Legal Question in Bankruptcy in Connecticut

Private student loans and Bankruptcy

The question is, Will bankruptcy affect getting alternative loans in the future, for example to pay for the remaining balance of Med school? I understand that it does not effect the Stafford program. I have over 30k in unsecured debt that can't be managed while pursuing something such as this. Also, are private loans dischargeable under bankruptcy? And if they are, would someone be able to participate in it again for example to complete medical education? Thank you.


Asked on 3/05/02, 9:36 am

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

Re: Private student loans and Bankruptcy

Generally the filing of a bankruptcy will not pose a problem with obtaining student loans, such as Stafford Loans. You can discharge a cash advance on a credit card or any other private loan unless the loan is made, guaranteed or insured by the Federal Government or a nonprofit educational institution. If a creditor's debt is discharged, it is up to that creditor's lending policy to determine whether they will make a new loan to you. Interesting enough, you may be a better credit risk after your bankruptcy discharge because you have eliminated $30,000 in debt and cannot file a bankruptcy again for 6 years.

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Answered on 3/05/02, 5:03 pm


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