You may be able to get a school loan if you have filed Chapter 13 bankruptcy, but you'll likely be limited to federal student loans, rather than loans from private lenders.
It is important to remember that federal student loans are based on a person's financial needs, not their credit worthiness. As a result, getting a school loan after filing Chapter 13 bankruptcy is a real possibility.
To learn more about what to expect after bankruptcy, connect with a local lawyer for a free consultation by filling out the form below.
After a Chapter 13 filing, many people use their new-found financial freedom to get more education. School, though, can cost a great deal of money, and many people finance their degrees with student loans.
After a Chapter 13 bankruptcy, you may be able to get a student loan. Here are some things to remember:
On the other hand, if you have not yet discharged your Chapter 13 bankruptcy, you should always check with your trustee or attorney before taking out a loan during bankruptcy.
Some students may also wonder whether they will be able to discharge student loans when they file bankruptcy. Unfortunately, most people are unable to eliminate student loans in bankruptcy.
However, an exception applies if an individual can prove “undue hardship,” which requires showing all three of the following conditions:
So, discharging student loans is very difficult, but obtaining new student loans if you previously filed Chapter 13 bankruptcy may be possible.