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Judy
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Judy asked in Education & ReferenceFinancial Aid · 10 years ago

I had always been told that student loans couldn't be discharged by bankruptcy.?

An article today on Yahoo from Kiplinger says otherwise in some circumstances.

What's the real story?

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  • 10 years ago
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    They can't for most normal people... but I think somewhere in the history books of student loans ONE person had their student loan discharged (in a comma or had the IQ of a carrot) so it isn't possible to say that it could NEVER be done.

    If you talk to any smart lawyer, he'll tell you its a lost cause because it won't be approved. If you talk to an "opportunistic lawyer", he'll prob mention your quote, say he'll take the case with a huge up-front payment, and then you'll never hear from him again. He knows it will never get discharged, but he sure will quote that regulation and take your money.

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  • 10 years ago

    I would caution on about seeking a loan or a grant when it comes down to it all, not going to college is better than being used by the Fannie Mays and Freddie Macs. Always check with your local states representative and or legal aid about repurcussions on this legal issue and how to resolve the dispute. what is great is to go to a reference libraian and while they cannot councel you specifically they can lead you to refernce material and online internet sources.

    those said institutions are in deep legal matters pertaining to illegal issues.take it or leave it but stand up for your rights as you can. seek a lawyer whenever appropiate, keep legal documents on hand and copies of.

    Source(s): from what has been stated in mass media
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  • 10 years ago

    You can in very rare circumstance deemed an undue hardship. I have nerver successfully done it for a client, but if a client came to me and was disabled and could no longer use the degree for which they were indebted for I would think that would be such a circumstance.

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  • 10 years ago

    As far as I understand it, student loans are the only thing you can not discharge by bankruptcy. They are going to get their money from you one way or another. They can take your tax refund, freeze your accounts or garnish your wages if you default.

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  • My daughter had a loan like that and she HAD to pay it back. She couldn't file bankruptcy on it. So what you heard is probably right.

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  • Anonymous
    10 years ago

    Judy - i do not think you can clear a loan with bankruptcy. remember , bad speller SED so.

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  • 10 years ago

    Only under the rarest of circumstances, usually to include death.

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  • Anonymous
    10 years ago

    Judy I don't know the answer to that question..but its interesting!

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  • 10 years ago

    I cannot helpith this question

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  • 10 years ago

    that is true your lawmakers made sure of that.

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