Will I Be Able to Eliminate All or Part of My Student Loan Debt by Declaring Bankruptcy?

One of the largest sources of consumer debt is federal student loans. Student loan debt is increasing in staggering numbers, and people are having a difficult time keeping up with the payments.  A recent report by the Federal Reserve Board of New York estimates that the total amount of outstanding student loans in the United States is about $902 billion.  That same report suggests that $85 billion of that amount is delinquent or past due.   Many consumers have said that if they could just eliminate their student loan debt, they would be able to repay the rest of their debts.  Unfortunately, that is not an option. Athens bankruptcy lawyers can help you discover other options.

Student loan debt is not generally dischargeable in bankruptcy.  When a debt is discharged in a bankruptcy proceeding, you are no longer liable for that debt.  Most debts are discharged in a bankruptcy proceeding. However, the government has identified a number of non-dischargeable debts.   In addition to student loan debt, the following debts are non-dischargeable:

• Child support
• Alimony
• Most income tax debt and state taxes
• Debts caused by “willful and malicious” injury to another person or their property
• Debts arising from personal injuries caused by a DUI/DWI
• Criminal restitution orders

While these are the most common types of non-dischargeable debts, the government has identified a number of others as well, and what is dischargeable can change depending on which type of bankruptcy you file.   For example, the scope of what can be discharged in a Chapter 13 bankruptcy is generally broader than that available in Chapter 7.  If you are overwhelmed by your debt obligations, a Georgia bankruptcy attorney can help you evaluate your situation and determine what is in your best interests.

Please call Jeff Field and Associates at 404-381-1278 or contact us online to schedule your appointment.  We are ready to provide you with the help you need today.