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Bankruptsy question?

If I file for Bankruptsy will it pay of my school loans? What does bankrupsy pay off exatly and how does the process work? How do they know every bill you owe?

Sorry for the typos!

 
Anonymous

Asked by Anonymous at 6:57 PM on Nov. 10, 2008 in Money & Work

This question is closed.
Answers (6)
  • This varies from state to state -- you should google bankruptcy and read up. Don't take others word for it -- read the laws and find out about it. To file for bankruptcy you have to hire an attorney. You will not be protected under "bankruptcy" -- meaning protecting from losing a car to repo or house to foreclosure - until you have paid your attorney's retainer fee, you have turned in all required paperwork and he has filed the bankruptcy. When you file bankruptcy they (your lawyers office) collect your information, they pull your credit. They notify your creditors. You are also asked to submit any and all documentation you have for debts you owe. They may collect other information - proof of income, previous tax filings, etc.
    Serafyna

    Answer by Serafyna at 7:08 PM on Nov. 10, 2008

  • Student loans are not dischargeable in bankruptcy unless you can show that your loan payment imposes an "undue hardship" on you, your family, and your dependents. Non-dischargeable debts are those debts that you cannot totally eliminate when you file for bankruptcy and will have to be paid by you.


    It is almost impossible to show an undue hardship unless you are physically unable to work and the chances of your obtaining any type of gainful employment in the future are non-existent.


    Pulled this from here http://bankruptcy.lawyers.com/Student-Loans-In-Bankruptcy.html

    Serafyna

    Answer by Serafyna at 7:02 PM on Nov. 10, 2008

  • No, It won't pay off Sallie Mae. They will garnish your wages for those. They pull up your credit report. You will still have to pay a small amount on each, but that depends on which Chapter you file.
    Alma_C

    Answer by Alma_C at 7:03 PM on Nov. 10, 2008

  • I just wanted the answer too. There's no point for us to declare bankruptcy unless it would get rid of our student loans. They're the biggest chunk of our debt.

    Pnukey

    Answer by Pnukey at 7:04 PM on Nov. 10, 2008

  • *Sorry the above was continuing to answer the extra questions -- how the process works, how they get your info, etc :)
    Serafyna

    Answer by Serafyna at 7:10 PM on Nov. 10, 2008

  • Not usually... Student Loans are not dischargeable debt.
    pupmom

    Answer by pupmom at 7:45 PM on Nov. 10, 2008

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