It's difficult to dismiss government guaranteed student/school loans when filing bankruptcy. Mr. Hardy has had some success in this area. It is one of the most difficult areas of bankruptcy law for your attorney to successfully get you out of a debt. If a chapter 7 bankruptcy is filed, the government guaranteed student loan debt is not discharged. If it is not a government guaranteed student loan, then the debt can be discharged. Very few school/student loans are not government guaranteed.
HOWEVER, you may discharge (get out of paying)
a government guaranteed student loan if you file a chapter 7 bankruptcy along
with filing a lawsuit within the bankruptcy court while you’re in the bankruptcy.
You can then have the school loan lender sued and ask the bankruptcy judge to
state that you don’t have to pay the
loan. This is called an adversarial proceeding. Be advised however, that
it’ll cost extra in attorney fees to do this. Also, be aware that it can be
only accomplished if you are suffering an “undue hardship”. Unfortunately, not
being able to pay your bills is not an undue hardship. So unless you have 1) medical
proof provable in trial in court that you’re physically or mentally disabled; 2)
you’ve tried everything to pay the student loan, but things aren’t looking up (at
no fault of your own ACCORDING TO THE COURT) so that you can not in any way afford
to pay on the school loan debt; and, 3) unless you’ve tried to pay the loan and
get help from the school loan lender’s deferment system, you wont win. Winning
means that the debt’s discharged, partially forgiven, or put on a very long
payment plan with easy installments.
School loans in a filed chapter 13 bankruptcy are treated in weird, conflicting,
and unhelpful ways. When filing a chapter 13 bankruptcy you’re paying debts
through a chapter 13 bankruptcy payment plan. School loans are usually
unsecured debts. Meaning, it must be paid with the same rate and percentage as
your VISA card or doctor bills. In most chapter 13 bankruptcy plans, those
creditors aren’t paid any interest and aren’t paid 100 0 0%; line-height: 15pt; -moz-background-clip: -moz-initial; -moz-background-origin: -moz-initial; -moz-background-inline-policy: -moz-initial">Mr. Hardy can evaluate whether it is worth
your time or money to pay him to file an adversarial proceeding to attempt to
discharge your student loans. Mr. Hardy will advise you whether he feels it is
worth the attempt. When it is worth the attempt, then the results can sometimes
be very beneficial.
