Can bankruptcy help with student loans and wage garnishment? 9 Answers as of March 22, 2011

I've defaulted on my student loan and facing financial hardships. I've spoken with the collection person to try to make good faith payments. But they said due to the amount owed I have to pay an astronomical amount that I cannot afford. Any legal advice is appreciated. Thanks.

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Benson Law Firm
Benson Law Firm | David Benson
Although student loans are generally nondischargeable, they can be paid in part through a Chapter 13 plan. This will, at the very least, halt any collection efforts over the next 3-5 years.
Answer Applies to: Ohio
Replied: 3/22/2011
Mercado & Hartung, PLLC
Mercado & Hartung, PLLC | Christopher J. Mercado
Discharging student loans in bankruptcy is extremely difficult and you won't likely be able to discharge them. However, wage garnishment can be stopped by bankruptcy. Wage garnishment funds made to the creditor above $600 will be considered a preferential payment and can be recovered.
Answer Applies to: Washington
Replied: 3/11/2011
Rhonda R. Werner Schultz, PL
Rhonda R. Werner Schultz, PL | Rhonda R. Werner Schultz
Sometimes student loans can be discharged in bankruptcy if you can prove to the court a hardship exists that is not likely to improve in the future. A discharge of such debts will alleviate you of any garnishment. You should consult with an attorney to see if you are eligible for a hardship discharge of student loans.
Answer Applies to: Wisconsin
Replied: 3/11/2011
Gus Johnson Attorney at Law
Gus Johnson Attorney at Law | Gus Johnson
Wage garnishent yes, student loan probably not
Answer Applies to: South Dakota
Replied: 3/11/2011
Carballo Law Offices
Carballo Law Offices | Tony E. Carballo
Other than work things out with the lender there isn't anything you can really do. Student loans are generally not dischargeable in bankruptcy unless you cannot not even earn enough to pay the very basic of expenses such as food and shelter and there is no hope that your situation will change plus you must have made a substantial effort to pay taking advantage of all the payment plans available. Generally some permanent disability or infirmity is required to be able to discharge student loans in bankruptcy. You can always contact your elective representatives in Congress and the California legislature to see if there is anything they can do to facilitate some payment plan that you can afford if the lender is not being reasonable.
Answer Applies to: California
Replied: 3/10/2011
    Janet A. Lawson Bankruptcy Attorney
    Janet A. Lawson Bankruptcy Attorney | Janet Lawson
    Student loans are hard to discharge. Once the bankruptcy is filed you have to file a special proceeding called an "adversary" to see if you can discharge the debt. Getting the court to do it is very difficult. You need to see a lawyer about this.
    Answer Applies to: California
    Replied: 3/10/2011
    Ferguson & Ferguson
    Ferguson & Ferguson | Randy W. Ferguson
    It will help with wage garnishments but rarely with student loans. You need to sit down with a bankruptcy lawyer and go over everything. They will not charge you for a consultation.
    Answer Applies to: Alabama
    Replied: 3/10/2011
    Diefer Law Group, P.C.
    Diefer Law Group, P.C. | Abel Fernandez
    Bankruptcy will not help with student loans. If you have a garnishment for other debts, a bankruptcy will help but it will not stop a garnishment of student loans.
    Answer Applies to: California
    Replied: 3/10/2011
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