Some Chapter 7 cases discharge student loans but the best solution is Chapter 13 for when an individual owes less than $360,000. Although a Chapter 7 or Chapter 13 bankruptcy student loan discharge is difficult, filing might make the debt noncollectable. Bankruptcy Options for a Student Loan Discharge Filing Chapter 13 normally makes a student…
Yes, it is hard to bankrupt student loans. In fact, we think that some judges go beyond the standard. Also, federal bankruptcy courts sometimes grant bankruptcy student loan discharges based on section 523(a)(8)’s “undue hardship” standard. However, while some courts allow attorneys and doctors to discharge a student loan, others are harsh. Student Loan Bankruptcy…
Over and over again we hear the same comment from our clients that attempt loan modification. “Every time I speak with the mortgage company, I get a different person who tells me something different.” “I sent in my paperwork three times because they couldn’t find it.” “I sent in my paperwork only to be told…
Chapter 7 student loan bankruptcy hardship discharges are hard but not impossible to get. A Chapter 7 debtor must prove the following: Every option has been taken to attempt to repay the student loan. No disposable income exists to repay the student loan. There will never be a disposable income to repay the student loan….
There are some cases where a person cannot obtain the disability discharge but may still be able to obtain an undue hardship discharge in bankruptcy. Kentucky Higher Education Student Loan Corporation “KHESLC” is not the Department of Education. However, a loan may have originated at Kentucky Higher Education Student Loan Corporation and purchased after default…
In 2005, older adults owed $2.8 Billion in federal student debt. However, 2013 saw an increase to over $18 Billion. This is according to the Government Accountability Office (GAO) in 706,000 households compared to 22 million households with the remaining student loan debt. People over 65 who are on social security default their student loan…