Tax and Student Loan Obligations in Chapter 7
Chapter 7 bankruptcy wipes out most consumer debts, including credit cards and medical bills. However, bankruptcy does not eliminate the obligation to repay student loans or some tax obligations. At the Miami law firm, Ferrer Shane, PL, our attorneys advise clients thinking about filing bankruptcy about issues related to outstanding taxes and student loans.
Taxes
At our South Florida law firm, you will speak with a lawyer who focuses on bankruptcy and can advise you about the complex issue of tax payments under Chapter 7. Some taxes may be dischargeable; others must be paid. Time limits may determine whether a tax obligation is dischargeable.
Student Loans
In general, you cannot include student loans among your dischargeable debts. You will need to work with your lender to arrange a repayment schedule. And even though there is an exemption for "undue hardship," it is seldom used to eliminate student loans because of the strict definition of "hardship." You must still repay old student loans; this is a change resulting from the Bankruptcy Abuse Prevention and Consumer Protection Act (BAPCPA) that went into effect in 2005.
Sound Advice from Knowledgeable Attorneys
Clients rely on us to give them straightforward advice about filing bankruptcy. We do not encourage people to file bankruptcy if that would be a bad choice for them. We try to be as detailed and accurate as possible when describing exemptions, non-dischargeable debts such as taxes and student loans, and the bankruptcy process itself. Our lawyers provide individual attention to people contemplating filing bankruptcy — it's a big step and most people have many questions.
Learn More About Filing Bankruptcy
Contact a South Florida lawyer about tax and student loan payments under a Chapter 7 bankruptcy filing. Call Ferrer Shane, PL, at 305-262-2728.
We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.
