310.376.9865
Most people considering bankruptcy, discover early that their student loans are non dischargeable. Their bankruptcy attorney will explain that student loans can only be discharged in bankruptcy if their is a hardship. Even then, most creditors holding student loan debt will fight the debtor tooth and nail to prevent the student loan being discharged.
This has not only been the case, at one time a bankruptcy would discharge a student loan:
- 11-6-1978 to 8-14-1979 no restriction, a Chapter 7 or Chapter 13 would discharge student loans, as you can see this was a short window, and the government wised up fast. (1978 was when the modern bankruptcy act was enacted.)
- 1.1-5-1990 discharge in 13 eliminated
- 11-29-1990 5 year rule extended to 7 years, in other words, the student loan had to be over 7 years old before it would be subject to discharge.
- 10-7-1998 7 year rule eliminated – hardship only way to discharge a student loan in bankruptcy.
Now, this does not mean if you incurred a student loan back in 1977, it would not be dischargeable today, because the bankruptcy code has been eliminated the discharge for student loans, it was only dischargeable back in 1979, well up to 8/14/1979 if you filed bankruptcy.
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Los Angeles/Orange County Chapter 7 Bankruptcy Attorney- A Debt Relief Agency.
- Law Offices MJ Mann Bankruptcy Attorney
- 2706 Artesia Blvd, Suite BK
- Redondo Beach, CA 90278
- 310.376.9865
