Legal Question in Bankruptcy in Illinois

Bankruptcy on an OLD student loan?

Is it possible to file a bankruptcy(chapter 7) on a student loan? The loan is over 8 years old. Original loan was $8,000. The amount due now with fees and interest is approximately $13,000. I only make $16,000. a year.

I've had one lawyer tell me it was possible and another said it was not possible?????

Thanks for any input, they're about to garnish my wages.


Asked on 9/20/99, 6:50 pm

1 Answer from Attorneys
Daniel Press Chung & Press, P.C.

Re: Bankruptcy on an OLD student loan?

As of late 1998, the age of a student loan no longer matters. Passage of time does not render it dischargeable, and there is no statute of limitations. In bankruptcy, a student loan is only dischagreable if you can show undue hardship, which is a very high standard. You need to consult an experienced bankruptcy lawyer on your particular circumstances.

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Answered on 9/21/99, 10:41 pm


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