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Student Loans

Student loans are generally not dischargeable, except for hardship. "Hardship" is very narrowly defined. For example, all persons filing bankruptcy are experiencing financial hardship. The issue is whether there is a never-ending (no hope in the future) hardship, such as a medical disability.


While state or private student loans still follow the old rules, the guidelines for discharging most types of federal student loans have loosened somewhat, and it is now more possible for some people to discharge these debts. However, it is not an automatic thing, and will involve a separate action in your bankruptcy, called an adversary proceeding. If you have significant student loan debt with the federal government, you should consult an attorney on whether you meet the criteria to try to discharge these loans.


If possible, do not default on your student loans. The amount that a collection agency can collect includes large collection fees and your interest rate may be increased substantially.
Seek advice and do not go into default if at all possible!

Filling Out Tax Form

Taxes

Despite information to the contrary, some taxes may be eliminated in a bankruptcy. However, this is a very sophisticated area. YOU MUST CONSULT WITH AN ATTORNEY TO DETERMINE WHETHER YOU HAVE TAXES THAT ARE DISCHARGABLE, or whether you may be eligible to file a 3 to 5-year Chapter 13 bankruptcy, in which you may eliminate further interest and penalties.
DO NOT ATTEMPT TO FIGURE OUT WHETHER YOUR TAXES MAY BE DISCHARGED BY YOURSELF, WITH A PARALEGAL, OR WITH A COMPANY OVER THE TELEPHONE

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