Robert J asked:
i know a student loan is rarely discharged in bankruptcy, unless it would cause an undo hardship to repay or if the student loan went into default 7 years prior to filing bankruptcy. Both of these situations apply to me.
i know a student loan is rarely discharged in bankruptcy, unless it would cause an undo hardship to repay or if the student loan went into default 7 years prior to filing bankruptcy. Both of these situations apply to me.
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No. Student loans are exempt from bankrupcy laws. They may be discharged if/when it becomes apparent the borrower is unable to repay. BUT…the discharged amount is credited as earned income, and you become responsible for paying tax on it.
My husband’s student loan has been ******* up our tax refund the past 4 years. Since MY income is the only income in the home during that time, I filed an “injured spouse” form with my returns and I was able to get the refund in full. BUT…you have to live in a state where that will apply. The only way to keep the gov’t from having their hand in your pocket, is to keep the $$ from going to them in the first place. Increase your deductibles so you don’t have as much taken out of your check.