Law Office of Paul Petrillo
Contact Us Today 603-635-4149
Menu Contact

Chapter 7 on private student loans

New Hampshire residents may be interested in learning more about the effects that Chapter 7 bankruptcy can have on certain private loans. Some of these loans may be discharged by Chapter 7 bankruptcy in as little as three months, and debtors won't face any tax liability for the discharge. Debtors may be relieved to learn that lenders are no longer able to recover an outstanding balance once the statute of limitations has passed.

The statute of limitations on many private loans ranges between three and 15 years. With some private education loans, students may be absolved of the debt within a month's time. If the institution is not accredited, then Chapter 7 bankruptcy may discharge the unpaid debt immediately. Students who attended trade schools and trade schools are most likely to have of a loan that can be discharged through bankruptcy. Debtors who attended flight schools may also have loans that are similarly structured.

These loans are typically discharged because the funds were not used or a qualified education expenses if the school was determined to be an education institution that did not qualify for eligibility. In order to qualify as a private education loan, the transaction must meet standards concerning attendance and incurred cost of attendance as defined by Section 2211 of the Internal Revenue Code. Otherwise, the transaction must've been made as a part of a nonprofit or government student loan program.

Debtors who need help managing unpaid education loans typically benefit from consulting legal counsel. Lawyers may be prepared to review the debtor's financials and help determine the most advisable course of action moving forward. Legal counsel may be able to stop creditor harassment and wage garnishments while the bankruptcy process is underway. Debtors who are interested in retaining specific assets may benefit from asking legal counsel about filing Chapter 13.

No Comments

Leave a comment
Comment Information

Start Your Case Today

Whether you have a family law issue, an estate planning question or are considering bankruptcy, I can help you find a sustainable solution that provides relief and hope. Schedule your consultation at my Nashua, New Hampshire office today by calling 603-635-4149 or by sending us an email.

We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.

Bold labels are required.

Contact Information
disclaimer.

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

close

Privacy Policy

email us for a response
Law Office of Paul Petrillo