Search Site
Menu
 Whippany, New Jersey | New York, New York
Free 30-Minute Consultation 973-428-0800
What happens if there’s a judgment against you and then you file for bankruptcy? What would it do to the judgment?

What happens if there’s a judgment against you and then you file for bankruptcy? What would it do to the judgment?

Interviewer: Are there any obligations that cannot be discharged in the bankruptcy? How about tax liens or child support payments?

Some Income Taxes May Be Discharged but Alimony and Child Support Payments are Not Dischargeable

Tanya: Child support and alimony payments can’t be discharged. Some taxes that are owed, such as a portion of a person’s income taxes, can be discharged. It depends on what year they were incurred and what kind of taxes they are.

There are certain taxes, which are called trust fund taxes, not income taxes, so for an example when you’re an employer and you collect taxes from employees or sales tax from other people that you’re just really holding money for the government and you owe that to the government. You cannot discharge those taxes.

Your regular income taxes, if it’s over three years ago and they were properly filed and they’re assessing you for that money, those can be discharged if they meet the proper qualifications.

Student Loans are Not Dischargeable in a Bankruptcy Filing

Interviewer: What about student loans?

Tanya: Okay so student loans are not dischargeable. They are considered unsecured priority debts. There is a group called the National Association of Consumer Bankruptcy Attorneys that I’m a member of. Actually today, President Obama passed a law to retroactively reduce the interest rates on student loans.

There Are Programs Available to Help Reduce or Eliminate Student Loan Obligations Based on Your Income

While this certainly aids people, policy wise, they are not dischargeable at this point. However, what is happening and we do handle this, is if people have federal student loans that they owe, there are programs now where you can either reduce or eliminate payment obligations depending on what your income is.

Tanya: If you got out of college and you owe $100,000 and you do not have a high paying job, for example, if you have a $30,000 a year job, you just may not be able to pay your loans or may only be able to pay $50 a month instead of the $1,000 a month that they want. You can do that without being in default as long as you cooperate with and abide by the terms of the program.

You can’t eliminate the payments through bankruptcy, but there are ways of helping make this obligation more manageable.

Municipal Employees Are Eligible for Debt Forgiveness after 10 Years of Paying Their Student Loans

Yes, that’s what the law has enabled parties to do, exactly. It is income based financing and then also after 25 years of payments, then there’s no longer an obligation. If you have a municipal job, such as a teacher or I believe as a police officer, you also are entitled to debt forgiveness after ten years.

There are certain little niches and nuances about student loans that you could take advantage of, but bankruptcy is not one of those.

Our Offices
  • Whippany Office
    575 Route 10 East
    Suite 1
    Whippany, New Jersey 07981
    Phone: 973-428-0800
    Fax: 973-428-0830
  • New York Office
    420 Lexington Ave.
    New York, New York 10170
    Phone: 646-213-9053
Testimonials
  • "Without Tanya and her time, the really unpleasant experience of getting divorced would have been even worse. They were able to settle the matter very quickly and helped me fit this into my tight schedule allowing me to leave to move abroad for my dissertation research on time without having to delay the trip because of the divorce. They also did all of it within my very tight budget. Thank you so much for your help and dedication to my legal matter!"  - AG

  • "Tanya and her Associates are outstanding! What I admire most about Tanya is her knowledge of the law with her keen negotiation skills to foster mediation. Her strategies efficiently resolve conflict leading to the resolution of cases. She and her team have an outstanding work ethic, know what data are needed, and get the job done. It is a pleasure to work with such wonderful professionals."  - Tara, Whippany

  • "I found Ms. Helfand's knowledge and tenacity most reassuring during the ordeal of my divorce. She was steadfast in her guidance and was very effective in her negotiations on my behalf. I would recommend her without a second thought."  -Jonathan

  • "Ms. Helfand was very professional and helpful with our bankruptcy case. Her advice was very useful and helped us make the proper decisions for our situation. In addition, she was very supportive during a very difficult time for us. Finally, she set very specific fee expectations and there were no surprises when it was completed. I would use her services again and would recommend her, without question."

  • "She is Incredible, very quick responding to the other party. Very professional and courteous. I highly recommend her. She has a great passion and love for every single case."

  • "Tanya and her team were very professional handling my divorce proceedings. She was very proactive in making the other attorney finally get the process moving forward. I would recommend her to anyone looking for legal services."  -Scott

  • "Ms. Helfand strategized & processed, both, my Divorce & Chapter 13 Bankruptcy. As both cases were emotionally and legally challenging, Ms. Helfand proved to be an empowering Mentor along the path to clarity for which I am truly grateful.I highly recommend her legal expertise to anyone who is seeking a confident, savvy & caring attorney to become at peace with self and any legal matters."  -Vas

Media
VideosView All

Podcasts
view All

Press Releases