Bryan P. Keenan & Associates, PC Toll Free 866-753-6857 Phone 412-923-4941

Providing The Advice And Options You Need To Overcome Financial Problems And Move Forward

Bankruptcy Attorneys Who Care About You And Your Future
Don't let debt problems disrupt and define your life.

Private Pennsylvania student loans and bankruptcy regulations

It is a common misconception among Pennsylvania students that all types of student loan debt are inescapable through bankruptcy. However, laws that protect other types of student loans from being discharged do not protect many private student loans. In fact, some private loan debt may be cleared away within 90 days of filing for a Chapter 7 bankruptcy.

Whether private student loans are eligible for discharge in a Chapter 7 bankruptcy may vary according to state regulations. Private lenders are not legally permitted to collect student loan debt that has expired under the statute of limitations. Once debt has expired under the statute of limitations, it may still be included in a bankruptcy filing, but it can no longer be pursued in court.

In order for a private loan to be protected from discharge, it must meet all standards set by the Internal Revenue Code. These standards require that the loan was issued under a government or non-profit program, that the program is an eligible and accredited institution under the Higher Education Act, and that the loan money was used for a qualified education expense. If the loan does not meet all Internal Revenue Code criteria, it is eligible for discharge. Student loans from a non-accredited academic institution are generally eligible for discharge through Chapter 7 bankruptcy. Private loans borrowed to fund trade or vocational school are usually easy to have discharged.

Many Pennsylvania students might believe that their private student loans are not eligible to file bankruptcy. However, a bankruptcy lawyer may be able to provide further information about which private loans are eligible for discharge. Filing for a Chapter 7 bankruptcy might provide relief from private student loans in addition to other forms of debt.

No Comments

Leave a comment
Comment Information
Email Us For A Response

Contact Us Today

Bold labels are required.

Contact Information
disclaimer.

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

close

Privacy Policy

Bryan P. Keenan & Associates, PC

993 Greentree Road
Suite 101
Pittsburgh, PA 15220

Toll Free: 866-753-6857
Phone: 412-923-4941
Map & Directions