Student Loans & Bankruptcy
Is My Student Loan Including In My Bankruptcy?
Yes and no. No matter which Chapter bankruptcy you file, student loans are not dischargeable (removable) debts, although there are one or two exceptions.
A hardship discharge exception is one in which the individual responsible for the loan has some sort of situation in which the repayment of the loan would cause undue hardship to the individual. A hardship discharge may be obtained in cases where the individual suffers a total disability due to an accident, personal injury, or disease, or when the individual has a seriously ill child to care for. Another example of a hardship discharge is one in which there is a large debt, of perhaps $80,000 or more, and the individual has virtually no way to pay it back. In some instances, the student loan may be for only $4,000-5,000 but the individual is making minimum wage and cannot repay the loan from his or her earnings. In those instances, our bankruptcy attorney could help persuade the agency to discharge the debt.
It is also possible to “schedule” the student loan by including it in a Chapter 13 bankruptcy. This will not eliminate the debt, but the interest rate may change, the payment period may change, and the collection efforts will be stopped as a result. Our bankruptcy law firm has also filed objections when we were certain that it would reduce the student loan interest rate.
We Can Save You Today; Make the Call, We’ll Save You
If you have a student loan, and bankruptcy filing is looking like a possible option for you, we urge you to consult with our bankruptcy attorney before making any decisions. Our law office can help you make the best decisions for your particular financial situation. A student loan bankruptcy discharge may be possible. Please call our law office today, or contact our bankruptcy law firm via the Internet. For your convenience, we have two office locations for in-person consultations.
