There are very few instances when student loans are allowed to be included in a bankruptcy. However, a new case has renewed hope for private student loan holders who find themselves in financial turmoil.
Bankruptcy attorney Liz German discusses whether you should count on being able to incorporate private student loans in a bankruptcy.
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Renewed Hope for Private Student Loans & Bankruptcy
A few cases that have come down from the Tenth Circuit Court of Appeals you may have read about regarding student loans and bankruptcy.
Normally, most student loans aren’t able to be included for discharge or forgiveness in a bankruptcy. Why? The law requires the filer to meet various criteria and be suffering undue hardship in order to get rid of the private student loans.
The general rule with private student loans is that the new cases have made it a little bit easier to get rid of those.
There is a case, McDaniel v. Navient Solutions, that just came out this month, and some people seem to think that it’s a blanket policy to get rid of student loans.
Our Attorneys Urge Caution
You have to be careful because it only applies to private student loans, and you have to meet certain criteria within that case.
Unfortunately, right now the laws are that the public student loans, anything federally guaranteed by the government, aren’t going to be able to be included in those discharged in most cases. But we can still take a look to see if those are able to be included in a bankruptcy.
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We offer a free, 30-minute case assessment during which you can explore whether your student loans may be eligible to include in a bankruptcy filing. Call 303-688-0944 or you can schedule online when you click here.