Florida individuals who are thinking of filing for bankruptcy likely have a lot of questions. By taking the time to research the bankruptcy process, you can help to put your nerves at ease about how to get your debts discharged.
What is bankruptcy discharge?
A bankruptcy discharge is essentially a court order that alleviates you from a specific financial obligation to a creditor. This type of order is traditionally issued after you go through a bankruptcy hearing. Not all debts can be discharged, however.
Some debts that are frequently discharged include credit card debts, medical bills and personal loans. Some debts that may not be discharged include student loans, child support and fines from criminal activity. It’s important to note that if there is physical property attached to a discharged debt, the creditor may still repossess the property and sell it to pay off the debt.
Who qualifies for bankruptcy discharge?
Typically, individuals who file for Chapter 7 bankruptcy are eligible for a discharge of some or all of their debts. They must prove that they have financial constraints that make them unable to repay their debts. Most bankruptcy courts will require that the individual complete a financial management course to help prevent future bankruptcies from occurring.
It’s important to note that filing for bankruptcy and having debts discharged can severely impact your credit score. Most bankruptcies will stay on your credit report for between 7 and 10 years depending on the type of bankruptcy that you file for, but it could be worth getting a fresh financial start.
Filing for bankruptcy is a big decision that requires you to take a lot into consideration. During the bankruptcy process, you may be able to have some of your eligible debts discharged, so it’s vital to understand the financial impact that this discharge will have on your financial well-being.
