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Are Private Student Loans Difficult to Include in Bankruptcy?

by | Jun 5, 2013 | Debt Settlement, Student Loan Debt

Private student loan debt is very difficult to include in a Chapter 7 bankruptcy, which is a forgiveness of all unsecured debt.   To include a private student loan in a Chapter 7 one must prove to a judge that repayment of the debt would present an undue hardship on them and their dependents.   Consider the resource below for examples of undue hardships.  They are fairly extreme circumstances.  

http://www.studentloanborrowerassistance.org/bankruptcy/

As a result, debt settlement may be the best and only option for consumers in default, or about to default, on private student loans.  Debt settlement done by a qualified debt settlement attorney can result in a reduction of the principal balance owed on a private student loan.  Contact a qualified debt settlement attorney and learn more about your options to handle private student loans.

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Kevin Fallon McCarthy

Kevin Fallon McCarthy is the McCarthy Law PLC’s managing attorney and an experienced Phoenix debt attorney. Mr. McCarthy has also worked as general counsel for a large corporation. He has corporate counsel experience in human resource matters, general corporate governance, and union class action litigation.