Basic Intro: Business Bankruptcy in Florida
1. Definition
Business bankruptcy is the legal process through which a struggling business seeks relief from debts it cannot repay. Bankruptcy can help businesses reorganize, liquidate, or discharge obligations under the supervision of a federal bankruptcy court.
There are several types of bankruptcy that may apply to businesses, depending on size, structure, and goals:
- Chapter 7: Liquidation — the business’s assets are sold to pay creditors, and the entity is dissolved.
- Chapter 11: Reorganization — the business continues operating while restructuring debts.
- Subchapter V (of Chapter 11): A streamlined version of reorganization for small businesses.
- Chapter 13: Applies mostly to sole proprietors, not larger entities.
2. Florida Legal Context
Business bankruptcies are governed by federal law, specifically the U.S. Bankruptcy Code, and are handled in the United States Bankruptcy Courts (Florida has Northern, Middle, and Southern Districts).
Key Florida considerations:
- Florida law influences how certain assets are treated, particularly exemptions.
- Businesses must comply with federal bankruptcy rules, trustee oversight, and court procedures.
- Bankruptcy impacts contracts, leases, employee rights, and creditor relationships.
3. Real-World Application
Examples of business bankruptcy in Florida:
- A Tampa restaurant files Chapter 7 bankruptcy, liquidates assets, and closes.
- A Miami construction company files Chapter 11 to restructure debt and continue operating.
- An Orlando startup uses Subchapter V to reorganize quickly with reduced costs.
4. Why It Matters for Business Owners
Bankruptcy may provide relief but also carries significant consequences.
Why it matters:
- Debt relief: Provides legal protection from creditors.
- Reorganization: Allows viable businesses to restructure and survive.
- Finality: Liquidation allows owners to close the business and move on.
- Credit impact: Bankruptcy significantly affects credit and future financing.
Common mistakes Florida business owners make:
- Waiting too long to consider bankruptcy as an option.
- Transferring assets improperly before filing.
- Assuming bankruptcy erases all obligations (some debts may survive).
- Failing to explore alternatives like out-of-court workouts.
5. Real-World Florida Examples
- A Sarasota retail store used Chapter 11 reorganization to renegotiate leases and avoid closure.
- A Jacksonville trucking company liquidated under Chapter 7, allowing creditors to be paid and owners to avoid lawsuits.
- A Fort Lauderdale medical business filed under Subchapter V for a faster, lower-cost reorganization.
6. How Our Law Firm Can Help
At Black Rock Trial Lawyers, we do not handle bankruptcy filings directly. However, because bankruptcy may intersect with issues like business dissolution, succession, or sale, we:
- Identify when bankruptcy may be a necessary option
- Coordinate with your tax, financial, and legal advisors
- Refer you to highly trusted and experienced bankruptcy attorneys in Florida who specialize in Chapter 7, 11, and Subchapter V filings
- Assist with related matters like contract disputes, business litigation, and ownership transitions connected to bankruptcy
We ensure you are connected to the right experts while protecting your broader business and legal interests.
7. FAQs (Frequently Asked Questions)
Q: Do you handle bankruptcy filings at your firm?
A: No. We do not prepare or file bankruptcies, but we work with a network of highly trusted bankruptcy attorneys and make referrals.
Q: What’s the difference between Chapter 7 and Chapter 11 for businesses?
A: Chapter 7 liquidates and closes the business; Chapter 11 reorganizes debts so the business can continue operating.
Q: Can small businesses file for Chapter 11?
A: Yes, through the streamlined Subchapter V process, designed for small business debtors.
Q: Does bankruptcy wipe out all debts?
A: Not always. Some obligations, like certain taxes or fraud-related debts, may remain.
Q: When should I consider business bankruptcy?
A: If debts are unmanageable, lawsuits are pending, or creditors are threatening foreclosure, bankruptcy may be an option. A referral to a specialist attorney is recommended.
8. How to Retain Our Law Firm
We offer multiple access points tailored to your needs:
- Flat-Fee Retainers: Set pricing based on project scope (quoted after your consultation)
- 1-Hour Strategy Consultations: A high-impact session to assess your issues, answer questions, and develop a legal roadmap. Pricing starts at $500.00.
