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Getting the help needed to file for bankruptcy

It is often a point of pride for many Colorado residents to be able to do things on their own. Whether it is completing a project around the house, fixing the car or otherwise, individuals enjoy the piece of mind of knowing they can solve problems on their own, as well as the added savings in not having to pay someone else to address the problem.

However, individuals may find that it is not always best to do things by themselves in certain circumstances. When experience and expertise are required, individuals may later regret trying to do things by themselves when they do not have that experience and expertise.

A prime example of this is in filing for bankruptcy. At first blush, individuals may think the process is straightforward enough that they might be able to handle it alone. However, there are a number of exemptions and bankruptcy rules that apply, making it best to obtain advice in order to ensure the person has the best chance for debt relief.

For example, individuals may not understand whether they can eliminate debt from student loans in a bankruptcy action. Generally, it is difficult to discharge student loan debt in bankruptcy, although there are circumstances where this is possible. Namely, individuals must show the continuing loan will impose an undue hardship. Even in these circumstances, however, the proper adversary proceeding must be filed in order to discharge the debt.

Ultimately, no matter what type of debt a person needs to discharge, it is best to speak with a professional to determine what the rules are for discharging the debt, and what state law exemptions may be available. It is better to address these issues ahead of time, rather than after the fact, when it may be too late.

Source: Huffington Post, "I filed my own bankruptcy. My private student loans were not discharged.," Steve Rhode, Nov. 19, 2013

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