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Can an old student loan be discharged if it is causing hardship?
Wiki User
∙ 8y ago
Hardship dismissals for student loans are generally applicable only when the person has become disabled. Or it can be proven the person will never be able to garner enough income to pay the debt.
3 Prong test...
1) Can not afford the payments now.
2) Can not afford the payments in the foreseeable future.
3) Have made an effort to meet your obligations to the loan...
- 3 is where most people get caught. If your loan is deferred you are OK.
If you are 100% disabled and make $800 a month with $100k in student loans and you have defaulted on the loan, it most likely will NOT be discharged or reduced... but that is up to the Judge.
Wiki User
∙ 8y ago
Wiki User
∙ 16y agoOnly if you can convince a bankruptcy court, through an adversary proceeding, that your financial future is nothing less then completely hopeless.
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I cosigned for a private student loan and then two years later she filed for bankrupcty and has been discharged now it is my responsiblity how can I get out of it if she was discharged?
You might want to make sure the student loan was discharged. Most cannot be without a showing of a hardship, and the mere inability to pay is not a hardship. If it was discharged, you must pay, but if she could get a discharge, you should be able to.
Can a co-signer on a student loan get that discharged?
No.
Can student loans be discharged in a bankruptsy because of hardships?
Yes, there is a very SMALL possibility that student loans can be discharged in a bankruptcy proceeding and you are correct to say that the reason would be with a very compelling showing of hardship. That being said, this is very uncommon and student loans are typcially classified in a category of nondischargeable debt. A law was passed in 1998 that has made it even more difficult to discharge a student loan in bankruptcy. It is incredibly difficult to discharge a loan in this way, and the only approach is to convince a court that repaying the loan would create a severe hardship for you.
Can you bankrupt on a government student loan?
These are not allowed to be discharged.
If you default on a student loan does that stay on your record after you file for a Bankruptcy?
Any debt listed (or should have been listed) in your bankruptcy can be reported as discharged for the ten years the bankruptcy can be reported. Since a student loan cannot be discharged without proving a hardship (the difficulty of which varies from state to state and even court to court), the default can probably be reported as long as it remains unpaid.
Your Grandpa cosigned your student loan The loan was private He recently passed away Can you get the loan discharged?
No dude you are stuck.
What is an undue hardship petition?
This is a petition filed by a student loan debtor in 2 circumstances: 1) to appeal administrative wage garnishment on the grounds that is poses an undue hardship to the borrower or their Dependants, or 2) an adversary proceeding in bankruptcy court where a debtor attempts to prove that their student loans should be permanently discharged because repayment would cause undue hardship to them or their Dependants. Under both circumstances, the borrower bears the burden of proving that exceptional financial hardship make them temporarily(for the first) or permanently(for the latter) unable to make the minimum payments required by their student loan agreements. Please search "administrative wage garnishment" and "student loan bankruptcy" for more info applicable to you.
I filed bankruptcy under Chapter 13. Student loans were discharged under hardship. Do I still have to pay them?
Chapter 13 is "reorganization" plan for payment. Student loans were within the plan for payment? or were they discharged within another bankruptcy? normally student loans are not dischargable, (11 U.S.C. sec. 523(a)(8) bankruptcy:) there are two exceptions: 1: loans are not from any governmental agency unit or non profit 2: paying the loan will impose an undue hardship to dependents.
Is it possible to have a student loan from a private lender discharged?
If you are referring to bankruptcy, filed after 10/17/2005, the answer is probably no. The new law makes ANY loan for educational benefit non-dischargeable unless you can 'pass' a VERY stringent test for proving undue hardship.
Can you apply for a student loan after a filing for bankruptcy?
Only if the bankruptcy is currently discharged.
If your student loan was discharged in 1985 and 20 years later you would like to go back to school will you have problems getting another student loan?
No.
Is a discharged debt for hardship or disability considered a bankruptcy?
No, discharged debt is considered a forgiveness of debt and not a bankruptcy. Bankruptcy can only happen as a result of bankruptcy court procedure. Certain loans can be discharged due to hardship or disability, especially if there is an insurance policy in force to cover such a situation. When a loan is forgiven due to hardship or disability, the debtor's credit rating is usually not affected.
