Legal Question in Bankruptcy in Florida

student loan/bankruptcy

busch's view/changes on student loans and being bakruptable. I tried to bankrupt my 10 year old student loan (originally from Mi.) the collection

agency said i could not because of a law#11usc5 23

(a)(8)(A), is this true? will it change with the new administration? I also believe that the original

@$4000 loan figure the current collection co

interstate says is wrong over $11,000 and I have faxed

asking for the breakdown, no response so far. thanks


Asked on 12/26/00, 7:18 pm

1 Answer from Attorneys
Wendell Finner Wendell Finner, P.A.

Re: student loan/bankruptcy

Until 1996, some older student loans could be discharged in bankruptcy. In 1996 Congress amended the law to make all student loans nondischargeable. There is an exception when the bankruptcy judge rules that repayment of the loan would impose an undue hardship on the debtor and the debtor's dependents. Otherwise, student loans still must be repaid following a bankruptcy.

Student loans are not governed by the Fair Credit Billing Act, but are subject to some consumer defenses created by state law. Some student loans also have an income-contingent repayment option available. You will probably want to consult with a competent attorney to advise you in more detail what options might be available.

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Answered on 12/29/00, 10:08 am


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