Does Chapter 7 Bankruptcy Make My Student Loans Go Away?

Does Chapter 7 Bankruptcy Make My Student Loans Go Away?

Does Chapter 7 Bankruptcy Make My Student Loans Go Away?If you file for Chapter 7 bankruptcy, this does not automatically make your student loans (private or federal) go away.

You have to ask the court to determine that you are entitled to a discharge.

Student loans are treated differently from other types of debts when it comes to a bankruptcy discharge.

With most other debts, you file for bankruptcy, list the debt, and if nothing else happens, then the debt is discharged.

But for student loans you have to petition the court to determine you need a discharge.

While we don’t agree with this, the courts have interpreted the law to mean that you basically cannot be able to work in order to discharge student loans.

Do keep in mind this is a challenging area of the law.

You also need to get with a bankruptcy lawyer in your particular area.  Judges in different parts of the country treat this law differently.

So you need to know about your judge so you can find out how the judges apply this law.

Also keep in mind that often debt collectors and even the student loan companies will lie about this and say you can never discharge a student loan.

You can discharge student loans, whether private or federal.

It simply is difficult to do so.

But “difficult” does not mean “impossible.”

That makes it worth your time to figure out where your unique situation puts you in this area of the law.

Do keep in mind that even if you can’t discharge your student loans, there may be other options that can help you.  And if you are sued by a student loan company, make sure you learn your options.

Contact Us.

If you live in Alabama, feel free to call us at 205-879-2447.

We will be glad to set up an appointment to discuss all of your options, including bankruptcy.

You can also contact us through our website.

I look forward to chatting with you!

Have a great day.

-John G. Watts


  1. Jim walker says:

    Hi. What is the sol for credit card debt in Mississippi? Do they have an account stated theory like in Alabama?

    • JohnGWatts says:

      Jim, I don’t know what the SOL is in Mississippi for a credit card debt. Keep in mind that the “contract” or “card holder agreement” may say that a certain state’s law applies and this sometimes includes the statute of limitations.

      As far as “account stated” — most states do have this. I think it is not appropriate for a credit card debt — particularly when you have a “debt buyer” such as Unifund, Midland, LVNV, Asset Acceptance, etc.

      My suggestion is get with a consumer lawyer in Miss. and see if they can tell you the answers. Sometimes it even comes down to this particular county judge may rule this way and the next county over may be different so it is important to ask someone local.

      If you find out the answer, please post it here so others will have this information. I’ll do the same.

      Thanks for your question — best wishes….

      John Watts
      Birmingham, Alabama

  2. Jim walker says:

    Sorry I posted this under the wrong topic. It appears that open accounts and accounts stated are 3 years.

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