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Unfortunately, Student loans can not be discharged. Here's how I know..... A person I know took out a student loan in the early 1980s. The school was exposed as a fraud, and closed. He was not given a "school out" to transfer the funds to another school for the same thing, Truck Driving. 7 years later, he had to file bankruptcy after a bad divorce, and the student loan refused to go away. Now, he can't get a loan from a reputable source or go back to school on another grant because, the original loan of 1800.00 is now at 10180.00. He looked into getting it discharged, and his lawyer told him to settle the account for the reduced amount of 5600.00
Wiki User
∙ 15y ago
Wiki User
∙ 14y agoIf they are gvernment insured or guaranteed, they CANNOT be discharged. It i one of the big exceptions.
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Do student loans automatically come with filing bankruptcy?
Federal Student loans cannot be discharged in bankruptcy. You must repay them.
Does a cosigner have to replay a federal student loan if the student dies?
Federal student loans do not currently have cosigners. Parents who take out federal PLUS loans for their kids often think they are a cosigner, when they are actually the sole borrower. All federal student loans are discharged if the student dies.
How do you get rid of student loans?
The only way to make student loans go away is to pay them off. Recent changes in bankruptcy laws makes it almost impossible for student loans to be discharged in a bankruptcy filing. Or simply avoid students loans, check out the Related Link.
Can you file an adversary proceeding for a discharge of your student loans if you filed bankruptcy 6 years ago?
It's my understanding that student loans are not discharged by bankruptcy any longer. YOu should check this, though
How can I find out who purchased my student loans after bankruptcy?
This makes no sense. Sorry. Student loans are not discharged by bankruptcy, and unless the loans are private, they are not sold to other lenders. Typically, loans return to the Loan Service Center of the Department of Education, and are administrated by the Department of Treasury.
If you file bankruptcy do you have to still pay off student loan?
Govt insured or guaranteed loans are NOT able to be discharged in BK.
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.
Do you still have to pay for student loans when you file a bankruptcy?
You report all assets and all liabilities. However, government insured or backed student loans are NOT dischargeable.
Can you bankrupt an Unsubsidized student loan?
In theory yes- student loans can be discharged. In practice- it is extremely rare. The only examples i have seen where a student loan is discharged is when the borrower is paralyzed, have a severe neurological disorder, or has been diagnosed with an end stage illness and are therefore unable to work. A discharge of student loans is so rare that most attorneys flat out tell potential clients that student loans are not dischargeable. I'm not sure what you mean by "unsubsidized" - I know what it means - I'm not sure you do! A government backed (that doesn't mean subsidized) student loan cannot be discharged in bankruptcy. If it isn't government backed, it is simply a personal loan you used to pay for education and may be discharged like any other. Additionally, you do not bankrupt "a loan"...you go bankrupt - it includes all things you own and owe. Nothing is excluded. Some things may not be discharged.
Student loans and bankrupsy.can they be discharged?
Student loans do not go through the discharge procedure, only bankruptcy's. A discharge takes place six months from the date you filed for bankruptcy. Then you have to wait two years from the date of discharge to apply for a home loan.
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 filed bankruptcy before October 17 2005 could private student loans be discharged?
That would depend on whether or not it was insured by a non-profit.
