Florida residents often find themselves having financial difficulties to the point that they are unable to meet their obligations. It is then that the prospect of filing for bankruptcy might be a viable debt relief option. There are two main types of bankruptcy that consumers file -- Chapter 7 and Chapter 13.
A Chapter 7 bankruptcy is called a liquidation bankruptcy because any assets that do not fall within an exemption allowed by either the state of Florida or the U.S. Bankruptcy Code will be liquidated. In most cases, the majority of an individual's assets will fall under an exception. However, for those who have a second home, a second car or other assets that do not fall within an exemption, the trustee could take those assets and sell them in order to pay creditors. Of course, before a person can file under this chapter, he or she will have to meet certain financial requirements.