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American Bankruptcy

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NOTE!
We are now preparing all documents using the forms mandated by the new Bankruptcy Reform Act of 2005.

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       FILE BANKRUPTCY! Filing bankruptcy can be the smartest financial move you ever make! Stop getting robbed every month by unscrupulous moneylenders. Millions of people have given themselves a fresh start in life by filing bankruptcy. Why haven't you? Contact us!...Just download or print-out our submission form and price list by clicking the text links located throughout our website!

Are you being harassed? ...Facing repossessions or foreclosure?
Use our 24 hour EMERGENCY FILING OPTION to stop them dead in their tracks!
Just check and select the EMERGENCY FILING OPTION in our information submission form and we will prepare and return your petition ready for you to sign and file with the bankruptcy court within 24 hours of receipt of your submission and payment.

If you have any questions that we haven't answered here in this website regarding the preparation and filing of either a Chapter 7 or a Chapter 13 personal bankruptcy petition please:

email us: American Bankruptcy

For those clients who are ready to start the process CLICK HERE to access our SECURE online data submission form.

We will be here with support for you throughout the process.

Dischargeability of Student Loans

We will be here with free email support for you throughout the process.

Most student loans are nondischargeable, that is, you will still have to repay them after bankruptcy. That said, nevertheless, the bankruptcy court may let you discharge your student loans(s)if:

  1. the loan is guaranteed by a private company, not the government (very few loans will fall into this category).
  2. it would cause you or your dependents undue hardship to repay the loan.

Even if you are the non-student cosigner of a student loan (such as a parent, sibling, or spouse of a student debtor), you may not be able to discharge the student loan. You may want to talk to a local attorney regarding such a situation. Many local attorneys won't charge for an initial interview if you are simply trying to ascertain whether or not you can accomplish what you desire by filing bankruptcy.

Eliminating Student Loans
Through a Claim of Undue Hardship

Bankruptcy courts seldom allow student loans to be discharged on hardship grounds. You will have to evidence exceptional hardship circumstances to gain a discharge of a student loan.

Even if a court agrees with your claim of hardship, it may only allow a portion of the student loan to be discharged, and you will still have to repay the balance.

Factors Used in Determining Hardship

In determining undue hardship, bankruptcy courts consider 3 factors. You must show that ALL of these factors are present before the bankruptcy court will grant an undue hardship discharge of your student loan.

  1. Poverty: You must show that you cannot currently maintain a minimal living standard and repay the loan. The bankruptcy court must consider both your current and future prospects.
  2. Persistence of current condition: You must demonstrate to the bankruptcy court that your current condition is likely to continue indefinitely.
  3. Good Faith: The bankruptcy court must conclude that you have made a good faith effort to repay your debt. If you have just finished school or the payback period has just begun, your claim may not be viewed favorably by the bankruptcy court.

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For those who feel you are qualified to prepare your own personal bankruptcy petition, just CLICK HERE to check out our $49.95  easy to use Bankruptcy Preparation Software at our partner site. THIS SOFTWARE PRODUCES ALL THE FORMS NEEDED TO COMPLY WITH THE BANKRUPTCY ACT OF 2005. This software has been prepared for use by non-professionals and is good in all 50 states.