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Can you have student loans and still file chapter 7 bankruptcy?
Yes, but the student loans don't get cancelled: you still have to pay those.
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Probably not...for many reasons. First, in todays financial world, even well qualified people, with reasonable equity in their homes, and who have paid back heir ot…her creditors on time and have no real chance of liens or judgments or losing assets have a tough time getting loans. You are in BK. EVERYTHING you own, and EVERYTHING you owe is included. (If you didn't include/report things, it will likely turn up, and can be considered fraud or at least contempt and certainly will lilley have your case dropped. Your assets and debts are classified, with some things perhaps being classed as exempt, and what you own is liquadated to pay what you owe...and the rest of what you owe discharged. The house will be sold to provide funds for those you owe. The equity ISN'T yours....it is actually those you owe and haven't paid. While some portion of the house may be "homesteaded" or exempt...well, that is exactly the portion you can't use as collateral on a loan, because the lender can't get to it. Then of course there is the other aspect....your in BK, you haven't handled credit well...it will cost you a lot if you can find it...and much more than the people who actually manage to pay back what they borrow would consider. You cannot borrow your way out of debt. Whatever the change, making the ones that allow you live within your means is what is called for...live the life you can afford. You can't afford to live on borrowed money. Proved that.
It probably doesn't matter since most student loans are non-dischargeable (see 11 USC 523(a)(8), which says that student loans may NOT be discharged in bankruptcy if th…ey are "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."). If they are of the dischargeable nature (rare), I normally put them on Schedule F as an unsecured, non-priority creditor. If they are of the non-dischargeable variety (which is most of them), I normally list them on Schedule E and list them as a "tax or other governmental loan." Please note that nothing in this posting or in any other posting constitutes legal advice; this is simply my understanding of the facts, which I do not warrant, and I am not suggesting any course of action or inaction to any person. Yes, you need to list student loans on your bankruptcy petition. You will need to list them on Schedule F. you have to be sure to note this debt on the Statistical Summary (Form 6) under type of liability "Student Loan."
You can: 1) Hire a lawyer 2) File without any assistance by finding the right forms and regulations for your state and district you live in...or 3) Hire a bankruptcy petition …preparer to simply prepare your petition for you! Bankruptcy, in fact any legal process, any expert process..is not something one should do for themselves...even experts and well experienced or skilled people don't...and as you can ask a question like this...it just goes to show your likely entirely incompetent to do so even if there was an answer for "how" (that obviously doesn't involve virtually all the 10,000s of pages of legal writings and court operations that may or may not be needed, and change, for each case! There are going to be many, many, many more complicated questions to be answered, actions that must be done to get the best result, specific requirements. documents, etc....to answer fully and accurately...all much more difficult than figuring out a logical place to start a "how to...do a legal thing"...is the legal courthouse...in this case one of those in the entire court system that deals only with this type of case...The US Federal Bankruptcy Court for your District. Addressing the underlying part of your question - it is realistic to think everyone filing BK is in a dire financial position already without easy ways to pay for things, especially attorneys. That said, many lawyers keep their fees very reasonable for this, and there are provisions to assure administrative costs involved, like attorneys, are able to be paid as part of the process. Before you go any further, you should consult at least 2 attornies who practice in this field to get more info. These initial consults are almost always available for free. You can always file and administer it yourself, with only modest filing & court fee's, that are even sometimes able to be waived if you can meet certain qualifications, and again, file everything properly, etc. However, any court process is complex and can have any number of special issues and possible results. To someone who is unfamilar with it, and especially someone who may not be very financially conversant and able to easily understand the things being asked and where/how to get required documentation, etc. To expect to get the best result or even hoped for one, (in fact as seen from many of the Qs and beliefs expressed in Qs here, to not make matters even worse...even criminally so, or find that something was missed that becomes a problem years later), is simply unrealistic. I am not one, and may not particularly like them, but something as important as this to your future (not some purchase just because you want it), is exactly why and when an attorney (or expertise) is needed. As you look to get a fresh start and handle financial things differently, the purchase of expertise to accomplish it is not the time or place to DIY. == The Steps For Filing A Chapter 7 Bankruptcy: 1) You meet with an attorney (or can self file, which probably isn't recommended, especially if your starting with having to ask here. However, perhaps any of the "do it yourself" legal kits would be a viable alternative if you really want to go it alone.) 