Most clients that come into my office understand that discharging student loans is not likely to happen.  However, this is not entirely true.  If the debtor can prove “undue hardship” their student loans may be discharged, the rub is that it is not easy to meet the requirements of undue hardship which is the one…

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The Effect of Filing Bankruptcy on Cosigners Many times when a person is seeking to obtain a loan a cosigner is required.  Many times these cosigners are either a friend or family member who signs a legal document or contract and promises to pay your loan in the event that you default on your payments.  This cosigner becomes legally…

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Discharging Student Loans: Undue Hardship Generally, student loans are not dischargeable in bankruptcy; one of the few debts that categorically remain with a debtor once they have completed their bankruptcy.   In the past, some privately funded education loans could be discharged under Chapter 7 bankruptcy.  However, with the change of the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005, the definition of a non-dischargeable…

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College Graduates Filing Bankruptcy at Higher Rate A report by the Institute for Financial Literacy, finds that college graduates and people with advanced degrees are filing more often.  In fact, since the passage of the Bankruptcy Abuse Prevention and Protection Act, holders of higher education degrees have increased their filings by about 20 percent. Despite the rise in…

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Bankruptcy and Divorce: When your divorce leaves you broke, bankruptcy can give you a fresh start! Many times bankruptcy and divorce go together.  A divorce is not only emotionally draining, but separating all the debts and assets of two people gained during a marriage can lead to financial instability. In a divorce all marital property…

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