September 10th, 2010 by Reed Allmand 
Bankruptcy discharges many debts; but there are certain debts such as student loans and child support which are generally not dischargeable in bankruptcy. And while there are some ways to discharge student loans during bankruptcy, it is rare. So how does one repay this leftover debt after bankruptcy? Below are a few tips:
- Take an honest look at your finances before your bankruptcy case is discharged. How much income do you have and how much are your debt payments? Are you making enough money to repay these debts and pay your living expenses? If you’re unemployed the obvious answer is probably not. But if you’re employed it may be likely that you earn enough to repay the debts even if you have to make some minor or even major adjustments to your lifestyle.
- For an unemployed debtor with debts after bankruptcy, asking for a deferment or forbearance may actually be an effective strategy. In the case of student loan debt, federal loans have deferment programs that can be quite generous. Deferment and forbearance after bankruptcy can offer a debtor the time to get back on their feet financially while not damaging their post-bankruptcy credit rating.
- For employed debtors who have leftover debt after bankruptcy, making major life changes could help you repay your debt faster. A wise post-bankruptcy debtor might want to calculate how long it would take them to pay off a debt if they paid a certain amount every month. Then they may want to reduce their expenses so that they can meet that goal. This really is where debtors may need to make some lifestyle sacrifices so they can quickly pay off any debt leftover from the bankruptcy.
About Reed Allmand
Allmand's vision is rooted in his own financially precarious childhood in Abilene "My father always had difficulty holding a job and supporting our family, so after my parents divorced when I was 12, my sister and I got jobs to help make ends meet," he recalls. "I remember what it felt like as a child to worry that our car would be repossessed or home foreclosed on."
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