If you you find out that some of your debt may not be dischargable in a bankruptcy filing then you should speak to a bankruptcy attorney to figure out what your options may be. One option for you may be to file chapter 13 bankruptcy and pay your debts in full over a period of 3-5 years. You may also want to consider trying to negotiate a settlement of your debts if your creditor is open to the idea of settling your debts for less than the full amount that you owe. Debts such as with the IRS will want the amount paid in full but are often open to a favorable repayment plan if you can show a financial hardship. If you have Student loan debt, another often non dischargeable debt, it your options will depend on whether you have federal or private loans. Federal loans are easier to manage as there are many Federal programs out that that limit the amount that consumers have to pay back every month. For instance with Income Based Repayment (IBR) you would just have to pay back a percentage of your total income and if you don’t pay that off in 20 years the debt is discharged. Also if your income is $0, then guess what, your payment is $0! and you won’t be harassed by debt collectors and you will get credit for making your payments on time. Private student loans aren’t so favorable but if you don’t have an income and no assets, then you are probably what we can refer to as judgment proof. This means that even if somebody gets a judgment against you that can’t garnish wages, put liens on anything, or take money away from you. This article goes into more detail regarding what happens if the court orders repayment of a debt.
If you have additional questions regarding other options to deal with non dischargeable debts please give Symmes Law Group a call at 206-682-7975
