How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Brent Blanchard Your Own Question
Brent Blanchard
Brent Blanchard, Bankruptcy Attorney
Category: Bankruptcy Law
Satisfied Customers: 1975
Experience:  Twelve years experience in all aspects of debtor & creditor BK.
Type Your Bankruptcy Law Question Here...
Brent Blanchard is online now
A new question is answered every 9 seconds

Is it possible to file on old School loans, I am 62 in September

Customer Question

Is it possible to file on old School loans, I am 62 in September and facing retirement? I paid for 10+ years, then lost my job in 2005. The amount owed with penelties is 60K. I got my degress in 1992.
Submitted: 6 years ago.
Category: Bankruptcy Law
Expert:  Brent Blanchard replied 6 years ago.
Federally-guaranteed student loans are generally not dischargeable in bankruptcy, absent some showing of hardship. Really bad hardship. The BK courts have not been generous with their rulings over the past few decades (the law on this part of BK did not change significantly in 2005).

I doubt that retirement would qualify as a hardship. A debtor would be expected to take a greeter job at Wal-Mart to get the income needed to repay the loans.

That's part of the trade-off of getting the feds involved in your financial life.

Thank you.


Please do not forget to click the green "Accept" button so I can receive credit for my work.
Brent Blanchard and other Bankruptcy Law Specialists are ready to help you
Customer: replied 6 years ago.
Not a question just a statment. Makes me glad to have served in Viet Nam so that Congress can punish the 10% of Student loans holders for their lifetime. While personal bankrupcys such a Donald Trump which was the largest at that time go unchecked and he discharged his debt and now is a billionaire. Just one example. Wow, what a by the people for the people congress. The rich will get over. Your answer being short make me think you feel that I have used the education and made a fortune. I didnot work in my field, took first job that came along. I was garnished 50% of salary and lived in a garage for many year to clear that debt. I guess death will end this one. Thank you for the answer
Expert:  Brent Blanchard replied 6 years ago.
It matters not where someone worked after doing the student loans. I have a brother, a sister-in-law, and myself who have all taken out student loans and not "made a fortune" either. I am the only one working in the chosen field, and am on track to pay them off. Faster, of course, if circumstances permit.

The rich inevitably benefit "more" from the bankruptcy code than the impoverished, just by the sheer numbers of the dollars of debt discharged.

I'm all for making the "hardship" exception for student loans far more broad, at least paralleling the IRS "doubt as to collectability" defense on tax debts. Student loan recipients who do a lot of professional and/or volunteer work for the benefit of their communities should also in my opinion be given $50 per hour credit towards those loans for every documented hour of half-price service given, and $100 per hour of pro bono, public service, or volunteer work done after they have established a track record of two consecutive years of at least 40 hours of such service.

If the resentment level is as high as I sense, then just make sure your assets are in exempt classifications, make minimum payments, and let the .gov make a claim against your estate after you die. It's a risk they took on when they agreed to guarantee payment on the loans, to "encourage" bank lending, which also skews the markets by allowing the lenders to TOTALLY DODGE the risk of their lending

Thank you.