Chapter 7 Bankruptcy in Melbourne & Palm Bay, Florida

Can Chapter 7 Bankruptcy Eliminate Your Debt in Brevard County?

Yes. Chapter 7 bankruptcy permanently eliminates most unsecured debt — including credit card balances, medical bills, and personal loans — for qualifying Melbourne and Palm Bay residents, typically within four months of filing.

If you are a Brevard County resident facing wage garnishment, creditor lawsuits, or mounting debt you cannot repay, Chapter 7 may be the fastest and most complete form of debt relief available to you under federal law. Most filers keep everything they own. Most never appear before a judge. And most are protected from all collection activity the moment the petition is filed.

What Can Chapter 7 Bankruptcy Do for You in Brevard County?

A Chapter 7 bankruptcy attorney in Brevard County can legally eliminate most of your unsecured debt - credit cards, medical bills, personal loans, and more - stop all creditor calls and collection lawsuits immediately, and give you a court-ordered fresh start, typically in about four months. Florida law protects your home, your car, your retirement accounts, and most personal property throughout the process. In most cases, our clients lose nothing.

At Bowin Law Group, Beau Bowin has guided more than 10,000 Space Coast residents through Chapter 7 bankruptcy and other debt relief options - from Melbourne and Palm Bay to Titusville, Cocoa Beach, and Satellite Beach. Whether you are a contractor who lost work when a launch program was delayed, a healthcare worker at Holmes Regional dealing with your own medical bills, or a family in South Brevard stretched thin after a divorce or job loss, we can tell you exactly where you stand - for free - with no pressure and no obligation.

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Why Choose Bowin Law Group?

Choosing the right bankruptcy attorney is one of the most important decisions you will make. Bowin Law Group is not a national chain with a 1-800 number - we are a hometown Brevard County firm. Here is why thousands of Space Coast families have trusted us:

• Super Lawyers Rising Star (2010, 2011, 2013, 2014). Peer-nominated by fellow Florida attorneys and recognized by Thomson Reuters - an honor awarded to fewer than 2% of attorneys statewide. One of the only Melbourne and Brevard County attorneys to receive this distinction.
• Perfect 10.0 AVVO Rating. The highest possible rating, reflecting exceptional client satisfaction and peer recognition.
• 10,000+ Space Coast Residents Helped. Real results in debt discharge, foreclosure prevention, and mortgage workouts across Brevard County since 2009. No attorney has won more foreclosure cases for homeowners in Brevard County since 2009.
• Bankruptcy and Foreclosure Defense Exclusive. This is all we do. Bowin Law Group does not dabble in bankruptcy between personal injury cases or real estate closings. We are specialists.
• No Hidden Fees. All attorney fees are disclosed to the Bankruptcy Court and subject to Court oversight. Flat-rate representation with payment plans available.
• Judgment-Free, Compassionate Advocacy. Financial hardship can hit anyone - a Space Coast industry downturn, a medical emergency, a divorce, a job loss. We have seen it all and we are here to help, not to judge.
• All of Brevard County, In Person or Virtually. From Cape Canaveral to Micco, Satellite Beach to Mims - in-person appointments at our Melbourne office, or by phone and video from anywhere on the Space Coast.

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What Chapter 7 Bankruptcy Can Do for You

Chapter 7 bankruptcy is a powerful legal tool that addresses a wide range of debt problems. Here is how it applies to the most common financial challenges our clients face:

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Do You Qualify for Chapter 7 Bankruptcy in Florida?

Most Florida residents qualify for Chapter 7 bankruptcy if their household income falls below the Florida state median for their household size. Qualification is determined through a calculation called the means test, which compares your average monthly income over the past six months to the median household income in Florida for a household of the same size.

If your income is at or below the median, you automatically qualify. If it exceeds the median, your attorney completes an additional form accounting for allowable expenses and deductions. Most people who need Chapter 7 pass the means test. Bowin Law Group runs this analysis for every client at the free initial consultation.

Additional eligibility requirements include:

• You have not received a Chapter 7 discharge in the past eight years.
• You have not had a bankruptcy case dismissed for cause within the past 180 days.
• You must complete an approved credit counseling course before filing.

