After years of deferrals, payments for student loans are scheduled to restart for millions of debtors in the next few months. Unfortunately, many people cannot afford to cover these payments and are looking for ways to reduce or eliminate the debt. Bankruptcy is one option that can wipe out student loan debt in two ways.
Generally, student loans are immune to bankruptcy discharges, meaning you must continue making payments on them after your case ends.
Bankruptcy can be a viable solution if you have accumulated debts and cannot pay them back. However, there are many things to consider before deciding to file. For instance, you need to determine the bankruptcy type that will offer much-needed relief for your situation. In addition, you'll need clarification on other issues before filing. Because of that, it's prudent to enlist the help of an attorney. During the consultation, remember to ask them the following essential questions.
Some company owners write off client debts as soon as they learn they have started the bankruptcy process. Unfortunately, this makes them lose the money they rightfully deserve. This explains why you should not be in a hurry to write off client debts. Instead, contact a bankruptcy lawyer for advice on the legal process you should follow to recover your money. They will take you through bankruptcy laws to enable you to understand your rights.
In America, the Chapter 7 bankruptcy law often allows people who are facing major financial burdens to start fresh. The court makes this happen, if it grants a person's petition, by liquidating many of their outstanding debts. This means the debts are legally gone after the court grants relief.
Chapter 7, however, is one of two options. The other is a restructuring process, usually Chapter 11 for businesses and Chapter 13 for individuals.
Chapter 7 bankruptcy is something you can pursue if you need extreme relief from your debts. If you want to file, you might want to learn a few things before you choose this debt-relief tool. Learning about Chapter 7 can help you know if it is right for you, and here are four facts to know before you file.
1. You Can Keep Exempt Property
The first fact about Chapter 7 is that you risk losing some of your assets.