Legal Question in Bankruptcy in Virginia

Re: Student Loans in Bankruptcy

OK, let me get this straight. You have large student loan debts for money you borrowed, accepted and then spent to go to school, and now you think it is "unfair" that you can't just eliminate those debts in bankruptcy, and that it is messing up your credit rating. Gee, that's really too bad. You will find that many other folks, including those of us who borrow money for school, either for ourselves or for our children, and who then work our backsides off to repay what we borrowed, don't share your belief that asking you to pay the debts you voluntarily incurred is "unfair." Banks are able to offer lower interest rates on student loans in part because they are typically not dischargeable in bankruptcy. And this in turn makes it possible for many people to get an education they otherwise might not be able to afford. I don't think this is unfair at all.

Re: Student Loans in Bankruptcy

Student loans are only dischargeable if you can show undue hardship. If you discharged your other debts, you now have more money to use to pay your student loans. Fair or not, that's the deal, and your bankruptcy lawyer certainly advised you of that when you chose to file. Your credit rating accurately reflects the status of your debt - that's not unfair. As for your car, unless you reaffirmed it, you did discharge your personal liability on the debt, but if you want to keep the car (the bank's collateral), you need to keep paying. Give up the car and you should not owe any more.