How do I declare bankruptcy to get rid of student loans?
I owe about 220,000 in student loans (75,000 in private loans, 110,000 from direct loans (sub and unsub) and the rest from AES (sub and unsub)) plus 5,000 credit card debt and I just CAN’T get a job in this economy. Is there anyway to claim bankruptcy and get rid of the student loans?
Taxes and student loans are excluded from bankruptcy.
There is no way to get this debt forgiven via BK.
look to see if there is any types of programs that will forgive student loans for your degree – For example: teaching in underprivileged areas, medicine in rural areas, etc.
Yes, but only if you can show that they create an “undue hardship.” In practice, this almost never happens, and you should interpret the “yes” as a “no” to save yourself a lot of expense and disappointment.
If you are unemployed, you should be able to obtain a forbearance on your Federal loans, but that’s not the best idea. Instead, change your repayment plan to Income-Based Repayment (IBR), which will set your payment amount based on your income (including $0). After 25 years of IBR payments, you will be forgiven the remainder of your Federal debt.
The private debt is not subject to IBR. You will need to pay it back in whatever means works best for you. But you may be able to defer or forbear it while you are unemployed. You can also defer private loans in many cases by enrolling in half-time classes at a community college, and if you’re unemployed, that might be a good idea anyway.
No, the other posters are correct, you cannot discharge a student loan. l am curious about what you would study to be that expensive & yet be in a field that you can’t get a job. Anyway, see if you can get a deferment on the loan till you get a job. It is not a flawless plan, but it may buy you some time til you get a job.
p.s. Depending where you live. Try applying to places that are open 24 hours a day like CVS & Walgreen’s , hospitals, etc.. They hire because they have so many shifts to fill each week.
Unlikely, but you should be able to get on an income-contingent repayment plan.
Nearly all consumer bankruptcy attorneys offer free consultations. Take advantage of this to meet with one and get advice based on all of the details of your particular situation. You can find a referral at NACBA.org (National Association of Consumer Bankruptcy Attorneys).
I don’t think you can get rid of a student loan with bankruptcy.
You are really in a high debt.but the thing is that filing bankruptcy is not the right option for you.because bankruptcy does not allow to discharge student loan.there is no such provision in the bankruptcy law.but still if you want to know more detail about the bankruptcy then here is the iste just go through it you will get more details.http://www.filingbankruptcypros.com/
Chances are slim. But not impossible.
Student loan debt is non-dischargeable in bankruptcy unless the debtor can prove that paying back those student loans would cause an undue hardship. 11 U.S.C. § 523(a)(8). That means that the debtor must file an Adversary Proceeding in bankruptcy court and prove an undue hardship exists.
Regular hardship is insufficient. You must prove ‘undue’ hardship. Part of proving undue hardship is proving that, even if you made a good faith effort, you would be unable, within your lifetime, to pay back a substantial portion of the debt.
For example, you might be able to prove this if you have a terminal illness that prevents you from working such as stage 3 lung cancer or serious mental illness.
Doing so is no small task; in fact, it is full-blown litigation requiring documented evidence, expert witnesses, and all the while the other side having unlimited resources using every litigation trick in the book to wear you down (e.g. motions for summary judgment, 8 hour depositions, challenges to evidence you wish to present, not cooperating with discovery, etc). After all, it is official Department of Education policy to oppose bankruptcy discharge of student loan debt. 34 C.F.R. § 674.49(C) and 34 C.F.R. § 682.402.
As a final note, if you have some type of hardship circumstance, Federal student loans have hardship programs. For some people, it is easier to qualify for that hardship program than it is to discharge that debt in bankruptcy.You say that you have ‘student loans’ and then you want to know if they are dischargable. The answer is no. Student loans are not dischargable in bankruptcy unless you can prove an
But, the real question you have is, are these ‘student loans’?
In your description of the loans there isn’t enough information to give you a definitive answer. Hopefully, the following information will help you find your answer.
AES is basically a loan servicing company. Unfortunately, their website does not give any details about whether they only service qualified student loans such as FFELP(1) or PLUS(2).
For your ‘direct loans’ you don’t indicate if that is a direct loan from a lender or if it is a U.S. Department of Education Direct Loan. The difference could be the determining factor for whether the debt is dischargable.
The types of loans that will be non-dischargable are as follows:
1. An educational loan made, insured, or guaranteed by a governmental unit;
2. an educational loan made under any program funded, in whole or in part, by a governmental unit or non-profit institution; and
3. any type of educational loan that is a qualified education loan as defined by internal revenue code section 221(d)(1).
For bankruptcy discharge purposes, these are ‘student loans’. The ‘student loan’ exception to discharge does not apply to any other types of loans, even if the funds were used to pay education expenses. This means that if you pay tuition with a credit card, for example, the credit card debt is not a ‘student loan’. It therefore, may be discharged in a bankruptcy.
The bankruptcy code provides many types of exceptions to discharge. For the credit card debt, I don’t have enough information to assess the dischargability of the debt.
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(1) Federal Family Education Loan Program
(2) http://en.wikipedia.org/wiki/PLUS_Loan
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