Student Loans End at Death, Not in Bankruptcy

Student loans are forgiven at the death of the student or former student; however, these loans fall under an exception in bankruptcy proceedings.  Student loans are NOT forgiven during bankruptcy, absent the most dire circumstances.  However, bankruptcy can help so be sure to consult with a qualified bankruptcy attorney if you are struggling to make your student loan payments.
Most unsecured debts are forgiven in a Chapter 7 bankruptcy, or restructured under a Chapter 13 bankruptcy, but normally not student loans, most taxes, alimony, and child support.  Unsecured debt that is either forgiven or restructured, as appropriate, include credit card, furniture loans, and personal loans.  Secured loans such as mortgages, home equity lines of credit, and car loans are forgiven if the asset is relinquished. 
What to Do if You Can’t Pay Your Student Loans
If you are having trouble making your student loan payments, contact your loan servicer and let them know.  They may have a relief period during which you can go a few months without making a payment or they may be able to restructure your loan to make your monthly payments lower. 
If you itemize on your income taxes, some student loan interest, is deductible.  This deduction can help pay your monthly payment or pay other bills. 
In addition, while you can’t have your student loans discharged in bankruptcy, bankruptcy can help.  For example, when your bankruptcy petition is accepted, the court will issue an automatic stay.  This means that all creditors must stop calling and harassing you at home and work.  Your stress level will be reduced, your job won’t be jeopardized by the creditor phone calls and your upset, and you can concentrate on formulating a good plan for the future.  In addition, as other debts are discharged, you can use your income to pay your student loans, rent, food, and car payments. 
Where do I get help filing Bankruptcy?
Bankruptcy is a very specialized area of law; be sure your attorney focuses his or her practice on bankruptcy and helping people like you.  We do focus our practice on bankruptcy law and help people just like you.  You can reach us at 513-793-6555 or Thomasjr@geygan.com. 
We will gently walk you through the bankruptcy process, answer your questions, analyze your case, and aggressively fight for your legal rights.  We will show you how filing bankruptcy can make your student loans easier to pay; we look forward to your call or email.