When you file for bankruptcy, most of your debts will be discharged so you are no longer required to pay their remaining balance. However, there are exceptions to debt discharge during bankruptcy, including educational debts. This means that even if you successfully file for bankruptcy, you will continue to owe payments for your student loans. In the past, student loans were dischargeable via bankruptcy proceedings; however, bankruptcy laws passed in 1976, 1984, and 2005 have since exempted all types of student loans from discharge via bankruptcy, including private and federal loans. If you need to file for bankruptcy, it’s important to talk to your bankruptcy attorney in Aurora to determine which types of debt will be discharged and which loans you must continue to pay.
Bankruptcy can be a valuable financial tool to help you eliminate excessive debt and regain financial traction. Your Aurora bankruptcy lawyer is a valuable resource that can help you evaluate the facts of your case and determine how to handle your remaining debts and finances.