Student Loans

Can Private Student Loans be Discharged in Bankruptcy?

Call: 888-297-6203 There is a difference between government and private student loan debt. However, in bankruptcy both were treated at par even though private student loans did not provide benefits like government ones yet could not be discharged like other unsecured debts. Since 2013, the Private Student Loan Bankruptcy Fairness Act is being mulled in Congress to level the playing field between borrowers and private student loan lenders. However, it needs to become law before any change can be seen, say lawyers of Los Angeles based bankruptcy law firm Recovery Law Group. Private student loans were treated like [...]


Get Rid of Private Student Loans During Bankruptcy?

Getting a good education does not come cheap. People with limited salaries and assets generally must take out loans for getting quality education to improve their chances of a better future. There are two options when it comes to taking loans; you can either opt for a federal student loan or a private student loan. Though private student loan seems easier to get, Los Angeles based bankruptcy law firm, inform that they are not that easy to get rid of. If you are going through a rough financial phase and seek to get your debts discharged, you [...]


What Happens to Student Loan Debt in Bankruptcy?

Student debt is one of the debts which does not get discharged during bankruptcy; neither in Chapter 7 nor in Chapter 13 unless you can prove that repaying them can cause undue hardship to you. According to Dallas based bankruptcy law firm, different tests are used by different courts to determine undue hardship. In the undue hardship test, most courts offer you to get either the entire loan discharged or nothing at all; while some courts might allow you a partial discharge of student loan. To get this loan discharged during bankruptcy, either you should have very [...]


Student Loan Debt Discharge and Bankruptcy

Student loans and debt in the USA are shaping into an enormous cloud that is surpassing the credit card debt with a wide leap. Credit card debt scores around $680 million while student debt touches far above the $ 1 Trillion mark. The fingers are pointed towards the slowdown in the job market since 2008. The newly grads struggle for jobs and are not able to secure one hindering them to clear the debt. They can in other cases of debt, surrender, but the student loan cannot be diffused, and the students must pay without refute. Circumstances when [...]


A Guide to Private Student Loan Discharge in Bankruptcy

Changes are being made in the bankruptcy laws. While earlier, private student loans were treated in a manner different from federal ones, it is no longer true now. Before 2005, private student loans were treated as unsecured debts and were discharged at the end of the bankruptcy, unlike federal student loans, which required one to show undue hardship to get them discharged. In 2005, Congress made amendments due to which private student loans were to be treated similar to federal student loans. Due to this development, discharge of student loan (with few exceptions) can take place only on [...]


Is there any hope left for Student Debtors?

Contrary to other common debts, student debt is considered “next to impossible” to pay off debts. And if the student plans on paying off these kinds of debts, they will end up in “undue hardship”. A recent Court case has relieved the burden of many such students and has arisen a Ray of hope in them once again. In Sara Fern v. Fedloan Servicing, the bankruptcy court’s judgment was passed in favor of Sara Fern. The court stated that the student loan due on Sara worth $27,000 would indeed cause undue hardship in her case and hence the [...]


Student Loan Laws of Oregon

Higher education can be costly. Many times, for a bright future, students take a student loan to pursue their dream of higher education. However, the financial future of these students (graduates, post-graduates as well as doctoral fellows) is in jeopardy due to the crippling student loan. Most of the times, due to bad financial conditions, people have the option of filing for bankruptcy. Since student loan is not discharged in bankruptcy, not only is it a point of concern for the students but also the nation as a whole. According to the Los Angeles based law firm Recovery [...]