How to Get Your Student Loans Erased in Bankruptcy
Though it can be difficult to remove student loans in bankruptcy, it isn't impossible. Student loans are one category of protected debt that cannot be automatically discharged, no matter what type of bankruptcy is filed. If your circumstances are such that you cannot repay the student loan debt without undergoing undue hardship, then you can petition to have your student loan debts included in your bankruptcy debts.
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Instructions
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Contact a bankruptcy attorney. Student loans are not automatically included in a bankruptcy and it can be difficult to have them discharged. An experienced bankruptcy attorney will know how to properly prepare your arguments and paperwork.
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Calculate the amount of your student loans. Write down how much you've paid off since school. Write down your annual income, the amount of debt you owe to other sources and your expected living expenses.
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Draft a letter using the figures you wrote down. Explain why repaying your student loans would cause you undue hardship. If you have medical or legal expenses that are keeping you from making student loan payments, explain it. Show that you are unable to get a job that pays enough for you to meet all your obligations. Document your job search, current income and other bills. These will be helpful as evidence.
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File the paperwork for bankruptcy with your attorney. Include your student loans on the list of debts you want to have discharged.
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Present your circumstances, along with your letter and other documentation, in court. The bankruptcy judge will decide whether your loans are causing you undue hardship.
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Submit your court ruling, the notice of the first meeting of creditors, schedule A-3 and the final discharge order you received in court to:
U.S. Department of Education Unit
Educational Credit Management Corporation
P.O. Box 8809
Richmond, VA 23225
They will process your paperwork and discharge your loan.
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Tips & Warnings
It is very difficult to get student loans removed in bankruptcy. Less than 1 percent of cases are successful.
References
- Photo Credit a man and a woman with documents image by Sergii Shalimov from Fotolia.com
