Lance Said:

What Chapter of bankruptcy will give me a debt-free fresh start, including my now defaulted student loan?

We Answered:

You are not going to like my answer...

Chapter 7 involves the selling of assets with the proceeds being distributed to the creditors

Chapter 13 involves a reorganization of debts with repayment over a period of time

Chapter 7 is the way you want to as some unsecured debt can be discharged. But student loans are typically exempt from discharge.

Also, the laws were changed in '98 regarding student loans. It's a lot more dificult to have them discharged.

Discharging student loans in bankruptcy is very difficult to do. Provisions for discharging student loans in bankruptcy were changed in 1998. The bankruptcy court has to rule that repayment would cause undue hardship for you or your dependents.

The court uses a three-pronged test to determine hardship:

If you were forced to repay the loan, you would not be able to maintain a minimal standard of living.

There is evidence that this hardship will continue for a significant portion of the loan repayment period.

You made good-faith efforts to repay the loan before filing bankruptcy (usually this means you have been in repayment for a minimum of five years).

Irma Said:

Does anyone know if there is any way to file bankruptcy on a student loan?

We Answered:

Yeh you could but you would loose everything, house, car, the lot. You shouldn't have just forgot about it. Now as you want to file for bankruptcy everyone else pays for your laziness. Get a job and pay off the loan.

Mattie Said:

How will filing bankruptcy affect my student loan for school?

We Answered:

You can't put your student loans on your bankruptcy. Student loans are no longer dischargeable in any chapter of bankruptcy unless you can prove that repaying the loan creates an undue hardship on you or your family.

Michael Said:

How do I fill bankruptcy on a private student loan?

We Answered:

Due to bankruptcy reforms in 1998 and 2005, it’s almost impossible for the average person to discharge federal or private student loans through bankruptcy.

As with all rules there is one exception: you can discharge a student loan in bankruptcy due to undue hardship. Undue hardship is defined as the permanent physical inability to work. You must prove in bankruptcy court that:

* You’re physically unable to work
* You’re likely to be unable to work for most of the loan term
* You’ve made a good faith effort to repay the debt
* Paying it would prevent you, your spouse, and your dependents from maintaining a “minimal” standard of living.

If you believe you qualify under these guidelines, see an experienced bankruptcy lawyer for help filing an adversary proceeding as part of your bankruptcy case.