Can I include a private student loan from Chase in my chapter 7 bankruptcy?

Of course you will include the loan, it just isn't very likely that you will be able to discharge the debt unless you are able to show you have some very tragic circumstances and you bring an adversary action before the bankruptcy court. While your Chapter 7 is open, the student loan collector will not be allowed to contact you for the purposes of collection. Hope this perspective helps!

You will list the student loan in Schedule F of your bankruptcy petition, but discharging it will be impossible unless you sue the creditor in an adversary proceeding and demonstrate that repayment will impose an undue hardship. And unless you're suffering from a physical or mental disability that will preclude you from working any job, you won't prove undue hardship.

To discharge a student loan is a very difficult burden to overcome. You must be able to show no ability to maintain a minimal standard of living. More facts are needed to determine if the legal fees required for an Adversary Proceeding to discharge a student loan is worth the investment. You should consult with an experienced bankruptcy attorney to review your personal situation and facts.

Except for very rare situations, you cannot eliminate any student loans, private or directly from the government in a C'hapter 7 bankruptcy. It will be "included" because you have to list all debts you have, but it will not be discharged (eliminated). The collectors do have to stop lawsuits and letters, but interest will still keep running on the loan. After the bankruptcy, you can try to work out a repayment plan with the lender directly. There has been some talk of Congress taking action to allow students to discharge private loans, but so far, nothing has gone very far. You can stop garnishments and lawsuits due to student loans in a Chapter 13 Bankruptcy, which will allow you to make a payment plan that you can afford, over 3 to 5 years, but any remaining balance of the student loans will be due after the case is over, plus any accrued interest. It is best to talk to an experienced bankruptcy lawyer to discuss all of your options. Daniel J. Winter