Question by Montreal SOS: Can I file for bankruptcy with defaulted student loans? I have defaulted on my student loans and now it is due on default. My loans are for 30K, I barely make 29K and I have other debt. Can I file for bankruptcy now that my student loans have defaulted? Best answer for Can I file for bankruptcy with defaulted student loans?:
Answer by caddymark420
No, you have to pay for all student loans. Contact EDFUND and work out a payment plan or you will wish you had...Bill Clinton set it up so you can't file for bankruptcy on student loans, regardless if you are working or not or are making minimum wage and starving to death, the Government wants their money....Sorry to be harbinger of bad news
Answer by Jennifer
Hi, I used "Credit Solution" to settle my debt and improve my credit score.They managed to reduce my debt up to 58%.It's legitimate.I came across this company on NBC News special edition.Check it out here: http://simurl.com/vohmer
To find out about your defaulted student loan debt rights and options, call 1-888-505-2369 for a free debt consultation with a lawyer. www.consumercounseling.org
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During that same period, nearly 2.1 million federal student loan borrowers defaulted within two years of entering repayment, according to data from the Department of Education. But allowing federal loans to be discharged through bankruptcy may be a ... Can Bankruptcy Solve Student Loan Woes?
With the economy tanking and health care costs rising, student loans might be the last thing on most people's list of bills to be paid. Education has become a costly venture with 70% of undergraduate students requiring some sort of financial aid in 2008. And, once out of school and out in the "real world", student loans fade into the background of everyday life. But, defaulting on students loans can lead to deeper problems, even if a bankruptcy petition with Denver Bankruptcy lawyers is in the future. Federally funded student loans, such as those obtained from the US Department of Education, can be vigorously pursued for payment by the Department using some powerful collection tools such as:
Additional collection fees Attaching your tax refund Wage garnishment Garnishment of federal benefits LawsuitsAdditional Collection Fees
The loan guaranty agencies that guaranteed your loan can charge you collection fees if you fall into arrears.
If the Department of Education hires collection agencies to pursue you for payment, then they charge the Department Education a commission for their collection agents, which is passed along to you.Attaching your tax refund
Each year at tax time, the loan guaranty agency that guaranteed your student loan reviews your records to see if you are in arrears for more than 90 days. If so, they notify the IRS who then intercepts your tax refund. The loan guaranty agency will then notify you that the IRS will be keeping your refund. This process will go on each year until your debt is paid in full.
Wage Garnishment
The loan guaranty agencies can garnish your wages for payment of monies in arrears.
This means that the agency can order your employer to turn over to them a portion of your paycheck up to a maximum of 15%. However, there are limitations on the amount that can be garnished. The full 15% cannot be taken if it would mean that your weekly income would be less than 30 times the federal minimum wage.Garnishment of Federal Benefits
Social Security retirement and Social Security disability benefits may also be garnished for loan arrearages. Supplemental Security Income is not affected. The first $ 9000 or $ 750 per month may be taken but the total amount may not be over 15% of your income. If your Federal benefits are not over $ 750, then no money may be garnished.
Lawsuits
The Department of Education can file suit against you for defaulting on your student loans. Unlike some other debts, there is statute of limitations on this and they can sue you indefinitely. However, the Department is unlikely to sue if they deem you have no assets that total the value of the loan or if suing you would cost them more than they would collect.
If any of the above actions have been taken against you and you feel this is in error, contact Denver bankruptcy lawyers. You do have recourse. Notify the guaranty agency within 65 days of date of notice in writing and with evidence that you have:
Paid the arrears in full Are making payments under an arrangement or have been granted a forbearance, a delay or a cancellation. Have become permanently disabled since taking out the loan. The loan is fraudulent and not your loan. Dropped out of school or never attended and the school has not refunded your money. Have filed for bankruptcy with Denver bankruptcy lawyers and completion of the action is still pending or else your loan debt was discharged. Obtained the loan to attend a "trade school" that closed prior to your completion of the course or else you were incorrectly certified to receive the loan.For further information or to ask for help, contact the Department of Education's Ombudsman for a list of steps you should take to resolve your problems and ask for their help.
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