Many residents of Oklahoma are overwhelmed by their student loans Tulsa, not even counting all the other bills many consumers incur such as credit card debts.
A common question is, “can you include student loans Tulsa in a bankruptcy?”
Stafford and Student Loans Tulsa
In most cases, you cannot include Stafford loans in any type of bankruptcy.
Stafford loans are issued through the United States federal government; since 2005 it has been next to impossible to the average consumer to reduce or eliminate debts from government-issued student loans Tulsa through the bankruptcy process.
However, there are some exceptions, which include the following as outlined under the Bankruptcy Abuse Prevention and Consumer Protection Act (BAPCPA.)
- A severe and permanent disability or illness that creates a significant financial hardship on a debtor. Severe and permanent usually constitutes terminal cancer or significant physical disability.
- A Tulsa bankruptcy judge must determine the medical condition makes it virtually impossible for the petitioner to ever work again. Receiving disability payments from the Social Security Administration for issues such as back pain or depression does not qualify a debtor for federal student loan relief.
- The college or trade school is no longer in business. As a result, all resulting student loans Tulsa are null and void regardless of each debtor’s financial situation or bankruptcy case status.
- Officials with the university or technical school committed some act of fraud to get government student loans Tulsa funded. The deceptions must be heinous and provable. One acceptable example is a college lying about its accreditation status in order to get students to attend.
- A student who did not graduate high school or complete an equivalency diploma is permitted to enroll in an academic program without taking an aptitude test.
Student loans not issued through the federal government as well as debts owed to colleges can be included in any type of personal bankruptcy.
Free Bankruptcy Planning: Tulsa Bankruptcy Lawyer
To get the best possible outcome in your bankruptcy case, you will need to set expectations for yourself and also understand your attorney’s expectations of you.
If you’re ready to file, contact a Tulsa bankruptcy attorney at the Freedom Financial Bankruptcy Lawyers of Tulsa as soon as possible.
To receive your free initial bankruptcy analysis, call the Freedom Financial Bankruptcy Lawyers of Tulsa today at 918-786-9600.