Nashua, NH asked in Bankruptcy for New Hampshire

Q: If I file for bankruptcy, what happens to my student loan debt?

Related Topics:
3 Lawyer Answers
Stuart Nachbar
Stuart Nachbar
PREMIUM
Answered
  • Bankruptcy Lawyer
  • Livingston, NJ

A: IF your student loans are federal student loans, then they are not discharged. They will go into a deferment status for while in Bankruptcy. I warn you, if you do this, continue to make your student loan payments, even if deferment occurs, because if you do not, late fees, and interest continue to run and when you get out of Bankruptcy, they will be huge and unmanageable.

David Earl Phillips
David Earl Phillips
Answered
  • Bankruptcy Lawyer
  • Nashville, TN

A: In almost all cases your student loan debt will not be discharged in a chapter 7 filing. It is very difficult to discharge student loans in bankruptcy. They may leave you alone for the few months you are in the chapter 7 but after that you would be back to dealing with the collection of the loans as if no bankruptcy had been filed. See a bankruptcy lawyer to review your situation. Sometimes a chapter 13 might be a better option with student loan debt. Good luck!

William Michael Bryk
William Michael Bryk
Answered
  • Bankruptcy Lawyer
  • Antrim, NH
  • Licensed in New Hampshire

A: Absolutely nothing, unless your lawyer can show that repaying the debt would expose you and your family to undue hardship. This law was changed during Bill Clinton's presidency. Before then, if one had owed the student loan debt for seven years, one could seek its discharge. I used to do that with some frequency.

Now, there is a kind of paradox in the law. People who need that kind of representation can't afford that kind of lawyer.

Justia Ask a Lawyer is a forum for consumers to get answers to basic legal questions. Any information sent through Justia Ask a Lawyer is not secure and is done so on a non-confidential basis only.

The use of this website to ask questions or receive answers does not create an attorney–client relationship between you and Justia, or between you and any attorney who receives your information or responds to your questions, nor is it intended to create such a relationship. Additionally, no responses on this forum constitute legal advice, which must be tailored to the specific circumstances of each case. You should not act upon information provided in Justia Ask a Lawyer without seeking professional counsel from an attorney admitted or authorized to practice in your jurisdiction. Justia assumes no responsibility to any person who relies on information contained on or received through this site and disclaims all liability in respect to such information.

Justia cannot guarantee that the information on this website (including any legal information provided by an attorney through this service) is accurate, complete, or up-to-date. While we intend to make every attempt to keep the information on this site current, the owners of and contributors to this site make no claims, promises or guarantees about the accuracy, completeness or adequacy of the information contained in or linked to from this site.