How Do You Get Rid Of Student Loan Debt In Chapter 7 Bankruptcy?
Many people, even attorneys, will tell you that it is not possible or easy to get rid of student loan debt in a bankruptcy. However, the bankruptcy law changed in 2005 and most people, including many attorneys, are not aware of a change that was made in the laws that benefits thousands of borrowers to the tune of thousands of dollars. This article will help you determine whether it is possible to make your student loan debt disappear, or greatly diminished, so that you can discuss the possibility with an attorney. Contact your lender and ask whether your loans were funded privately or with government funds. While on the phone, obtain balances for each loan separately, the amount that you have paid toward principal on each loan, and which loans are privately funded and which are federally funded. Examples of privately funded loans are: Sallie Mae’s Tuition Answer Loan, and loans from Think, Astrive, and NextStudent. Examples of federal loans are: Stafford loans and Perkins loans. If you
