Your finances took a major hit. While you have been trying to pay your bills on time every month, it has gotten harder and harder. Without enough income to work with, you may be falling behind on more than one bill.
You may not like the idea of filing for bankruptcy. The farther behind you get on your bills, the idea may be looking more attractive.
Why a Chapter 7 bankruptcy may be a “new start”
Successfully filing for a Chapter 7 bankruptcy may allow you and your family to breathe a little more easily. You may have heard of bankruptcy in terms of a “new start.”
You may worry every month that you will not be able to even pay for the basics. Food, utilities and medications may take second place to your debts. When you get to this point, you may realize you need to make a decision soon. Bankruptcy may be the only rational solution that may allow you to keep your family fed and housed.
Why you cannot discharge student loans
One of the debts you may be struggling to pay on time every month is your student loan. If you have both federal and private student loans, you may have to continue paying them, regardless of a bankruptcy.
Students graduating with student loans used to be able to discharge those debts in bankruptcy so they could be rid of their repayment obligation. This is no longer the case.
Discharging your student loans
If you are able to prove that repayment is imposing a severe hardship, you may be able to discharge your student loans. Learning more about this process may help you and your family breathe a little more easily.