Legal Question in Bankruptcy in Connecticut

loan consolidation

I have been struggling to obtain long-term employment and am forced to file bankruptcy. I had recently recieved a student loan consolidation from a private company, Great Lakes financial, as an attempt to avoid bankruptcy. Even with this step I am in financial hardship and cannot afford to pay the payments. Can this loan be included in my bankruptcy petition?


Asked on 2/22/03, 6:14 pm

1 Answer from Attorneys
Joel M. Grafstein Grafstein & Arcaro, LLC

Re: loan consolidation

It is likely that this loan is nondischargeable, that means that although the debt must be included in your bankruptcy petition it will not be discharged (extinguished). The debt consolidation funds are part of the federal student loan program or guaranty and therefore a bankruptcy will only assist you in discharging your other loans. Hopefully that will give you some relief and permit you to start making payments on these loans. Good Luck

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Answered on 2/27/03, 7:38 pm


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