QUESTION
Can a student loan that went into default and was sent to a collection agency for collection be discharged by bankruptcy?
Asked on Sep 28th, 2012 on Bankruptcy - Utah
More details to this question:
Student loan went into default and is in the hands of a collection agency.
20 ANSWERS
Bankruptcy Law Attorney serving Austin, TX
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Law Office of Susan G. Taylor
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No.
Answered on May 21st, 2013 at 3:19 AM
Appellate Practice Attorney serving Cheyenne, WY
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Lynn Boak Attorney at Law
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In general, student loans cannot be discharged in bankruptcy unless you can show that paying it back would cause undue hardship. Undue hardship does not mean simply not having the money-it requires something catastrophic to your ability to make a living.
Answered on Oct 04th, 2012 at 11:13 AM
Bankruptcy Attorney serving Overland Park, KS
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The Smalley Law Firm, LLC
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Student loans generally cannot be discharged in bankruptcy.
Answered on Oct 02nd, 2012 at 9:49 PM
It is nearly, though not quite, impossible to get a student loan discharged in bankruptcy.
Answered on Oct 01st, 2012 at 11:52 PM
Bankruptcy Attorney serving Bellevue, WA
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Wild Sky Law Group, PLLC
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Student loans almost never can be discharged in bankruptcy, whether in collections or not. However, you may be able to bankrupt other debts and free up that money to pay off your student loans as quickly as possible.
Answered on Oct 01st, 2012 at 1:59 PM
Bankruptcy Attorney serving Myrtle Beach, SC
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Law Office of Margaret L. Evans, PC
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NO; it is virtually impossible to discharge a student loan and you would have to prove that there was NO WAY you could pay it back and that is VERY difficult to do.
Answered on Oct 01st, 2012 at 11:39 AM
Bankruptcy Attorney serving Livonia, MI
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Charles J. Schneider, P.C.
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Yes - If your student loan meets the requirement of an undue hardship. The fact that it is in default & that it is sent to a collection agency does not establish that.
Answered on Sep 30th, 2012 at 9:55 PM
Bankruptcy Attorney serving Cleveland, OH
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Benson Law Firm
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Whether obligations to pay tuition are dischargeable depends on whether they are considered education loans or a mere contractual obligations. Education loans are excepted from discharge under section 11 USC 523(a)(8) of the Bankruptcy Code. Contractual obligations are not. Key in this inquiry is whether a note or other document was signed. If all you received was a bill, the debt may be dischargeable.
Answered on Sep 30th, 2012 at 9:54 PM
2 Awards
No, in general federally guaranteed student loans are not dischargeable. You would need to prove it either 1) is not a federally guaranteed loan or 2) you have a severe hardship-not just financial.
Answered on Sep 30th, 2012 at 9:53 PM
Bankruptcy Law Attorney serving Livingston, NJ
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Law Office of Stuart M. Nachbar, P.C.
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No, generally student loans cannot be discharged.
Answered on Sep 30th, 2012 at 9:52 PM
Appellate Attorney serving Grosse Pointe Farms, MI
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Musilli Brennan Associates, PLLC
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No, student loans are generally not dischargable.
Answered on Sep 30th, 2012 at 9:50 PM
Bankruptcy Attorney serving Buford, GA
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Kenneth A. Parker, PC
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Currently student loans are non dischargable in bankruptcy.
Answered on Sep 30th, 2012 at 9:49 PM
Criminal Defense Attorney serving Deltona, FL
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R. Jason de Groot, P.A.
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No. When you file a bankruptcy in order to get student loans discharged you have to file an adversarial proceeding. This is probably cost prohibitive and is certainly something you cannot do yourself.
Answered on Sep 30th, 2012 at 9:49 PM
Bankruptcy Attorney serving Phoenix, AZ
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Law Office of D. L. Drain, P.A.
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Normally no. The great majority of student loans are not dischargeable. Check out the various options for workouts.
Answered on Sep 30th, 2012 at 9:48 PM
Daniel James Wilson
Student loans are very rarely dischargeable in either Ch. 7 or Ch. 13. The standard is hardship. That usually means special circumstances that make it very unlikely the debtor will ever be able to repay the loan or a portion of it.
Answered on Sep 30th, 2012 at 9:47 PM
William C. Gosnell
The answer is no.
Answered on Sep 30th, 2012 at 9:44 PM
Chapter 7 Bankruptcy Attorney serving Lisle, IL
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Mankus & Marchan, Ltd.
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Student loans are generally non-dischargeable. The fact that it was turned over to a collection agency doesn't change that.
Answered on Sep 30th, 2012 at 9:44 PM
The answer is no.
Answered on Sep 30th, 2012 at 9:44 PM
No. All student loans are nondischargeable whether current or in default.
Answered on Sep 30th, 2012 at 9:43 PM