Welcome to the world of bankruptcy- a nameless, faceless and sudden grief that attacks a person anytime and flew away with all his dreams for his future.
But, being bankrupt is no more a situation that cannot be overcome.
All it demands is maintaining the cool and planning to get through the harder time devising appropriate bankruptcy information.
Bankruptcy student loan is a concept that has underwent many changes.
In 1998, changes made to bankruptcy code made the student loan non-dis-chargeable regardless of the age of the loan.
However, in case the borrower establishes 'undue hardships' the bankruptcy student loan may be discharged.
This clause applies to both, chapter 11 and chapter 13, though the conditions prevailing regarding discharging of student loan may differ i.
e.
it may consist of discharge of half amount or so.
Filing your bankruptcy in chapter 13 may let the consolidation of student loan with your other bills, hence, gets you an alternative to propose your repayment over a span from 3-5 years.
However, for filling the bankruptcy under chapter 13, you need to have a stable income with a disposable income and a secured debt no more than $1,010,650.
Moreover, the student loans are included in the repayment plan depending on certain factors like size of loan, number and amount of your other debts, and the amount of your disposable income.
Though the bankruptcy student loan still remains your liability, even if, not included in the repayment plan.
Bankruptcy Information - Collection technique in case of defaulted bankruptcy student loan :

• Collection fees of 25% and collection agency "commission" fees of approximately 28% onto the principal, interest and penalties are levied.
  
• The federal income tax refunds are taken until the defaulted student loans are paid.
  
• Without suing in the starting, Federal Government garnishes up to 15 percent of your wages
• The defaulted student loan is paid in the form of grabbing those federal benefits (which you must be entitled like social security requirement) and cutting 750$ per month from your income.
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• Sue you for your outstanding student loan debt and place liens on your property.
  

Repayments- Bankruptcy Alternatives

• There are many bankruptcy services that allow you to get discharge of a portion of the bankruptcy student loan.
  However, preparing a repayment plan may prove a great help.
  
• You may make the lender to agree to defer repayment until your career and financial circumstances have improved.
  
• Consolidating all your student loans at low rates of interests may also let you get a repayment time stretched over a long span of period.