues a Discharge Order. This is the "Gold Medal" of bankruptcy. It includes a Discharge Injunction, which is a permanent court order that forbids creditors from ever trying to collect the discharged debts again. If a credit card company tries to sue you five years from now for a debt discharged in 2025, they are in violation of federal law.
Rebuilding: Your Credit Score After Bankruptcy
It is a common misconception that bankruptcy ruins your credit for a decade. While the mark stays on your report, your score can begin to recover almost immediately.
In fact, many clients see a significant improvement in their credit score within 12 months of discharge. By eliminating the high balances and "delinquent" statuses that were dragging your score down, you create a "clean floor" to build upon. By opening a secured credit card and making small, on-time payments, you can often qualify for a standard auto loan or even a mortgage within two to three years of your Chapter 7 bankruptcy filing.
Bankruptcy is a local matter. Your case will be handled by the U.S. Bankruptcy Court for the Middle District of Florida. You need an attorney who knows the local trustees and understands how the judges in the Orlando division operate.
Don't let debt dictate your future in Palm Bay. Whether you are in the Northwest section, Bayside Lakes, or near the Heritage Parkway, our firm is here to help you navigate the path to financial freedom.
Contact us today for a free, confidential consultation and take the first step toward your Fresh Start.