Legal Question in Bankruptcy in North Carolina

It may depend on whether the loan is a public loan through the US Dept. of Education or a totally private loan. If it is federal, it will not affect you. Such loans generally are not dischargeable in bankruptcy. Federal loans can also garnish your wages if you do not re-pay the loan. However, private loans are different. Because these loans can be discharged in bankruptcy and because there is no wage garnishment, it makes them riskier. However, depending on the kind of bankruptcy that was filed, there may be less risk because you generally cannot refile for a number of years. In your case, a business bankruptcy is not the same as a personal bankruptcy so it may not affect you at all or very little.

What I would do is talk to the financial aid officer at the school that you plan to attend and see what the financial aid officer says. He or she may be able to direct you into the appropriate loan where it will not matter. Here is a link to a fairly good article that I found:

http://www.finaid.org/questions/bankruptcy.phtml

There may be others as well so do your own homework.

Your question makes it sound as if you have not yet filed for business bankruptcy. Do you really need to do so? Are there any alternatives that will work? Are you personally liable for the debts at all? If so, you would need to do personal bankruptcy.