There is a common misconception that if an individual files bankruptcy, all of his or her debts will be wiped clean. However, that is not necessarily true. Regardless of whether a consumer here in Florida or anywhere else in the country files a Chapter 7 or Chapter 13 bankruptcy, there are certain debts that cannot be discharged except under specific circumstances.
Certain tax obligations are not eligible for discharge, along with any debts that are incurred under false pretenses or by fraud. People also might not realize that if they fail to include a debt in the bankruptcy petition, it will not be discharged. This is just one of the reasons why it is vital to be sure that every debt, lawsuit and/or post-judgment collection action is included since the consumer would still be responsible for these missed debts after the bankruptcy closes.
Other debts, such as child support and alimony, might be treated differently in a Chapter 13 versus Chapter 7. These payments are often made monthly, so payments would come out of future income, which is not a factor in a Chapter 7. Because future income is considered part of the bankruptcy estate in a Chapter 13, the stay could apply unless the court believes that the repayment plan does not adequately cover these debts. Student loans are also not ordinarily discharged in a bankruptcy, though there are exceptions.
There is an exception to nearly every rule when it comes to debts that are not eligible for discharge. Therefore, if you have one of these types of debt, your attorney will be able to advise you regarding how to proceed if there is a possibility that they can be discharged. This is yet another reason why you should not file for Chapter 7 or Chapter 13 bankruptcy without the advice and assistance of a Florida attorney.