Debt consolidationFile Bankruptcy on Student Loans
Not all high school graduates are able to afford for a college education and some can hardly sustained to pay the rising tuition fees each year in some college institutions. Some college students work part time but sometimes the amount of money they make are not enough either. Student Loans are basically for students in college or other education. But what if a student is unable to pay his debts? Can he file bankruptcy on student loans? The answer is yes, it is possible but very difficult.
It is stated in Chapter 7 and Chapter 13 that student loans are non dischargeable debts, meaning you still have to pay for them if you manage to file Chapter 7 or Chapter 13 type of bankruptcy. Â But in some cases some student loans can be filed for bankruptcy.
The specific scenario for file bankruptcy on student loans is only if the student loans can cause undue hardships on a certain individual, then that person can be discharged of his debts. This sounds very straight forward but to convince the court for your case can really be difficult. There are three criteria under the bankruptcy law that can discharge debts under student loans. The first one is if a debtor is forced to pay for student loans for a specific period of time, will make the debtor unable to maintain a minimum standard of living that causes undue hardships for the debtor and his dependants. The second criterion is the difficulty to maintain the finances it would take for you to repay a debt for a specific amount of time. Third, the court should know that you made all efforts and means to pay the debts before you even decide to file for bankruptcy.
An individual can file bankruptcy on student loans but can be very difficult to be approved in court. Each type of bankruptcy has different process on how debts are resolved but are in equal regulations and qualifications relating to discharging student loans. The type of bankruptcy that you file for can affect your chances on filing bankruptcy on student loans that can be approved by the court. Having to file bankruptcy on student loans for a chapter 7 type of bankruptcy can be more attainable than filing it in a chapter 13 type of bankruptcy for several reasons. First, the discharging student loans fit more with the qualification of a chapter 7 than a chapter 13. The second is because chapter 13 is a repayment plan type of bankruptcy. You have to pay your creditors a specific agreed amount for a reasonable amount of time. Remember that you file bankruptcy on student loans to have your debt discharged not to repay them. Chapter 7 on the other hand is a discharged of all your debts in exchange for your properties to be liquidated and distributed to your creditors.
Filing bankruptcy on student loans can be difficult and sometimes impossible. There are certain criteria you have to meet before you are eligible to even file for bankruptcy. In order to raise your chances for filing bankruptcy, you need a lot of information about bankruptcy law and a little bit of help. For more information about bankruptcy and how you can afford it, just go to there site.