What to Avoid Before Filing for Bankruptcy

What you do in the months before filing can significantly affect your case. Whether you are in Merritt Island, Rockledge, or anywhere else in Brevard County, once you begin considering bankruptcy you should avoid the following:

• Running up credit card balances or making large credit purchases
• Transferring property or assets to family members or friends
• Repaying personal loans to relatives or business partners
• Withdrawing large sums from retirement accounts
• Making large cash withdrawals from bank accounts

The bankruptcy Trustee has authority to reverse certain transactions made within specific timeframes before filing. Ordinary creditor payments made within 90 days of filing may be recoverable. Transfers to family members or insiders within one year may be reversed. Fraudulent transfers can be unwound up to two years back, and sometimes longer under Florida state law. Call our office before taking any action with your assets.

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The Chapter 7 Bankruptcy Process: Step by Step

Step 1 - Free Consultation. We review your financial situation, run the means test, identify your assets and exemptions, and tell you exactly what to expect before you make any decisions.

Step 2 - Complete the Questionnaire. You complete our secure online questionnaire covering your debts, assets, income, and expenses. We are available throughout the process to answer questions.

Step 3 - Gather Documents. You provide your last two years of tax returns, six months of pay stubs, three months of bank statements, and a color copy of your driver's license and Social Security card.

Step 4 - Credit Counseling Course. Federal law requires an approved credit counseling course before filing. It takes approximately 45 minutes online and costs about $25. We provide the agency links.

Step 5 - We File Your Petition. Once your petition is complete and fees are paid, we file electronically with the U.S. Bankruptcy Court for the Middle District of Florida, Orlando Division, which handles Brevard County cases. The automatic stay takes effect immediately upon filing.

Step 6 - Meeting of Creditors (341 Meeting). Approximately 30 to 45 days after filing, you attend a brief phone meeting with the Chapter 7 Trustee. Creditors rarely appear. The meeting typically lasts 5 to 10 minutes. Bowin Law Group appears with you.

Step 7 - Debtor Education Course. Before your case closes, you complete a second short online course on personal financial management.

Step 8 - Discharge. Approximately four months after filing, the court enters your discharge order. Your debts are legally eliminated and your fresh start begins.

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The Automatic Stay: Immediate Protection from Creditors

The moment you file for Chapter 7 bankruptcy, federal law immediately imposes an automatic stay that stops all creditor collection activity. This protection takes effect the instant your petition is filed - there is no waiting period. For Space Coast workers whose wages are being garnished by a creditor, this means relief arrives the same day we file.

The automatic stay prohibits creditors from:

• Calling or contacting you about the debt
• Sending collection letters or notices
• Filing or continuing lawsuits against you
• Garnishing your wages
• Repossessing your vehicle
• Proceeding with foreclosure

If a creditor violates the automatic stay after your petition is filed, they are in contempt of a federal court order and may be subject to sanctions. The automatic stay is one of the most powerful consumer protections in American law.

What Property Can You Keep in a Florida Chapter 7 Bankruptcy?

Florida has some of the most generous bankruptcy exemption laws in the United States. In most Chapter 7 cases filed in Brevard County, our clients keep everything they own. This is especially meaningful here on the Space Coast, where many families have built up equity in their homes over the years. Here is a summary of Florida's key exemptions:

The average Chapter 7 filer in Florida loses nothing. We analyze your specific assets during your free consultation and tell you exactly what is protected before you file.

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Can You Keep Your Car in Chapter 7 Bankruptcy?

Yes. If you have a car loan and wish to keep the vehicle, you continue making your regular payments and notify the lender of your intent to retain it. Florida's vehicle exemption protects up to $5,000 in vehicle equity. If you owe more than your car is worth, there is no equity to protect and you simply continue paying. This matters especially for clients who commute from South Brevard to the Kennedy Space Center area or from Palm Bay up US-1 to Melbourne - your ability to get to work is protected.

If you would rather surrender the vehicle and eliminate the loan entirely, we can do that as well. Any deficiency balance remaining after surrender will be discharged. If you have had a vehicle repossessed recently, the automatic stay may allow you to recover it. The choice is entirely yours.

What Happens If You Have Assets That Are Not Fully Exempt?

