Anyone a student, and filed for Bankruptcy, or know anything about this?

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A student's loans are in default and can't get financial aid, so if they apply for bankruptcy, how long does it take to complete the process, for example if they started today, how long would it take from today until the process is complete?

Anyone a student, and filed for Bankruptcy, or know anything about this?

You cannot put your student loans in your bankruptcy. It says this in the forms you sign.

Anyone a student, and filed for Bankruptcy, or know anything about this?

You can't discharge your student loans in a bankruptcy. That money came from or is backed by the federal government; the government doesn't usually let you get out of your obligations.

Anyone a student, and filed for Bankruptcy, or know anything about this?

A bankruptcy is not going to cure a default on student loans as they are nondischargeable, you have to get the loans out of default by paying whatever it is the lender requires you to pay to get them out of default. That is the only way.

Anyone a student, and filed for Bankruptcy, or know anything about this?

It is difficult. You would have to file an Adversary Proceeding suing the Dept. of Ed..It can take six to nine months. Most (86%) who file pro se (represent self) lose because they don't understand the legal process and fill forms out wrong, etc. It is important to go in with a lawyer and that could cost one to three grand. *Unless you can qualify for legal-aid or find a lawyer who does Pro Bono (free) or low cost or take installments (but they might not file until you pay). If filing BK, you must file AP within 60 days of meeting with creditors).

And to win, you'd have to prove hardship, like you live below poverty line and have a permanent disability that won't improve, and you've made good faith attempt like keeping student loan in deferments. OTHERWISE FORGET IT!

*I've heard some people tried to settle with US. Dept. of Ed. on pennies on the dollar if they could talk to right person and show they wouldn't be able to ever pay back.

**Some people have also mentioned that if you'd been making payments and still owe after 26 years, they may dismiss whatever else is owed. You could apply for deferments, then forbearances, then use the payments based on income or graduated.

Anyone a student, and filed for Bankruptcy, or know anything about this?

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