The U.S. Bankruptcy Code sets forth which debts are dischargeable and which are non-dischargeable when you file bankruptcy. Under the Bankruptcy Code, debts that most likely cannot be discharged include alimony, child support, student loans, income taxes (exception for federal taxes that are at least three years old, they may be dischargeable), criminal fines and penalties for driving under the influence of alcohol or drugs or relating to fraud and embezzlement, restitution to victims, court fees and related fines.

Under some circumstances, if you can prove that your student loan debt would cause you extreme financial hardship, you may be able to get some or all of the debt discharged or at least deferred until your financial situation improves. It may also be possible to get your student loan debt cancelled. It’s a good idea to contact your school or review your loan papers to determine if you qualify for a deferment or cancellation.

Consulting with a Georgia bankruptcy attorney is recommended. The attorney can assist you with your bankruptcy matters and answer your bankruptcy questions.

Dischargeable Debts

Unsecured debt can be discharged such as credit card debt, medical bills and other types of unsecured debt. If you enter into a repayment plan with your creditors under Chapter 13 or Chapter 11 Business Reorganization, the Court will discharge all remaining unsecured debt after you complete the repayment plan. With secured debt such as a motor vehicle or real estate, you have the option of continuing to pay the creditor, renegotiating debt reduction or giving the personal or real property back to the creditor. If you agree to pay the creditor and then default, the creditor can repossess the property.

Filing for bankruptcy gives you the option to start fresh again. If you are overwhelmed by debts that you cannot pay, you should speak with a Georgia bankruptcy attorney to determine whether bankruptcy is the right option for you. Ignoring your problems will only make them worse. The attorney can access your financial situation and provide you with recommendations and options that can help you reduce your debt or get it discharged depending on the type of debt you owe and how much you owe. The attorney understands the federal and state bankruptcy laws, and can explain the bankruptcy process to you and what is expected of you if you decide to file for bankruptcy protection.  The bankruptcy attorney will file your bankruptcy petition, represent you in Court and negotiate with your creditors.

If you would like to discuss your bankruptcy options contact my office immediately.

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