Question about bankruptcy, student loans, due hardship, credit cards…?
My husband is planning on filing for bankruptcy. He has student loans of about 0,000 & has already exhausted deferments. We have to prove due hardship for student loans to be considered. I have about 00 in credit card debt. My family has offered to help me pay off my debts, but i’m wondering if my debt will be considered when he attempts bankruptcy. Would it be in our benefit for me to have this debt to prove due hardship? Would my debt be covered if he did get bankruptcy, so I should save my family the $? Thanks for the feedback.
Posted July 2nd, 2010 in When To File Bankruptcy. Tagged: amp, benefit, credit card debt, debts, deferments, filing for bankruptcy, student loans.
Student loans cannot be discharged in a Chapter 7 BK filing. Student loans can be included as part of a Chapter 13 BK filing, which is a court supervised repayment of the debt.Chapter 13 does not discharge debt…it does make paying back the debt easier as it freezes interest rates at a low level. If he files for Chapter 13 then you can most likely include your credit card debt…this would simply be added to the amount that you’d have to pay back under the court supervised repayment plan.
July 2nd, 2010 at 4:36 pm