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Bankruptcy

Find out the next steps to take when you or someone on your account is considering filing for bankruptcy.

If you have filed or are considering filing for bankruptcy, you may still have to repay your student loans after the conclusion of the bankruptcy case. Student loans are not likely to be discharged through bankruptcy. Please note that we will NOT attempt to collect debts included in the bankruptcy filing while the bankruptcy case is being heard by the court. Items you or your attorney may be sent during this time will NOT constitute an attempt to collect on the debt.

If you are considering bankruptcy and are having trouble making payments on your student loans, we may have options to assist you. Or, you may want to contact us to speak to a customer service representative. For questions about what will happen to your student loans during bankruptcy, you may want to contact an attorney.

Once you file for bankruptcy, we will be notified.

  • If you or your co-signer file a Chapter 12 or 13 bankruptcy case, billing and collection efforts will be suspended for the duration of the bankruptcy stay for both you and your co-signer.
  • If you or your co-signer file a Chapter 7 or 11 bankruptcy case, billing and collection efforts will be suspended for the duration of the bankruptcy stay for the filing party. If you are the non-filing party, you may be required to continue making payments.

Interest continues to accrue on your loan(s) during the bankruptcy period, which may increase the amount you'll owe over the lifetime of the loans. You are able to make payments at any time, regardless of the account status.

Depending on your lender, your loan(s) may be accelerated to default due to the bankruptcy case of any chapter. You can find more information regarding your lender's bankruptcy policy in the promissory note / credit agreement that you signed when applying for the loan(s). If you have additional questions, please contact us.

If you have filed or are considering filing for bankruptcy, you may still have to repay your student loans after the conclusion of the bankruptcy case. Student loans are not likely to be discharged through bankruptcy. Please note that we will NOT attempt to collect debts included in the bankruptcy filing while the bankruptcy case is being heard by the court. Items you or your attorney may be sent during this time will NOT constitute an attempt to collect on the debt.

If you are considering bankruptcy and are having trouble making payments on your student loans, we may have options to assist you. Or, you may want to contact us to speak to a customer service representative. For questions about what will happen to your student loans during bankruptcy, you may want to contact an attorney.

Once you file for bankruptcy, we will be notified.

  • If you or your co-maker file a Chapter 12 or 13 (or a Chapter 7 with an adversary) bankruptcy case, billing and collection efforts will be suspended for the duration of the bankruptcy stay for both of you. Your loans may be transferred to your guarantor agency.
  • If you or your co-maker file a Chapter 7 or 11 bankruptcy case, billing and collection efforts will be suspended for the duration of the bankruptcy stay for the filing party. If you are the non-filing party, you may be required to continue making payments.

Interest continues to accrue on your loans during the bankruptcy period, which may increase the amount you'll owe over the lifetime of the loans. You are able to make payments at any time, regardless of the account status.

If you have questions or need more information, contact us.