Discharge

• What happens after a bankruptcy judgment is entered by a court depends on the type of bankruptcy you applied for. Chapter 7 bankruptcy is a federal bankruptcy law that is equally applicable to residents of Florida. If you filed under Chapter 7 bankruptcy, the court will issue you with a discharge. A discharge relieves you from debt because creditors are barred from claiming or collecting payments you owe them. However, a court appointed trustee will sell your nonexempt property to creditors to cover some of the liabilities owed.
  
  

Reorganizing Debt

• If you file under Chapter 13 bankruptcy, you will pay the creditor through a repayment agreement that lasts for five years. You will be required to meet the creditors and arrange a plan to reorganize your debt and develop ways through which you can pay what you owe. The debts that remain beyond the agreement are waived. A Chapter 13 bankruptcy applies to you if the court determines you have assets and substantial savings to partially repay the debts you owe.
  
  

Exemptions

• Property exemption is only regulated by Florida statutes and not by federal exemption statutes. According to Florida statutes, homestead exemption is unlimited regardless of its value. But if you purchased the house within 1,215 days before petitioning the court for bankruptcy, the exemption is limited to $146,450. Other than homestead exemption, other exemptions include Social Security benefits, unemployment benefits, alimony, child support and college tuition funds. Properties and benefits that are exempt cannot be used by creditors to collect money owed to them.
  
  

Accessing Credit

• Once a bankruptcy judgment is entered, you can still apply for access to credit. It is a misconception that banks cannot lend to people who declare bankruptcy. If well managed, applying for a credit card and basic loans may actually be a viable option to jump start your new financial life. However, this does not mean that lenders will overlook your credit history. On the contrary, you will be advised by lenders that it takes more than four years to upgrade your credit scores.