Does filing for bankruptcy cover my student loans? 16 Answers as of June 09, 2013I am in a lot of debt and a huge part of that are my student loans. I have been trying to pay them off, but I can't seem to afford it. Is there any way that I can put these loans in my bankruptcy file or delay payments?
Dan Wilson Bankruptcy | Dan Wilson
Student loans are rarely dischargeable in bankruptcy. The standard is "hardship." If you are employed or have some hope of eventually being unemployed you will probably be unable to discharge student loans. It requires what is called an adversary proceeding, essentially a trial to determine dischargeability. A better option is to apply for an income based repayment plan. You must have filed tax return and must reapply every year.
Answer Applies to: Colorado
Ross Smith, Attorney at Law | Charles Ross Smith III
All debts are listed no matter what kind of bankruptcy you file. You are right. Student loans are not dischargeable in a Chapter 7 bankruptcy. But they are listed anyway. Student loans can be listed and treated effectively in a Chapter 13 Bankruptcy. If you can pay them off completely in a 5 year Chapter 13 Plan, then you pay no interest or penalties. It's hard to do that, but it really pays off for the rest of your life. See an experienced bankruptcy attorney that advertises for Chapter 13 work. Good luck. Thank you for reading me. I hope you found this answer to be helpful. This answer is not intended to create an attorney/client relationship. It is general information that should be discussed with your own attorney. Because the law in other jurisdictions is different and the facts of each case are different, consumers cannot rely on the opinions expressed here.
Answer Applies to: Ohio
Law Office of Asaph Abrams | Asaph Abrams
Student loans are excepted from discharge pursuant to 11 United States Code section 523(a)(8). Exceptions (to that exception) are very rare. This answer (as well as our Web site) doesn't address all facts & implications of the question; it's general info, not legal advice to be relied upon; it creates no attorney-client relationship; it may be pertinent to CA only; it's independent of other answers. Hire legal counsel before acting or refraining from bankruptcy/legal action.
Answer Applies to: California
Guardian Law Group PLLC | C. David Hester
No if they are federal loans, you cannot put them in your bankruptcy. If they are private loans you can. What you can do to lower your payments is contact your lender and change to the income contingent plan. This plan determines the amount you will pay based on your income and if you still owe money after 25 years (long time) it is forgiven.
Answer Applies to: Utah
Law Office of Lynnmarie A. Johnson | Lynnmarie Johnson
Student loans virtually cannot be discharged. There are very few exceptions. However, sometimes they will defer your student loans for up to two years because of you filing bankruptcy. You would have to check with your lender. Good luck!
Answer Applies to: Michigan