Legal Question in Bankruptcy in New York

Ch 7 and future student loans

Dear Sir/Madam:

Thank you for taking the time to read my question. I'm considering applying for Ch 7.

I have outstanding credit card debt (approx $14,000) that I have already tried to negotiate

using Consumer Credit Counseling Service and was unable to earn enough money to make the payments--they dropped

me from their program 2 months ago. I am a full-time medical student with a job that pays me about $10,000 a year.

I have about $20,000 in Stafford and Perkins loans from undergrad and graduate educational

loans that are in deferment due to my full-time student status.

My question is this: if I file for Ch 7 how will it affect my ability to take out future

Stafford loans (subsidized and unsubsidized)? I still have 3 years of education that I need to

finance. Also, is it possible to NOT include my current student loan debt as part of the filing

(as I have every intention of paying these loans in the future), and only include my credit card

debt in the filing?

I thank you very much for your time and attention to this matter.


Asked on 5/25/99, 2:56 pm

1 Answer from Attorneys
Alexander M. Rosenfeld Rosenfeld & Stein, P.A.

Re: Ch 7 and future student loans

You are required not only to list all your assets, but also ALL your liabilities. If you or your attorney can make a deal on the two student loans, whereby they will commit to future loans, then you can re-affirm the debt. The re-affirmation will require Court approval. Note, the fly in the ointment is that the loans may not be dischargeable. If that is the case,then creative abilities will need be applied. You may discuss this with me by calling 305-940-8080.

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Answered on 5/28/99, 1:28 am


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