Okay, I know that student loans are not discharagable in a Chapter 7, but I read somewhere that there is a new law (well new as in a year or two old) in the works that would make it easier to discharge student loans if it is passed. I Googled it and am continuing to do some research, but I figured that this would be a good place to ask this. Is there any truth to this? If so, any noteworthy progress in this regard?
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There is no new law (there was talk of one, but it never got off the ground). Doubtful there will be one either as it would sink those lenders who lent the money in good faith.Filed Chapter 13 02/2006 - Confirmed 05/2006 - Discharged 09/2011
I'm not an attorney. My replies are merely suggestions or observations, not legal advice. As always, consult with an attorney before making any decisions. -
There was talk of private student loans at some point being dischargable, but that law has not passed and is not likely to. Student loans of all types are not dischargable, unless you can prove undue hardship in a separate trial that you initiate by filing an adversarial proceeding. It is almost impossible to prove undue hardship unless you have a provable lack of ability to earn income for the rest of your life. Also the adversarial proceeding is very expensive to initiate.
I would assume that your student loans are not dischargable and plan accordingly.You can't take a picture of this. It's already gone. ~~Nate, Six Feet UnderComment
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I didn't think they were, but let me ask this: I heard (and yeah rumor is a bad way to form opinions, so my bad) that you can discharge part of your student loan in Chapter 13, I believe? I have very large student loans, and if this is the case, I would consider doing a 7 for all the other debts, including a ton of back taxes, then a year later, doing a settlement BK (CH 13) for the loans.Comment
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Student loans are not dischargable in either a chapter 7 or a chapter 13.You can't take a picture of this. It's already gone. ~~Nate, Six Feet UnderComment
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Oh, I was pretty sure that while student loans could not be completely discharged that they can be substantially reduced in a chapter other than 7.Comment
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They cannot.Originally posted by NSH View PostYou can't take a picture of this. It's already gone. ~~Nate, Six Feet UnderComment
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