A portion of my student loans were taken out for living expense, can these be discharged with bankruptcy?

Question

While in school my ex wife and I used my student loans also as living expense taking out extra because of the lower interest rates rather than credit cards. I am now divorced, stuck with the huge payment and thinking about filing bankruptcy. I know it's dificult to get student loans dischagred but I was wondering if this living expense amount might be able to be considered (or a porition of it) sense i'm no longer with this person and it's created the main reason I might have to file bankruptcy?

Answer 1

You can include student loans in a Chapt. 13 bankruptcy. If you plan on filing a Chapt. 7, then no, this can't be included no matter what you used the money for.

Answer 2

You should take a look at the options you can find at: CREDITVAULT.NET-

RE A portion of my student loans were taken out for living expense, can these be discharged with bankruptcy?

While in school my ex wife and I used my student loans also as living expense taking out extra because of the lower interest rates rather than credit cards. I am now divorced, stuck with the huge payment and thinking about filing bankruptcy. I know it's dificult to get student loans dischagred but I was wondering if this living expense amount might be able to be considered (or a porition of it) sense i'm no longer with this person and it's created the main reason I might have to file bankruptcy?

Answer 3

I support no discharge in bankruptcy for Federal Student Loans (I do support those loan programs), but I do not support such protections for private loans. Would that result in fewer private loans for education and higher interest rates for those that got them.?...Yes, it would. People need to realize that all loans would be more plentiful and of less cost (interest) if they were protected from discharge in bankruptcy. If one sees value in bankruptcy at all.....then I do not understand how one could argue such a case. Federal loans are not discharged because it is the taxpayer that must foot the bill for such discharges, and because if they were dischargable could not be available to all, nor would the program last very long (would end up a massive failure). We might see the benefit to our society of offering such government loans (which are actually government guaranteed loans), under the condition that they will at some point be paid back....to provide private institutions the same protections however is altogether a different thing. Such loans are generally taken out when one exceeds government loan limits....which is very unwise for people that cannot afford such schools in the first place (and is, as such, bad for the nation as a whole).

Answer 4

NO. Student Loans are government guaranteed and can't be discharged by bankruptcy ever! Since you took out the loans while you were married and I can only assume that you did not resolve the issue in your divorce decree, then you are up a creek and responsible for those payments. If you default on the loans then the company will send the loan back to the gov't and most likely you will be issued a lien on your property by the govt and they can also drain your checking and savings account to pay it off.

Answer 5

Nope, student loans cannot be discharged through bankruptcy regardless of what you used the $$$ for.

Answer 6

NO federal loans are not exempt when you file bankrupcy. You will have to consult a credit expert to weigh your options.

Answer 7

Probably so.....I think you should call a debt consolidation counselor first though

Answer 8

No.