What Debts Can Be Discharged in Florida Bankruptcy?

Understanding Discharge: Which Debts Go Away

The discharge is the core benefit of bankruptcy -- a permanent court order under 11 U.S.C. Section 524 that eliminates your personal liability on qualifying debts. Once a debt is discharged, the creditor is permanently prohibited from taking any action to collect it. But not every debt qualifies. Understanding the line between dischargeable and non-dischargeable obligations is essential for Florida residents evaluating whether bankruptcy will solve their financial problems.

Debts That Are Dischargeable

The following categories of debt are typically eliminated in both Chapter 7 and Chapter 13 bankruptcy:

Credit card debt -- The most commonly discharged obligation. Balances on Visa, Mastercard, store cards, and other revolving credit accounts are wiped out, provided there was no fraud involved in incurring the charges.
Medical bills -- Hospital bills, physician charges, dental work, physical therapy, ambulance fees, and other healthcare-related debts are fully dischargeable. Medical debt is a leading cause of bankruptcy filings in Florida.
Personal loans -- Unsecured loans from banks, credit unions, online lenders, and private individuals are dischargeable.
Payday loans and title loan deficiencies -- These high-interest obligations are treated as general unsecured debt and are discharged.
Deficiency balances -- If you surrendered a vehicle, lost property to foreclosure, or had an asset repossessed and the sale did not cover the loan balance, the remaining deficiency is typically dischargeable.
Old utility bills -- Past-due balances owed to electric, water, gas, phone, cable, and internet companies are dischargeable.
Lease obligations -- If you broke an apartment lease or other contractual arrangement, the resulting liability can usually be discharged.
Civil court judgments -- Money judgments from lawsuits (other than those based on fraud, willful injury, or other excepted categories) are generally dischargeable.
Business debts -- Debts from a failed sole proprietorship or personal guarantees on business obligations are dischargeable in a personal bankruptcy case.
Certain older tax debts -- Income taxes may be dischargeable if they meet specific criteria: the tax return was due more than three years ago, it was filed more than two years ago, and the tax was assessed more than 240 days ago, among other requirements.

Debts That Are NOT Dischargeable

Section 523 of the Bankruptcy Code enumerates specific debts that survive bankruptcy. These non-dischargeable obligations remain your responsibility even after your case concludes:

Student loans (generally) -- Under 11 U.S.C. Section 523(a)(8), student loans are presumptively non-dischargeable unless you can demonstrate "undue hardship" through an adversary proceeding. The standard for proving undue hardship is demanding, though some courts have adopted more flexible approaches in recent years through the Brunner test or the totality-of-circumstances analysis.
Recent income taxes -- Income tax debts that do not meet the three-year, two-year, and 240-day rules described above survive bankruptcy. Payroll taxes and trust fund recovery penalties are always non-dischargeable.
Domestic support obligations -- Child support and alimony, whether owed to a former spouse, child, or government agency, cannot be discharged under Section 523(a)(5). Property settlement obligations from a divorce are also non-dischargeable in Chapter 7 under Section 523(a)(15), though they may receive different treatment in Chapter 13.
Debts from fraud -- If you obtained money, property, or services through false pretenses, false representation, or actual fraud, those debts survive under Section 523(a)(2). This includes debts incurred through fraudulent financial statements.
Luxury purchases and cash advances -- Debts for luxury goods or services exceeding $800 (subject to adjustment) incurred within 90 days of filing, and cash advances exceeding $1,100 obtained within 70 days of filing, are presumed non-dischargeable.
DUI/DWI-related debts -- Debts arising from death or personal injury caused by operating a motor vehicle while intoxicated are non-dischargeable under Section 523(a)(9).
Willful and malicious injury -- Debts resulting from intentional harm to another person or their property are excepted from discharge under Section 523(a)(6).
Government fines and penalties -- Criminal fines, restitution orders, and most government-imposed penalties survive bankruptcy.
Debts from embezzlement, larceny, or breach of fiduciary duty -- These are non-dischargeable under Section 523(a)(4).
Condominium and HOA fees -- Post-petition assessments are not dischargeable, and some pre-petition assessments may survive depending on the circumstances and applicable Florida law.

Chapter 7 vs. Chapter 13 Discharge Differences

The scope of discharge differs slightly between chapters:

In Chapter 7, the discharge under Section 727 eliminates all dischargeable debts without requiring any payment. The discharge is typically entered 60 to 90 days after the 341 meeting of creditors.

In Chapter 13, the discharge under Section 1328(a) is sometimes called a "super discharge" because it historically covered certain debts that Chapter 7 could not discharge, including some property settlement obligations from divorce. However, legislative changes have narrowed this advantage significantly. The Chapter 13 discharge is entered only after all plan payments are completed, which takes three to five years.

How Creditors Challenge Dischargeability

A creditor who believes their specific debt should be excepted from discharge must file an adversary proceeding -- essentially a lawsuit within the bankruptcy case. Under Bankruptcy Rule 4007, complaints to determine dischargeability of debts under Sections 523(a)(2), (4), and (6) must be filed within 60 days of the first date set for the 341 meeting. Missing this deadline generally waives the creditor's right to object.

For other non-dischargeable debts (such as student loans or taxes), the creditor need not take any action -- those debts survive automatically by operation of law.

Practical Implications for Florida Filers

Before filing bankruptcy, create a comprehensive inventory of every debt you owe and classify each as likely dischargeable or non-dischargeable. This exercise serves two purposes: it reveals whether bankruptcy will provide meaningful relief (if most of your debt is non-dischargeable, bankruptcy may not be worth pursuing), and it shapes the strategy for which chapter to file.

A Florida bankruptcy attorney can review your specific debt portfolio, identify potential non-dischargeability issues, and structure your case to maximize the discharge benefit while properly addressing obligations that will survive.