If I claim bankruptcy does that get rid of my PRIVATE student loans?

Question

I know it doesnt get rid of federal loans but what about private loans through banks?

Answer 1

It depends on the type of BK you're doing. A chapter 13 consolidation - no it doesn't get rid of any private loans. If you're filing a Chapter 7, it depends on what's listed on your papers as debts. If the particular bank loan is listed as a debt, it will be forgiven, if not, you'll be responsible for it. If you want it to be forgiven, be sure you see it listed as a debt on your paperwork. Being a "student loan" from a private bank (non-federal) doesn't exempt the loan from the BK at all. But think a minute, the less debts you list, the better it is. And student loan interest rates are usually low. If your interest rate is low on the student loan (and your payment isn't too high), think about keeping the loan off the BK, because you'll be rebuilding good credit with each payment.
A Tip: Beg one credit card company to keep their account open for you. Even it means they lower your credit balance. This eases your recovery and allows you to rebuild a credit history.
The whole trick is to rebuild a good credit history during the 10 years the BK is on your record, and living BELOW your means for the duration.
Good Luck.