Consolidating private lender student loans

If you instead file for a Chapter 7 bankruptcy, you may be able to have your debts discharged.This type of bankruptcy makes it possible for most of your consumer debt like credit cards, store accounts and medical debt to be completely wiped out.The type of bankruptcy that you file will determine what happens to your debt once you file.If you file for a Chapter 13 bankruptcy, you will get started with a repayment program that is administered by the court.Your bankruptcy trustee will collect a payment from you each month and then pay your creditors for you.The main purpose of getting involved with this bankruptcy option is so that you can get the protection of the court and avoid being sued by your creditors.

Although it is difficult to get your student loans discharged through a Chapter 7 bankruptcy, it is not impossible.For example, if you took out the loans and then immediately after you got out of college, you filed bankruptcy, this does not show good faith.In that case, the bankruptcy court would probably make you keep the student loan debt.You also have to be able to show that your current circumstances will persist for an extended period of time.You have to show that your financial condition will be the same for the majority of the life of the loan.

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