Student Loans - New York Bankruptcy Lawyers Discuss Student Loan Discharge
11 U.S.C. 525 states (c) (1) A governmental authority that operates a student loan program and a person
engaged in a lending business that includes the extensions of loans guaranteed or insured under a student loan program may not
deny a loan, grant, loan guarantee, or loan insurance to a person that is or has been a debtor under this title
or a bankrupt or debtor under the Bankruptcy Act, or another person with whom the debtor or bankrupt has been
associated, because the debtor or bankrupt is or has been a debtor under this title or a bankrupt or debtor
under the Bankruptcy Act, has been insolvent before the commencement of a case under this title or during the
pendency of the case but before the debtor is granted or denied a discharge, or has not paid a debt that is
dischargeable in the case under this title or that was discharged under the Bankruptcy Act.
New York Bankruptcy Lawyer - In Practice
In summary, student loans should not be denied to students, unless a prior student loan was charged-off, or is subject to
charge-off in a pending case. Also note that any creditor, or their bankruptcy lawyer, may object to discharge.
The debtor and their bankruptcy lawyer receive will prevail if the opposing party fails to meet their burden of
proof. The trustee, or their bankruptcy lawyer, or the court upon it's own motion, may also initiate objections.
The majority of personal bankruptcy lawyers certified in
consumer Chapter 7 and Chapter 13 cases offer free initial
consultations. Potential clients may review all options available and
ask any question deemed important. All attorneys are bound by the
attorney client privilege and must zealously guard confidentiality.
Because of recent amendments to new bankruptcy laws, by passage of the
latest reform bill known as the Abuse Prevention Act of 2005, debtors
will find qualification for debt relief somewhat more difficult. Yet
these laws also present new options, alternatives, and means of
discharging debt that were previously unavailable. Now, more than ever,
the assistance of qualified representation before federal courts is
essential to gain maximum benefits provided by law.
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