As many individuals are aware, it is extremely difficult to discharge student loans debts. However, for an individual that has other reasons for filing bankruptcy, doing so can at least provide some temporary relief from student loan collections.
When you file a bankruptcy petition, the automatic stay prevents your student loan servicer or a debt collection agency trying to collect on student loans from taking any action to collect during the bankruptcy case. This applies to wage garnishments, bank levies, the sending of collection notices, and other collection measures. However, this relief is typically only temporary. If the student loan is nondischargeable, collection can commence again after the bankruptcy case is over.
If you are thinking of filing for bankruptcy and have questions regarding your student loan obligations, please contact the VC Law Group via telephone at (858) 519-7333 or email at info@thevclawgroup.com.