Legal Question in Bankruptcy in Maryland
How does bankruptcy apply to student loans?
If I file bankruptcy, how will that affect my eligibility for student loans (i.e. Stafford Loans)
Asked on 1/23/98, 12:57 am
1 Answer from Attorneys
Daniel Press
Chung & Press, P.C.
Student Loans and bankruptcy
Student loans are not discharged in bankruptcyunless the due date of the first payment wasover 7 years pre-petition, not counting timethat the loan was in deferment, unless youcan establish that the loan should be discharged for undue hardship, which is a veryhigh standard. They are not priority debts,however, so they are not paid ahead of other unsecured debts in asset cases or Chapter 13s.
We practice bankruptcy law in DC, MD and VA.Please feel free to contact me if you have further questions.
Answered on 1/26/98, 8:18 pm
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