When Florida residents are overwhelmed by their financial obligations, bankruptcy may be a good option. The two major forms of consumer bankruptcy are Chapter 7 and Chapter 13. However, it's important to realize that federal laws impose some limits on the amount and type of debt that can be discharged by a bankruptcy court.
Most types of consumer debt, such as credit card debt and bank loans, can be subject to discharge in both Chapter 7 and Chapter 13 bankruptcies. However, other kinds of debts remain. These include spousal and child support payments as well as other obligations deemed to be in the nature of domestic support. While an individual in Chapter 13 bankruptcy can include these payments in the court-supervised repayment plan, the obligation to make them remain, and they are deemed to be priority obligations.