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9.
Are student loans discharged in bankruptcy?

In a general sense student loan debts are treated exactly the same as all other unsecured debts, in that they are stayed from taking collection action during a bankruptcy, will receive their share of any distribution and have the same rights as other creditors.
An individual filing bankruptcy within ten years of last attending school will not be eligible to have their student loans discharged at the end of the normal nine-month bankruptcy term. Rather, that individual must make a separate application to the court to have the student loans discharged after the ten-year period has passed.
The laws involving Student loans are relatively new and the Courts will be interpreting these new laws. Your Trustee will advise you of up-to-date changes.

Back to main question page.

1. What factors determine if bankruptcy is the best solution for me?
2. Who will know about my bankruptcy?
3. How does bankruptcy affect my wages?
4. Will it affect my spouse?
5. What happens with respect to my taxes?
6. If I go bankrupt, will I need a lawyer?
7. Will I ever be able to get credit again?
8. What is a Trustee?
9. Are student loans discharged in bankruptcy?

 

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