Cosigner’s Responsibility on an Unpaid Student Loan

As a co-signer on a student loan, you promise to pay the debt yourself if the borrower defaults. If the creditor has attempted to collect from the student and failed, late fees and collection costs are also passed on to you, in addition to the original debt amount.

→ Read More

What new debts can’t be discharged in bankruptcy?

Not all debts are automatically dischargeable in a bankruptcy. Bankruptcy may cancel some of your debts, but it probably won’t cancel all of them. This means, before you make the decision to file Chapter 7, Chapter 13 or any other type of bankruptcy, it is important to understand what bankruptcy means, what you will be responsible for paying after your bankruptcy is final, and exactly what will be’wiped out.’

→ Read More

Can I discharge my student loans by filing for bankruptcy?

It is possible, but difficult, to discharge student loans through bankruptcy. In order to obtain a student loan discharge, the debtor must file a petition called an ‘adversary proceeding.’ Before allowing a student loan discharge, bankruptcy courts place a higher burden on student loan holders that holders of other forms of debt, requiring that these debtors demonstrate ‘undue hardship.’

→ Read More

Which debts are discharged in a consumer Chapter 7 and 13 bankruptcy?

The purpose of filing for either a Chapter 7 bankruptcy or a Chapter 13 bankruptcy is to eliminate or alter your responsibility for dischargeable debts you may not be able to pay. Both Chapter 7 and Chapter 13 result in some portion of your debts being discharged. However, while you may be able to have many of your debts discharged through one of these two legal processes, not all debts are dischargeable or eligible for inclusion in a bankruptcy filing.

→ Read More

What is a discharge in bankruptcy?

A discharge in bankruptcy is a dismissal of debt that has become unmanageable to the debtor. According to bankruptcy law, a person who files for Chapter 7 or Chapter 13 bankruptcy and obtains a ‘discharge’ becomes legally free and clear of any obligation to repay certain debts. In short, a discharge in bankruptcy of a particular debt means that the debtor no longer has any obligation to repay it.

→ Read More