Many lenders have eligibility criteria that will not allow them to lend money to people who have had a bankruptcy within the past seven to ten years. Nonetheless, a parent’s bankruptcy will have no impact on a child’s eligibility to receive a private loan unless the parent is required to cosign on the loan.
Similarly one may ask, can I get a student loan after filing Chapter 13?
You can get a student loan after you file for bankruptcy. … Any loan that is obtained during a Chapter 13 bankruptcy, must be approved by the Trustee. For students who are applying for financial aid, I would think that a bankruptcy would show the college that you are truly in need of the financial aid.
Likewise, does your credit score go up after Chapter 13 discharge?
Your credit score after a Chapter 13 Bankruptcy discharge will vary. … For most individuals, you can expect to see quite a dip in your overall credit score. This is a common result, when you have any type of bankruptcy attached to your credit report.
What happens to student loans after Chapter 13 discharge?
In Chapter 13 bankruptcy, student loans are treated as nonpriority unsecured debts just like credit cards and medical bills. This means that you are not required to pay them off in full through your Chapter 13 repayment plan. … However, once your Chapter 13 bankruptcy is over, you must continue to pay your student loans.
A parent’s bankruptcy has no direct impact on their child’s eligibility for federal student aid. Even if their parents have a bankruptcy (present or past), a child remains eligible for federal student loans.
Most debtors won’t be able to discharge (wipe out) student loan debt in Chapter 7 or Chapter 13 bankruptcy. However, if you can prove that repaying your student loans would cause an undue hardship to you, you can get rid of your student loans in bankruptcy.