Dealing With Court Costs, Fines, Child Support and Student Loans in Bankruptcy
Many times, clients come to my law firm with a significant amount of debt that cannot be eliminated in bankruptcy. If your debt problems include significant child support arrearages, student loans or other non dischargeable debt, a thorough financial analysis by experienced bankruptcy lawyer Holly Schumpert, is critical in determining the most appropriate debt relief solution for your situation. I can carefully review your situation and provide you with the information you need to make smart choices about your financial future.
Contact my bankruptcy law office to schedule your free consultation today.
Understanding Student Loans, Child Support and other Non Dischargeable Debt
Non dischargeable debt is debt that cannot be discharged (eliminated) through a bankruptcy filing. Child support arrears, spousal support obligations, student loans, court costs or fines, and certain taxes are examples of debt that cannot be eliminated through a bankruptcy discharge. However, there are effective strategies for dealing with non dischargeable debt so that you can reinstate a revoked driver's license, avoid contempt proceedings and regain control over your finances.
Chapter 13 bankruptcy, commonly referred to as the wage-earner bankruptcy plan, enables debtors to consolidate debt — including non dischargeable debt — into a three- to five-year repayment plan. In a Chapter 13 case, the debtor must make regular and consistent plan payments to the bankruptcy trustee, who then disburses payments to creditors in accordance with the court-approved plan.
Non dischargeable debt, court costs, fines and child support payments can oftentimes be provided for in a Chapter 13 bankruptcy, allowing a reinstatement of a revoked driver's license.
- Child support: Child support arrears can be "cured" or brought current under the Chapter 13 bankruptcy plan, assisting the debtor in avoiding contempt proceedings and/or "purge" payments and reinstating his or her driver's license.
- Court costs and fines: The debtor would be responsible for paying the Chapter 13 trustee plan payments that are necessary to pay all court costs and fines within the three- to five-year life of the payment plan.
- Student loans: Student loans can often be the most challenging form of non dischargeable debt to deal with. While every situation requires a thorough case-by-case analysis, it is even more important in bankruptcy cases involving a significant amount of student loan debt. If not handled appropriately — with the help of an experienced Memphis bankruptcy attorney — a Chapter 13 bankruptcy may not alleviate your debt problems.
Tennessee Chapter 13 Bankruptcy Attorney
As an experienced and knowledgeable Tennessee Chapter 13 bankruptcy lawyer, I can help you determine if filing for Chapter 13 is the most beneficial solution for your situation, or if an alternative debt relief solution, such as Chapter 7 bankruptcy, would be more effective.
Many people pursue a Chapter 7 debt discharge in order to eliminate dischargeable debt, such as credit card debt, so that they can afford to pay non dischargeable obligations, such as child support obligations. With over 15 years of experience as a bankruptcy attorney, located in Memphis, Tennessee, I can provide you with the thorough legal and financial analysis you need to move forward, with relief and peace of mind.
At the Holly Schumpert Law Office, I offer proven, hands-on and compassionate representation at competitive rates. Call me at 901-323-9000 locally or
We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.
