Michigan Bankruptcy Lawyers - Student Loans:
11 U.S.C. 525 provides (c) (1) A governmental unit that operates a student grant or loan program and a person engaged in a business that includes the making of loans guaranteed or insured under a student loan program may not deny a loan, grant, loan guarantee, or loan insurance to a person that is or has been a debtor under this title or a bankrupt or debtor under the Bankruptcy Act, or another person with whom the debtor or bankrupt has been associated, because the debtor or bankrupt is or has been a debtor under this title or a bankrupt or debtor under the Bankruptcy Act, has been insolvent before the commencement of a case under this title or during the pendency of the case but before the debtor is granted or denied a discharge, or has not paid a debt that is dischargeable in the case under this title or that was discharged under the Bankruptcy Act.
Michigan Bankruptcy Lawyers - In Practice:
In summary, student loans should not be denied, unless a prior student loan was charged-off, or is subject to charge-off in a pending case. Most bankruptcy lawyers advise debtors that a potential claim for wrongful denial is worthless, yet may be required to be listed as an asset.
Bankruptcy lawyers must carefully review each debtor's financial affairs before suggesting any particular remedy. Because each client is unique, all alternatives may not be available. Also, bankruptcy lawyers often offer different opinions regarding available alternatives in the same circumstance, based on each bankruptcy lawyer's personal level of legal expertise. All potential debtors should consider the opinions of at least two, and preferably three consumer bankruptcy lawyers to discover all available alternatives.
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