San Rafael, CA asked in Bankruptcy for California

Q: I am currently in school, with a student loan that I have deferred payment on until after I graduate in 2020.

In the meantime, I am now going through a divorce, which has pushed me deep into debt and I am now considering bankcruptcy. I would however like to keep my student loans so that I can finish school. Will the student loan company drop me if I was already approved and I'm in the middle of school? Or can it remain not impacted by a bankcruptcy?

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2 Lawyer Answers
Aaron Michael Lloyd
Aaron Michael Lloyd
Answered
  • Bankruptcy Lawyer
  • Los Angeles, CA
  • Licensed in California

A: I have not had a school drop someone because they filed bankruptcy, at least with my prior clients. Bankruptcy would wipe out your unsecured debts, however, as you may know most tax debt and student loans are not and you would still pay those back. You may be able to do a chapter 7 bankruptcy and receive your discharge of debts in 3-4 months from filing. You should consult with a bankruptcy lawyer to determine if chapter 7 bankruptcy is the right fit for you.

I hope this helps and best of luck.

Thank you,

Aaron

Peter Maurice Lively agrees with this answer

1 user found this answer helpful

Timothy Denison
Timothy Denison
Answered
  • Bankruptcy Lawyer
  • Louisville, KY

A: I have never had a student loan drop a debtor bc the student loan is no dischargeable.

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