Personal Bankruptcy Chapter 13

[LittleBoo]

Can someone file Chapter 13 as an individual even though they are married? Debtor wishes to file chapter 13 on student loans received prior to getting married.

Thank you.

 

[Michael Wechsler]

Originally posted by LittleBoo
Can someone file Chapter 13 as an individual even though they are married? Debtor wishes to file chapter 13 on student loans received prior to getting married.

My understanding is that due to a change in bankruptcy law (1998), declaring bankruptcy to discharge a student loan is VERY difficult to make which involves a determination of an extreme hardship case.

You may be able to get a deferral -- you do this by applying to the holder of your loan. This would mean that for a period of time you would be able to stop payment on your loan due to certain conditions, e.g. unemployed and returning to school to finish your degree. Interest is not accrued. A deferral is not automatic and determined by the loan holder.

You may also qualify for a forbearance which is similar to a deferral but not as good because interest continues to accrue even though you don't have to make the payments during the specified period of time.

With regard to canceling or deferring a student loan, here is a short list of circumstances where that may take place:

• Temporary Total Disability
• Permanent Total Disability
• Unemployment and Economic Hardship
• Enrollment in School
• Parents Who Have Young Children
• Enrollment in Rehabilitation by the Disabled
• Membership in the Military Service
• Teaching Needy People
• Employed in Law Enforcement
• Withdrew From School But Did Not Receive A Refund