The receiver is in the news these days, as Congress has finally overhauled the Federal Republic of bankruptcy law after years talking about it. The credit card companies, rightly or wrongly, are under pressure, members of Congress to streamline the bankruptcy statutes, saying that too many people willingly money they could not with the intention of avoiding paying the money back by applying for repay the insolvency proceedings. This is will soon change, and those with student loans can be a pay --high price.
Almost everyone knows that consumers with the problem of debt, which may not be able to repay their debts under Chapter 7 bankruptcy is the Federal Bankruptcy Code file. This allows the court essentially wipe away all accounts of the debtor and allows them to begin. It is not entirely free, registration of the bankruptcy stays on credit report affect the debtor for the next ten years and their ability to buy a house, borrow money or get a job. What manyPeople do not realize that while installment loan debt or credit card debts can be wiped out by filing for bankruptcy, most student loans do not. In fact adopted by the legislature several years ago, most any loans acquired for education, including for-profit agencies can not be issued eliminated by filing for bankruptcy.
What does this mean for student loans is that they must be repaid. If bankruptcy is inevitable, theStudents with outstanding loans should contact their lenders and see if they do not negotiate a repayment plan. Being financed with federal funds loans for students should contact their lenders soon, as rates for student loans go to 1 July 2005. Now would be a good time to lock student loan consolidation, since the prices for the duration. If these options are not viable, then holders of student loans should simply be aware that lenders andtheir lenders’ loan collectors will be keeping in touch with them for the foreseeable future. Those with student loans and other financial problems should also be aware that Federal bankruptcy law will change in October, 2005, making it harder to file for bankruptcy. If you have problem debt, now would be a good time to consider meeting with a credit counselor.
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