How Can You Repair Student Loans Through Bankruptcy?


Quick Answer

Repairing student loans requires one to determine his or her eligibility to file for bankruptcy. Under normal circumstances, student loans are discharged for those students who have been out for ten years and above. One must also contact the student loans body to arrange for a favorable repayment plan. Alternatively, one can contact a licensed bankruptcy trustee or attorney to guide on the best solution of the problem.

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Full Answer

Filing for bankruptcy gives one ample time to service student loan. It is imperative for the debtors to find out if they are eligible to file for bankruptcy. Students who have been out for more than ten years qualify to file for bankruptcy. However, those with less than ten years can file for bankruptcy if they have bigger debts to clear. Students can also contact a student loans agency or a licensed credit counselor to arrange for a repayment plan or negotiate on behalf of the student. Many debtors use consumer proposals to repair their student loans. Students with loans of five ears and above have high chances of success with consumer proposals. To qualify for consumer proposals, one must have a steady income. It is advisable to contact a licensed bankruptcy attorney or trustee to review the debtor’s situation and give the best alternative.

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