Colorado Bankruptcy Lawyers - Student Loans

11 U.S.C. 525 provides (c) (1) A governmental unit that operates a student grant or loan program and a person engaged in a business that includes the making of loans guaranteed or insured under a student loan program may not deny a loan, grant, loan guarantee, or loan insurance to a person that is or has been a debtor under this title or a bankrupt or debtor under the Bankruptcy Act, or another person with whom the debtor or bankrupt has been associated, because the debtor or bankrupt is or has been a debtor under this title or a bankrupt or debtor under the Bankruptcy Act, has been insolvent before the commencement of a case under this title or during the pendency of the case but before the debtor is granted or denied a discharge, or has not paid a debt that is dischargeable in the case under this title or that was discharged under the Bankruptcy Act.

Colorado Bankruptcy Lawyers - In Practice

In summary, student loans should not be denied, unless a prior student loan was charged-off, or is subject to charge-off in a pending case. In practice, denial of credit may be based on a wide assortment of valid reason which are well known to lenders. The prohibition against denial is rarely enforced and bankruptcy lawyers rarely, if ever, sustain claims for wrongful denial.

For maximum benefit, most debtors interview several bankruptcy lawyers before committing to any course of action. Interviewing bankruptcy lawyers requires a degree of expertise. Federal laws, state laws, and local rules combine to form the practice standard used by Colorado bankruptcy lawyers and courts. These laws evolve continually with new statutory amendments and case decisions. The most successful debtors compare the opinions of several bankruptcy lawyers, and with targeted questions, discover the most beneficial path to pursue.

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