2) You submit a list of creditors, with addresses, types of debt and amounts owed. You'll also answer questions and provide information about your income and assets. 3) If after review you decide to go ahead and file, and determine which Chapter is best, prepare and sign all of the paperwork. 4) The attorney's office, or you, files the case. (Legal cases and procedures are exacting and frequently require lots of specific info., especially for someone not experineced in it). 5) You will attend a First Meeting of Creditors (341 meeting) where you will be asked questions about your case. 6) You will start to receive correspondence about the progress and may need to respond or instructions in case you have to reappear. Sometimes if you are reaffirming on a debt (for instance, keeping your car in a Chapter 7 and continuing to pay on it) you will be required to attend a Reaffirmation hearing. 7) If all is well, the debt will be discharged and the case will be closed. Many attorneys will give you a free consultation, but it is advisable to call and ask them instead of assuming that you won't be charged for the first meeting. The most important thing to keep in mind if you do file bankruptcy is that it is vital to keep your credit clean and your bills paid on time once the case has been closed and the debts discharged. I'd suggest that you consult with a local attorney for all the facts, because only an attorney can advise you on all of the details of the bankruptcy process and whether it is a viable option for you. You get the forms and instructions and read them carefully and understand everything. All the forms are available free from the bankruptcy court website for your jurisdiction. Some states have only one bankruptcy court for the state, some have two or three. Google your state and US Bankruptcy court. Read the rules, which you will also find on the website. Complete the forms. Most people do not understand exemptions and do not claim them, or do not claim them properly. The second biggest mistake self-filers make is to not complete the Statement of Intention, which only matters if you have a motor vehicle loan or a mortgage or home equity loan. The third mistake is not listing all - ALL - creditors and preparing a creditor mailing list in proper form. Forms and instructions are also available at several websites, usually belonging to lawyers but may not be free.
yes, just keep your house exempt from the bankruptcy.
Any person of legal age or legal entity (corporation, partnership, LLC, etc.) can file for c. 7. Whether there is any need or point in filing depends on other facts.
There are both advantages and disadvantages to filing for bankruptcy. Chapter 7 is often known as debt liquidation bankruptcy and is a good options for many individuals are co…uples that are in dire financial straits. As soon as a debtor files for bankruptcy, there is an automatic stay and most creditors must stop their collection efforts. Thus, the debtor can begin rebuilding his credit; financially-speaking, the debtor can start over. It is true that filing for bankruptcy ruins a debtor's credit from a number of years and may cause embarrassment. However, incurring more debt and facing the harassing phone calls, letters and potential lawsuits from creditors can have the same effect. Filing for bankruptcy will allow many debtors to get started sooner on rebuilding their credit in peace.
One can usually get student loans after bankruptcy so long as they meet the other eligibility requirements for those loans. Public policy mandates that a "well-educated" socie…ty is a "better" society, so for that reason student loans are protected from bankruptcy so lenders will freely give student loans without fear of being filed on. And, since student loans are excepted from discharge in bankruptcy, they're not generally too skittish about someone who has filed before. I have had several clients ask me that same question, and I tell them what I said above and I ask them to let me know if they ever do have a problem getting a student loan due to bankruptcy. So far, no one has ever called me saying the bankruptcy caused them any problems in getting student loans... for what it's worth. Please note that nothing in this posting or in any other posting constitutes legal advice; this is simply my understanding of the facts, which I do not warrant, and I am not suggesting any course of action or inaction to any person. that is not necessarily true. i filed bankruptcy and have had a steady job and even paid off a car loan that was applied for after the bankruptcy and I still cant get student loans. When you file for bankruptcy, you're still eligible for government loans, but not for private loans. These are the two basic types of loans. You should be able to qualify for government loans because these loans are based on need rather than credit
I am trying to figure this out myself as I have recently filed bankruptcy and both my husband and I are students. There is a portion of the bankruptcy code that makes it illeg…al for government agencies to refuse student loans to those who have filed bankruptcy. So, as far as getting Title IV funding, such as government backed loans, you should still be able to get them. Title IV loans are not granted based on credit worthiness and therefore should be given to those who have filed banlruptcy, as long as there are no other eligibility issues, such as a student loan in default, drug conviction, etc. If you want to get a loan from a private lender, then they are under NO obligation to give you a student loan if you have filed bankruptcy or have other credit problems. For example, the Plus! loans that are available to parents are based on creditworthiness, so a bankruptcy would affect your ability to get this type of loan. As far as my student loan after bankruptcy, I did have to fill out additional paperwork and am still awating the results. I will post again after I find out what happens.
