The answer differs from one bankruptcy jurisdiction to another, so discuss it with your bankruptcy attorney.
In general, student loans are unsecured loans and have to be treated as all unsecured creditors in a plan. The student loan lender cannot use its collection/garnishment powers until the case is over.
That means you may be paying the student loan lender nothing or up to full payment over the life of the plan. Few people can pay student loans off completely in 5 years or less, so interest will accumulate. When the plan ends, you will owe a lot more.
In some jurisdictions, it is possible to place student loans in a separate class and treat them differently in a plan, or pay them outside the plan as a monthly expense in Schedule J.
You must list all debt owed in a bankruptcy. In a Chapter 7 Bankruptcy federal student loans are listed on Schedule F as a unsecured non-priority debt with an indication that they are student loans. Please note that nothing in this posting or in any other posting constitutes legal advice.
If you are getting a Federal Student Loan credit is not an issues. I just got a Federal Student loan and my credit is BAD!!! The thing is, is that it's a Federal Loan so you will always owe that money, even if you claim chapter 7 or 13. I was worried about that too, but I got one just fine.
Bankruptcy will not get U off the hook for the federal student loan. They used to have a hardship deferral, but I do not know for how long it lasts, or if that still hold true. Check the financial aid office for the latest laws and regulations.
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.
Federal student loans have no statute of limitation, meaning they can collect forever. The can garnish your wages without taking you to court, take your tax refund, and sue you in court for property and bank accounts. Student loans are also almost impossible to discharge in bankruptcy. There are people now who did not repay their student loans from the 1970s who are having their social security garnished. Not paying is a very bad idea.
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.
Federal Student loans cannot be discharged in bankruptcy. You must repay them.
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.
You must list all debt owed in a bankruptcy. In a Chapter 7 Bankruptcy federal student loans are listed on Schedule F as a unsecured non-priority debt with an indication that they are student loans. Please note that nothing in this posting or in any other posting constitutes legal advice.
I have been through Chapter 7 twice and both times was unable to claim my Student Loan.
If your bankruptcy is currently active, collection efforts on the student loan will cease until the bankruptcy inactive at which point collection activities will start again.
Most student loans are not dischargeable under any chapter of Bankruptcy in Michigan.
Gov't insured or Guaranteed loans are not dischargable.
contact them and ask them why...if it's a credit card...or basically anything but student loans they have to accept the terms of the bankruptcy. get in touch with the lawyer who did your filings for your bankruptcy proceedings and they should get it taken care of.
Neither your age nor your recent bk would disqualify you from federal financial aid.
Unfortunately no. All student loans, whether private or Federal are not elligible for discharge in bankruptcy.
Student loans are exempt from bankruptcy as are IRS debts