When someone files for bankruptcy they will have the ability in clearing up most of their debts, however, most student loans will have to be paid back, even after filing for bankruptcy. These types of loans are very difficult to get out of having to pay. In order to do so, you would have to be able to prove that your finances are not substantial enough to ever make a payment and since you have filed for bankruptcy, most of your debts are paid, so this would be very difficult when trying to prove such a thing. There is almost no way out of having to pay these off.
Once you go to court about filing for bankruptcy and everything is laid out on the table, the judge is truly the only person that can decide whether or not a student loan would have to be paid off or not. It would basically boil down to his own opinion of you and your current situation, he will just use his best judgment when determining this kind of decision. If you can prove beyond a shadow of a doubt that you have always made every possible attempt in trying to take care of these payments but just absolutely do not have the funds available in doing, so then he just might, MIGHT, let you off without having to pay off a student loan. It would not be something that I would hold my breath in happening though. Most of the times, the judge will decide that this is your responsibility and some form of payment arrangement will have to be made and you must continue paying this loan until it is paid in full or atleast half, if he chooses.
In most cases when you are having difficulties paying on your student loans you could just simply talk with your lender and in being honest with them, come up with some sort of solution in getting it paid when possible. They will work with you, if you do not avoid them and if you can let them know that you have all intentions on attempting to pay them off and are willing to work with them by any means necessary. They are much more courteous than many other bill collectors that are out there. Student loans are hard to get out of paying off when filing for bankruptcy but they are one of the easier ones in getting them to agree on a payment plan that would be best suitable for your available finances.
Many people may choose another path instead of filing for bankruptcy to get out of their student loans, which normally does not work anyway. Some may choose a loan consolidation. They will have many options available to you in planning a payment arrangement of some sort with them. You may be able to pay as little as fifty dollars a month, every single month until it is paid in full. This will normally take atleast ten years or so to completely pay off. Another kind of loan consolidation would take longer, possibly up to thirty years or more. Now, imagine the interest on that sort of loan agreement, I do not recommend choosing this extended arrangement, however, some people may not have a choice other than to do it this way. Either way it goes, they will work with you, if you work with them.
Tuesday, 26 February 2008
Student Loans And Bankruptcy
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