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In June 2011, a bill was introduced by Democratic members of both the United States Senate and the House of Representatives that will again allow students to declare bankruptcy on private student loans under similar rules as other forms of personal debt.
So what kinds of obligations cannot be eliminated through bankruptcy? The debts that can be purged though Chapter 7 vary somewhat from those affected by Chapter 13, but some examples of generally non-dischargeable debts include student loans, tax or fine ...
Yet, for borrowers, the consequences of default are severe. Unlike most debt, student loans are almost impossible to dispose of through bankruptcy. If students fail to repay, their tax refunds can be withheld and wages and Social Security payments can be garnished.
The credit history is more like your financial data which represents your defaults, loan and its repayment, bankruptcy details if any. Misfortune and mid month crisis can occur untimely and in such a case if you suffer a bad credit record many lenders may ...
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