If you have a debt collector trying to collect on a private student loan after you went through bankruptcy, you may be entitled to protections under a private student loans bankruptcy discharge.

Many people worry that student loans cannot be erased, even if a person declares bankruptcy. Though this is a common conception, there are situations in which people can have student loans discharged when they declare bankruptcy. Private student loans bankruptcy discharge could help. 

In rare cases, student loans can be forgiven in cases in which a person’s income is not large enough to cover their basic expenses in addition to student loan payments.

Who Can Discharge Student Debt?

It is true that most student debt is very difficult to discharge, even if a person files for bankruptcy. However, it is not impossible. If a borrower can prove that a student loan causes them undue hardship after filing bankruptcy, they can possibly discharge the debt.

Under the following circumstances, debts may be forgiven:

• If you can’t meet your basic financial needs or a minimum standard of living for you and any dependents
• Your financial situation is unlikely to improve during the term of your student loan
• You have tried to repay the loan

Is My Debt Considered an Educational Debt?

Not all debt that students take out during their education may be bound by the undue hardship standard. Certain private loans that don’t meet the particular statutory requirements may be dischargeable just like other kinds of consumer debt.

Educational debt is indeed harder to discharge through bankruptcy. If your debt is not technically categorized as an educational debt, even if you used it for your education, you may be able to discharge it more easily if you file for bankruptcy.

Here are some situations in which a person may be able to discharge their student debt because the debt is categorized as another type of unsecured debt:

• You attended a school that did not have federally approved accreditation and therefore was not Title IV-certified
• You borrowed more in loans than your school’s cost of attendance
• You weren’t at least a half-time student, meaning you weren’t eligible for educational loans

Debt Collection Violations After Private Student Loans Bankruptcy Discharge

Many student debtors report that debt collectors have continued to hound them for student debt after they have filed for bankruptcy. These people may have legal rights that protect them from debt collection efforts.  Under federal law, debtors may have a legal claim against debt collectors who try to collect a discharged debt.

If a lender or debt collector has attempted to collect a private student loan after you filed for bankruptcy, they may be in violation of the Fair Debt Collection Practices Act, or in violation of a bankruptcy discharge order violation. If this is the case, you could have a legal claim against the debt collector and could be eligible for compensation.

Fill out the form on this page to request a consultation about your private student loans bankruptcy discharge case.

DISCLAIMER: Debt collection itself is not illegal. However, creditors and debt collection firms collecting on consumer debts must adhere to the FDCPA and respect bankruptcy discharge injunctions. Even though consumer debt attorneys are investigating these companies, their debt collection practices may be legal.