Legal Question in Bankruptcy in Georgia

Re: 401K and bankruptcy

It does not matter if the student loan is federaly backed or not, no student loan is dischargeable.

401(k) accounts are exempt.

If your car and musical instruments are not that valuable, they can most likely be exempt.

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Re: 401K and bankruptcy

I'm going to mostly but not totally agree with the other response to you. I should note that if you are in S.C., you probably cannot file in Georgia and use Georgia's exemptions.

401Ks are generally exempt.

As for student loans, government insured student loans (and most are) cannot be discharged in most chapter 7's. There are some VERY limited exceptions, mostly in Chapter 13's, and for hardship discharges, which almost no one qualifies for. There are a VERY small number of loans out there that are really not student loans, but were used for education, and are not insured; those can be discharged. However I find that most people assume that their bank or private lender loan isn't a federal loan, when almost all are.

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