Can filing for bankruptcy discharge all of your debts?

Can filing for bankruptcy discharge all of your debts?

On Behalf of | Feb 5, 2021 | Uncategorized |

In these tough economic times, many people in Florida are struggling financially. They may be facing the difficult choice of deciding what bills to pay this month, and which they are going to let go unpaid. They may be facing food insecurity, or they may be months behind on their rent or mortgage. However, such situations need not be hopeless. One way a person struggling with debt they simply have no means of repaying can address their problem is by filing for bankruptcy.

What can Chapter 7 and Chapter 13 bankruptcy do?

Chapter 7 bankruptcy is also referred to as “liquidation bankruptcy.” With some exemptions, a person’s assets will be sold, and the proceeds used to pay off their creditors. Most (but not all) of a person’s remaining debt will then be discharged.

Chapter 13 bankruptcy is also referred to as “wage earner’s bankruptcy.” In this type of bankruptcy, a person will enter into a three to five-year court-ordered repayment plan, where they will pay an affordable amount each month to a bankruptcy trustee, who will use these funds to pay back the debtor’s creditors. At the end of the plan most (but not all) of a person’s remaining debt will be discharged.

What debts cannot be discharged through bankruptcy?

Bankruptcy can discharge many secured and unsecured debts, but there are certain debts it cannot extinguish. Spousal support arrears and child support arrears cannot be discharged through bankruptcy. Certain tax liens cannot be discharged through bankruptcy. Personal injury debts for “willful and malicious injury” or drunk driving accidents cannot be discharged through bankruptcy. Finally, if a debt is not listed in your bankruptcy filing, it cannot be discharged.

Learn more about filing for bankruptcy in Florida

Ultimately, this post is for informational purposes only and does not contain legal advice. Those who want to learn more about filing for bankruptcy in Florida can explore our firm’s website for further information.