While in bankruptcy, you are protected from collection activities on most your of your debts, including student loans. During the bankruptcy process your loans will continue to accrue interest, increasing your loan balance if no payments are made. Remember, student loans are not dischargeable (included in your general bankruptcy discharge), absent a finding of undue hardship. Congress intended that discharge for undue hardship be reserved for individuals facing more than the financial hardship that accompanies all bankruptcies. So a separate adversary proceeding within a bankruptcy is required for you to prove to the bankruptcy court that your situation meets the undue hardship standard. Accordingly, unless a bankruptcy judge grants you an undue hardship discharge of your student loan(s), you will still have to pay back your student loan(s) after bankruptcy.
When you file for bankruptcy, certain debts, called "dischargeable" debts, are forgiven when you obtain your bankruptcy discharge order. A discharge order permanently prevents creditors... Read more >
A nondischargeable debt is a debt that is not forgiven as part of your bankruptcy. So you are required to repay it when the bankruptcy is complete. Examples of debts that may be... Read more >
You can file a separate "adversary proceeding" with the bankruptcy court. The purpose of the adversary proceeding is to prove "undue hardship." Please consult with a bankruptcy attorney to... Read more >
To prove undue hardship, you must file a separate adversary proceeding with the bankruptcy court explaining your situation and why repayment of your student loan(s) would be an undue... Read more >
No. However, if you wish ECMC to discuss your private information to someone other than you or your attorney, we will need you to complete and sign an Authorization giving your consent... Read more >
Interest on a student loan(s) continues to accrue on your loan balance during bankruptcy. Please consult with your bankruptcy attorney to discuss your options... Read more >
If you defaulted on your student loan(s) because you failed to make payments over a 270-day period, your state and federal tax refunds can be withheld (referred to as an offset) to pay... Read more >
In Chapter 7 bankruptcy, your nonexempt assets may be liquidated (sold), to pay your creditors. Unsecured debt, like credit card debt, is usually discharged in the bankruptcy. Remember... Read more >
A Chapter 13 bankruptcy does not liquidate your assets, but it does require you to repay all or a portion of your debts in installments specified by a court-approved bankruptcy plan... Read more >
A Chapter 13 bankruptcy plan is a reorganization plan detailing how you will pay some or all of your creditors. A typical Chapter 13 plan lasts three or five years, during which you make... Read more >