Bankruptcy Plus Education Loans Don’t Always Go Together
In the event you file for bankruptcy and have student loans, those loans will most likely not be discharged. This is due to the government’s 1998 change in its rules concerning bankruptcy and student education loans. Due to the fact the financial institutions were losing funds, student education loans were changed to be non-dischargeable. Additionally, the government was losing vast amounts on loans that had been guaranteed by the federal government when the loans were discharged through bankruptcy.