Consolidating cash advance loans
Getting your private student loans discharged during bankruptcy proceedings doesn’t happen automatically, as it’s not part of the basic bankruptcy process.
To receive a discharge for your debt, you’ll need to file a petition (called an “adversary proceeding”) that requests a court judgment (called a “determination”) on whether or not you will receive approval for having your private student loan debt discharged.
I suggest calling the Helpline because your first call with them is entirely free, they won’t take you as a client if they don’t think they can help, and they’ll offer other suggestions if they don’t think you have a realistic chance at getting a bankruptcy discharge.
If you have Federal loans, call the Federal Student Loan Relief Helpline at 1-888-906-3065If you have Private loans, call the Private Student Loan Relief Helpline at 1-866-530-99462016 was a huge year for student loan bankruptcy laws, in that several large court cases were settled favorably for the person attempting to discharge their student loan debt.
It’s important that you consult with a bankruptcy attorney on this point, because Chapter 7 and Chapter 13 bankruptcy’s work in very different ways.
You’ll face very different consequences from the two types of bankruptcy if your request for discharge gets denied, so choosing the right one can stand to save (or cost) you tens of thousands of dollars.
Courts in different parts of the country use different tests, but it appears to be up to the judge’s discretion (at least in some cases) on how this stuff is handled.
This test is the simplest, and probably the hardest to qualify for, unless you’re really having trouble making payments and providing for your family.
Unlike the other tests, this is a pretty simple numbers-based approach to determining whether or not your loan leads you to face an undue hardship.
After filing the petition, you’ll have to prove to the court that paying off your loan “”The basic idea here is that the court has to agree that your loans are destroying your life by making it virtually impossible for you to provide food, shelter and other basic needs for yourself and/or your family.
This isn’t an easy to thing to do, even if your loans really are causing you serious financial hardship, especially because different courts use different “tests” to determine whether or not you’re truly facing an “undue hardship”.
And to add to the confusion, some courts take the test as an all or nothing deal where you either qualify for having your entire loan discharged or fail to qualify for having any of it discharged, while others will allow you to discharge some portion of your loan depending on the results of the test.