What is a dischargeable debt?

A dischargeable debt is a type of debt that can be forgiven through a legal process. Dischargeable debts are those that can be eliminated through the filing of a bankruptcy petition. In the state of Florida, the majority of unsecured debts are dischargeable. Unsecured debts are those not backed by collateral or security, such as credit card debt and medical bills. Generally, the court will grant a debtor a dischargeable debt if they meet all of the requirements of filing for bankruptcy, such as providing an accurate financial disclosure statement and completing the credit counseling course. In addition, the debtor must also pass the means or "ability to pay" test, which looks at the debtor’s ability to pay their debts. If the debtor meets these requirements and can demonstrate that they have no other options available to pay off their debts, then the court may grant a dischargeable debt. In Florida, certain types of dischargeable debts can include: credit card debt, personal loans, medical bills, student loan debt, and certain tax debts. It is important to note that some debts are not dischargeable in bankruptcy, such as child support or alimony payments, criminal fines or restitution, certain taxes, and student loans that have been taken since 2005. Additionally, certain types of debts may be dischargeable in a Chapter 13 bankruptcy, which is different from a Chapter 7 bankruptcy. Chapter 13 allows a debtor to reorganize their debt into manageable payments that are paid back over 3-5 years. At the end, any remaining dischargeable debts are forgiven. It is important to speak with a qualified attorney in Florida in order to review specific types of debt and understand the differences between filing for a Chapter 7 and a Chapter 13 bankruptcy.

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