Many Floridians have a misconception of bankruptcy and think that it will cancel all of their debts. However, the two types of bankruptcy, Chapter 7 and Chapter 13, differ significantly in that regard. Chapter 13 bankruptcy can take as long as five years in some cases. The process allows people to keep their homes and work around student loans, according to one bankruptcy trustee.
In 2012, about 1,175,000 people in the nation filed bankruptcy with about 30 percent filed as Chapter 13. Chapter 7 bankruptcies take much less time, and debt is cancelled in most cases. However, the person must sell their assets. Chapter 13 takes much longer, and individuals adhere to a budget with the help of a court-appointed bankruptcy trustee.