Filed bankruptcy on student loans
Date: Mon, 10/29/2007 - 08:00
Filed bankruptcy on student loans
Good luck I didn't think that student loans could be included in
Good luck I didn't think that student loans could be included in bankruptcy's. Would be curious to know the outcome of this.
ladybug
When I filed for bankrupcy in 2005...student loans were not even
When I filed for bankrupcy in 2005...student loans were not even considered because they were back by the federal govenment. I had to make arrangements and pay them. However the bankruptcy laws have changed..hope it works out well for you.
I certainly am no expert here, but I know that someone once ment
I certainly am no expert here, but I know that someone once mentioned that student loans could not be included in a BK. I would be curious to hear the outcome on this one.
It won't happen. In order to file BK on student loans you have
It won't happen. In order to file BK on student loans you have to show extreme financial hardship and there is a seperate hearing involved. If you are working or are capable of working, they will not be discharged. The trustees comment really means nothing.
If you have not consolidated with the Direct Loan program under the Income Contingent Repayment plan, you should do so once your BK has been discharged. It makes the payment affordable.
Thanks for the clarification, Soaplady. I didn't think it would
Thanks for the clarification, Soaplady. I didn't think it would work
Linda..what state are you in?? I am very surprised that your law
Linda..what state are you in?? I am very surprised that your lawyer didn't clarify the bankruptcy laws to you concerning certain accounts that can not be discharged. Did you do file your bankruptcy papers on your own?
A lot of attorneys have no clue on student loan BK filings....th
A lot of attorneys have no clue on student loan BK filings....they are so specialized. Even back pre 1999 attorneys had no clue on how the 5 or 7 year rule worked. When I was collecting, I had one debtor BK on her student loan only. $80k. However her attorney filed her BK 3 days too early. BK went thru but her student loan was NOT discharged. She filed BK for nothing!
Thanks Soaplady for clearing that up. I know I did go directly
Thanks Soaplady for clearing that up. I know I did go directly to the loan program and they were very cooperative and helped me.
I filed bankruptcy three years ago and I could not file on by st
I filed bankruptcy three years ago and I could not file on by student loans. So I had to keep paying them.
Student loans CAN be dischared if there is proven hardship. Our
Student loans CAN be dischared if there is proven hardship. Our lawyer told me at first that student loans would not be discharged and did not discuss the financial hardship with me...until he saw that it will place us in extreme financial hardship.
Then, wheels started turning quickly in my favor to dismiss my student loans on extreme hardship. Yes, it has happened before and it is up to the Judge to approve or deny when my case is brought before him.
I will keep you all updated!!!!
"being able to work" does not exclude your from extreme financia
"being able to work" does not exclude your from extreme financial hardship. I have not paid on my student loans in over ten years, I have no money out of our budget to pay on my student loans, which is extreme financial hardship. It is pay for housing ( a roof over my childrens head and food) or pay student loans. Naturally my children will come first and foremost before any student loan, I can't wait for my discharge papers.
If you have not paid on your student loan in over 10 years, you
If you have not paid on your student loan in over 10 years, you will not meet the 3 criteria required to discharge a loan.
This is from the DOE site...
Quote:
1. That the debtor cannot both repay the student loan and maintain a minimal standard of living based on current income and expenses. The first element of the standard usually involves evaluating what the monthly payment would be under Income Contingent Repayment, as opposed to standard ten-year repayment. Note that if the borrower has multiple student loans and could afford to repay some but not all of them, the court will generally discharge only those loans that exceed the borrower's ability to repay. (What is important to note on this is under income contingent repayment, it is not uncommon for people with low incomes to be assigned zero to say, $25/month. It is difficult to prove to the government that you cannot afford a "zero" payment, which would count towards your repayment period. Your income would be evaluated over the 25 year repayment period. Believer me, I saw hundreds of individuals in your position while I was collecting....none where discharged because they either didnt meet all three criteria. It is not just a matter of the judge saying you cannot pay...the DOE will be involved too and they will automatically argue that did not make a good faith attempt or that you can afford income contingent repayment.) 2. That this situation is likely to persist for a significant portion of the repayment period of the student loans. The second element of the standard requires the debtor to provide evidence of additional exceptional circumstances that are strongly suggestive of a continuing insurmountable inability to repay, such as being disabled or having a disabled dependent. A serious physical or mental illness might also qualify. The court also cited the debtor's failure to take advantage of forbearances and deferments. An inability to work in one's chosen profession does not necessarily preclude being able to work in another field. (They also look at children growing up and leaving home.) (This step involves looking at your earning potential over the life of the loan. They also look at children growing up and leaving home, day care expenses going away and the general expenses of supporting dependants. They do not evaluate you abiltiy to pay on a "snapshot" of where you are today. They will look at your earning potential 20 years from now.) 3. That the debtor has made good faith efforts to repay the loans. (From the cases I have read, they look at the previous 5 years. This point is usually the downfall of most BK filings.) |
if you file chapter 13, it is included in the bankruptcy but onc
if you file chapter 13, it is included in the bankruptcy but once the bankruptcy is over, you keep paying on it. You basically build up interest while in chapter 13. i never heard of them getting discharged in chapter 7... but what do i know. im a newbie haha.
loans
I have a student loan. Have had it for a while...8 years, or so. Had to 'deferr' it a few times. But...it's NOT in default. i don't think you can file BK with a student loan. I know in the state of Kentucky and Pennsylvania you can't. I know the % can be crazy.
I am under the impression that, in the case of a disability, if
I am under the impression that, in the case of a disability, if the condition existed prior to obtaining a SL, then the SL cannot be discharged. Soaplady?
Depends on the disability and if it got significantly worse. HO
Depends on the disability and if it got significantly worse. HOWEVER, I heard of students that borrowed with significant disabilities like CP and MD...already wheel chair bound and not likely to work even with an education. The case I worked on the student was advised the rules and regs...he could not walk, speak and used a pointer board. Taped all his lectures. He tried to discharge and was denied.
Then I had the deaf woman who tried to discharge...she studied education at the deaf university out east. Of course she was not discharged.
Your the best Soaplady. I hope all is going well for you. I lo
Your the best Soaplady. I hope all is going well for you. I look forward to reading all your advise on these student loans which has helped and is still helping me very much. Thank you and Happy New Year.
Yes, this was a very interesting read. I filed for bankruptcy a
Yes, this was a very interesting read. I filed for bankruptcy and the only thing it did to my student loans was put them on pause while the whole thing was going on. It was nice, and because I got used to not paying it, I quickly began using forbearance.
However one of my loans, stated that you are only allowed 1 year total of forbearance throughout the life of the loan. So now that I've used it up I guess I have to start paying it back.
And I don't understand how you can get away with not paying it for 10 years, wouldn't they have garnished your wages by then or something?
It is very simple to get years and years of deferments and foreb
It is very simple to get years and years of deferments and forebearances. You can get 3 years unemployment, then 3 years of economic hardship deferment, then you can throw in a little forebearance. Consolidate your loans and repeat.
I saw many students abusing the economic deferment when I was collecting. They would buy a home, and car and then be left with no money to pay their loans and would default!