Can I include my student loans as debt for chapter 13 bankruptcy and is child support considered income

Defend that suit ... don't let it default.

1. No
2. A federally guaranteed student loan's payments won't be affected unless there is a partial hardship discharge under the Brunner test.
3. Chapter 13 stays on your record for seven years *after* it's paid (10-12 years total) ... versus 7 years for a chapter 7.

About 60% of Chapter 13 plans fail. So you might want to consider Chapter 7 or just muddling through. Garnishment against a head of household can be difficult (because of exemptions available under state law). If a creditor wins a judgment and your property and wages are exempt under state law, you might not hurry to pay it off.

An unpaid judgment can have a protective effect by deterring other creditors from suing. The first guy gets wallpaper, the next ones in line can see that it's wallpaper (no garnishments, no satisfaction) on credit reports and public record databases and the go "what's the use?" Then the other claims go out of statute, and if anybody's still paying attention to the old judgment, you are freed up to settle with them without fear of the other guys (although they will come back and ask for money once they learn that you settled).

I recommend that you consult with a consumer bankruptcy attorney in your locality. I do not know the law in your state. Here are some general observations that may education consumers who read this post :

(1) Your car finance company can not refuse to work with you so long as they have not repossed the collateral before you file your Chapter 13. If a repossession has occurred, you would need to research the decisions in your circuit or district and any applicable state law.

(2) You MUST include (i.e., LIST the account in your schedules and mailing matrix) ALL of your creditors in your bankruptcy regardless of what chapter you file and whether you intend to discharge that account.

As the other answer hints, discharging educational loans in bankruptcy is very difficult and is seldom accomplished. You should consult with a local bankruptcy attorney who represents debtors in Chapter 13 to discuss this issue and your other questions.

Very few courts allow debtors to segregate their non-dischargeable educational loans as a separate class of unsecured creditors who stand in line in front of the remaining, generally dischargeable unsecured claims such as credit cards and medical bills.

When a federally insured educational loan goes into default, the lender adds a 24% penalty. (This penalty can be reduced to 18% by rehabilitating the loan but this may still be a substantial penalty even in absolute terms if the loan amounts are large enough.)

You can not pay your educational loans outside the CH 13 plan without the court's permission and, unless you have a very understanding judge, you aren't likely to persuade the Court to go along with that. (You can not pick and choose among your unsecured creditors by paying some of them outside the plan.)

(3) The bankrutpcy will stay in the credit reporting agencies' databases "forever" regardless of the Chapter
you file. It won't appear in your consumer disclsoures and most credit reports after it becomes "obsolete".

After the filing becomes obsolete, however, the credit reporting agencies generally do not report the bankruptcy but there are many exceptions which do not apply to most people. The exceptions that I remember are : (1) life insurance policies where the policy amount is expected to be at least $ 15,000; (2) loans where the amount is expected to be at least $ 150,000; and (3) employment at an annual salary anticipated to be at least $ 75,000. After 10 years, I doubt anyone really weighs these factors much but they are allowed access to the fact you filed bankruptcy.

I respectfully disagree with Mr. Hankin's description of the obsolescence period concerning bankruptcy filings. There are a lot of misconceptions about this.

The bankruptcy will be "obsolete" ten (10) years after you voluntarily FILE it regardless of whether you chose a Chapter 7 or a Chapter 13.

There are credit scoring differences for a while but they are not substantial enough to determine which Chapter you should file under. Be concerned about discharging your debts and protecting your income and property so that you can provide for your family.

Bad things happen to good people. Call your local legal aid society. (The Bankruptcy clerk's office will probably assist you if you can not locate them). If you do not qualify for legal aid, many legal aid or local bar associations maintain a "low fee" panel for people whose income does not qualify them for legal aid but who are close to qualifying. (These people qualify for a reduced fee and many attorneys offer this service which basically allows them to recover their overhead while assisting people who are in financial distress).

I highly recommend that you consult with an attorney in your locality who can advise you about the many issues that will appear in a typical Chapter 13 case as it progresses. Good luck