Callahan, FL Bankruptcy Law Firms & Lawyers

6 months is the residency requirement in order to file bankruptcy. In some situations it can be less. No one can tell you whether to file bankruptcy without a complete knowledge of your financial circumstances. It is not something you can just go and do, it takes a lot of time.

You could eliminate the student loan debt if you and your attorney could convince a bankruptcy judge that it would be an "undue hardship" to be reqired to repay the student loans. This is a difficult standard to meet, but you may have a case from what you have stated about your situation. Besides your income and living expenses, the judge might consider what your future income prospects are, your age, whether you or any family members have disabilities, whether you have attempted to make payments on the student loans, etc. This would require you to file the bankruptcy case, then sue the student loan lender for the determination of undue hardship. Even if you could not prove undue hardship, you could at least pay an amount that is affordable for you for the next five years in a Chapter 13 debt consolidation bankruptcy. You would be protected from collection efforts during that time. A line of credit will in most cases be eliminated in the bankruptcy .

There is no legal limit on the amount of debt you owe. This is more of a practical issue. Please understand that filing for bankruptcy is a very complicated process. It is wise to talk to an experienced bankruptcy attorney before deciding to take this important step. Most Arizona bankruptcy attorneys offer a free consultation about the basics of bankruptcy.