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Bankruptcy Archives

6 common bankruptcy and student loan myths you shouldn't believe

Making the decision to file for bankruptcy isn't an easy one. You must think about what options you have for handling your debts. Before you decide if bankruptcy is the right thing for you to do, especially if one factor in your case is student loans, make sure you aren't falling for these myths.

Why might bankruptcy be denied?

When you apply for bankruptcy, it's important to understand that it can be rejected. This shouldn't worry you or make you reconsider. It's just crucial to know that it's possible so that you take the time to do everything in your power to make sure yours is accepted.

Report says problem gamblers average $38,000 in debt

It's true that many people gamble a little bit -- buying a lottery ticket when the payout hits a historic high, for instance, or going to the casino at a vacation resort -- and don't run into serious issues. However, for those considered "problem gamblers," a new report claims they average $38,000 in debt.

What kind of student loans can be discharged in bankruptcy?

There is a common misperception among many people that student loans simply cannot be discharged during bankruptcy. In many cases, this may be accurate, but not always. Laws were changed some time ago specifically to prevent the discharge of student loans during bankruptcy. However, statistics indicate that as many as 40 percent of bankruptcy filers who include their student loans in their bankruptcy filing paperwork may receive partial or even full discharge of their student loan debt. An experienced bankruptcy attorney can often help you figure out if your student loans can be discharged.

Can you file for bankruptcy if you did last year?

Perhaps you filed for bankruptcy last year, pulling yourself out of debt and getting a clean slate. Despite your best efforts, you're already looking at mounting debt again, and you're wondering if you can use bankruptcy yet again to get out from under it.