QUESTION
Can I file for bankruptcy just to try and have my student loans forgiven?
Asked on May 20th, 2013 on Bankruptcy - New Jersey
More details to this question:
I've been paying for my student loans for over 25 years and simply cannot afford to continue paying due to financial hardship. I'm 69 yrs old and am on social security benefits. After paying the basics of life - rent, electricity, food etc,. I can barely survive with the income I make monthly. Although I have credit cards, I don't owe anything on them and would not want to lose them due to filing for bankruptcy. Is this possible? Thank you.
12 ANSWERS
Bankruptcy Attorney serving Phoenix, AZ
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Law Office of D. L. Drain, P.A.
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Work with the Ford program. Do not file bankruptcy just because of student loans.
Answered on May 24th, 2013 at 1:03 AM
Although it is very difficult to discharge student loan debt in bankruptcy, someone who (1) is 69 years old, (2) is living on Social Security only, (3) has been paying their student loan for over 25 years and (4) cannot maintain a minimum standard of living while repaying the student loan, might have a shot. You should contact competent bankruptcy counsel in your area to further discuss this.
Answered on May 22nd, 2013 at 8:13 PM
I wouldn't hold my breath to be able to discharge your student loans, but if you have medical evidence showing that your are not able to work, it might be possible. You never know unless you obtain a full review of your financial circumstances.
Answered on May 22nd, 2013 at 8:09 PM
Student loans are not dischargeable in bankruptcy unless you can prove that excepting the debt from discharge would impose an "undue hardship" on you, which is a very tough standard. The Court will look at factors such as your age, current source of income, and experience to determine whether you can be expected to be able to pay the loans within the remainder of your life. Under your circumstances, I believe it is highly likely that you would be able to discharge your student loans. You definitely should consult with an experienced bankruptcy attorney.
Answered on May 22nd, 2013 at 8:08 PM
Bankruptcy Attorney serving Henderson, NV
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Jeffrey A. Cogan Chartered, a PLLC
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It is possible to file and try to get them forgiven (the bankruptcy term is discharged). They are very hard to get forgiven but because you are 69 and on social security, there is a chance. Your credit cards would probably, but not definitely, canceled. Finally, I don't know whether the student loan people can garnish your social security. If your loan was guaranteed by the government, maybe or maybe not; if it was not guaranteed by the government, you could stop paying and the collectors for the private loan can't really do anything.
Answered on May 22nd, 2013 at 11:40 AM
Bankruptcy Attorney serving Plantation, FL
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Moffa & Breuer, PLLC
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It is UNLIKELY that you will not lose the right to use the credit cards. The credit card companies all monitor the bankruptcy court filings throughout the U.S. on a regular basis and will be advised of your social security number and close most of the cards, if not all. A discharge of your student loans is more LIKELY than not, but I would caution you to hire a very, very experienced bankruptcy attorney for this matter who can properly form the issue for the court, file an adversary proceeding on your behalf and prosecute this matter. Based upon my experience with the student loan issue, I think your chances of success are high, but surely are not a given.
Answered on May 22nd, 2013 at 11:20 AM
Deborah F. Bowinski
Student loans are generally not dischargeable in bankruptcy. You may wish to consult with a student loan lawyer to determine whether there are any other helpful options available to you.
Answered on May 22nd, 2013 at 11:07 AM
Sanford M. Martin
Chapter 7 or Chapter 13 bankruptcy does not provide for discharge of student loans. You may read the loan agreement regarding some provision regarding inability to pay after a certain age. You have been making payments for many years; there may be some provision. Federal laws exclude most student loans from being discharged in bankruptcy.
Answered on May 22nd, 2013 at 11:07 AM
Debt Settlement Attorney serving Chicago, IL
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Law Offices of Daniel J. Winter
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It might be possible to discharge student loans, but it is very difficult, and depends on each person's whole situation, and the results cannot be guaranteed. There have been only a few, limited cases around the country where loans are discharged in bankruptcy. It is important to contact an experienced bankruptcy attorney to discuss your options.
Answered on May 22nd, 2013 at 11:06 AM
Bankruptcy Law Attorney serving Livingston, NJ
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Law Office of Stuart M. Nachbar, P.C.
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IN New Jersey: Student Loans are not dischargeable yet. While there is legislation pending, it has not been signed into law yet.
Answered on May 22nd, 2013 at 11:04 AM
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Student loans are generally not forgivable through bankruptcy, many attorneys have explored it for themselves.
Answered on May 22nd, 2013 at 11:04 AM
Chapter 13 Bankruptcy Attorney serving Bloomington, MN
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Gregory J. Wald
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It may very well be possible given your age, the fact that you are retired, and that you have paid on them for 25 years. You would need to file the bankruptcy first, then sue the student loan lenders for a determination that the loans are discharged on the basis of "undue hardship". However, there is no guaranty that the law suit will be successful.
Answered on May 22nd, 2013 at 11:04 AM