California Bankruptcy Lawyers - Student Loans
11 U.S.C. 525 provides (c) (1) A governmental unit that operates a student grant or loan program and a person
engaged in a business that includes the making of loans guaranteed or insured under a student loan program may not
deny a loan, grant, loan guarantee, or loan insurance to a person that is or has been a debtor under this title
or a bankrupt or debtor under the Bankruptcy Act, or another person with whom the debtor or bankrupt has been
associated, because the debtor or bankrupt is or has been a debtor under this title or a bankrupt or debtor
under the Bankruptcy Act, has been insolvent before the commencement of a case under this title or during the
pendency of the case but before the debtor is granted or denied a discharge, or has not paid a debt that is
dischargeable in the case under this title or that was discharged under the Bankruptcy Act.
California Bankruptcy Lawyers & Law Firms In Practice
In summary, student loans should not be denied, unless a prior student loan was charged-off, or is subject to
charge-off in a pending case. Bankruptcy lawyers must offer admissible evidence of discharge if contested. In
practice, bankruptcy lawyers are rarely involved in loan denial disputes because any other valid reason will
support a denial of credit. Student loans may be dischargeable however, if a bankruptcy lawyer representing a
debtor complies with the specific Code provisions allowing discharge.
All prudent debtors have questions about applicable laws before filing. The best source of legal advice is a qualified
bankruptcy lawyer with substantial, current experience practicing before federal courts. Because state and federal laws change frequently,
the results
achieved by bankruptcy lawyers for their clients also change frequently in direct response to these
amendments. Depending upon the personal goals and situation of each debtor, all options may not
apply. The best bankruptcy lawyers are intimately familiar with all options, as an assortment of tools, that may
be combined creatively to maximize client benefits.
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