Items obtained through fraud, child support, court ordered restituion and federal/state taxes (off the top of my head). ALL debts must be listed because you are swearing that …you have listed all debts. If there are assets in the case, some of your debts will be paid, therefore, the Courts need to know of ALL of your debts, so you list EVERYTHING. However, some debts are non-dischargable such as: Items obtained through fraud; Domestic Support Obligations; Taxes that are less than 3 years old; Student Loans; Debts incurred in the process of a crime (such as a DUI accident). It should also be noted that there is a 90 day presumptive period. Any debt incurred within 90 days prior to filing a Bankruptcy is presumptively fraudelent. Any debt incurred with the intention of filing Bankruptcy or without intention of repayment is presumed fraudulent.
USC TITLE 11 > CHAPTER 5 > SUBCHAPTER II > § 523 (a) A discharge under section 727, 1141, 1228 (a), 1228 (b), or 1328 (b) of this title does not discharge an individual deb…tor from any debt- ... (8) unless excepting such debt from discharge under this paragraph would impose an undue hardship on the debtor and the debtor's dependents, for- (A) (i) 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 (ii) an obligation to repay funds received as an educational benefit, scholarship, or stipend; or (B) any other educational loan that is a qualified education loan, as defined in section 221(d)(1) of the Internal Revenue Code of 1986, incurred by a debtor who is an individual; The highlighted portion was added in 2003. It basically includes all student loans (including private student loans) that were taken to attend a college, university, or technical school in the United States. The highlighted portion is important because private student loans have a difficult task meeting the requirements of a "qualified education loan" especially if they're pre-2005. Yes you can! We recently had my husband's private student loan (for a local truck driving school) discharged. $8,000 total and the bank didn't even attempt to collect.
First, you don't file BK on a thing..a loan or a debt...YOU file BK and it effects everything you own and everything you owe. No picking and chosing. Gov't insured or Gur…anteed student loans - which means most all programs - are exempt from discharge in bankruptcy. Therefore, they will not be changed.
not at the same time, and you'll have to wait a certain period of time after being dismissed/discharged from one before filing the other.
Chapter 7 is called Liquidation Under the Bankruptcy Code and is the chapter of the Bankruptcy Code providing for "liquidation,", the sale of a debtor's nonexempt property and… the distribution of the proceeds to creditors.
Can you still get a student loan if you are in default on another loan and you just filed bankruptcy?
No. and Yes. The default on your prior student loan must be addressed and the loan rehabilitated before you're eligible for more student loans. The bankruptcy would only affe…ct you if you had a defaulted student loan that was written off in the bankruptcy. Otherwise, bankruptcy doesn't prohibit you from applying and received federal student loans. Student loans are NOT automatically written off in bankruptcy and take extra steps with the courts.
That depends on the state you live in and the loan company. Talk to your lawyer about this. ans The bank can always agree to rewrite the loan, which is essentially… what has to happen for it to be given a new interest rate. Why they would provide a bankrupt a loan, especially one at a lower rate, I don't know. Maybe they don't want the security back, and feel they would have a greater loss by doing so and in order to prevent a loss by your BK they would rather get less on the existing one. So while you may be able to reaffirm (or get someone to give or maintain your creditability)...you cannot just decide to change the terms to what you want and reaffirm.
I filed bankruptcy under Chapter 13. Student loans were discharged under hardship. Do I still have to pay them?
Answer #1 Chapter 13 is "reorganization" plan for payment. Student loans were within the plan for payment? or were they discharged within another bankruptcy? norm…ally 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.