Student loan debt is in the group of debt commonly not dischargeable in a bankruptcy. It falls under the exceptions to debt that cannot be discharged including past child support, alimony, drunk driving injuries, new or recent taxes and debt by fraud. However, bankruptcy can be used to help with student loan debt.
Let Wantland Law, PLLC answer your questions about student loan debt.
If you file a Chapter 7 then the student loan debt will be held off for a period of time, but it will not be discharged. Chapter 7 puts the breaks on student loan payments while your case is pending. This will allow you to have some extra money each month to help get you financial situation under control while your case is pending. If you file a Chapter 13 bankruptcy then the student loan debt will be repaid in the same proportion as the other debt is being repaid as part of a managed payment plan while the bankruptcy is in effect.
Student loan debt is a difficult and scary process to go alone. Let the Scott Wantland help you navigate this uncertain time. Contact us today!
v Debts from fraud, including certain debts from luxury goods or services incurred within 90 days before filing and certain cash advances taken within 70 days after filing
v Debts from willful and malicious acts
v Debts from embezzlement, larceny or breach of fiduciary duty
v Debts from a divorce settlement agreement or court decree, if the debtor has the ability to pay and the detriment to the recipient would be greater than the benefit to the debtor