But What Can Bankruptcy Do for Me?

The bad news is that filing for bankruptcy can’t get rid of student loans. But you are still probably being harassed by creditors seeking payment of your overdue student loans. You are probably getting nasty calls and threats and may even have gotten a court order and are garnishing your wages.

By filing a Chapter 13 bankruptcy, you will have five years of breathing room and a chance to get your students loans under control. It won’t get rid of a student loan and it won’t stop the interest from accruing but it will give youWhat Can Bankruptcy Do For Me five years of breathing room. In those five years you might get a better job or better pay so that you can pay your student loans. During that five years, your creditors can’t contact you about those past student loans, isn’t that a load off your shoulders?

You used to be able to file for bankruptcy and eliminate loans but in 1998 the law changed.

Section 528(a)(8) of Title 11 of the Bankruptcy Code provides that student loans aren’t dischargeable except for where the loan “poses undue hardship” on you. Unfortunately, that doesn’t mean that it is a hardship for you to pay the money back. You have to prove that you will never be able to pay back the loans because you are permanently and totally disabled from working for the rest of your life.

So, the answer is simply no, filing for bankruptcy can’t get rid of student loans.

What should you do? You should discuss your personal situation with an experienced bankruptcy attorney like Sunshine State Bankruptcy who can provide you with the answers to managing your student loans. Call 727.258.4999.

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