QUESTION
Can I include my student loans in my bankruptcy?
Asked on Oct 04th, 2016 on Bankruptcy - Oregon
7 ANSWERS
Commercial & Bankruptcy Law Attorney serving Powell, OH
at
Ronald K. Nims
Update Your Profile
Student loans are not generally dischargeable in bankruptcy.
Answered on Oct 27th, 2016 at 7:49 PM
You must include all debt in your bankruptcy, but unless there are special circumstances and you take advanced legal proceedings, the student loans will not be eliminated by bankruptcy.
Answered on Oct 25th, 2016 at 7:56 AM
No, not generally (assuming the are Federally Insured, or the school is a non-profit school). You should speak with an experienced BK lawyer about a "hardship discharge" of student loans. Spend an hour or two Googling this issue. You will see what challenges you face.
Answered on Oct 25th, 2016 at 7:56 AM
2 Awards
You must list all debts but government student loans are not discharged.
Answered on Oct 25th, 2016 at 7:56 AM
Discharging them typically requires an adversary proceeding to prove that they are an undue hardship for you and will be for the foreseeable future. This is a lot of extra time and expense, so unless you're essentially disabled, it's probably not worth the effort and expense. However, while you are in bankruptcy, you are protected by the automatic stay so they can't attempt to collect from you. If you can get rid of your other debt, then it might be easier for you to pay the student loans. I have had some limited success in student loan adversary proceedings.
Answered on Oct 25th, 2016 at 7:55 AM
Bankruptcy Attorney serving Madison, WI
at
Richard B. Jacobson & Associates, LLC
Update Your Profile
If you mean by the word 'include' whether you must list them or not, the answer is you must list every claim, even the ones you dispute. But listing a student loan does not make it dischargeable. Generally student loans are not dischargeable in a bankruptcy ? unless you are so severely disabled that you could not possibly pay even a few dollars a month on the claim. I doubt you want to be in that situation. Consult an experienced bankruptcy lawyer; it's almost always worth the investment.
Answered on Oct 25th, 2016 at 7:55 AM