Belvidere, NJ Bankruptcy Law Firms & Lawyers

Your budget should include the debts you pay for reasonable living expenses. If your expenses do not allow you to make the GOOD FAITH TEST, your bankruptcy could be denied. Not having a payment on a car loan is often the difference in being eligible for bankruptcy and getting into trouble. I appreciate that it may be difficult to understand my answer. Which is why you need representation by an experienced attorney and not rely on free advice in an online forum.

The student loan would be listed in either your Bankruptcy Petition or your child's. However, the student loans are very likely NOT Dischargeable, i.e., private or not it is very unlikely that you can get rid of them in bankruptcy. When you guaranteed the loans, or co-signed, you created a liability equal to that of your child. Even if she filed bankruptcy and got rid of the liability for the student loans you would still be liable. This is a complicated topic and needs a detailed financial review, but in NY it is almost impossible to discharge student loans in bankruptcy under what we call the "Brunner" test, especially given the fact that the student loan repayment plans include the "Ford" plan that would allow your child to make payments based on their income.