Chapter 7 vs. Chapter 13 Bankruptcy Lawyer Guide for Stuart, FL, Homeowners in 2026

Choosing between Chapter 7 and Chapter 13 bankruptcy is one of the most important financial decisions a Stuart, FL, homeowner can face, and working with an experienced bankruptcy lawyer serving Stuart, FL, can help you understand which path gives you the best outcome. If you are a homeowner in Martin County carrying more debt than you can manage, call (772) 344-9090 to get a clear picture of your options.

How Chapter 7 Bankruptcy Works for Stuart Homeowners

Chapter 7 is often called a "liquidation" bankruptcy, but for most Florida filers, that word is misleading. Florida's unlimited homestead exemption lets Chapter 7 filers protect their home equity entirely while discharging qualified debts.

Filing Chapter 7 won't help if you're behind on your mortgage. It will stop a foreclosure temporarily, but to keep your house, you must be current when you file and stay current going forward. If you are current on your mortgage and your main problem is credit card debt or medical bills, Chapter 7 can clear those balances quickly. Most cases in Florida wrap up in roughly four to six months. A bankruptcy lawyer can confirm whether this timeline applies to your specific situation.

Do You Pass the Florida Means Test?

To qualify for Chapter 7, you must pass the Florida means test. Florida's current median income thresholds for cases filed on or after July 15, 2026, are $69,876 for a single-person household, $86,523 for two people, $97,540 for three, and $114,761 for a household of four. If your annualized gross income over the last six months is at or below your household size's limit, you automatically pass.

Being above the median does not automatically disqualify you. Your bankruptcy lawyer must then perform the full means test calculation, deducting allowable expenses such as mortgage, taxes, and healthcare. Many Martin County households with moderate incomes still qualify after this second step.

How Chapter 13 Bankruptcy Protects Your Stuart Home

Chapter 13 is the preferred tool when your home is at risk. It allows filers to keep assets like homes and cars while catching up on missed payments through a three-to-five-year repayment plan.

If you have fallen behind on your mortgage, Chapter 13 lets you spread those arrears across your plan while making regular monthly payments going forward. The automatic stay stops foreclosure the moment you file. Chapter 13 can even strip off underwater second mortgages entirely, a benefit that can be especially valuable in Stuart's fluctuating real estate market.

What Makes Chapter 13 Different From Chapter 7?

The biggest difference comes down to speed versus protection. Chapter 7 discharges most unsecured debts in months but cannot cure mortgage arrears. Chapter 13 takes years but gives you the tools to save a home heading toward foreclosure.

Florida's homestead exemption protects unlimited equity in your primary residence under both chapters, though it works differently in each. One important detail: before claiming the homestead exemption in Florida, you must have owned the property for at least 1,215 days before filing. Otherwise, a federal cap of $214,000 limits the equity you can protect. If you are a newer Stuart homeowner, this timeline matters when deciding when to file. A bankruptcy lawyer familiar with Martin County cases can help you assess where you stand.

Florida Exemptions That Matter to Martin County Residents

Florida's exemptions go beyond the homestead. Those who qualify for Chapter 7 may obtain a no-asset bankruptcy, eliminating unsecured debt without selling any property. Additional exemptions that can apply to Stuart residents include protection for retirement accounts, a portion of wages, and certain personal property. These protections are available under both chapters, though how they apply may differ based on your filing. Reviewing your full financial picture with a qualified bankruptcy lawyer is the most reliable way to know what you can keep.

Which Chapter May Be Right for You?

Your choice often comes down to a few key questions:

• Are you current on your mortgage? Chapter 7 may work if your primary concern is unsecured debt.
• Are you behind on your mortgage and facing foreclosure? Chapter 13 may be the stronger option.
• Does your household income fall below Florida's means test limits? You may qualify for Chapter 7's faster timeline.
• Do you want to strip a second mortgage? Only Chapter 13 allows this.

No two situations are identical, and factors like your income, the amount of arrears, and the makeup of your debt all shape which chapter makes sense.

Take the Next Step Toward Financial Relief in Stuart, FL

We have been helping Florida residents find debt relief since 1990, serving over 10,000 clients across Martin County and the surrounding region. Whether Chapter 7 or Chapter 13 is the right fit, our bankruptcy lawyer team provides personalized, judgment-free guidance from your first call to your final discharge. We can also assist with related concerns like wage garnishment if creditors are already taking action against your income.

Read what past clients have to say by visiting our Google Business Profile to see why Stuart-area homeowners trust us with their financial futures.

Call Ozment Law today at (772) 344-9090 or send us a message through our contact page to schedule your free consultation. Same-day telephone, Zoom, and in-person meetings are available.