Bankruptcy is a federal process that is available in every state. Florida has some specific differences than other states. Generally the bankruptcy process allows individuals and their families to eliminate some or all of their debt. In a liquidation bankruptcy or a Chapter 7 Bankruptcy, all of your debt will be eliminated. In a reorganization or a Chapter 13 Bankruptcy, you will only have to pay a portion of your debt back and can take up to 5 years to do so.