Need info for my niece
My niece has a student loan of 8,000 which is NOT 10 years old. Like other students she had hoped to get a job after graduation. She is a 27 year old `challenged` young lady, still living at home with her `challenged mother`. The mother is only bringing in $700/month and with this has to pay $375/month rent. My niece does not have any finances coming in, nor is able to hold a job. The creditors are after her to pay back the loan. Please help, can she declare bankrupcy?
I’m sorry, but there are not currently any hardship rules in the Bankruptcy Act that allow the Court to discharge your neices student loans until she has been out of school for at least 10 years. At some point, we hope in the near future, a hardship rule allowing for application to the Court after 5 years will come into force, but until that time your niece is “stuck”.
She does have the right to file for bankruptcy and the collection activities will stop during the procedure, but once she is discharged they will start up again.
She should probably call and speak to a trustee directly about strategies and options.