- 3-Hour Master Strategy Sessions: A deep dive analysis with detailed, actionable solutions tailored to your business challenges
- Flagship Product: BELAW – Business + Entrepreneurship Law Advisor Program (Read below)
All services are available in-person, by phone, or virtually.
9. Flagship Product: BELAW – Business + Entrepreneurship Law Advisor Program
Our flagship service is the BELAW Membership – Business & Entrepreneurship Law Advisor Program. This is an exclusive, members-only, 12-month ON-DEMAND legal and business support program at a predictable flat monthly fee, tailored to each business client—regardless of company size.
BELAW is open to business owners, entrepreneurs, for-profit companies, non-profits, and foreign investors. Our members range from startups and nonprofits to established businesses.
At the core of BELAW is our P.O.N.C.E. methodology, developed by Attorney Gil Sanchez, to help businesses not just stay protected—but grow strategically.
What you get with BELAW:
- On demand strategic legal consultations with Attorney Gil Sanchez
- Document review and compliance audits
- Guidance on contracts, leasing, employment, and liability
- Drafting Collection Notices, Cease & Desist Letters and Confidentiality Agreements
- Proactive legal support to mitigate lawsuits and reduce risk exposure
- Strategic input on revenue-generating decisions like expansion, licensing, and joint ventures
- Entrepreneur coaching and a growing library of business education resources
- Litigation retainer and hourly rate discounts
We’re available when you need us—on demand, without hourly billing.
We make it easy to get started:
- Call or text us at (813) 254-1777
- Or fill out the secure contact form below
A member of our team will respond promptly to schedule your consultation.
10. How to Contact Our Law Firm to Retain
We make it easy for you to retain us:
- Call or text: (813) 254-1777
- Email: info@blackrocklaw.com
- Or submit your request using the form below
Our team will promptly follow up to confirm availability and next steps.
11. Who You Are Hiring
When you hire our firm, you’re not just hiring a lawyer — you’re securing the insight, grit, and expertise of Attorney Gil Sanchez.
A proud double Gator, Gil earned both his undergraduate and law degrees from the University of Florida — one of the top public universities in the country. Since 2004, he has built a reputation as a formidable business and trial attorney, successfully trying cases before juries in both Florida state and federal courts.
Gil’s legal practice is deeply informed by real-life experience. He launched his first business at age 13 and has continued to build, lead, and advise companies ever since. He’s a licensed business broker (since 2007), an adjunct professor of entrepreneurship at St. Petersburg College, and a trusted advisor to entrepreneurs, professionals, and business owners across Florida.
He’s also an inventor, author, and public speaker — holding a U.S. utility patent and federal trademark. His invention was featured in TIME Magazine’s Best Inventions of 2023, and his legal insights have appeared on CNN, ABC’s 20/20, and other national platforms. Raised by Colombian parents in West Virginia and fluent in Spanish, Gil brings cultural fluency, resilience, and a fighter’s mindset to every client matter.
Above all, Gil is a devoted family man — happily married and the proud father of three beautiful children. His commitment to family shapes the way he practices law: with empathy, integrity, and a relentless drive to protect what matters most.
At Black Rock Trial Lawyers, you’re not just getting a legal technician — you’re hiring a battle-tested strategist who understands both the courtroom and the real world. That’s who’s fighting for you.
12. The Law Firm’s Geographical Reach
We proudly represent businesses across all counties in Florida. With the power of virtual consultations, online filings, and remote court access, we can support your legal needs anywhere in Florida—without compromising service quality.
Our main office is in South Tampa, Florida, with a satellite office in South Florida – Miramar, Florida.
From Miami to Jacksonville, Pensacola to Key West—Black Rock Trial Lawyers is here to help Florida businesses thrive.
13. Disclaimer
The information provided on this website is for general informational purposes only and is not intended to be, nor should it be construed as, legal advice. Every individual and business matter involves unique facts and circumstances that must be carefully evaluated. Additionally, Florida laws, including statutes and case law, are subject to frequent changes, and the information presented here may not reflect the most current legal developments. For a formal legal opinion or advice specific to your situation, you must consult directly with an attorney at our firm. No attorney-client relationship is formed by viewing this site or by contacting our office through this website.