Consolidating studen loans
For instance, if you have a 30 year repayment period on your loans, you’ll need to show that your financial situation could not improve over the next 15 years.So what exactly constitutes an undue hardship when it comes to getting your student loans discharged?If you want to go to college and you don’t have the money in your pocket to pay for it, student loans are definitely the vehicle of choice to help you get the cash that you need.
However, this market is so big and backed by the government that it may be too big to fail.
When you file for bankruptcy, you can sometimes get rid of the majority of your outstanding debt.
For example, if you took out the loans and then immediately after you got out of college, you filed bankruptcy, this does not show good faith.
In that case, the bankruptcy court would probably make you keep the student loan debt.
The cost of a secondary education has increased substantially in recent years and it’s not showing any signs of slowing down any time soon.
While the costs have gone up, the importance of getting a college degree is still there.
While Chapter 7 does provide you some major relief when it comes to getting rid of debt, it might not do much for you in regards to student loans.
Student loans are one type of debt that can be very difficult to get discharged in bankruptcy.
If you instead file for a Chapter 7 bankruptcy, you may be able to have your debts discharged.
This type of bankruptcy makes it possible for most of your consumer debt like credit cards, store accounts and medical debt to be completely wiped out.
Your bankruptcy trustee will collect a payment from you each month and then pay your creditors for you.