I'm a bit unclear as to what you mean by "consolidated". If loans are from private lenders, and have no Federal/State connection, they are probably dischargeable. If they are FAFSA, SLMA, Stafford, or something of that nature, the general ruling is they are not. There are a few exceptions, such as "hardship discharge" because of disability. A bankruptcy attorney could advise in this matter, after reviewing your contractual agreement(s).
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 debtor 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.
Not if they are backed by any federal program
Wrong! You can obtain BK relief on federally backed student loans. Unlike traditional, private party bankruptcies, those involving federally backed student loans are adversarial proceedings in federal court. They are not merely filing a "garden variety petition" and having an interview with a federal trustee. For discharge, special circumstances must be pled and proved to the satisfaction of the court. See a qualified BK attorney.
Sadly, yes. What a way to start your life though. Adding that to your resume is not a great idea.
Student loans are not usually discharged in bankruptcy. While in bankruptcy, collection efforts will cease until the bankruptcy becomes inactive.
Yes. Those who are already finished or out of school can apply for a student loan consolidation. If you're still in school but you want to start with your repayment, then you may apply for consolidation as well. Answer: {| |- | Yes. Even if you consolidate your student loans, you can still defer your payments. Standard deferment and forbearance options are core attributes of your student loan and are not lost when you consolidate student loans. |}
I did a bankruptcy a few years back, and Student Loans are not included in the bankruptcy, which means you will still be liable to pay them back. Also a car loan or any secured debt will not be wiped out. Keep in mind with the student loans, generally if you are having trouble paying them, you can get an income based deferment or lowered payments.
Gov't insured loans can not be discharged in BK.
No you can not but if you own the school it's self money that was due to classes or books you could file on that portion alone I have done that
Generally no but some have been given amnesty for old unpaid, you will have to research articles to see which ones qualified
If the student loan is a federal loan and not a private loan then the answer is no. Federal student loans can not be included in bankruptcy, you will always be responsible for repayment of FEDERAL student loans.
No you can not file bankruptcy on anything that is court ordered.CAN YOU FILE BANKRUPTCY ON RESTITUTION?
You can't. Bankruptcy does not forgive you for federal taxes.
Any school will give a refund if you receive enough funding from whatever source that may be Federal Student Loans, Pell Grants, Private Funding/3rd Party funding, etc. However, you should not be looking at schools based on what school gives refunds. You do realize if you pull out federal loans there is no hiding from them. You cannot file bankruptcy on federal aid, and when you die any money you owe for them loans goes onto your husband/wife, and/or children. Be smart.
check Federal Bankruptcy act 801.3
See http://www.finaid.org/questions/bankruptcy.phtml for the answer.
While in general you should always follow your attorney's advice, you may wish a second opinion from another attorney this time. A bankruptcy does not get you out of student loans. If you were going to lose your income tax refund to the student loan people, then even after bankruptcy you still will.
No you cant file on anything owed to government.
It's my understanding that student loans are not discharged by bankruptcy any longer. YOu should check this, though
When you file bankruptcy, you may wish to reconcile a loan. Basically, it's a loan that you have that you don't want to file bankruptcy on. You intend to keep paying it as normal, while still declaring bankruptcy on other loans.
no it will stay with you forever like student loans
Gov't insured or Guaranteed loans are not dischargable.