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

UPDATED: Mar 29, 2012

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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


FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 10 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.

IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

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