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We are a bankruptcy law firm giving personal attention to our clients. We offer low fees and payment plans to those who need it. We have dedicated our law practice almost exclusively to bankruptcy law since 1996 and have become know as the local and trusted bankruptcy firm in Massachusetts.
A: "Forgiven" and "discharged" are two different terms. Yes, the debt can be discharged in bankruptcy. If it is a secured loan then you will have to continue making payments to keep the collateral or you can surrender the collateral but either way the debt is discharged. If it is unsecured it can be discharged. If the loan is forgiven then you could have serious tax consequences. Any cancelled or forgiven debt can be considered income to you and reported as such on your taxes.