Legal Question in Bankruptcy in California

Stafford and PLUS school loans

Are Stafford and PLUS loans dischargeable in a chapter 7 Bankruptcy? If not what chapter would be an option? The biggest portion of debt is school loans.


Asked on 7/04/02, 12:59 pm

1 Answer from Attorneys
Douglas A. Crowder Crowder Law Center

Re: Stafford and PLUS school loans

Student loans are only dischargeable in a Chapter 7 bankruptcy if they are more than 7 years old at the time of filing or if it can be proven that repaying them would constitute a hardship.

A Chapter 13 could stretch the payments out over a 5 year period and stop interest so that all the payment would go to principal.

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Answered on 7/04/02, 1:19 pm


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