Legal Question in Bankruptcy in Virginia

Are we a candidate for Bankruptcy

My husband and I have about 6K in medical and credit card debt, 15K for our car, and about 40K for student loans.

Our income is only 31K/year. We have the student loans in forbearance right now but even with out having to pay them we can't keep up with rent, electric, food etc.

Would we a good candidate for bankruptcy? Are student loan even discargable?

Thank you


Asked on 9/19/05, 4:40 pm

1 Answer from Attorneys
Daniel Press Chung & Press, P.C.

Re: Are we a candidate for Bankruptcy

You could file bankruptcy, but the student loans will not be dischargeable. If you want to keep the car, you will have to make the payments on that. You may benefit from a Chapter 13, which would allow you to pay the value of the car rather than the loan amount, but that depends on your circumstances. You should consult with a bankruptcy lawyer in your area promptly, as the new law that takes effect on 10/17/05 will make it substantially more difficult and costly to file bankruptcy.

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Answered on 9/19/05, 4:56 pm


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