Taxes & Student Loans in a Knoxville Bankruptcy Case

If you or a loved one needed to use student loans in order to further your education, you are not alone. Many people in Knoxville are in the same boat, with mounting student loan debts for which they can no longer pay.

Being in trouble with the IRS for your tax debt is a similarly stressful situation. It is common for people to rack up more and more debt while trying to pay off student loans and taxes. Fortunately, a Knoxville bankruptcy lawyer at Saffa Law Group, P.L.L.C. can present you with some debt relief options and information regarding bankruptcy in order to begin fixing anxiety-inducing problems involving tax and student loan debt.

Handling Tax and Student Loan Debt through Bankruptcy

Owed taxes and student loan debts, unfortunately, usually do not qualify as dischargeable government debts. The amount of debt applying to these two categories does not make a difference either, and bankruptcy will not eliminate these debts.  However, bankruptcy can help you pay off your government student loans and taxes, by filing for Chapter 7 or Chapter 13 bankruptcy. This will allow you to pay off your other debts, which will free up money for you to put toward your taxes owed and student loan debt. Depending on the age and type of tax, you may be able to discharge the debt through your bankruptcy filing, so it is important to talk to an attorney about how your tax debt may be affected.

Chapter 13 bankruptcy allows you to configure a payment plan for your outstanding debt, after you have paid for your regular monthly expenses, like your student loans and taxes.

In essence, you cannot discharge your taxes or student loans so finding creative solutions to pay them off is possible with the help of a skilled Knoxville lawyer. By working with an attorney at our firm you will greatly increase your chances of realizing financial peace. We can help devise a good debt paying strategy so that it will help you pay down your student loans and taxes in a more timely fashion.

For assistance with your student loan and tax debts in Knoxville, Lenoir City, Sevierville, or Pigeon Forge please contact a Knoxville bankruptcy lawyer for a free consultation!