Bankruptcy And Your Student Loan
Do you have a long list of student loan debt? Are you
looking for a way to get this out of your name without
having to pay for it? If so, you are not alone. Thousands
of people have student loan debt, and just like you,
they do not want to pay for it. But remember, when you
took out the loan you made a promise to the lender that
you would pay it back on time. While there used to be
a time when you could claim bankruptcy to get rid of
your student loans, this is no longer the case. New
laws state that even if you do file for bankruptcy that
your student loan debt goes nowhere. For this reason,
nobody can get out of paying their student loan debt.
The Changes
In the fall of 1998 changes were made to ensure that
student loan debt was not thrown out when somebody filed
bankruptcy. This used to be a common way for people
to get the education that they wanted without having
to pay the money back. Sure, they would have to file
for bankruptcy, but with that being said they would
have received a free education. When it comes down to
it, student loans are no longer dischargeable under
any type of bankruptcy. The only exception to this is
if you can prove that the loans are putting a huge financial
burden on you and/or your family.
Still Interested in
Bankruptcy?
If you are still interested in bankruptcy, that is
fine. There are many people who exercise this option
in order to get rid of their debt, and in turn start
with a fresh slate. But keep in mind, no matter what
plan you are thinking up, bankruptcy is not going to
get rid of your student loan debt. In order to make
sure that you are 100 percent aware of the law you will
want to get in touch with an attorney who specializes
in bankruptcy. They will be able to give you all the
details about bankruptcy, your student loans, etc.
Overall, gone are the days when bankruptcy meant that
student loans would eventually be wiped off the face
of the earth. Lenders were losing too much money this
way, and in 1998 a change to the law made it impossible
for borrowers to use bankruptcy to their advantage as
far as student loan debt is concerned. |
