Consolidating my student loans

Once scholarships and grants have been explored, many people turn to student loans.

Student loans can help provide the funding that you need to get to college and obtain the education that you require.

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If you instead file for a Chapter 7 bankruptcy, you may be able to have your debts discharged.

This type of bankruptcy makes it possible for most of your consumer debt like credit cards, store accounts and medical debt to be completely wiped out.

You also have to be able to show that your current circumstances will persist for an extended period of time.

You have to show that your financial condition will be the same for the majority of the life of the loan.

The type of bankruptcy that you file will determine what happens to your debt once you file.

If you file for a Chapter 13 bankruptcy, you will get started with a repayment program that is administered by the court.For instance, if you have a 30 year repayment period on your loans, you’ll need to show that your financial situation could not improve over the next 15 years.So what exactly constitutes an undue hardship when it comes to getting your student loans discharged?Your bankruptcy trustee will collect a payment from you each month and then pay your creditors for you.The main purpose of getting involved with this bankruptcy option is so that you can get the protection of the court and avoid being sued by your creditors.However, this market is so big and backed by the government that it may be too big to fail.

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