Filing For Bankruptcy? Topics To Discuss With A Bankruptcy Attorney
Posted on: 14 April 2015
When you find yourself in a negative financial situation you just cannot seem to get yourself out of, you begin to consider the possibility of filing for bankruptcy. After all, you probably are under the impression that bankruptcy will solve all of your financial woes and get you solvent once again. However, this may not always be the case, and for some people, filing for bankruptcy just isn't the answer. To find out what is best in your case, there are certain topics that you should sit down and discuss with a chapter 7 bankruptcy attorney. Get to know a few of these topics and schedule your appointment with an attorney as soon as possible.
Topic #1: Student Loan Debt
One issue you need to consider in regard to filing for bankruptcy is your student loan debt burden. While federal student loan debt can be a major financial burden every month and can even cause you to struggle, federal student loans are not eligible for bankruptcy discharge, at least under most circumstances.
Depending on your current income and the amount of your total federal student loan debt and monthly payments, your bankruptcy lawyer may be able to argue that the student loan debt you own causes you undue financial hardship and can petition the court to include all or part of your student loans in the bankruptcy discharge.
However, this is only done under extreme circumstances. So, bring the issue to your bankruptcy lawyer before you even consider filing if your student loans are a major concern. They will be able to tell you whether it is even worth your time or effort to petition the court for student loan discharge as well.
Alternatives To Bankruptcy
In addition to discussing your student loan debt and other aspects of filing for chapter 7 bankruptcy, you should also talk to a bankruptcy about potential alternatives to filing for bankruptcy. Debt settlements or negotiating directly with creditors (either you or your representative could do this) may be a better solution if you are able to make some smaller payments toward your debts. Creditors will often do what they can to work with you rather than force you to file for bankruptcy, as the bottom line is that they want their money back.
You may also want to look into debt consolidation through a credit counseling agency or bank that can help you to get all of your debt put together in one place. This may help lower your interest rates and monthly payments. It will also get those nagging creditors off your back so that you can pay down your debt without all of the stress. So be sure that you and your attorney discuss whether bankruptcy alternatives are right for you as well.
For more information, contact Rafool, Bourne, & Shelby, P.C. or a similar firm.
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