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No, discharged debt is considered a forgiveness of debt and not a bankruptcy. Bankruptcy can only happen as a result of bankruptcy court procedure. Certain loans can be discharged due to hardship or disability, especially if there is an insurance policy in force to cover such a situation. When a loan is forgiven due to hardship or disability, the debtor's credit rating is usually not affected.
What else can I help you with?
Discharge of personal studen loans in chp 7?
Personal student loans cannot be discharged in bankruptcy in the same way as most other types of loans. You would have to file a separate lawsuit regarding the loans and prove that repaying them would be an undue hardship. Look at the "related links" for this question for a news article that talks more about the "undue hardship" standard. You should consult a bankruptcy attorney (or perhaps several to find one who would be willing to take on a student loan case) for a more personalized review. If you cannot get your loans discharged, your next best step would be to consult with a credit counseling service whose purpose is to assist you in negotiating affordable repayment plans and repairing your credit.
What are the benefits of having loan disability insurance?
Loan disability insurance provides financial protection by covering loan payments in the event of a disability that prevents the borrower from working. This can help prevent financial hardship and protect credit ratings.
Is a monthly payment in excess of 50 percent of net income considered an undue hardship in a bankruptcy case regarding student loans?
First of all, if the student loans are Federally funded, they cannot be discharged in BK. A hardship discharge is granted only when the loan holder has become disabled. The disablity has to be severe enough, there is no possibility of the debtor ever having earnings or assets to repay the loans. Any other hardship defense, has to prove, the debtor will not be able to afford the "necessities of life." Those being the obvious, food, shelter, medical care, support of dependents, etc. Sorry, it occurred to me you must be referring to a Chapter 13 rather than 7. Nevertheless, the premise is the same. To have payments reduced the debtor has to prove the amount would indeed make it impossible for he/she to provide for everyday necessities.
What will happen with your federal student loan eligibility if you file for bankruptcy while attending school?
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.
What do you do if the garnishment is causing financial hardship on you?
1. Pay the debt. 2. File bankruptcy. 3. Ask the court to modify the garnishment order. 4. Negotiate a different amount with the creditor and have it approved by the court.
I filed bankruptcy under Chapter 13. Student loans were discharged under hardship. Do I still have to pay them?
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.
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.
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 does undue hardship encompass in bankruptcy in NH?
I have only heard undue hardship used in a bankruptcy context when dealing with student loans. In this context, undue hardship means that you have some kind of permanent disability and are therefore unable to pay off your student loans. Basically, you would need to be paralyzed, have MS or ALS, Parkenson's, etc... Merely being unable to find a job in the filed you studied is not enough.
I cosigned for a private student loan and then two years later she filed for bankrupcty and has been discharged now it is my responsiblity how can I get out of it if she was discharged?
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.
When you file chapter 7 bankruptcy and have a private student loan is it discharged with everything else?
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.
Can student loans be discharged in a bankruptsy because of hardships?
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.
What is To be considered an individual with a disability a person must satisfy at least one of the choices below except?
Has undue hardship due to medical expenses and limited employment prospects
Is it possible to have a student loan from a private lender discharged?
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.
What is an undue hardship petition?
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.
Debts that can never be discharged?
There are certain debts that can never be discharged under any type of bankruptcy. This should be a factor in your decision because the debts will not go away and they will continue to collect interest even during your bankruptcy. Some examples of nondischargeable debts include: * All debts not listed in the bankruptcy petition * Student loans - unless undue hardship to repay* Taxes - Federal, state, and municipal* Fines for violating the law: including criminal fines and traffic tickets* Alimony and child support* Debts for personal injury caused by driving while intoxicatedSee the related link
Can wages be garnished if you do not make enough?
Bankruptcy can actually stop wage garnishments. If you can provide proof of financial hardship, wages won't be garnished during the bankruptcy.
