Is it worth it for me to pay off my student loans ? What will it benefit me.?
Answer:
Student loans, generally, are not dischargeable under any chapter of the Bankruptcy Code unless the borrower can show "substantial hardship." A Bankruptcy can, however, eliminate other debts that are competing for your dollars and provide a measure of peace during a Chapter 13 plan. Further, in a Chapter 13, some courts permit the debtor to separately classify a student loan so that a greater percentage of disposable income goes to the student loan than non-secured debt. A student loan can be discharged or modified in a hardship proceeding. This is an adversary proceeding and requires the filing of a Complaint to Determine Dischargeability. A discharge will be granted if proved that repayment of the loan will create a substantial hardship on the debtor/borrower and his or her family. The hardship standard is generally interpreted to mean that the debtor cannot maintain a minimally adequate standard of living and repay the loan at the same time. Further, it also requires a showing that the conditions that make repayment a hardship are unlikely to improve substantially. Courts in some circuits will permit the judge to find that the debtor can repay a portion of the loan without hardship, and to discharge the balance of the loan.
Hope it helps!
You cannot get around paying off your student loans. Declaring bankruptcy will not forgive your student loan payments. Student loans, however, are one of the best types of debt to have. If you pay them regularly, it reflects very well for you in your credit report.
I agree with Shauna, the federal government will get their money one way or the other
you need to do it because you owe that money. Doesn't honor mean anything to you?
Well if you file bankruptcy then that will likely hinder you from getting a good high-paying job as most employers these days do credit and background checks. But if you are not interested in one of those jobs and will not want to buy a home or a nice vehicle in the near future then go ahead and file.
If you file for bankruptcy, student loans cannot/will not be included. How will it benefit you to pay, well since you HAVE to pay them, it's the GOVERNMENT (they will eventually garnish your wages) and it stays on your credit report until you do (it could be forever). So find a way to pay them, because it will haunt you for the rest of your life!
Bankruptcy will get rid of any student loans if it's been 10 years or over when you started paying.
my bf had the same problem. he stopped paying his loans a couple of years ago and recently they kept on mailing him letters saying if he does not start paying his student loans, they will start garnishing his wage. so what he did was take a loan from his sister and paid it off so he would not have to pay the interest.
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