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Texas Bankruptcy Lawyers on 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. Nevertheless,
lawyers representing debtors have great difficulty proving a past filing is the sole cause of the denial of
credit.
Texas 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. Most lenders and their lawyers find alternative reasons to rely upon in the event
a loan request is denied.
All debtors and their attorneys have questions about current laws.
Board certified consumer bankruptcy specialists in Texas refer to the
Code regularly, as well as review slip opinions of new case decisions as
they become available. The process is organic, in that the law,
benefits, rights and duties of debtors changes in response to the
current political environment, and in turn, require a constantly
changing approach in court to gain favor. Also be aware, each debtor and
their attorney are responsible for legal compliance with all Texas
bankruptcy laws regardless of actual knowledge of recent changes. For
this reason, debtors filing pro se seldom achieve the results as
favorable as debtors who are represented by a qualified consumer
specialists who is familiar with current changes and requirements.
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