Including Student Loans in Your Bankruptcy

 Posted on August 02, 2017 in Bankruptcy

Filing for bankruptcy can give you a fresh start, a chance to turn your finances around for the better. Unfortunately, there are some debts that cannot be discharged. For example, some people cannot include their student loans in their bankruptcy– but including your student loans in a bankruptcy filing is not impossible. Learn more about how to improve your chances of having your student debts discharged, and how an experienced attorney may be able to help.

Getting Your Student Loan Debt Discharged

Although the bankruptcy code does bar the inclusion of federal aid student loans, it does not explicitly exclude all student loans. In fact, some consumers have won against student money lenders in court by explaining that their student funds were acquired through a private lender. Another strategy to have at least some of your student debts discharged is to examine how the funds were spent. The bankruptcy code states that the funds cannot be included if they were part of the cost of tuition; use of the funds for other items (i.e. a computer that was not required for attendance) related to school may allow for at least a partial discharge.

Consider Non-Bankruptcy Alternatives

If you cannot include your student loans in your bankruptcy, there may be other options. For example, it may be possible to have some of your loans forgiven, or you may qualify for an income-based repayment plan. Another option is to request a deferment on your loans (also request a forbearance if you have fallen behind). Use of these options means your debt will still be there after you financially recover, but it could give you some breathing room while you work through your other debts. Just remember to keep track of your deferment period so you do not fall behind again on your loans.

How Our DuPage County Bankruptcy Lawyers Can Help

Getting your student loans included in a bankruptcy may not be impossible, but it is far from simple. Able to protect your rights and best interests while pursuing bankruptcy, a bankruptcy attorney is experienced and knowledgeable in the laws that govern the process. As such, your overall odds of having your student debts discharged are improved.

At Davi Law Group, LLC, we understand how easy it is to fall behind on your debts. Dedicated and experienced, our DuPage County bankruptcy lawyers can examine your situation, represent your best interests, and aggressively pursue a discharge of your student debts. Learn more by scheduling a personalized consultation. Call 630-657-5052 today.

Source:

https://www.usnews.com/education/blogs/student-loan-ranger/2014/08/13/debunking-the-student-loan-bankruptcy-myth