What Debts are Reduced or Eliminated by Bankruptcy in Florida

For those who are eligible for Chapter 7 Bankruptcy, we can discharge our clients’ debts such as credit cards, personal loans, medical bills and back income taxes that are older then 3 years. For those who are only eligible for a Chapter 13 Bankruptcy, we can restructure your debt to consist of one lowered monthly payment and a complete discharge in five years.

Debts that are Usually Reduced or Discharged by Bankruptcy

  • Credit Card Debt
  • Medical Bills
  • Personal Loans
  • Civil Judgments
  • Utility Bills
  • Most other unsecured debt
  • Bank income taxes that are more then three years old

If you are filing a Chapter 7 Bankruptcy, those debts are likely to be eliminated. If you are filing a Chapter 13 Bankruptcy, you will have to pay a portion of those debts over a period of three to five years, with the rest being discharged at the end of the Bankruptcy.

Debts that are Usually Not Discharged by Bankruptcy

  • Mortgage (can’t be discharged, but can be significantly reduced through modification)
  • Car Payments
  • Most taxes
  • Student Loans

Debts that can Sometimes be Affected by Bankruptcy

  • Second Mortgage (can be reduced or eliminated through lien stripping or cram down)
  • Car Payment (can be subject to cramming down, or partial discharge)

Debts that are Only Affected by a Chapter 13 Bankruptcy

  • debts used to pay nondischargeable tax obligations
  • debts incurred in a divorce proceeding (but not alimony or child support)
  • debts from a prior bankruptcy where a court denied your discharge
  • HOA or condo fees that became due after you filed for Bankruptcy

If you would like more information about bankruptcy and obtaining debt relief, call Florida attorney Albert Goodwin.