It can be hard to declare bankruptcy if student loans are responsible for the bulk of your financial debt. This is because most student loans come from government, and you better believe that the government wants its money back, plus interest! You will have to demonstrate “extreme” or “undue” hardship to successfully discharge your student loans. When filing for bankruptcy it is crucial that you are candid and not concealing any liabilities or assets, as it will only show up in the future. The lawyer representing you when you file needs to have full knowledge of your financial situation. Being honest is both the right thing to do and, moreover, it is required by law. Understand that in the long run, a bankruptcy filing may be better than continued missed paymsent when it comes to your credit score. Of course, bankruptcy hurts your credit for up to ten years, but you can begin to re-build your credit immediately. One of the good things about bankruptcy is that you can start fresh. Don’t just give your paperwork to your lawyer and not follow up afterward. While your lawyer is your personal bankruptcy expert, it is still important to stay involved in the process. You may be tempted to let your lawyer handle everything, but keep in mind that you are the one who is going through this ordeal, not your lawyer. Do a little bit of research into the regulations having to do with filing for bankruptcy before you begin the process. There are many traps in the bankruptcy laws that could trip up your case. It is even possible to make the sorts of errors that can cause your case to be dismissed. Spend some time learning about personal bankruptcy. Doing this will make the process easier. Don’t fear reminding your attorney of any specific details of your case. You cannot expect your lawyer to remember every important detail without some reminder from you. Your case and future are affected by the attorney’s action, so never be afraid to communicate.
It is essential to always be candid in your bankruptcy petition and subsequent documents. Any attempt to hide something from the court could cause your petition to be turned down immediately. If it has a bearing on your case, then all assets and income must be declared. This will make you look good in the court’s eyes, helping you to get a positive ruling.