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Is a Key Bank Alternative Loan (that is a private

Submitted by jtaubes on Tue, 04/26/2011 - 10:33
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Is a Key Bank Alternative Loan (that is a private loan) includable in a Chapter 7 Bankruptcy?

From my understanding since it is a private loan it can be discharged. Thank you.


Student loans (federal or private) cannot be included in a Chapter 7 bankruptcy.

The only exception is if you can prove that making the payments would cause ???undue hardship??? on you or your family.

You'll have to file a separate motion with the bankruptcy court and prove that making the payments on your student loan would put you below the poverty level AND that there is no time in the forseeable future that your situation would change therefore creating an "undue hardship."

These motions are almost never approved.


Submitted by OhioGal1 on Tue, 04/26/2011 - 11:29

OhioGal1

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