Photo by Nathan Dumlao on Unsplash. President Biden acted immediately to re-extend the previously extended federal student loan moratorium. It now goes through September 30, 2021. New Extension through September 2021 On the day of President Biden’s January 20 inauguration, the White House stated that: the Acting Secretary of Education will extend the pause on federal student loan payments and … Read More
No Federal Student Loan Payments through January
Photo by Element5 Digital on Unsplash. The pandemic’s federal student loan forbearance period which was expiring at the end of December has been extended through January 31, 2021. On Friday, December 4, the Department of Education extended a forbearance period that was expiring on December 31, 2020. Its press release says “[f]ederal student loan borrowers will not be expected to … Read More
Student Loans and Chapter 13 Timing
Photo by Tim Gouw on Unsplash. Chapter 13 gives you significant timing advantages better enabling you to demonstrate the required undue hardship to write off student loans. We’re in a series on the best timing for filing your bankruptcy case. Two weeks ago we introduced the special condition you have to meet to discharge (write off) student loans: undue hardship. … Read More
Student Loans and Chapter 7 Timing
Photo by JESHOOTS.COM on Unsplash. You have to demonstrate undue hardship to write off a student loan. That often requires strategic filing of your Chapter 7 case. We’re in a series on the smart timing of your bankruptcy case. Last week we introduced the special condition you must meet to discharge (write off) student loans: “undue hardship.” Bankruptcy discharges other … Read More
Discharging Student Loans Causing Undue Hardship
Photo by Green Chameleon on Unsplash. Discharging—permanently writing off—student loans requires showing undue hardship. Smart bankruptcy timing can make this easier to do. Discharging Student Loans in Bankruptcy It takes certain circumstances to be able to discharge student loans. Those circumstances can involve the right timing of your bankruptcy case. Bankruptcy discharges most debts. But it “does not discharge” you … Read More
Student Loan Payments Suspended
The new COVID-19 law temporarily suspends most, but not all, federal student loan monthly payments, accruing interest, and debt collections. The 880-page Coronavirus Aid, Relief, and Economic Security Act (“CARES”) has 4 pages of help for certain student loan borrowers. Section 3513 of CARES. It provides meaningful albeit temporary help, for those who qualify by having the right kind … Read More
Student Loans that Cause Undue Hardship Can Be Discharged
Bankruptcy does discharge a student loan, but only if it meets a tough legal standard called undue hardship. Here’s what you need to prove. Criminal fines and restitution and child and spousal support are types of debts that bankruptcy essentially never discharges. Income taxes can be discharged but only after meeting certain conditions. We’ve covered these in our last … Read More
Unexpected Benefit: Use Chapter 13 to Permanently Stop Student Loan Collection
Chapter 13 bankruptcy can help you permanently stop student loan collection. It gives you more time and flexibility to show “undue hardship.” The Much Better Chapter 13 “Automatic Stay” Last time we explained how bankruptcy’s “automatic stay” immediately stops student loan collections against you. But if you file a Chapter 7 bankruptcy this protection from collections lasts only the … Read More
Unexpected Benefit: Use Chapter 7 to Permanently Stop Student Loan Collections
Chapter 7 bankruptcy can temporarily stop student loan collections. Here are several ways it can stop these collections permanently. Bankruptcy gives you tools to deal with special debts—including those you can’t easily write off. Last week we got into income taxes. Today we discuss student loans, focusing on this special kind of debt in Chapter 7 “straight bankruptcy.” Next … Read More
Stop Student Loan Collections to Have Time to Deal with It
Chapter 7 will stop student loan collections. Then either write off the student loans through “undue hardship” or have time to deal with it. Our last blog post was about a Chapter 7 bankruptcy stopping a tax garnishment only temporarily. In that situation this was OK because it gave time to set up a payment program with the IRS/state. … Read More
Discharging a Student Loan
To legally write off–discharge–a student loan in bankruptcy takes an extra step: proving that it is causing you “undue hardship.”
Writing Off Student Loans from the Closing of ITT Technical Institute
On September 6, 2016 the parent company of 136 ITT Technical Institute branches announced that it was closing. It immediately closed all of its classroom and online instructions across the country. It canceled the academic quarter that was to start on the following Monday, September 12, leaving about 45,000 students scrambling. ITT Tech had two locations in Louisville. One’s … Read More
Discharging a Student Loan in Bankruptcy
Writing off a student loan in bankruptcy requires showing “undue hardship.” What is that?
Financial New Year Resolution #11: Find Out If Bankruptcy Can Get Rid of Student Loans
Although it’s hard to get rid of student loans through bankruptcy, it’s worth knowing whether and how it can help.
Older Americans Have the Worst “Student Loan Literacy”
Americans over 55 years old flunk the “student loan literacy” test. We have a generational divide in one of today’s biggest economic issues.
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