There is no magic formula for deciding when bankruptcy is the right choice. It is an option you might consider if you:

• Are paying only minimum amounts on your bills.
• Can't budget yourself out of debt within five years.
• Are getting notices that your mortgage or loans are being foreclosed.
• Have had a severe financial setback, such as losing your job or a major client, a divorce or a costly illness.

Bankruptcy does not get rid of all debts. You are still responsible for:

• Alimony
• Child support
• Most recent back taxes
• Most student loans
• Recent large purchases of more than $550 for luxury goods bought within 90 days of filing
• Fines or penalties of government agencies
• Fraudulent debts
• Cash advances of $825 within 70 days of filing

As a consumer, you can file for bankruptcy in Florida under either:

Chapter 7 (Straight Bankruptcy) to wipe out all debts except those listed and get an immediate fresh start or

Chapter 13 (Wage Earner Bankruptcy) to set up a repayment plan to pay back your debts over several year's time.