Bankruptcy Chapter 7 Student Loans

Bankruptcy chapter 7 student loans

You may have heard about bankruptcy chapter 7 student loans before. If not, then here’s what they are: In order to pay for college, many students take out a student loan. A good portion of these loans are federal education loans, meaning that they fall under the umbrella of bankruptcy law. You don’t have to worry, just because you have taken out a federal education loan doesn’t mean you’re automatically going bankrupt if you default on those loans. There is a specific provision in regards to federal education loans called bankruptcy discharge, which means that you may actually be able to file for bankruptcy and get rid of those debts!

How to qualify for bankruptcy discharge

Here’s how to qualify for bankruptcy discharge: First, you need to know that you have to declare bankruptcy (Chapter 7) within 180 days of graduating high school. Then, you’ll have to complete at least 3 years of schooling. After that, you’ll need to give proof that you were honest with regards to your financial situation while applying for the loan. Most importantly, you’ll have to prove that you can repay the loans. If you make payments based off income levels, you might be able to use them as evidence that you have the money to repay the loan.

What happens after graduation?

After graduation, here’s what typically happens: First, you’ll receive a letter informing you that you’ve been approved for the loan. Second, you’ll have 30 days to call the lender back and set up a payment plan. Third, you’ll start making monthly payments. Finally, you’ll wait until the last day of each month to pay off the remaining balance owed. If you fail to do any of these things, your account will be sent to collections. When this happens, you’ll spend more time dealing with collection agencies than you would if you had paid off your debt.

Do I need to pay back my loans?

As mentioned above, you won’t go bankrupt by taking out a student loan. However, you should still pay them back. Paying back your loans will ensure that you don’t owe money to anyone else, meaning that you won’t have to worry about paying taxes on that money. Plus, you’ll benefit from having the full amount of your degree instead of only a fraction of it.

Bankruptcy Chapter 7 Student Loans

I am not just talking about bankruptcy chapter 7 student loans, I’m talking about any type of debt. If you are looking at bankruptcy chapter 7 student loans you may be wondering what kind of options are out there for you. Well, I’ll tell you exactly how they work and how to get the best deal for you.

My name is Rodger Brogden and when I first got my federal loan in 2012 I had no idea I would end up being in this situation where I owed over $30,000 in student loans. No bank was going to give me a home loan until these were paid off. So, if you have any questions about bankruptcy chapter 7 student loan I want to help you understand how they work and what you can do to make sure you get the best outcome.

The first step towards getting rid of them is to get started with making payments. Most banks require 24 months of active payments before they will consider your application. In order to qualify for a mortgage lender you need to have some equity in the house. Your property value cannot be less than 80% of the total amount owed. For example, let’s say you owe $20,000 and the property value is only worth $10,000 then you really don’t have enough equity to qualify for a loan. To remedy this problem you can either pay down the interest or take advantage of a short sale. A short sale is basically selling your property below its market value. By doing this you can get a cash settlement and use that money to pay off your student loan.

Most people who complete a short sale are able to close within 90 days. However, some lenders will allow 180 days. During that time you still have to continue paying back your student loan and keep making regular monthly payments, but instead of putting them toward your principal they go directly toward your interest.

Another option is to file for bankruptcy chapter 7 student loan relief. There are two different types of bankruptcy. One is liquidation and the other is reorganization. When filing for bankruptcy liquidation you can discharge most of your unsecured debts. However, there are times when a bankruptcy court may not agree to this. You can still try to talk to your lawyer and explain to him or her your financial situation. Then ask them to find out if your case will be accepted. If you end up having to proceed with the bankruptcy liquidation then you will be discharged of your student loans and won’t have to worry about repaying them anymore.

If you decide to file a Chapter 13 bankruptcy your unsecured debts will stay the same. Instead of discharging them you’re given a plan that you must follow to pay off those debts. Once the plan is completed then the bankruptcy is considered finished. Now you have to repay all your debts except for the student loan.

So, let’s review the best ways to get rid of student loan debt. First, start making payments. Second, look for a short sale or a bankruptcy liquidation. Third, pay attention to your creditor calls and emails. If they sound threatening then you know you’re in trouble. Finally, call your attorney and your creditors to discuss your options.

Bankruptcy Chapter 7 Student Loans

Chapter 7 student loans have been around for decades now, but they’re still a huge problem today. Bankruptcy can help people who have fallen behind on payments, but unfortunately many default on their debts, not knowing the option of bankruptcy is even an option.

Here are some reasons why student loans are problematic for borrowers:

-Student loan debt is often not dischargeable under any circumstances.

-Lenders may try to garnish wages or seize bank accounts, effectively making the borrower pay double what they owe.

-There is no federal protection if a lender falsely accuses a debtor of being delinquent or fails to properly handle a payment.

-Many states only offer partial protections against lenders’ actions after a borrower files bankruptcy.

Fortunately, there are ways to avoid these problems. If you have concerns about how student loans affect your finances, contact us for a free consultation. We’ll work with you to find solutions to your financial situations.

Bankruptcy Chapter 7 Student Loans

Granted, student loans have turned out to be a significant problem for millions of Americans today. But what if we have collateral? What if we have our own home that means something? Have you heard about BankruptcyChapter 7 and its possible solution to eliminate debt? Will a bankruptcy filing affect my credit score? And how you should go about choosing a reputable attorney?”

“Let’s talk about the biggest problem facing people in debt today – those awful student loan payments.”

Sung to Joanne, Coldplay (2003)

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Bankruptcy Chapter 7 Student Loans

Chapter 7 bankruptcy student loans are generally easier to discharge after 180 days. When a person files for chapter 7 bankruptcy, they need to provide a list of their creditors. The court then verifies the debts listed on the petition through public records. If the debt falls under certain categories, it may not be discharged. These types of debts include things like child support payments, taxes bills, credit card debts, and student loan debts. In some cases, if the debtor makes a good faith effort to repay the debt over time, the court might grant them a longer period before the debt is discharged. People who work for themselves look at self employment tax (social security, medicare, etc.) as well as business expenses. Business expenses are any type of expense that does not qualify as a personal expense. Examples of business expenses include advertising costs, phone bills, rent, utilities, employee wages, mileage, employee social security expenses, etc. Medical bills, lawyer bills, household goods and services and student loans do not count towards the total unless they qualify under the means test.

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