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The Bankruptcy Code used to say that student loans could be discharged if they were more than 7 years old AND some other criteria were met. In the past few years, the Code was changed and now the Bankruptcy Code says (in 11 USC 523):
- "(a) A discharge ... does not discharge an individual debtor from any debt- (8) for an educational benefit overpayment or loan made, insured or guaranteed by a governmental unit, or made under any program funded in whole or in part by a governmental unit or nonprofit institution, or for an obligation to repay funds received as an educational benefit, scholarship or stipend, unless excepting such debt from discharge under this paragraph will impose an undue hardship on the debtor and the debtor's dependents"
This means that you can only discharge student loans in bankruptcy if you can show that repayment causes an undue hardship on you or your dependents, and this does NOT simply mean "Gee these things are hard to pay." I read a case once where the debtor became paralyzed from the waist down, and the Bankruptcy Court did not allow him to discharge all of his student loans since he could still work a desk job. It seems that you need to be unable to work anymore to have much of a chance to get student loans completely discharged, but this my vary from jursdiction to jurisdiction.
Wiki User
∙ 10y ago
Wiki User
∙ 12y agoAlthough bankruptcy is a genuine path to get out of debt, it leaves a long lasting scar, and comes at a high price financially and emotionally. The financial impact is severe; a bankruptcy will stay on your credit report for 7-10 years. You shouldn't consider bankruptcy as a simple "quick fix" to all of your financial difficulties, but rather as one of the many available solutions you may have given your individual situation.
Wiki User
∙ 16y agoNo, you can't get out of paying a student loan by filing bankruptcy.
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Can you apply for a student loan after a filing for bankruptcy?
Only if the bankruptcy is currently discharged.
Is a car loan discharged under chapter 7 bankruptcy?
Whether your car loan is discharged by a bankruptcy or not will depend on your state and the equity in your car. Whether the loan will be discharged or not is called an "exemption".
If you file bankruptcy do you have to still pay off student loan?
Govt insured or guaranteed loans are NOT able to be discharged in BK.
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.
What is meant by student loan bankruptcy?
Student loan bankruptcy happens when a student has not been a student for the last 7 years and declares bankruptcy. For more information please contact a student loan office.
How credit union collect bankruptcy loan that discharged?
If a loan from a credit union has been discharged in bankruptcy court, that credit union cannot collect and must write the loan off.
Will a car title loan be discharged by filing bankruptcy?
No, only unsecured debt is discharged.
Paying back a discharged loan after chapter 7 bankruptcy?
There is no reason to repay a loan after a discharged bankruptcy, if you have done so, you can reclaim all your money from the creditor (you'll have to go through court).
Can a co-signer on a student loan get that discharged?
No.
How does bankruptcy affect student loan wage garnishment?
Government insured student loans are exempt from the Bk process. They must be paid. However, they will not collect money from you until the bankruptcy is dismissed or discharged, but it will still accrue interest during that time.
Do student loans automatically come with filing bankruptcy?
Federal Student loans cannot be discharged in bankruptcy. You must repay them.
Would bankruptcy eliminate a private student loan for over 100000?
It is possible that a portion of the loans would be discharged in bankruptcy, perhaps all, but that is difficult to assess without all pertinent information. However new bankruptcy reform will become law as of Oct. 17, 2005, which will not allow any student loans to be discharged, with the exception of a valid "undue hardship" defense.
