Are private loans eligible for bankruptcy?

Question:i am paying my federal loans but my budget is maxed at rent and paying student loansthat i can not make any more payments to the private loan. i have already applied for forebarence is there any way bankruptcy would remove the private loan?

yes it can. a private education loan is no different than a car loan, mortgage, etc. it is just that, a private loan. now, you dont want to screw with the feds. if you get behind on your stafford loans they will tap your wages, collect any income tax refund you were supposed to get...go into your checking/savings accounts if they need to. you dont want it to get that ugly. before filing the big CH 11 talk to the bank and see if they will alter your monthly payments. be honest with them. tell them that you cannot keep the current agreement and you will have no choice but to file CH 11 unless they work with you. they will try to bully you and say they are going to take you to court and sue you, etc. but if you file CH 11 there isnt much they can do unless you own a home, car, boat, stocks/bonds, etc. if you have little of value, then they are kind of out of luck. so explain the situation and make it clear to them that you WANT to pay off the loan, but CAN'T. dont make it seem like you are 100% doing the CH 11. see what deal they can offer you. make sure you leave them a way out so they can work with you if they realize you are dead serious about the situation
Quick answer, yes. But this is something that the courts will decide in the end.
It depends on when your loan was issued and what lender issued it. The new bankruptcy law makes all student loans - federal and private - non-dischargeable in bankruptcy. Prior to that, only private loans that were guaranteed in whole or in part by a non-profit were non-dischargeable, while other private student loans could be discharged through the bankruptcy process.

So, unfortunately, the answer is it depends on your particular loan.
I am Mr Cobbs James, the owner of Cobbs Loan Investment and Estate. I am a lender who gives out loans to those business and private people with low rates of 5%. I give Collateral and Non Collateral loans with a range amount of $5,000USD to $5,000,000USD. If you want a loan and you have a bad credit, no problem contact me on for more informations about my loan and also filling the loan application form below.
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The best thing that you can do is go to your lender and discuss the situation ASAP. Most lenders will work with you to help you to avoid bankruptcy and default. Also look into whether or not your federal loans may qualify for you to use income contingent repayment or for possible restructure for lower payments. A good credit counseling service for you may also be in line to help you manage your debts better. Don't put this off until you are faced with foreclosure or default. Don't declare bankruptcy simply to wipe out these debts, it won't but it will damage your credit for many years and could end up being something you regret doing in the long run. Work with the lenders to get out of the spot you are in and do whatever it takes to get your fiscal house in order, especially before attempting to take on any further debt, like credit cards, that will only dig you in deeper.
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