In some cases, a filer may own assets that exceed their exemption limits. If so, the Trustee may be entitled to collect the non-exempt portion for creditors. We analyze this carefully during your free consultation - we will know before you file whether you are at risk of losing anything. This comes up most often for clients who own a second property, a rental along A1A, or a business with tangible assets.

Non-homestead property such as a rental property in Cocoa Beach may be subject to Trustee action if there is significant equity above any mortgage lien. If it appears the loss would outweigh the benefit of filing, we will tell you honestly and explore alternatives including Chapter 13. If the non-exempt amount is modest, the Trustee will generally allow you to pay the equivalent value in 10 to 12 monthly installments rather than surrendering the asset.

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What Debts Does Chapter 7 Discharge?

Chapter 7 discharges most types of unsecured consumer debt. Debts that are typically eliminated include credit card balances, medical and hospital bills, personal loans and payday loans, utility arrears, old lease obligations, most civil judgments, and deficiency balances after vehicle repossession.

Debts That Survive Chapter 7 Bankruptcy

Certain debts cannot be discharged in bankruptcy and will remain after your case closes:

• Student loans: Generally not dischargeable unless you can prove undue hardship, which requires a separate legal proceeding. Deferment strategies are available.
• Recent income taxes: Income taxes due within the past three years are typically not dischargeable. Older income taxes may qualify for discharge.
• Child support and alimony: Domestic support obligations survive bankruptcy and must continue to be paid.
• Criminal fines and restitution: Government-imposed penalties cannot be discharged.
• Debts from fraud: Debts incurred through intentional misrepresentation or fraud survive bankruptcy.
• DUI-related injury judgments: Debts arising from drunk driving accidents that caused personal injury or death cannot be discharged.

We review your specific debts during your free consultation and identify exactly which will be discharged and which will survive. There will be no surprises.

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The Discharge Injunction: Your Fresh Start

About four months after you file your petition, the Bankruptcy Court will enter a discharge order. This order permanently prohibits your creditors from ever attempting to collect the discharged debts again. It applies forever, not just during the bankruptcy process.

If a creditor violates the discharge injunction by calling you, sending collection letters, or attempting to sue you for a discharged debt, they are in contempt of a federal court order and may be subject to sanctions. Keep a copy of your discharge order. If any creditor contacts you about a discharged debt, contact our office immediately.

How Does Chapter 7 Bankruptcy Affect Your Credit Score?

Chapter 7 bankruptcy typically improves your credit score faster than continuing to miss payments. Missed and late payments damage your credit more than any other factor, and without bankruptcy, those delinquent accounts remain on your report for seven years, dragging your score lower with every passing month. Chapter 7 eliminates those balances entirely. Discharged creditors are permanently prohibited from making further negative reports.

The practical result for most filers is a meaningful credit score improvement within months of discharge. The same positive behaviors that built your credit before - making on-time car payments, keeping mortgage payments current, using credit responsibly - will rebuild it just as effectively after.

Chapter 7 remains on your credit report for 10 years from the filing date, compared to 7 years for Chapter 13. However, the negative impact fades steadily as new positive credit history accumulates. Most mortgage lenders will approve a new home loan just two years after a Chapter 7 discharge. FHA and VA loan programs may allow financing even sooner - an important point for the many active-duty and veteran families at Patrick Space Force Base who make up a significant share of Brevard County homebuyers.

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How Often Can You File for Bankruptcy?

You may receive a Chapter 7 discharge once every eight years, measured from the date of your prior Chapter 7 filing. Different timing applies if you have previously filed Chapter 13: a Chapter 13 discharge requires only a two-year waiting period before filing Chapter 13 again, and four years before filing Chapter 7. If you find yourself in financial difficulty again before the waiting period has passed, we will discuss all available alternatives at your consultation.

How Much Does Chapter 7 Bankruptcy Cost in Brevard County?

The total cost of a Chapter 7 bankruptcy with Bowin Law Group typically ranges from $1,875 to $2,875, depending on the complexity of your case. Here is how that breaks down:

Bowin Law Group accepts payment in installments, typically beginning with a $500 deposit. We offer discounts for Active-Duty Military and Veterans, including the many service members and families stationed at or near Patrick Space Force Base. All fees must be paid in full before we file your petition, but we begin working on your case from the first payment. There are no hidden fees - all attorney fees must be disclosed to the Bankruptcy Court, and the Court has authority to order a refund if fees are excessive.

