The first thing your New Albany bankruptcy lawyer will help you with is to determine which Bankruptcy you qualify for. It may be the Chapter 7 or Chapter 13. Most often individuals become disappointed if they don't qualify for the Chapter 7. This is because under this particular bankruptcy many of the debts will become discharged and no longer an issue.
In the Chapter 13 bankruptcy the procedure is different and it involves more of a payment plan as opposed to wiping out the debt. The real purpose of bankruptcy is to provide financial relief, not merely to get rid of debt.
There are a lot of benefits to the Chapter 13 bankruptcy. In fact, even if you did quality for Chapter 7, it might be better for you to opt for the Chapter 13. For example, with the Chapter 13 Bankruptcy it gives you an opportunity to catch up on missed payments, by implementing payments that you are able to handle based on your circumstances. You wouldn't have this opportunity in a Chapter 7 filing. You won't have to forfeit any of your property as you most likely would have to do in a Chapter 7.
In a Chapter 13 bankruptcy you get the chance to include your student loans and tax responsibilities and set up payments for them that you can handle according to your financial situation. These eventually get paid off and you are no longer being hassled about them. The bottom line is making use of the bankruptcy Chapter that you are not only eligible for but is going to afford you the greatest financial relief, with minimal loss.