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WALLSTREETESQ
WALLSTREETESQ, Attorney
Category: Bankruptcy Law
Satisfied Customers: 17223
Experience:  14 years exp., CH 7 AND 13 Bankruptcy cases, AFL-CIO UNION PLUS, UFT NYSID AND ALL MAJOR UNIONS
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I have a private loan through a school I attended. It was a

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I have a private loan through a school I attended. It was a certificate school. Can that be included in bankruptcy?

WALLSTREETESQ :

It may be possible only if it is not considered a student loan,

WALLSTREETESQ :

a student loan cannot be discharged, without the debtor showing an extreme hardship,

WALLSTREETESQ :

what you should do is list the loan in your bankruptcy as an unsecured debt and see if the College objects to its discharge, if they do not it could be discharged,

WALLSTREETESQ :

A certificate school,

WALLSTREETESQ :

may not be an eligible education institute,

WALLSTREETESQ :

under the law only certain colleges are allowed protection

WALLSTREETESQ :

an “eligible education institution” under 26 USC 221(d)(1) and (2) means that the debts are not “qualified education loan(s)” under 11 USC 523(a)(8)(B), and therefore are dischargeable.

Customer:

It is not a college. I am not sure if it is considered a vocational school etc. Basically I paid a down pymt and still owe a few years on loan for the certificate program. They were not accredited when I firet started there but I believe they are now.

WALLSTREETESQ :

You should try to argue they are not an eligible education institution, and have it discharged,

WALLSTREETESQ :

if they do not contest,

WALLSTREETESQ :

it will be discharged

WALLSTREETESQ :

For a loan to to be protected, (1) it must have been made under a government or nonprofit student loan program, or (2) it must be a qualified educational loan under section 221(d)(1) of the Internal Revenue Code, for attending an eligible education institution as defined in section 221(d)(2) of the Internal Revenue Code, and incurred for costs of attendance as defined in section 472 of the Higher Education Act.

WALLSTREETESQ :

You can also search the government website to see if they are listed,

WALLSTREETESQ :

due to the fact they were a vocational school, you could have a strong argument that they are not an education institute,

WALLSTREETESQ :

Good luck,

WALLSTREETESQ :

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