Can Sallie Mae private loans be in a bankruptcy? 17 Answers as of May 22, 2013

Sallie Mae is asking too much money from us a month and we don't know what to do.

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Steven Alpers | Steven Alpers
Try to refi, talk to a mortgage broker. Home loans can be in bankruptcy. They will not be discharged.
Answer Applies to: California
Replied: 9/27/2012
Stephens Gourley & Bywater | David A. Stephens
Yes.
Answer Applies to: Nevada
Replied: 5/22/2013
Janet A. Lawson Bankruptcy Attorney
Janet A. Lawson Bankruptcy Attorney | Janet Lawson
Those debts are not dischargeable absent proof you can not pay them and will not be able to pay them in the future.... This is a very tough standard and requires a separate proceeding.
Answer Applies to: California
Replied: 9/24/2012
Wild Sky Law Group, PLLC
Wild Sky Law Group, PLLC | Roxanne Eberle
Unfortunately, student loans are almost never dischargeable in bankruptcy. You may get relief, however, by eliminating your other debt so you can pay the student loans. Also, sometimes Sallie Mae will do income-based repayments if you provide the proper documentation.
Answer Applies to: Washington
Replied: 9/24/2012
Indianapolis Bankruptcy Law Office of Eric C. Lewis
Indianapolis Bankruptcy Law Office of Eric C. Lewis | Eric Lewis
No, generally not.
Answer Applies to: Indiana
Replied: 9/24/2012
    Law Office of Norman Moore
    Law Office of Norman Moore | Norman P Moore Jr
    When you file bankruptcy, you must list all of your debt. Not every debt gets discharged however. If your sallie mae loan is a student loan (and I assume it is) it is very unlikely that it will be discharged. It is possible, but the threshold is very high. Consult a bankruptcy attorney to discuss the requirements and whether you meet them.
    Answer Applies to: Wisconsin
    Replied: 9/20/2012
    The Law Office of Mark J. Markus
    The Law Office of Mark J. Markus | Mark Markus
    I don't know what you mean by "be in". If you're asking whether they are dischargable, student loans are only dischargeable if you can prove "undue hardship", which is very difficult to do. You need to go through a separate trial and provide evidence that shows that you've made a good faith effort to repay the loans (including increasing your education, job searching, consolidating the loans with the Direct Loan Servicing Center, etc.), and that your financial situation is unlikely to change over the next 10-20 years.
    Answer Applies to: California
    Replied: 9/20/2012
    The Barrister Firm
    The Barrister Firm | Christopher Benjamin
    The general answer to your question is no (especially if it's a federally backed loan); there is a very limited and rare circumstances in which student loans are dischargeable in bankruptcy. You should seek a full legal consultation.
    Answer Applies to: Florida
    Replied: 9/20/2012
    Jakob-Barnes Law Firm, LLC
    Jakob-Barnes Law Firm, LLC | Jennifer Jakob-Barnes
    Student loans are generally not discharged in bankruptcy. But the bankruptcy protection one receives still applies to student loans, meaning student loan companies cannot sue or garnish your wages while you are in bankruptcy.
    Answer Applies to: Georgia
    Replied: 9/20/2012
    The Law Office of Darren Aronow, PC
    The Law Office of Darren Aronow, PC | Darren Aronow
    Generally, student loans will not be dischargeable in bankruptcy.
    Answer Applies to: New York
    Replied: 9/20/2012
    The Law Offices of Kristy Qiu
    The Law Offices of Kristy Qiu | Mengjun Qiu
    Short answer is yes, long answer is it's very difficult and 99.99% of individuals won't be able to discharge it.
    Answer Applies to: Florida
    Replied: 9/20/2012
    Goldsmith & Guymon
    Goldsmith & Guymon | Marjorie Guymon
    Yes, you may list Sallie May loans in a bankruptcy. In fact, you must list all debt in bankruptcy. However, federally guaranteed student loans are nondischargeable in bankruptcy. You must bring a special adversary complaint seeking to discharge the debt. The only way to be successful at this is to show significant hardship-not just financial but something that evidences that you will never be able to pay the debt. Examples would be where you must care for a disabled spouse or child, or are disabled yourself and unable to work.
    Answer Applies to: Nevada
    Replied: 9/20/2012
    Danville Law Group | Scott Jordan
    Student loans are almost never discharged in bankruptcy. However, you can file for Chapter 13 bankruptcy and set a payment plan that is affordable. Also, you say Sallie Mae private loans but it has been my experience that Sallie Mae only handles government backed loans, so you may be able to consolidate under the Ford Foundation and obtain affordable monthly payments.
    Answer Applies to: California
    Replied: 9/20/2012
    Weber & Phillips, P.A.
    Weber & Phillips, P.A. | John G. Phillips
    The automatic stay prevents collection while you are in the case (say 6 months for Chapter 7 or 3-5 years for a Chapter 13). They will not ultimately be discharged. Long story short, you can get some temporary relief but not permanent relief.
    Answer Applies to: Arkansas
    Replied: 9/20/2012
    Havkin & Shrago | Stella Havkin
    No. Student loans are not dischargeable in bankruptcy unless you can prove you cannot sustain a minimal standard of living, you have no job prospects and that situation is permanent.
    Answer Applies to: California
    Replied: 9/20/2012
    David Andersen & Associates PC | Jeremy Shephard
    Student loans are very difficult to discharge in bankruptcy. You could file a chapter 13 bankruptcy to lower the payments for 5 years but you would still owe on the student loan (minus any payments made).
    Answer Applies to: Michigan
    Replied: 9/20/2012
    The Smalley Law Firm, LLC | Cary Smalley
    Generally private student loans also cannot be discharged in bankruptcy.
    Answer Applies to: Kansas
    Replied: 9/20/2012
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