Can you file bankruptcy on student loans or a court judgement to pay back money.

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Can you file bankruptcy on student loans or a court judgement to pay back money.

Money supposely taken from a employer. Put on a prbation until paid back. A plea bargain

Asked on June 11, 2009 under Bankruptcy Law, Pennsylvania

Answers:

N. K., Member, Iowa and Illinois Bar / FreeAdvice Contributing Attorney

Answered 11 years ago | Contributor

Usually student loans cannot be discharged in bankruptcy unless having to pay back the loan would impose an "undue hardship" on the debtor and the debtor's dependents. Different courts define "undue hardship" differently based on the individual's personal situation.

The court judgment/probation/plea bargain is tricky because you were granted probation provided you pay back the money. The question is: if you could successfully discharge the judgment in bankruptcy, would you be subject to having your probation revoked and possibly being put in jail. By not paying back the money, you may be violating the terms of the plea bargain.

If you had an attorney represent you at the plea bargain, I would ask him/her what the potential risks are if you in fact do not pay back the money as a result of filing bankruptcy.

If you didn't have an attorney, I would contact the court and find out if discharging the judgment in bankruptcy would be considered a violation of your plea agreement.


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