Consolidating student loans bankruptcy
Consolidating student loans bankruptcy - withings scale not updating
It is usually best kept in your back pocket until absolutely needed.
Note that you cannot convert a private loan into a federal loan by consolidating.
But for student loans, your bankruptcy attorney must file an adversary proceeding.
There are two kinds of bankruptcy available to consumers – chapter 7 and chapter 13.
Nor can you consolidate the two together into a federal consolidation loan.
This means that if you have a private loan, consolidating will not give you the benefit of federal repayment programs.
Chapter 13 allows you to get on a debt repayment plan and will offer discharge of some of your unsecured debts (credit card, medical bills, etc.) after completion of a repayment period of three years.
Chapter 7 allows immediate forgiveness of all unsecured debts (except student loans, child support and alimony).If not, you may have to consolidate to become eligible.If your current loans are eligible for the various repayment plans you are considering, then you might want to hold off on consolidating until absolutely needed.Getting out of default is important for many reasons, a big one being that many of the federal income-based repayment plans (where you can reduce your student loan payment if you have a low income) require that you not be in default.Consolidation also can help you qualify for flexible federal student loan repayment plans such as the Income Based Repayment (IBR) and Income Contingent Repayment (ICR) programs.It will even stave off an administrative wage garnishment should you consolidate after notice of garnishment but before the garnishment is started.