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I have two student loans throught Sallie Mae that are now charged off. They have been since 2006. They are private student loans. What does this mean? Should i file for bankruptcy, because i will never be able to pay off this debt. Will they come after me?
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Business Law Attorney serving Memphis, TN
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Law Office of Alan Alsobrook
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Student loans are a very difficult form of debt from which to receive a bankruptcy discharge.
You should consult a local bankruptcy attorney to determine what debt can be discharged. Most bankruptcy attorneys offer a free initial consultations to determine if bankruptcy is appropriate.
This is not intended to be legal advice, and is general in its nature. No attorney-client relationship exists or is formed by this information. Furthermore, this does not represent the views or opinions of LexisNexis or its affiliated companies.
Answered on Dec 10th, 2012 at 3:19 PM
Bankruptcy Attorney serving Burbank, CA
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Law Office of Mark J. Markus
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A chargeoff is merely a bookkeeping entry. It has nothing to do with whether or not you still owe a debt, or whether the creditor can take collections actions on it.
Student loans are generally not dischargeable in bankruptcy. You can seek an "undue hardship" discharge of the student loans by filing a complaint in your bankruptcy case, but the criteria you need to prove for this is very difficult.
There are also non-bankruptcy alternatives, such as doing income-based repayment plans, but you have to get your loans out of default first in order to take advantage of such programs.
I suggest having a consultation with a bankruptcy attorney in your area who is experienced with student loan litigation, to evaluate your options more fully.
Mark Markus has been practicing exclusively bankruptcy law in California since 1991. He is a Certified Specialist in Bankruptcy Law by the State Bar of California Board of Legal Specialization, AV-Rated by martindale.com, and A+ rated by the Better Business Bureau.
Answered on Dec 06th, 2012 at 8:24 PM