Legal Question in Bankruptcy in Minnesota

Skyrocketing Student Loan

After a divorce left me deep in debt I found myself requesting deferments on an already large student loan debt. In 1998 I was forced to file bankruptcy. The banruptcy did not include my student loan. Since all of the interest has been capitalized the payment has become more than I can afford. I have carefully examined all of my payment options and simply put, I can't even pay the interest amount just to keep the debt from continueing to grow. Do I have any legal options? What happens if I have to default on the loan? What well the student loan company do? I just barely have a roof over my head now. Well they try to take that too? What can they do to me? What well they do to me? Please try to answer my questions. I am completely stressed out! I can't think about anything else. Anything you can do is greatly apprieciated.


Asked on 1/11/99, 11:22 pm

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

Re: Skyrocketing Student Loan

What do you mean that the "bankruptcy did not include the student loan"? A bankruptcy "includes" all of your debts, although some may not be discharged.

If you filed on or before 10/7/98, your student loan was discharged if it was over 7 years old (not counting deferments). If it was not that old, or if you filed after 10/7/98, your loan is dischargeable if you can prove undue hardship. Ask your bankruptcy lawyer about whether you might qualify to file an adversary proceeding to discharge your loan on such grounds.

Daniel Press

Chung & Press, P.C.

6723 Whittier Ave., Suite 302


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Answered on 1/26/99, 7:19 pm


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