Can filing for bankruptcy cause me to not be approved for federal student loans?

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Can filing for bankruptcy cause me to not be approved for federal student loans?

I am currently in Grad school and paying for it with student loans. If I file Chapter 7 will those be affected? Also will I end up having to sell any of my property or pay any money being that I receive unemployment benefits of $848 a month and I receive refund checks from school? My car was taken away from me because of a court order from me being sued so I have no major property or anything expensive except for the furniture I bought a few months ago. Which was just a couch and a bed totaling $1,000. My car was fully paid off and has damage.

Asked on March 29, 2012 under Bankruptcy Law, Michigan

Answers:

FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 9 years ago | Contributor

If you plan on filing for bankruptcy protection (most likely a chapter 7), such a filing could impact your ability to be approved for future student loans. Whether it does depends upon what the criteria is for approving the loans for garduate schools are and if there is a danger of the loan not being paid back after it is made in a timely manner.

Most likely any bankruptcy filing will not discharge any student loans that you are currrently obligated under.

If you are receiving unemployment benefits post any bankruptcy filing, you will be able to keep the monies that you receive on a monthly basis because you need such amounts to live on.

I suggest that you consult further with a bankruptcy attorney so that you get a clearer picture of what a bankruptcy filing will do for you.


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