Legal Question in Bankruptcy in Wisconsin

Unless they are extremely old loans, student loans are generally not dischargeable in bankruptcy. Although the better practice would be for the lenders to honor the bankruptcy stay on litigation pending this determination by the court, some student loan lenders take a more aggressive approach and disregard the stay altogether. You should ask your lawyer about possibly sending them a warning letter requesting that they justify their position, even though they might very well successfully justify it. Also ask your lawyer to research whether your loan is old enough to possibly be dischargeable or whether a hardship exception might apply in your case. While expensive to litigate and difficult to win, hardship exceptions, if granted in your case, could potentially enable you to undo some of these setoffs. Attorney responses on this public website are intended only for public educational purposes rather than as legal advice for your specific situation. Responses to your questions therefore do not create an attorney client relationship between us and should not be relied upon for making any important decisions until they have been reconsidered by your private attorney. You are; however, welcome to contact my office in Racine to discuss any additional questions which you may have or to seek private advice intended for you alone. Answers on this website may also contain attorney advertising materials.