You've heard over and over again that there is no way to discharge your student loans, but that isn't really the case. In some situations, student loans can be discharged, or you can find ways to manage them more appropriately.
Although bankruptcy is authorized by federal law, certain myths associated with this legal remedy continue to persist. The myths serve to perpetuate a negative stigma about bankruptcy in Pennsylvania and throughout the country; however, they are not based in reality. Unfortunately, the stigma will remain until consumers are better informed about the powerful features of bankruptcy that allow them to obtain fresh starts in their economic lives.
For Pennsylvania consumers who listed financial survival and economic improvement as a New Year's resolution, consideration of bankruptcy may possibly be timely. Any discussion of the topic usually first contends with its sinister image. However, when someone begins to learn the true facts about bankruptcy, the reality of it always looks a lot better than its legend.
A Chapter 13 bankruptcy, which involves a payment plan, may stay on your credit record for up to seven years. On the other hand, a Chapter 7 bankruptcy, which discharges unsecured debt and doesn't seek to pay any of it back, may be reported for up to 10 years. Some Pennsylvania residents believe that they cannot get a mortgage to buy a home for at least that amount of time. The fact is, however, that they will often become eligible for a mortgage much sooner than the expiration of the reporting periods.