If Your Debt Cannot Be Discharged, Is Bankruptcy Still an Option?
There are two main types of debt that cannot be discharged in bankruptcy: student loans and most IRS tax debt. If you are struggling with overwhelming student loan or tax debt, this may make it seem as if there is no solution.
Bankruptcy may still be the answer. Just because some of your debt may not be discharged, this does not mean that bankruptcy cannot have enormous benefits. With the help of an experienced bankruptcy lawyer, you can have real relief from crushing debt.
For example, although IRS and student loan debts are generally not dischargeable, they can be dealt with in a Chapter 13 debt reduction and repayment plan. Filing for bankruptcy under Chapter 13 allows you to negotiate a structured payment schedule that can reduce or eliminate your IRS tax debt or student loan debt over a period of five years.
In addition, filing for bankruptcy can give you the breathing room you need to assess your situation. It can also eliminate many other forms of unsecured debt — like credit card debt — that may be making it harder to afford paying your IRS debt or student loans.
You may be thinking that filing for bankruptcy is simply postponing the inevitable — that you will still have to pay back the debts that are not discharged. This is true. However, the payment plan set up in Chapter 13 bankruptcy is based on your ability to pay. This can mean a dramatic reduction in the amount you have to pay each month. It can mean that you will experience real relief from the stress of unmanageable debt.
Get Answers and Legal Guidance Today
At Clark Law Offices in Phoenix and Mesa, we help clients throughout Arizona deal with overwhelming debt. We can answer your questions and offer you sound advice based on years of experience and a thorough understanding of the process.
We invite you to contact our offices today to schedule a free, no obligation, no pressure consultation with an experienced Arizona bankruptcy and debt relief attorney. Get the answers and advice you need today.
Our offices are conveniently located in Phoenix, just south of the Biltmore, minutes from Hwy 51, and in downtown Mesa.
