Chapter 7 Bankruptcy

This is the most common type of bankruptcy, and the type most people think of when they refer to "filing bankruptcy." With chapter 7, the debtor generally loses all his assets (with the exception of certain "exempt" assets) and wipes out (discharges) all his debts (with the exception of certain "non-dischargeable" debts).

In Florida, the exempt assets include:

• the cash surrender value of life insurance policies & annuities
• certain wages
• one's homestead (with certain exceptions if the debtor recently moved to Florida)
• $1,000 of personal property (plus an additional $4,000 if the debtor does not have a "homestead" exemption) and
• $1,000 equity in an automobile

Non-dischargeable debts include:

• alimony and child support obligations
• student loans
• debts incurred by fraudulent means, and
• certain tax debts [no discharge for: (i) an individual's "newer" income taxes, or (ii) civil penalties relating to payroll taxes.]

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