Legal Question in Bankruptcy in Massachusetts

Bankruptcy/Student Loan

In general, student loans over seven (7) years old may be discharged in Bankruptcy. You must subtract any grace periods and/or deferrment or forebearance time to determine the age of the loan(s). For example, if the loan was taken out eight (8) years ago but you have deferred payment for two (2) years and taken one (1) year in forebearance time, then the age of the loan would only be five (5) years and, therefore, not eligible for discharge.If the loan is under seven (7) years old, it will be very difficult if not impossible to discharge the debt.

You should see a lawyer to determine the consequences of filing in your specific situation, and to arrange your assets in the most advantageous manner to take advantage of available exemptions.

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