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.
In most cases no. They follow you for life. There are some very limited hardship forgiveness provisions. Getting run over by an uninsured bus and ending up paralyzed might qualify you. But if he bus was insured they will wait and collect from any settlement.
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.
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.
Only if the bankruptcy is currently discharged.
Federal Student loans cannot be discharged in bankruptcy. You must repay them.
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.
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.
In the U.S., you can include a student loan in a bankruptcy and try to get it approved for economic hardship, but it rarely works. Federal and private student loans are not eligible to be discharged in bankruptcy and are rarely allowed by judges.If you need help consolidating your default student loans and get a low monthly payment or 3 years of no payment, call Default Management Services. You can Google them. Ask for Doug.
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.
It's my understanding that student loans are not discharged by bankruptcy any longer. YOu should check this, though
Yes, in order to discharge student loans which fall under the criteria in 11 USC 523(a)(8), the Bankruptcy Judge has to specifically declare the repayment of the student loans to constitute an undue hardship on the debtor or a dependent of the debtor in order for the student loans to be discharged. To get the Court to do this, yu have to file an Adversary Proceeding (i.e. a federal lawsuit) against the student loan lender during the pendency of your bankruptcy case. Also, the standard for "undue hardship" is very tough, unless you're like 97 years old or permanently paralyzed, you better plan on paying them!
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.