bankruptcy process

Submitted by ncmcd on

Jurisdiction: 

Area of Law: 

Question: 

What are the GA regulations for bankruptcy and can student loans be restructured doing this process? Are the regulations to living in GA that is different than in NC for this process?

Selected Answer: 

The Bankruptcy Code sets the

Submitted by Staff_Writer on

The Bankruptcy Code sets the guidelines regarding what type of debt can be discharged in a bankruptcy case. Therefore, whether you live in Georgia or North Carolina will likely have little impact on your bankruptcy case. While student loan debt is a common type of debt, it cannot be discharged in a bankruptcy unless you can show your student loans constitute an undue hardship. To show an undue hardship, you will need to prove three things. First, that you cannot maintain a minimum standard of living if you are forced to repay your student loans. Second, that your current financial situation is likely to continue for some time. Finally, the court will want to see that you have made a good faith effort to repay your loans. It can be very hard to show the court that you meet all of these requirements and are entitled to a student loan discharge in your bankruptcy case. However, if you are filing for Chapter 13 bankruptcy, and creating a repayment plan, you may be able to pay less per month than you are paying now because the bankruptcy plan will dictate your monthly payments, not your lender. However, you will be responsible for continuing to pay your student loans after your Chapter 13 bankruptcy case is complete at the rate determined by your lender. Therefore, filing for Chapter 13 bankruptcy can restructure your payments for the life of your repayment plan, or three to five years. For more information about filing for bankruptcy, see https://www.freelegalaid.com/nav/georgia/personal-bankruptcy/article/fil.... In addition, the National Consumer Law Center, Student Loan Borrowers Assistance website, http://www.studentloanborrowerassistance.org/, is a great resource for learning more about how to manage student loan debt.

All Comments

The Bankruptcy Code sets the

Submitted by Staff_Writer on

The Bankruptcy Code sets the guidelines regarding what type of debt can be discharged in a bankruptcy case. Therefore, whether you live in Georgia or North Carolina will likely have little impact on your bankruptcy case. While student loan debt is a common type of debt, it cannot be discharged in a bankruptcy unless you can show your student loans constitute an undue hardship. To show an undue hardship, you will need to prove three things. First, that you cannot maintain a minimum standard of living if you are forced to repay your student loans. Second, that your current financial situation is likely to continue for some time. Finally, the court will want to see that you have made a good faith effort to repay your loans. It can be very hard to show the court that you meet all of these requirements and are entitled to a student loan discharge in your bankruptcy case. However, if you are filing for Chapter 13 bankruptcy, and creating a repayment plan, you may be able to pay less per month than you are paying now because the bankruptcy plan will dictate your monthly payments, not your lender. However, you will be responsible for continuing to pay your student loans after your Chapter 13 bankruptcy case is complete at the rate determined by your lender. Therefore, filing for Chapter 13 bankruptcy can restructure your payments for the life of your repayment plan, or three to five years. For more information about filing for bankruptcy, see https://www.freelegalaid.com/nav/georgia/personal-bankruptcy/article/fil.... In addition, the National Consumer Law Center, Student Loan Borrowers Assistance website, http://www.studentloanborrowerassistance.org/, is a great resource for learning more about how to manage student loan debt.