Sacramento Bankruptcy: What are the Special Considerations for Student Loans and Taxes?

Dealing with student loans and taxes requires a bankruptcy attorney with a sophisticated approach.  Prior to 1998, student loans could be discharged through a Chapter 7 bankruptcy, but changes to the law in 1998 made student loans ineligible for discharge.  Even after these changes, Sagaria Law helps its Sacramento clients to obtain relief using Chapter 13 bankruptcy.  In Chapter 13 bankruptcy, our attorneys consolidate student loans, along with other outstanding bills, into an interest-free repayment plan.  This protects clients from garnishments, creditor harassment, and collection efforts.  Also, Sagaria Law can use the Chapter 13 bankruptcy process to reduce amounts paid on the loans during the course of the bankruptcy, so that in the end, your consolidation payment is as low as possible.  To learn more about how Sagaria Law’s attorneys can ease your student debt burden, call our Sacramento office now.

Relieving you from tax debts also requires special planning.  Tax debts generally can be discharged only after three years following a timely and truthful tax return.  If your return is filed late, taxes are discharged only if the bankruptcy filing occurs two years after a truthful tax return.  Nevertheless, remember that these are general rules, and your specific situation should be analyzed with a Sagaria Law Sacramento attorney, who will be able to provide detailed and individualized advice.