Joint filing with a spouse is available for the same attorney fee. Joint filing often doubles available exemptions and may be the better strategy depending on your situation. We analyze both individual and joint options during your consultation.

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Frequently Asked Questions About Chapter 7 Bankruptcy in Florida

How long does Chapter 7 bankruptcy take in Florida?

A Chapter 7 bankruptcy in Florida typically takes four to five months from the date of filing to discharge. Brevard County cases are handled by the U.S. Bankruptcy Court for the Middle District of Florida. Most clients file within two to four weeks of their first appointment, meaning the entire process from first call to debt elimination usually takes five to six months.

What happens to my retirement accounts in Chapter 7 bankruptcy?

401(k)s, IRAs, pensions, and most other qualified retirement accounts are fully protected in Florida bankruptcy with no dollar limit. You will not lose your retirement savings in a Chapter 7 case. This protection applies whether you are a current or retired employee of the Kennedy Space Center, a teacher in the Brevard Public Schools system, a county employee, or anyone else with a qualified retirement plan.

Can I file Chapter 7 if I am currently employed?

Yes. Having a job does not disqualify you from Chapter 7. Qualification is based on the means test, which compares your income to the Florida state median for your household size. Many employed Space Coast residents qualify, particularly contractors, hourly workers, or anyone whose income dropped after a program cancellation or layoff. We run the means test at no charge during your free consultation.

What is the difference between Chapter 7 and Chapter 13 bankruptcy?

Chapter 7 is a liquidation bankruptcy that eliminates most unsecured debts in about four months. You do not repay creditors - the debt is simply discharged. Chapter 13 is a reorganization bankruptcy in which you repay a portion of your debts over a three to five year plan. Chapter 7 is faster and requires no repayment, but Chapter 13 is the better choice if you are behind on a mortgage and want to save your home, or if you have assets worth protecting that exceed your exemptions. Bowin Law Group handles both and will recommend the right option for your situation.

What if I have already been sued by a creditor or a judgment has been entered against me?

Filing Chapter 7 immediately stops any active lawsuits through the automatic stay. If a judgment has already been entered against you, Chapter 7 discharges most judgment debts - meaning the creditor can no longer collect on the judgment after your discharge. Wage garnishments being taken pursuant to a judgment stop the day we file. If a creditor has placed a lien on your home through a judgment, a separate motion to avoid the lien may be available. This is a common situation for Brevard County residents and something we address regularly.

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Can I discharge medical debt from Holmes Regional, Parrish Medical, or Cape Canaveral Hospital?

Yes. Medical debt is one of the most common reasons Space Coast families file for bankruptcy, and it is fully dischargeable in Chapter 7. It does not matter which Brevard County hospital or medical provider issued the bill - unpaid medical balances are treated as unsecured debt and eliminated in full through the bankruptcy discharge. There is no minimum or maximum amount required.

Will bankruptcy affect my security clearance?

This is an important question for the many contractors and federal employees working at Kennedy Space Center, Patrick Space Force Base, and defense contractors throughout Brevard County. The relationship between bankruptcy and security clearances is nuanced. Financial instability - including unpaid debts, judgments, and garnishments - is itself a risk factor that can jeopardize a clearance. Proactively addressing debt through bankruptcy can in some cases be viewed more favorably than ongoing financial chaos. That said, clearance decisions involve many factors. We recommend consulting with your security officer or clearance attorney in addition to speaking with us.

What happens if I have a co-signer on a debt?

If a friend, family member, or spouse co-signed a debt with you, your Chapter 7 discharge protects you from that debt - but not them. The creditor can still pursue the co-signer for the full balance after your discharge. If protecting a co-signer is a priority, Chapter 13 includes a co-debtor stay that provides temporary protection for co-signers on consumer debts. This is worth discussing during your consultation, particularly for joint auto loans or co-signed personal loans.

I am self-employed or own a small business. Can I still file Chapter 7?

