Will bankruptcy discharge the entire amount of debt owed?

Bankruptcy does not necessarily mean that all of your debts will be discharged. Depending on the type of bankruptcy you file in Florida, some debts may be discharged and some may not. Chapter 7 bankruptcy, also known as liquidation bankruptcy, will most likely discharge most of your unsecured debts, such as credit card debt or medical bills. However Chapter 7 will not discharge secured debts, such as mortgages or car loans. In addition, certain debts are “non-dischargeable”, such as student loans, alimony, and child support. Although the majority of debt may be discharged in a Chapter 7 proceeding in Florida, the amount of debt forgiven depends on the individual situation. Many states, including Florida, have a “means test” that is used to determine how much of a person’s debts may be discharged. This test takes into consideration a person’s income, expenses, and other factors. In a Chapter 13 bankruptcy, you will enter into a repayment plan to make payments to your creditors. This type of bankruptcy does not discharge all of the debt you owe, but it does provide you with the opportunity to make manageable payments over a three to five year period and have a portion of your debts discharged. In conclusion, it is important to remember that bankruptcy is not a one-size-fits-all solution. Depending on your specific situation and the type of bankruptcy you file, not all of your debts may be discharged. It is important to speak to a bankruptcy lawyer to discuss the best options for your particular debt situation.

Will bankruptcy discharge the entire amount of debt owed?

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