| Message |
Author |
 Posted: Mon Oct 29, 2007 8:00 am Subject: Filed bankruptcy on student loans |
|
|
I recently filed bankruptcy on my credit cards and the trustee saw where every penny was going and noticed that I had 49,000.00 (25,000 interest only) in student loans declared as well. He was like, "You have nothing left to pay your student loans back with!!!" I said, "exactly". My case is under review for discharging my student loans as well!!!! This will so be a blessing!!! I will keep you upda.ted.
_________________
Register today to encash debtcc points.
|
|
Linda
Guest
Debtcc Points: 100
|
|
|
| Posted: Mon Oct 29, 2007 8:11 am Subject: |
|
|
Good luck I didn't think that student loans could be included in bankruptcy's. Would be curious to know the outcome of this.
ladybug
|
|
ladybug
Joined: 29 May 2007
Posts: 2709
Debtcc Points: 24625
|
|
|
| Posted: Mon Oct 29, 2007 8:18 am Subject: |
|
|
When I filed for bankrupcy in 2005...student loans were not even considered because they were back by the federal govenment. I had to make arrangements and pay them. However the bankruptcy laws have changed..hope it works out well for you.
|
|
laura19544
Joined: 13 Aug 2007
Posts: 458
Debtcc Points: 6507
|
|
|
| Posted: Mon Oct 29, 2007 8:21 am Subject: |
|
|
I certainly am no expert here, but I know that someone once mentioned that student loans could not be included in a BK. I would be curious to hear the outcome on this one.
|
|
kashzan
Debt Samaritan
Joined: 11 Jul 2007
Posts: 5463
Debtcc Points: 38905
|
|
|
| Posted: Mon Oct 29, 2007 8:48 am Subject: |
|
|
It won't happen. In order to file BK on student loans you have to show extreme financial hardship and there is a seperate hearing involved. If you are working or are capable of working, they will not be discharged. The trustees comment really means nothing.
If you have not consolidated with the Direct Loan program under the Income Contingent Repayment plan, you should do so once your BK has been discharged. It makes the payment affordable.
|
|
SOAPLADY
Moderator
Joined: 07 Feb 2007
Posts: 889
Debtcc Points: 12758
|
|
|
| Posted: Mon Oct 29, 2007 8:51 am Subject: |
|
|
Thanks for the clarification, Soaplady. I didn't think it would work
|
|
kashzan
Debt Samaritan
Joined: 11 Jul 2007
Posts: 5463
Debtcc Points: 38905
|
|
|
| Posted: Mon Oct 29, 2007 8:56 am Subject: |
|
|
Linda..what state are you in?? I am very surprised that your lawyer didn't clarify the bankruptcy laws to you concerning certain accounts that can not be discharged. Did you do file your bankruptcy papers on your own?
|
|
laura19544
Joined: 13 Aug 2007
Posts: 458
Debtcc Points: 6507
|
|
|
| Posted: Mon Oct 29, 2007 9:05 am Subject: |
|
|
A lot of attorneys have no clue on student loan BK filings....they are so specialized. Even back pre 1999 attorneys had no clue on how the 5 or 7 year rule worked. When I was collecting, I had one debtor BK on her student loan only. $80k. However her attorney filed her BK 3 days too early. BK went thru but her student loan was NOT discharged. She filed BK for nothing!
|
|
SOAPLADY
Moderator
Joined: 07 Feb 2007
Posts: 889
Debtcc Points: 12758
|
|
|
| Posted: Mon Oct 29, 2007 9:11 am Subject: |
|
|
Thanks Soaplady for clearing that up. I know I did go directly to the loan program and they were very cooperative and helped me.
|
|
laura19544
Joined: 13 Aug 2007
Posts: 458
Debtcc Points: 6507
|
|
|
| Posted: Mon Oct 29, 2007 10:34 am Subject: |
|
|
I filed bankruptcy three years ago and I could not file on by student loans. So I had to keep paying them.
|
|
vstone6
Joined: 21 Aug 2007
Posts: 28
Debtcc Points: 855
|
|
|
| Posted: Mon Oct 29, 2007 10:38 am Subject: |
|
|
Student loans CAN be dischared if there is proven hardship. Our lawyer told me at first that student loans would not be discharged and did not discuss the financial hardship with me...until he saw that it will place us in extreme financial hardship.
