Young adults in the United States are facing a future of great financial insecurity. On one hand, they are inheriting the social and political repercussions of a dangerously high national debt. On a more personal note, they need to balance the country’s rising living costs with college debts and fluctuating unemployment rates. Many desperate young adults are turning to bankruptcy as a “do over” option.
A successful bankruptcy case can discharge the following debts:
- Medical bills
- Credit card debts
- Unsecured personal loans
Before filing for any bankruptcy option, it’s important to discuss your case with an experienced attorney who can review your assets and analyze your debts. Unfortunately, filing for bankruptcy mot not be your safest option if you have an adult (such as a parent) as a co-signer on any personal loans.
Bankruptcy & Credit Card Debts
You can usually discharge all your credit card debts so long as you didn’t make any excessive purchases or cash withdrawals prior to your filing date.
Bankruptcy & Student Loans
Sadly, bankruptcy does not discharge student loan debts unless you are able to prove undue hardship. This can be incredibly difficult to prove in court, and absolutely requires the guidance of an experienced legal representative.
Bankruptcy & Unsecured Personal Loans
Many people decide to file for Chapter 7 because it’s a comparatively quick and efficient bankruptcy process that completely discharges most debts. However, it can put your co-signer in a difficult position. Chapter 7 initiates an automatic stay that protects you from creditors because your liability on the debt is eliminated. This policy does not apply to your co-signer. For example, if your father is a co-signer, he is still responsible for fulfilling his original contractual obligation to repay the loan. In this circumstance, you want to try discussing your situation with your creditors before filing for bankruptcy. If your co-signer has excellent credit and a history of repaying debts, your creditors may be willing to offer you a more feasible interest rate.
Explore Your Options with a Skilled Bankruptcy Lawyer
At At Bach Law Offices, our Northbrook bankruptcy attorneys can review your financial situation and help you thoroughly understand your bankruptcy options. If you decide to proceed with your Chapter 7 case, we can effectively guide you through each step of this complicated legal process.
review your financial situation, explain your bankruptcy options, and provide you with exceptional legal guidance. Our priority is to help you navigate this complicated process and help you develop the skills you need to stay out of debt.
Contact Bach Law Offices at (847) 448-0025 to schedule a consultation.