Can a government loan be covered in bankruptcy? 14 Answers as of February 25, 2014

My husband was married before and we just found out in 1992 his house was not paid for and he also has a student loan. Can anything be done?

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Detroit Lawyers, PLLC
Detroit Lawyers, PLLC | Nick Best
With a few rare exceptions, student loans are not discharged through a bankruptcy proceeding. However, the government now offers a number of repayment plans that may make the payment more manageable. An income based repayment plan, where you only are obligated to pay 15% of your discretionary income, may be the best option.
Answer Applies to: Michigan
Replied: 2/25/2014
GARCIA & GONZALES, P.C. | Richard N. Gonzales
The mortgage guarantee is not a problem, and clearly dischargeable. Student loans are typically not dischargeable in a BK. However, if you can prove an "undue hardship" on the debtor or the debtor's dependents, the BK Court has broad discretion to discharge all or a part of the student loan. The Court could make the payments a small amount each month, reduce the interest rate to zero, or any number of other options. The debtor would need to file an "adversary proceeding" against the student loan organization asking for the discharge.
Answer Applies to: Colorado
Replied: 2/25/2014
Stephens Gourley & Bywater | David A. Stephens
Generally government insured mortgages are dischargeable and generally student loans are not dischargeable.
Answer Applies to: Nevada
Replied: 2/25/2014
A Fresh Start
A Fresh Start | Dorothy G Bunce
This question is far too vague to answer with any degree of accuracy. What does your husband having been married before have to do with anything? What kind of government loan? Is his name still on the title to the home? What is his personal situation - is he disabled and unable to work? I suggest you meet with an attorney in person to get an answer to your questions.
Answer Applies to: Nevada
Replied: 2/25/2014
Meister & McCracken Law Firm, PLLC | Joanne M. McCracken
The mortgage is dischargeable but student loans are not except in very limited cases.
Answer Applies to: Arkansas
Replied: 2/25/2014
    Law Office of Marlin Branstetter
    Law Office of Marlin Branstetter | Marlin Branstetter
    As a general rule student loans are not discharged. There are some exceptions but the requirements are quite strict. There should be no problem with the home loan. Each case is different and you should consult with an attorney who can review the details of your specific case.
    Answer Applies to: California
    Replied: 2/21/2014
    Deborah F Bowinski, Attorney & Counselor at Law | Debby Bowinski
    He should meet with a lawyer. Depending upon what has happened since, the old house loan may or may not still be collectable. Student loans are generally not dischargeable in bankruptcy, but there are sometimes other options available to aid with the repayment process.
    Answer Applies to: Colorado
    Replied: 2/21/2014
    Law Offices of Eric W. I. Anglin
    Law Offices of Eric W. I. Anglin | Eric W. I. Anglin
    Government loans may dischargeable in banruptcy depending on the type of loan. Student loans remain difficult to discharge unless extreme hardship can be shown and it will depend on the Bankruptcy Court in your jurisdiction as to determine if that is possible. e.
    Answer Applies to: Indiana
    Replied: 2/21/2014
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