Many individuals in the US find themselves experiencing financial difficulties at one time or another. There are many peaks and valleys in the journey of life, and often our finances are connected to what else is happening in our life. If you have run into desperate times, however, and there simply is not any income to pay the bills, your next step should be to consult with a skilled bankruptcy attorney as soon as possible.
If you are considering filing for bankruptcy, you may feel intimidated, not only by the countless questions pending but also as you consider how to navigate what could be a potentially embarrassing situation. The truth is that hundreds of thousands of people in the US file for bankruptcy every year, taking advantage of an incredibly useful money management/planning tool. It may also be the defining action that saves you financially and puts you back on the path to thriving in the future.
If you are filing for Chapter 7 bankruptcy, there are probably many benefits you are looking forward to—and especially the fact that most debts will be discharged within five to six months. There are however some debts that are rarely discharged in Chapter 7 or Chapter 13 bankruptcies, and often they pertain to debts such as student loans.
Student loans are rarely discharged unless you go to great lengths to prove hardship, which is very difficult. Otherwise, while most other unsecured debt can be discharged, student loan payments will still be due for the duration of the bankruptcy, and after.
In a Chapter 13 case, which lasts 3 to 5 years, there is the possibility that a portion of student loans will be paid over the time of the plan. You also will have relief from collections actions against you by student loan creditors during the pendency of the bankruptcy. However, once the bankruptcy case is concluded, you still owe the balance due on student loans.
Family support payments like alimony and child support are not dischargeable in either type of bankruptcy. There is the chance that arrears for mounting debts like alimony could be reorganized into more manageable monthly payments through a Chapter 13 case. Other debts usually not dischargeable in bankruptcy include criminal penalties, certain taxes, or debts that you failed to list when filing for bankruptcy. In a Chapter 7, you also may choose to reaffirm a secured debt you want to keep, such as a vehicle, and continue making payments to that creditor. Reaffirmed debts are not discharged.
You probably have many questions about bankruptcy, including which type of bankruptcy will work best for you, how much you will have to sacrifice (very little in many cases), and whether you will have to go to court. Speak with a skilled bankruptcy attorney from the offices of H. Lehman Franklin, P.C. Call now to learn more at 912-764-9616, or contact us online.