QUESTION
How do I wipe a student loan off my record?
Asked on Sep 17th, 2013 on Bankruptcy - New York
More details to this question:
I have a student loan for over $60,000. (I just checked). I would like to completely wipe it off my record. I went to Katharine Gibbs School. It was a complete waste of money. They offered lots of services which they fell short on. I tried to negotiate but they did not. I might have talked to the wrong person. My Account is held by Nelnet which is a student loan servicer. Who should I talk to? I don't think it's fair to pay all that money. On top of that, I've been unemployed for over a year already. Please advise the best options.
7 ANSWERS
Bankruptcy Attorney serving Florissant, MO
at
Law Offices of Thomas Corcoran Phipps
Update Your Profile
You can't wipe it off. You would have to negotiate a settlement for less than the full amount. It would be reported a\on your credit report as being compromised.
Answered on Nov 08th, 2013 at 11:01 AM
Bankruptcy Attorney serving Omaha, NE
at
Heineman Law Office
Update Your Profile
You must file a bankruptcy, and then file an adversary proceeding, based on that bankruptcy, in the U.S. Bankruptcy Court. Case law on this issue has created a test to evaluate whether your loan can be eliminated or possibly reduced. The test is a little complicated, and it takes into account your current situation, your future income potential, your age, your health, your cost of living, etc.. In short, it evaluates everything. To fight this matter can be expensive. The attorney fees will likely exceed $10,000.00, and very possibly much more. Student loan companies fight these matters to the bitter end, usually. The last one I assisted on had legal fees of over $20,000.
Answered on Sep 19th, 2013 at 12:25 PM
The bankruptcy law doesn't allow you to discharge a debt because you don't think that the debt is fair. To discharge a student loan typically requires that you show that you are unable to work to ever be able to pay for this loan. Unless you are seriously disabled, it will be difficult to meet that criteria. I would suggest meeting with a bankruptcy attorney that specializes in this field, as this is a difficult and expensive task to accomplish.
Answered on Sep 19th, 2013 at 12:14 PM
2 Awards
It this is a federally guaranteed student loan you cannot wipe it out through a bankruptcy. You will need to show significant financial hardship. This is very difficult to show and you have the burden of proof. Unemployment is not sufficient. I recommend you attempt to negotiate some sort of reasonable payment.
Answered on Sep 19th, 2013 at 11:55 AM
Richard hirsh
Under the bankruptcy code, a student loan is non-dischargeable unless you can show extreme hardship. Most debtors cannot meet that test.
Answered on Sep 19th, 2013 at 11:44 AM
Appellate Attorney serving Grosse Pointe Farms, MI
at
Musilli Brennan Associates, PLLC
Update Your Profile
Given your unemployed status you might qualify for the hardship exception to the normal NON-dischargeability of student loans.
Answered on Sep 19th, 2013 at 3:58 AM
Immigration Law Attorney serving New York, NY
at
Law Office of David Molot
Update Your Profile
Generally speaking it is almost impossible to discharge your student loans. There are only a few limited exceptions.
Answered on Sep 19th, 2013 at 3:50 AM