Is the discharge guaranteed?
No, you will first have to comply with the terms of your bankruptcy case. You must also satisfy all conditions for discharge that are required under bankruptcy. Otherwise, the discharge may be withheld.
Do I have to pay student loans if I file bankruptcy?
Typically, it is very difficult to discharge student loans in bankruptcy. However, Chapter 13 bankruptcy may provide an opportunity to lower or modify your student loan. Chapter 13 can also stop active garnishments or other collection efforts from the student loan.
How can I stop student loan garnishment?
Chapter 13 bankruptcy can stop a student loan wage garnishment. As soon as Chapter 13 is filed an automatic stay will be issued. The stay is a federal law that stops all forms of collection activity, including student loan garnishments.
Should I file Chapter 7 or Chapter 13 for student loans?
Generally, it is very difficult to discharge student loans in bankruptcy. However, Chapter 13 bankruptcy can stop a student loan wage garnishment. Chapter 13 may also provide an opportunity to lower or modify your student loan.
Can I file bankruptcy for student loans?
Generally, it is very difficult to discharge student loans in bankruptcy. There are cases where student loans have been discharged but they are rare. Most often, student loans will not be eligible for discharge in either Chapter 7 or Chapter 13 bankruptcy.
Can bankruptcy eliminate judgments?
Under Bankruptcy law, a discharge can eliminate judgments in bankruptcy, “to the extent that it is a determination of the personal liability of the debtor.” Any action to collect money from the debtor will be barred.
Will child support or alimony be discharged?
In Chapter 13 bankruptcy, the payment plan must provide for child support and alimony to be paid in full. In Chapter 7 cases, child support and alimony payments are given priority and are not eligible for discharge.
Will all my debts be discharged?
Most unsecured debts are eligible for discharge in Chapter 7 or Chapter 13 bankruptcy. For questions about a specific debt or case contact a bankruptcy lawyer to schedule a consultation.
What is a bankruptcy discharge?
The discharge is a court order that releases you from personal liability on the debt. The creditor will not be able to take any collection action against you personally after the debt has been discharged. Typically, the discharge is granted near the conclusion of a case.
Will bankruptcy wipe out tax debt?
Yes, if certain criteria are satisfied, your IRS tax bill may be discharged in a Chapter 7 bankruptcy. However, penalties for fraud imposed by the IRS are not eligible for discharge in Chapter 7, only income taxes are eligible.