Can I file bankruptcy on my private school loans?

Asked on Apr 22nd, 2013 on Bankruptcy - Connecticut
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I was diagnosed with a mental illness in 2008. I applied for disability and in the meantime received state disability from the welfare office until I received a decision. I was denied and got a lawyer to receive disability. Eventually I was approved and been receiving disability since march 2012.
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Answered on Apr 24th, 2013 at 10:10 PM
If you filed bankruptcy, you would include your student loans, but to eliminate your student loans through bankruptcy would require you or your attorney to file an adversary proceeding to determine whether you are eligible for this help. While your description makes it sound like you have a shot to eliminate these debts, there is no guarantee that you will be successful.

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Answered on Apr 24th, 2013 at 2:48 PM
You may be able to - it all depends. Have you tried to have your student loans forgiven based on your disability? You may want to try that first.

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Answered on Apr 24th, 2013 at 2:47 PM
If you are on Disability, as of June of this year, you may be able to.

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Answered on Apr 24th, 2013 at 2:46 PM
If you are unable to ever be an income producing person, it is very possible, but will take an additional effort inside a bankruptcy case to even attempt this.

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Answered on Apr 24th, 2013 at 2:43 PM
Unfortunately, as today (April 24, 2013), private student loans are not currently treated differently in bankruptcy than government guaranteed student loans. There are lobbying efforts underway to make private student loans dischargeable in bankruptcy, and the National Association of Consumer Bankruptcy Attorneys is working to get such a law passed. In the meantime, it is still possible to discharge a student loan if you can prove that it would be an "undue hardship" to be required to repay the loan. This involves filing a lawsuit against the student loan lender after the bankruptcy case has been filed.

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Answered on Apr 24th, 2013 at 2:42 PM

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Answered on Apr 24th, 2013 at 2:38 PM
No, absolutely not. The only way is if you are so far incapacitated and uniquely disabled as to fit into an almost unusable exception to the law.

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