What is bankruptcy and how can it help me?

Bankruptcy is when you file the required documents with the Bankruptcy Court and receive a discharge (canceling) of all of your debt. However, student loans can not be discharged.

Student loans are generally non-dischargeable - period. If the bulk of your debt is credit card debt, then bankruptcy will offer a chance to have that debt discharged so that you can get a "fresh start". Also, the automatic stay protection in bankruptcy prevents any creditors from taking any action against you during the pendency of the bankruptcy.

Bankruptcy is a process where a debtor gets relief from his debt and gets a fresh start. After filing bankruptcy most debts become noncollectable. However, student loans are an exception and they are still collectible after filing bankruptcy. Contact an attorney for the option for your situation.

The honest debtor overwhelmed by debts may get a fresh start by petitioning the court for discharge of the debts in bankruptcy. Discharge means that the debts are wiped out the debtor no longer owes the creditor for a discharged debt, although he / she may pay it off if he wants to and can afford to later. Some debts are not dischargeable, and that includes student loans. (Actually, there is a very narrow exception that almost no one qualifies for.) If you don't make much money, and your debts are high, you may qualify for bankruptcy. You can find out whether you qualify and how bankruptcy may benefit you by making an appointment to see a bankruptcy attorney. Many bankruptcy lawyers give a free consultation. You will help yourself and the attorney if you take certain documents with you: Your last two tax returns, your last several pay stubs, your most recent statements or invoices for all your bills and debts, a current credit report, title documents for vehicles and real property that you own, files from any lawsuits you are involved in, and a list of your monthly expenses. Be prepared to pay the attorney in advance of filing your case, since the attorney can't be one of your creditors, and for a couple of debt management courses to help you avoid debt problems in the future. Hope this helps. Good luck.

Student loans generally cannot be discharged in bankruptcy. Bankruptcy can discharge most unsecured debts, including credit card debt and medical bills. I suggest you consult with a bankruptcy attorney to discuss the details of your situation.

I am sorry to have to let you know that it is not likely that you will be able to use bankruptcy to eliminate any of your student loans. Bankruptcy is a program that is available to help those who cannot pay their debts either eliminate these debts or restructure their debts to make them easier to repay. Most kinds of debts are eligible to be eliminated through bankruptcy, such as medical debt, credit cards, repossession costs, and even tax debts. Child support, alimony and student loans are not eligible to be eliminated in a bankruptcy as a matter of public policy, although repayment can be managed by a program in bankruptcy called Chapter 13.

Bankruptcy is a very complicated process. It is wise to talk to an experienced bankruptcy attorney before deciding to take this important step. Most Arizona bankruptcy attorneys offer a free consultation about the basics of bankruptcy.

Normally, student loans cannot be eliminated by bankruptcy. If you have other consumer loans and your income is below the median for your locale, bankruptcy may offer a way to get out from under those debts.

Bankruptcy is different things for different people, but it VERY RARELY can help a young person deal with Student Loans.

Bankruptcy is a legal way to erase debt. Student loans are generally not debts which can be erased. Consult with a bankruptcy attorney in your area.