How Will Bankruptcy Affect My Student Loans?

: Reese Baker & Associates

  Filed under: News

With larger numbers of individuals going to a higher university later in life, it’s becoming more common that individuals who have debts discharged in a Texas to seek out student grants, loans, or other types of student aid to attend a higher education institution. If you have previously filed bankruptcy in Texas, you might be concerned that this will hurt your chances for obtaining a student loan. We thought we’d tackle this question commonly asked of Houston bankruptcy attorneys in order to set the record straight.

Can I Be Denied a Student Loan due to Bankruptcy?

Any government run student loan program or entity that guarantees or insures loans cannot deny you a student loan, grant, loan insurance, or loan guarantee because you filed for bankruptcy under the Bankruptcy Act. Even if you have filed bankruptcy in the past, you are still eligible for certain student loan programs that operate under title IV of the Higher Education Act of 1965.

Can I Discharge Student Loans in Bankruptcy?

Student loans are not dischargeable under Texas bankruptcy laws except under extremely rare conditions, so unless you can prove that you have made a certified effort to stay current, but that you won’t be able to cover basic necessities with

Student Loans and Bankruptcy

There has been a lot of discussion as of late regarding student loans and how they are handled in bankruptcy. While there has been pressure from several individuals and groups to make it easier to discharge student loans in bankruptcy, there haven’t been any laws passed by Congress in order to do so just yet. Still, if you are experiencing an undue hardship imposed by student loans, you may be able to pass the Brunner test which may allow you to discharge some or all of your student loan debt using bankruptcy. Because you must lay out your case to a bankruptcy judge, you should contact a Houston Bankruptcy Attorney to find out what to expect and how you should proceed with your bankruptcy case.