ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Filing bankruptcy on student loans is possible, but you’ll have to go through a difficult process to do so. To discharge your student loan debt through bankruptcy, you have to prove that you can’t pay back your student loans without it having an extremely negative impact on you and your dependents.

Detailed explanation-2: -Student loans can be discharged through a bankruptcy court if you satisfy the court’s requirements. You must demonstrate that you don’t earn enough income to repay your student loans and prove that repaying your loans would cause undue financial hardship.

Detailed explanation-3: -The answer: Yes! However, there are very specific eligibility requirements you must meet to qualify for loan forgiveness or receive help with repayment. Loan forgiveness means you don’t have to pay back some or all of your loan.

Detailed explanation-4: -Chapter 7 provides relief to debtors regardless of the amount of debts owed or whether a debtor is solvent or insolvent. A Chapter 7 Trustee is appointed to convert the debtor’s assets into cash for distribution among creditors.

Detailed explanation-5: -Private student loans don’t go away unless you pay them off, but in most cases, they’ll fall off your credit report after seven years. But keep in mind that lenders can still contact you to collect an old debt, even if it’s decades old and they can no longer take you to court over it.