Your Case Lives in the Southern District of Florida

When you file bankruptcy in Miami, your case is handled by the United States Bankruptcy Court for the Southern District of Florida. This court covers Miami-Dade, Broward, and Palm Beach counties through its Miami, Fort Lauderdale, and West Palm Beach divisions.

Most Miami-area filers are assigned to the Miami division. Knowing which court handles your case helps you understand where paperwork is filed, where hearings take place, and what local rules apply.

Step One: Credit Counseling Before You File

Before anyone can file a bankruptcy petition, federal law requires completing a credit counseling course from an approved agency. The course must be finished within 180 days before filing. It usually takes about an hour and can be done online or by phone.

You will receive a certificate of completion. That certificate must be filed with your petition. Without it, the court will not open your case.

Step Two: Filing the Petition and Schedules

The bankruptcy case officially begins when the petition and supporting documents are filed with the court. These documents include detailed schedules listing your assets, debts, income, expenses, and recent financial transactions.

Accuracy matters. The schedules are signed under penalty of perjury. Mistakes or omissions can create serious problems later in the case. Our post on bankruptcy schedules and the Statement of Financial Affairs walks through what each form covers.

The filing fee varies by chapter. Fee waivers and installment payment plans are available for filers who qualify. Attorney fees, court costs and filing fees are explained in writing before any case begins.

Step Three: The Automatic Stay Goes into Effect

The moment a bankruptcy case is filed, the automatic stay under 11 U.S.C. 362 generally takes effect. This federal protection pauses most collection actions while the case is open. That includes collection calls, lawsuits, wage garnishments, and foreclosure proceedings.

The stay is powerful, but it has limits. Repeat filings within a short window can shorten or eliminate it. Certain obligations, like domestic support, are not paused. A creditor can also ask the court to lift the stay under specific circumstances. For a fuller picture, see our post on the automatic stay explained.

Step Four: The 341 Meeting of Creditors

About four weeks after filing, you will attend the 341 meeting of creditors. This is required in every bankruptcy case. Despite the name, creditors rarely show up.

In the Southern District of Florida, these meetings are routinely held by video or phone rather than in person. You will need a government-issued photo ID and proof of your Social Security number.

The trustee assigned to your case will ask questions about your petition and finances. The meeting usually lasts only a few minutes. Being honest and fully prepared is the right approach. For a detailed walkthrough of what to expect, read our post on the 341 meeting of creditors in Florida.

Florida Exemptions: What Property Is Protected

Florida filers use Florida state exemptions, not the federal set. Understanding these exemptions helps you know what property you may be able to keep.

Key Florida exemptions include:

  • Homestead: Unlimited in dollar value, but limited in size. Inside a municipality, the limit is half an acre. Outside a municipality, it is 160 acres. Filers who have not owned the property for a certain period before filing may face a cap under federal rules.
  • Vehicle equity: Up to $1,000 of equity in one motor vehicle.
  • Personal property: Up to $1,000 in personal property. If no homestead exemption is claimed, a wildcard exemption may allow a larger amount.
  • Wages: Head-of-family wages may be protected from garnishment under Florida law.
  • Retirement accounts: 401(k)s, IRAs, and similar qualified retirement accounts are generally fully protected.

Exemptions play a central role in both Chapter 7 and Chapter 13 cases. In a Chapter 7 liquidation, the trustee can sell non-exempt assets to pay creditors. Most filers have little or no non-exempt property. In a Chapter 13 repayment plan, exemptions help determine the minimum amount unsecured creditors must receive over the three-to-five-year plan period.

Chapter 7 vs. Chapter 13: A Quick Overview

Chapter 7 is a liquidation chapter. A means test compares your household income to the Florida median. Filers who pass the means test may be eligible for Chapter 7. A discharge typically comes within a few months of filing.

Chapter 13 is a reorganization chapter for individuals. You propose a repayment plan lasting three to five years. This chapter can be useful for filers who want to catch up on mortgage arrears or who have income or assets that would create problems in a Chapter 7 case.

Subchapter V of Chapter 11 is a streamlined path designed for small businesses and self-employed filers who carry business debt above Chapter 13 limits. It moves faster than a traditional Chapter 11 and has lower administrative costs.

Debts That Generally Survive Discharge

Not every debt goes away in bankruptcy. Some categories of debt generally survive discharge under the Bankruptcy Code:

  • Most student loans
  • Recent income taxes and certain other taxes
  • Domestic support obligations (child support and alimony)
  • Court-ordered fines and restitution
  • Debts from fraud or willful misconduct

Knowing which debts can and cannot be discharged helps you set realistic expectations before you file.

Step Five: Debtor Education Before Discharge

Before the court can issue a discharge, you must complete a second course called a debtor education or financial management course. This is separate from the pre-filing credit counseling. Like credit counseling, it can usually be completed online or by phone. The completion certificate must be filed with the court.

What Discharge Means

A bankruptcy discharge is a court order that eliminates your personal liability on qualifying debts. Creditors cannot legally try to collect a discharged debt from you. The discharge is the goal most filers are working toward throughout the case.

Past results do not predict future outcomes.

In a Chapter 7 case, discharge typically comes a few months after the 341 meeting, assuming no issues arise. In Chapter 13, discharge comes after all plan payments are completed. Our post on bankruptcy discharge explained covers what the order means and what comes after.

A Few Practical Tips for Miami Filers

  • Gather documents early. Tax returns, pay stubs, bank statements, and loan records are all needed.
  • Keep your contact information current with the court and your attorney. Notices go out by mail and email.
  • Attend every required meeting or hearing. Missing a scheduled event can put your case at risk.
  • Be straightforward in all filings and at the 341 meeting. The bankruptcy system works on full disclosure.

The process can feel unfamiliar at first, but each step has a clear purpose. Understanding the road ahead makes the journey less stressful.

Wondering if a fresh start fits your situation?

Attorney fees, court costs and filing fees are explained in writing before any case begins. Take the free 2-minute case review or call Recalde Law Firm at (305) 792-9100.