What people misunderstand nowadays is that it is impossible to file for bankruptcy for student loans but the truth is it is very possible for private and student loans to be discharged while you are in bankruptcy. However, wiping out all of these debts are not so possible and this is why we always advice that as a result of the financial impacts and potential costs of bankruptcy, your debt relief options should be carefully examined before going ahead to make a decision. Welcome to our can you file bankruptcy on private student loans review.
Can You File Bankruptcy On Private Student Loans
At the end of any bankruptcy process, you can be able to discharge all of your student loans but there are certain things that needs to be done first;
Work With A Bankruptcy Attorney
Even though this might not be so necessary, working with a bankruptcy attorney especially one that has years of experience on student loans can you help find your way through the entire process. If you file for bankruptcy, it could range from maybe several hundreds to several thousands of dollars but this is also dependent on how complex your case is and your location as well. Furthermore, there are also attorney fees required for adversary proceedings if you want to get your student loans discharged.
Filing For Chapter 13 or Chapter 7 Bankruptcy
Before your student loans can be discharged, you would have to file for bankruptcy and with the help of your attorney, he would be able to determine the best consumer bankruptcy for you whether it is chapter 13 or chapter 7. However, if you filed for bankruptcy earlier but didn’t consider discharging your student loans, it is very possible for you to reopen the case again and make sure they get cleared.
To Start Adversary Proceeding, File A Complaint
If you want to discharge your student loans through bankruptcy then one legal lawsuit that you would also need is called ADVERSARY PROCEEDING. In order to begin this, your attorney is likely to file a written complaint that would best explain your case and from this point, your case gets litigated until an outcome is determined by the judge. It is possible for you not to get your student loans discharged, get them partially discharged or get them totally discharged.
Even though discharging your student loans is possible, they are worth exploring under the following circumstances;
- If All Of Your Payment Options Has Been Exhausted – You should check if you qualify for loan forgiveness or if you can afford an income driven payment if only you have student loans. For borrowers that are still struggling, there are fewer options for private student loans but it is also okay for you to contact your lender and confirm if interest and payment rates can be lowered.
- You’re Behind On Your Student Loans – If you rarely miss out on making payments as at when they are due then proving undue hardship is going to be very difficult for you. Instances of student loans is the aspect where bankruptcy makes more sense especially if you have initially been behind on student loans and your lender decides to sue you just to spice up your wages.
- Difficult To Get Out Of Default – There are options to get out of default under federal student loans and this also includes consolidation and loan rehabilitation. If you have already defaulted on paying up your student loan several times then you might have well used up all of your options as well.
Truth is all of these situations still doesn’t tell for sure that all of your student loans would be discharged but at the same time, some borrowers have been lucky. Before filing for student loan bankruptcy, please ensure that you have a talk with a professional and the best person who would help you in figuring out the best options that you have is either a bankruptcy attorney or a student loans lawyer.