Discharging a student loan requires showing undue hardship. The timing of your Chapter 7 filing can determine whether you succeed in this.
Discharging, permanently writing off, student loans can be difficult. You may be able to make it easier to do with good bankruptcy timing.
Bankruptcy includes all debts you owe at the moment of filing your case, not future debts. So how do you know when to file your case?
If you're considering filing bankruptcy, what debts can you incur and which should you avoid? What are the possible consequences?
Bankruptcy frees up cash flow so you can afford your mortgage payments. Chapter 7 does so by writing off other debts. Chapter 13 does so more creatively.
Bankruptcy writes off claims against you from a vehicle accident for personal injuries and property damage, IF you weren't intoxicated.
Child support and spousal support debts cannot get written off in bankruptcy. But is your specific divorce debt legally considered support?
Bankruptcy does not write off criminal fines or restitution. But it can help by writing off other debts so you can pay crucial expenses.
Most debts get written off--discharged--in bankruptcy. The only ones that aren't are specifically listed in the Bankruptcy Code.
Writing off a student loan in bankruptcy requires showing "undue hardship." What is that?
Filing Chapter 7 stops a student loan garnishment and other collection activities. Then use "undue hardship' or focus on the student loan.
Get a new financial start for 2018. Stop creditor pressures immediately, write off all or most debts, and responsibly deal with the rest.
Chapter 7 is usually much better if one of your high priorities is to favor a debt by paying it. You can do so more easily and flexibly.
In a Chapter 7 case all or most "general unsecured debts" get "discharged"--legally written off. That's one of the big benefits of Chapter 7.
Using a credit card shortly before filing bankruptcy doesn't seem right. The law agrees. Writing off this kind of debt can be a problem.