Then, wheels started turning quickly in my favor to dismiss my student loans on extreme hardship. Yes, it has happened before and it is up to the Judge to approve or deny when my case is brought before him.
I will keep you all updated!!!!
_________________
Register today to cash in debtcc points.
|
|
Linda
Guest
Debtcc Points: 100
|
|
|
| Posted: Mon Oct 29, 2007 10:46 am Subject: |
|
|
"being able to work" does not exclude your from extreme financial hardship. I have not paid on my student loans in over ten years, I have no money out of our budget to pay on my student loans, which is extreme financial hardship. It is pay for housing ( a roof over my childrens head and food) or pay student loans. Naturally my children will come first and foremost before any student loan, I can't wait for my discharge papers.
_________________
Register today to cash in debtcc points.
|
|
Linda
Guest
Debtcc Points: 100
|
|
|
| Posted: Tue Oct 30, 2007 5:57 am Subject: |
|
|
If you have not paid on your student loan in over 10 years, you will not meet the 3 criteria required to discharge a loan.
This is from the DOE site...
| Quote: | 1. That the debtor cannot both repay the student loan and maintain a minimal standard of living based on current income and expenses.
The first element of the standard usually involves evaluating what the monthly payment would be under Income Contingent Repayment, as opposed to standard ten-year repayment. Note that if the borrower has multiple student loans and could afford to repay some but not all of them, the court will generally discharge only those loans that exceed the borrower's ability to repay.
(What is important to note on this is under income contingent repayment, it is not uncommon for people with low incomes to be assigned zero to say, $25/month. It is difficult to prove to the government that you cannot afford a "zero" payment, which would count towards your repayment period. Your income would be evaluated over the 25 year repayment period. Believer me, I saw hundreds of individuals in your position while I was collecting....none where discharged because they either didnt meet all three criteria. It is not just a matter of the judge saying you cannot pay...the DOE will be involved too and they will automatically argue that did not make a good faith attempt or that you can afford income contingent repayment.)
2. That this situation is likely to persist for a significant portion of the repayment period of the student loans.
The second element of the standard requires the debtor to provide evidence of additional exceptional circumstances that are strongly suggestive of a continuing insurmountable inability to repay, such as being disabled or having a disabled dependent. A serious physical or mental illness might also qualify. The court also cited the debtor's failure to take advantage of forbearances and deferments. An inability to work in one's chosen profession does not necessarily preclude being able to work in another field.
(They also look at children growing up and leaving home.)
(This step involves looking at your earning potential over the life of the loan. They also look at children growing up and leaving home, day care expenses going away and the general expenses of supporting dependants. They do not evaluate you abiltiy to pay on a "snapshot" of where you are today. They will look at your earning potential 20 years from now.)
3. That the debtor has made good faith efforts to repay the loans. (From the cases I have read, they look at the previous 5 years. This point is usually the downfall of most BK filings.) |
|
|
SOAPLADY
Moderator
Joined: 07 Feb 2007
Posts: 889
Debtcc Points: 12758
|
|
|
| Posted: Mon Jan 07, 2008 3:25 pm Subject: |
|
|
if you file chapter 13, it is included in the bankruptcy but once the bankruptcy is over, you keep paying on it. You basically build up interest while in chapter 13. i never heard of them getting discharged in chapter 7... but what do i know. im a newbie haha.
|
|
redlinedzx6r
Joined: 07 Jan 2008
Posts: 4
Debtcc Points: 143
|
|
|
| Posted: Mon Jan 07, 2008 7:50 pm Subject: loans |
|
|
I have a student loan. Have had it for a while...8 years, or so. Had to 'deferr' it a few times. But...it's NOT in default. i don't think you can file BK with a student loan. I know in the state of Kentucky and Pennsylvania you can't. I know the % can be crazy.
|
|
sdchargers_63
Joined: 08 Aug 2007
Posts: 963
Debtcc Points: 10185
|
|
|
| Posted: Sat Jan 19, 2008 9:25 pm Subject: |
|
|
I am under the impression that, in the case of a disability, if the condition existed prior to obtaining a SL, then the SL cannot be discharged. Soaplady?
_________________
The only people with whom you should try to get even are those who have helped you.
-John E. Southard
|
|
Morningstar
Moderator
Joined: 06 Feb 2007
Posts: 1653
Debtcc Points: 10696
|
|
|
