Can you file bankruptcy on private student loans?
Justus Alexander has arrived! asked:
My husband and I have a large amount of debt due to student loans. However, only a couple of thousand are through the government. The rest are through private companies. If we were to file bankruptcy I know that the federal student loans would still have to be repaid. But what about the private student loans? Would those be charged off or would we still have to repay those as well?
My husband and I have a large amount of debt due to student loans. However, only a couple of thousand are through the government. The rest are through private companies. If we were to file bankruptcy I know that the federal student loans would still have to be repaid. But what about the private student loans? Would those be charged off or would we still have to repay those as well?
Check your promissory note. Even though they are private loans, it still would depend.
Comment by melouofs — December 17, 2009 @ 1:52 pm
Read the fine print on those loans, and you’ll probably find that you gave up the right to file bankruptcy on them when you took them.
People have tried to get around paying student loans for years. The private ones default to Government payment—and then they go after your salary, etc. You also won’t be able to buy a home with a defaulted loan on your record.
You could ask a lawyer, but they have been fighting this as long as student loans exist.
Good luck.
Comment by Lisa S — December 18, 2009 @ 6:15 am
A large number of college students receive financial assistance from a grant, work-study program, or Federal student loan. However, due to rising college tuition, traditional financial aid doesnt always the expense.
Federal student loans place limits on how disbursed money is used. However, a private student loan can pay for a variety of education-related expenses such as a laptop, rent, transportation, etc. While private student loans offer flexibility and quick processing, getting approved for such loans is no easy task.
Comment by Pamela — December 21, 2009 @ 5:06 am
Private student loans are not covered by bankruptcy
Comment by \,,/><\,,/ ROCK ON — December 24, 2009 @ 2:48 pm
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