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kycarguy 935 kycarguy 935 is offline
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Quote:
Originally posted by tcar
Student loans, like IRS taxes owed, are not dischargeable in bankruptcy
I found this online:

Student loans in bankruptcy

The borrower's bankruptcy options on student loans have shrunk to a very few. Changes to the Bankruptcy Code in late 1998 made student loans non dischargeable, regardless of the age of the loan, unless the borrower can establish substantial hardship. Changes in 2005 will make even private student loans non dischargeable.

And:

Tax relief in bankruptcy

Bankruptcy can provide relief from the tax man. Some taxes and penalties are dischargeable; those that can't be discharged can be paid without interest in Chapter 13.

The automatic stay in bankruptcy stops even collection actions by taxing authorities, including garnishment and seizure. These provisions of the law apply equally to state and federal tax agencies.
How much relief?

The precise measure of the relief available in bankruptcy depends on a number of factors including

1) the kind of tax involved ,

2) the age of the tax,

3) whether a return was filed, and

4) the chapter of bankruptcy selected.

In general, unsecured income taxes that were first due more than three years before the bankruptcy is filed, for which a timely and non fraudulent return was filed, can be discharged in full in any chapter of bankruptcy.
Old 12-08-2005, 02:00 PM
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