Does anybody know if you can file bankruptcy on a Federal school loan?
LeAnn B asked:
Does anybody know if you can file bankruptcy on a Federal school loan? If you have already defalted on the loan but they have not garinish your wages yet, and you can not make any payment on the loan at all, can you file an the federal school loans too, when you file?
Does anybody know if you can file bankruptcy on a Federal school loan? If you have already defalted on the loan but they have not garinish your wages yet, and you can not make any payment on the loan at all, can you file an the federal school loans too, when you file?
No. Just like taxes they cannot be discharged by any bankruptcy.
Comment by wld_jkr — October 29, 2009 @ 5:13 pm
No, they will garnish your wages or tax returns to get their money. Your best bet is to file a financial hardship deferment if you can’t pay now. You might also look into consolidation of your loans.
Comment by Rayne — October 29, 2009 @ 8:28 pm
NO! NEVER unless you die, pay that off it takes a few years but they will get you. Call them tommorrow before it makes a dent on your credit report.
Comment by Jackie C — October 29, 2009 @ 9:51 pm
No such luck my friend.
Comment by charonnisis — October 29, 2009 @ 11:19 pm
Realize that bankruptcy ruins your credit for the next 10 years. That means no loans, credit cards, or mortgages. Talk to the lending institution. They can probably make arrangements for you. They don’t want you to file bankruptcy either.
Comment by DaLady — November 2, 2009 @ 4:06 am
You can, just as you can add past due income tax to a bankruptcy. At least you can on a Chapter 13. Chapter 13 arranges for the adjustment of debts of an individual with regular income. (Chapter 13 allows a debtor to keep property and pay debts over time, usually three to five years.)
Unsecured debts such as credit cards are paid back 50 cents on the dollar, however, debts to the federal government are paid back dollar for dollar.
Comment by claudiacake — November 3, 2009 @ 12:22 pm
First of all do not think of any Bankruptcy. It is easy to say but hard to follow. It sticks with you for at least 10 years and your record is messed up. Get a different Job or work second job but try to make your payments.
Comment by hi_glad_to_meet_u — November 4, 2009 @ 4:07 pm
No. it is the law.
I found interesting information about your answer, college loans, FEDERAL LOANS, scholarships, college grants & partime works here.http://all-student-loan-consolidation.blogspot.com/2007/08/federal-loans.htmlGood luck!
Comment by samy — November 4, 2009 @ 5:28 pm
You cannot discharge a student loan unless payment of the loan constitutes a “substantial hardship” – which under case law means almost never. You would have to be incapable of earning anything or substantially disabled before you could get a “hardship discharge” of a student loan.
Comment by DLeibowitz — November 6, 2009 @ 7:17 am
Maybe this will help. I would suggest you read the article “New Bankruptcy Law – Where’s The Consumer Protection?” you can view it at:
Comment by Lynn B — November 7, 2009 @ 11:11 pm
Sources…
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