Can an LLC File Bankruptcy in Florida?

Yes. A Florida LLC is a separate legal entity under Fla. Stat. ch. 605 and may file for bankruptcy protection in federal court under the U.S. Bankruptcy Code. An LLC can file Chapter 7 (liquidation) or Chapter 11 (reorganization) in the appropriate U.S. Bankruptcy Court district. The LLC's bankruptcy filing is independent of its members' personal finances.

Bankruptcy Filing Process

A Florida LLC initiates bankruptcy as a business debtor, not through individual members. The LLC files in federal bankruptcy court based on its principal place of business—either the Middle District of Florida, Southern District of Florida, or Northern District of Florida.

Chapter 7 suits liquidation: a trustee sells assets and distributes proceeds to creditors according to priority rules.

Chapter 11 suits reorganization: the LLC restructures debt and continues operations under a court-approved plan.

The LLC remains a legal entity after bankruptcy unless the plan explicitly provides for dissolution or members vote to dissolve under Fla. Stat. § 605.0701.

Member Liability Protection

Members are generally protected from personal liability for the LLC's debts. Under Fla. Stat. § 605.0503, creditors cannot pursue members' personal assets directly. The creditor's sole remedy is a charging order against the member's distributable interest—entitling the creditor to receive distributions the member would otherwise receive, but without voting or management rights.

This charging order protection applies even during the LLC's bankruptcy, shielding members' personal assets from the LLC's creditors.

Exception: Members who personally guaranteed LLC debts remain liable for those specific obligations.

Operating Agreement and Dissolution

The LLC's operating agreement (governed by Fla. Stat. §§ 605.0105–605.0107) remains in effect during bankruptcy unless modified by court order. Filing bankruptcy does not automatically dissolve the LLC. The entity continues unless the bankruptcy plan includes liquidation or members affirmatively dissolve it.

Next Steps

Consult a bankruptcy attorney — Federal bankruptcy law intersects with Florida LLC law; professional guidance is essential.
Gather financial records — Compile balance sheets, tax returns, and debt schedules.
Review your operating agreement — Check for provisions addressing insolvency or creditor claims.
Determine bankruptcy chapter — Your attorney will recommend Chapter 7 or Chapter 11 based on your LLC's circumstances.
File in federal bankruptcy court — The appropriate district court will be determined by the LLC's location.

This is general information, not legal advice.