Student Loans that Cause Undue Hardship Can Be Discharged

Wasson and ThornhillStudent Loans

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

Wasson and ThornhillStudent Loans

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

Wasson and ThornhillStudent Loans

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