STUDENT LOANS IN BANKRUPTCY (FLORIDA)

Firstly, as the other attorneys have correctly stated, barring some severe exceptions such as death, a student loan is never dischargeable in bankruptcy irrespective of chapter type. Secondly as a side note you should be aware that there is no practical difference in a discharge and its ramifications if one filed Pro Se or with an Attorney. In fact, a discharge letter/order does not ever include a list of the actual debts and creditors being discharged. It simply is an order from the presiding bankruptcy judge stating you have complied with the bankruptcy laws and code and he or she is ordering and granting you a discharge of your allowable debts. However, this means debts that you listed in your schedules that are entitled to be discharged. Student loans unfortunately are at the very top of the totem pole when it comes to the category of non discharge. In fact, in certain cases (The specifics for another discussion) even IRS tax debt can be discharged in certain specific circumstances, whereas the same cannot be said about student loans. It’s a real shame, as many ironically flock back to school during a down economy and especially post 2008, what I am calling a full blown recession. Once again your reference to a "general discharge letter" is not entirely accurate. A discharge letter/order never states what debts were or were not discharged period. IWhile it may seem fair to assume barring any reservation of rights the trustee might have retained, that any “issues or problems” with your filing would have been resolved with the trustee or specific creditor during your bankruptcy stay and the discharge only issued when the trustee and judge in turn are satisfied you have complied with all the necessary laws and the bankruptcy code. However, it is NOT any proof that your listing of a debt or creditor that is exempt from discharge and yet still receiving a discharge that that specific creditor or every creditor you listed is in fact and legally wiped out. Finally, while terribly frustrating it is worth noting that unless you speak with your lender (Example Sallie Mae) and work out some sort of repayment plan or long term strategy, as the attorney from NC correctly stated, you are opening yourself up to possible garnishment of not just wages but even potential government benefits. I wish I could provide you with better news. I may suggest if you have not already done so, 1) Consolidating ALL your student loans and/or 2) Asking your lender for a forbearance while you get back on your feet. If there is any solace to draw, I would say that in most cases, Federal Student Loans are given at a very reasonable interest rate and obviously depending on your income to expense ratio and whether you have a job and residual income, the loan payments are more often than not affordable if one incorporates a good budget into their life, coupled with residual income. Some lenders even offer incentives for good payment history and lowering the interest rate after X amount of years. Last but not least don’t be afraid to call your lender directly and explain your situation. Yes, they are a business like all and are not going to be too concerned with your personal situation, however what it does do is show them that your ARE COMMUNICATING and this is critical to any creditor. I have had clients in the past that were able to lower their interest rates and extend a forbearance by simply speaking up and being open and honest. Wishing you the best of luck! Grant Phillips www.miamidebtlawyer.com Disclaimer: The above writing is an opinion only and NOT legal advice. You should not rely on any of the above and nothing in the writing above has created an attorney client relationship. Please consult with an attorney before making any decisions. An attorney client relationship is only formed by the mutual signing of a retainer agreement with our firm.