The 2026 Guide to Bankruptcy in Florida: Trends, Limits, and New Laws

If you feel like the financial walls are closing in, the statistics confirm you are not alone. In the Middle District of Florida (which includes Orlando, Tampa, and Jacksonville), bankruptcy filings have surged by over 26% in the last year.

Why? It’s not because people are irresponsible. It’s because the “math of living in Florida” has changed. Between the homeowners’ insurance crisis, skyrocketing rents, and persistent inflation, thousands of hard-working families are using federal bankruptcy protection to survive in 2026.

At Juan Burgos Law, we want you to have the facts. This guide breaks down the new income limits, exemption changes, and filing trends for 2026 so you can make an informed decision.

Why Are Filings Surging in 2026?

We see three primary drivers for the dramatic increase in Chapter 7 and Chapter 13 cases this year:

1. The Insurance & Housing Crisis

Florida has maintained one of the highest inflation rates in the country, driven largely by housing costs. Many of our clients are filing simply to free up cash flow from credit card payments so they can afford their rent or mortgage and homeowners insurance premiums, which have doubled or tripled for many.

2. High Interest Rates

With credit card interest rates averaging over 24%, paying down debt is mathematically impossible for many families. A $10,000 balance can take 20 years to pay off at minimum payments. Bankruptcy cuts that cord immediately.

3. Aggressive Debt Collection

Creditors have become more aggressive in 2026, moving faster to file lawsuits and garnish wages. Bankruptcy stops these actions instantly via the Automatic Stay.

Chapter 7 vs. Chapter 13: What Are People Choosing?

• Chapter 7 (Liquidation): Remains the most popular choice (approx. 70% of filings in Florida). It offers a complete discharge of unsecured debt in 4-6 months. It is the “Fresh Start” option for renters and those with little equity.
• Chapter 13 (Reorganization): We are seeing a rise in Chapter 13 filings among homeowners. Why? Because people are desperate to save their homes from foreclosure and protect the equity they gained during the real estate boom.

2026 Income Limits (The Means Test)

To qualify for Chapter 7, your household income typically needs to be below the Florida median. These figures are adjusted for inflation periodically. As of early 2026, the benchmarks are approximately:

• 1 Person Household: ~$68,085
• 2 Person Household: ~$84,305
• 3 Person Household: ~$95,039
• 4 Person Household: ~$111,819

Asset Protection Updates for 2026

Florida law continues to offer robust protection for debtors, including recent improvements:

• Motor Vehicles: You can now protect up to $5,000 in equity per vehicle (or $10,000 if married filing jointly). This is a massive increase from the old $1,000 limit.
• Homestead: 100% of your primary home’s equity is protected (if you have owned the home for at least 1,215 days).
• Wage Garnishment: Head of Household wages remain 100% exempt from consumer creditors.

Conclusion: Data Over Fear

The numbers don’t lie: Bankruptcy is a mainstream financial tool used by your neighbors, coworkers, and local business owners to adapt to Florida’s new economic reality. It is not a failure; it is a strategic reset.

Juan Burgos Law is here to help you navigate these 2026 regulations. We offer a free financial analysis to see if you qualify for full debt elimination.