How do bankrupcy laws work really like chapter 7 and 13? Can they erase student laon debt? How long does it stay on your cerdit report for I heard like 10 years which would not be good. Any help would be great!
2007-06-17 03:31:25 · 9 answers · asked by Bobby H 1 in Business & Finance ➔ Personal Finance
In general, you cannot 'erase' government guaranteed student loans through bankruptcy. There are a few exceptions, if you can show that paying back the student loans would result in 'severe hardship', but those exceptions are very rare.
Government guaranteed student loans are also forgiven if you die or become disabled.
If you are having issues paying your government guaranteed student loans, there are a lot of different payment plans that can be implemented, plus payments on the loans can be temporarily suspended if you return to school, or have a loss in income. Check with your lender.
Private student loans can be forgiven through bankruptcy.
Chapter 7 bankruptcy stays on your credit report for 10 years after it is discharged. Chapter 13 bankruptcy stays on your credit report for 7 years after discharge.
2007-06-17 04:00:29 · answer #1 · answered by aj485 5 · 0⤊ 0⤋
Normally you cannot erase student loand debt since the vast majority of them are backed by the government. Uncle Sam is going to get his money. The details of your situation however is best looked over by an attorney, especially now that the bancruptcy laws have changed to make it harder to declare bancruptcy. Y
Yes, A buncruptcy stays on your credit report for 10 years and if you ever want a government job with a security clearence you will not get it.
2007-06-17 03:46:31 · answer #2 · answered by Justin K 3 · 1⤊ 0⤋
Student loan debt is specifically excluded from bankruptcy protection. You can't run away from it. It's a really nasty form of indebtedness. They own you until you pay them off or die, and even then, I think they can still come after your estate.
Remember, you're not the first guy to think of this. The guys that write these laws went to school too. They're not going to let an obvious loophole like this get onto the books, because they know everybody would use it.
2007-06-17 03:44:09 · answer #3 · answered by righteousjohnson 7 · 1⤊ 0⤋
Because of a change in law, you now must go through "credit counseling" prior to bankruptcy. They will possibly negotiate lower rates or total debt to fit your ability to repay your obligations. Student loans can not be erased unless you become permanently disabled.
With the changes to bankruptcy law, you pretty much have to be disabled and unable to work to get much of your debt erased.
2007-06-17 03:48:23 · answer #4 · answered by white1827 2 · 1⤊ 0⤋
NOPE... student loans are protected like taxes and child support. Bankruptcy stays on record for 10 years and can afford insurance rates, employment opportunities and future credit. It should be a last resort and these days you have to QUALIFY to file. The laws have changed drastically.
2007-06-17 04:16:24 · answer #5 · answered by Anonymous · 0⤊ 0⤋
You cannot bankrupt on student loan debt.
I have a debt freedom date calculator on my blog that helps you calculate when you will become debt-free. You can access that tool by going to http://www.josephsangl.com and clicking on "TOOLS". The Debt Freedom Date Calculator will help you understand exactly what is needed to become debt-free!
You can do this!!! I used to be up to my eyeballs in debt until I figured out that all I needed to do was STOP SIGNING UP FOR MORE DEBT!!! I became debt-free in 14 months, and I am LOVING it!
2007-06-18 05:34:54 · answer #6 · answered by Anonymous · 0⤊ 0⤋
you cannot erase student loan debts. and yes they stay on your report for 10 years.
2007-06-17 03:39:16 · answer #7 · answered by Anonymous · 1⤊ 0⤋
Oh ok... I got this for you...
better check on it... Im pretty sure you'll discover something
http://www.studentloansmadeez.com
2007-06-17 10:36:10 · answer #8 · answered by Anonymous · 0⤊ 0⤋
you can not erase any dept what so ever owed to the goverment
2007-06-17 03:36:19 · answer #9 · answered by ? 2 · 1⤊ 0⤋
Go to http://www.studentfinancialadvisors.com They can give you more info. on this.
2007-06-18 05:22:53 · answer #10 · answered by jenn11989 2 · 0⤊ 0⤋