Yes. Self-employed individuals and small business owners in Brevard County can file personal Chapter 7 bankruptcy. Your personal debts, including personal guarantees on business loans, are dischargeable. Business assets may be treated differently depending on how your business is structured. If the business itself is the primary problem, a separate business bankruptcy analysis may be needed. We work with sole proprietors, independent contractors, and small business owners throughout the Space Coast and will help you understand exactly what a personal filing covers.

What is a 341 Meeting of Creditors and what should I expect?

The 341 Meeting is a brief hearing held approximately 30 to 45 days after your petition is filed. It is conducted by phone - you will never appear in a courtroom. The Chapter 7 Trustee will ask you to confirm your identity and verify that the information in your petition is accurate. The whole process typically takes 5 to 10 minutes. Despite its name, creditors almost never appear. Bowin Law Group prepares you for the meeting in advance and attends with you. Most clients find it far less stressful than they expected.

Can I choose which debts to include in my bankruptcy?

No. Federal bankruptcy law requires you to list all of your creditors and all of your debts. You cannot selectively exclude a debt you want to keep or a creditor you prefer not to notify. However, for secured debts like a car loan or mortgage, you can choose to reaffirm the debt - meaning you agree to remain personally liable and keep making payments in exchange for keeping the collateral. The decision to reaffirm is yours, and we will walk you through the pros and cons for each secured debt in your case.

What happens to my credit cards after I file Chapter 7?

All credit card accounts included in your bankruptcy will be closed by the issuer once they receive notice of your filing. You will not be able to use those cards after filing. However, many clients are surprised to find that new credit card offers begin arriving within months of their discharge. Secured credit cards - where you deposit funds as collateral - are often the easiest way to start rebuilding credit immediately after discharge. Used responsibly, they are one of the fastest paths back to a healthy credit profile.

What if I have recently moved to Brevard County from another state?

You can file bankruptcy in Florida after living here for 91 days. However, the exemptions you can use depend on how long you have been a Florida resident. If you have lived in Florida for less than two years, you may be required to use the exemptions from your prior state of residence rather than Florida's exemptions. This matters most for the homestead exemption. Many Space Coast newcomers - particularly those who relocated for aerospace, defense, or space industry jobs - are in exactly this situation, and it is something we evaluate carefully at your consultation.

How do I get started with Bowin Law Group?

The first step is a free phone consultation.  We will review your situation, answer your questions, and tell you exactly what to expect before you make any decisions. There is no pressure and no obligation.

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Serving All of Brevard County, Florida

Bowin Law Group represents bankruptcy clients throughout Brevard County and Florida's Space Coast, including Melbourne, West Melbourne, Palm Bay, Palm Bay, Melbourne Beach, Viera, Cocoa, Cocoa Beach, Cape Canaveral, Port Saint John, Titusville, Rockledge, Satellite Beach, Indian Harbour Beach, Indialantic, Merritt Island, Eau Gallie, Suntree, Bayside Lakes, Micco, Grant-Valkaria, and Mims. We understand the Space Coast economy - from the aerospace and defense industry fluctuations at Kennedy Space Center and Patrick Space Force Base, to the tourism cycles along A1A, to the healthcare and service industries that employ much of South Brevard.

Many steps in the Chapter 7 process - including the client questionnaire and both credit counseling courses - can be completed online from home. Phone and virtual consultations are also available for clients throughout North Brevard, South Brevard, and the barrier island communities.

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Beau Bowin

Bankruptcy Attorney  |  Bowin Law Group  | Melbourne, Florida

Florida Bar Number: 792551

Super Lawyers Rising Star (2010, 2011, 2013, 2014)  |  AVVO Rating 10.0  |  10,000+ Residents Counsled

Beau Bowin founded Bowin Law Group to focus exclusively on bankruptcy and foreclosure defense for Space Coast families. A Melbourne native, he has represented thousands of clients throughout Brevard County - from Titusville in the north to Micco in the south, and from the barrier island communities along A1A to the I-95 corridor. The information on this page reflects Florida bankruptcy law as of 2026.

This page is provided for general informational purposes only and does not constitute legal advice. Every bankruptcy case is unique. Contact Bowin Law Group to discuss your specific financial situation.

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