{"id":10206,"date":"2019-06-24T15:10:58","date_gmt":"2019-06-24T15:10:58","guid":{"rendered":"https:\/\/nybankruptcy.net\/main\/?p=10206"},"modified":"2019-06-24T15:11:03","modified_gmt":"2019-06-24T15:11:03","slug":"what-are-the-consequences-if-i-default-on-my-student-loan-2","status":"publish","type":"post","link":"https:\/\/nybankruptcy.net\/main\/what-are-the-consequences-if-i-default-on-my-student-loan-2\/","title":{"rendered":"What are the consequences if I default on my student loan?"},"content":{"rendered":"

\"\"<\/a>You may recently have heard that student loan debt now exceeds credit card debt. \u00a0Currently forty-four million Americans owe some $1.5 trillion in student loans. \u00a0You may also have heard there’s a proposal in Congress that would make student loan debt dischargeable in bankruptcy just like any other debts. \u00a0Among the bipartisan bill’s sponsors are Senators Elizabeth Warren (D-Mass) and Dick Durbin (D-Ill) and Reps John Katko (R-NY) and Jerrold Nadler (D-NY). \u00a0But this is not the first time such a proposal has been bandied about. \u00a0We can only wait and see.<\/p>\n

In the meantime, the conventional wisdom is that the only way to get out of student loan debt is by dying — unless you’re lucky enough to suffer from certain disabilities.<\/p>\n

That said, there are ways of dealing with student debt in the bankruptcy process, even if you can’t make it go away. \u00a0While we wait to find out what happens to the Student Borrower Bankruptcy Relief Act of 2019, I thought it might be helpful to make sure that readers understand the consequences of defaulting on federal student loan debt.<\/p>\n

1.\u00a0 The maturity date on your promissory notes are accelerated so that they’re due immediately.\u00a0 The long and short of this is that you can’t subsequently seek a forbearance or deferment.<\/strong><\/p>\n

2.\u00a0 The government can take any tax refunds you are owed.<\/strong><\/p>\n

3.\u00a0 The government can garnish your wages up to 15%.<\/strong><\/p>\n

4.\u00a0 If you want to buy a home in the future, you won’t qualify for FHA or VA loans.<\/strong><\/p>\n

5.\u00a0 The government can take some of your Social Security when you get older.<\/strong><\/p>\n

6.\u00a0 The government can pursue a lawsuit against you.<\/strong><\/p>\n

7.\u00a0 Your credit score will suffer significantly for 7 years.<\/strong><\/p>\n

As I mentioned above, however, there are ways of dealing with student loan debt.\u00a0 So if you’re thinking you might have to file for bankruptcy in New York and you have student loan debt, please feel free to contact me for a free initial consultation.<\/p>\n

Contact Bruce Weiner, Esq.<\/a><\/h2>\n

EMAIL Bruce Weiner<\/a><\/strong>
\nPhone<\/strong>
\n(718) 855-6840 (Local)
\n(866) 402-8476 (Toll Free)
\nFax<\/strong> (718) 625-1966<\/p>\n

Go to Brooklyn Bankruptcy Law Firm<\/a><\/strong><\/em>\u00a0t<\/em>o learn more about Rosenberg Musso & Weiner LLP<\/strong><\/a> and\/or to set up a free consultation.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"

You may recently have heard that student loan debt now exceeds credit card debt. \u00a0Currently forty-four million Americans owe some $1.5 trillion in student loans. \u00a0You may also have heard there’s a proposal in Congress that would make student loan debt dischargeable in bankruptcy just like any other debts. \u00a0Among the bipartisan bill’s sponsors are …<\/p>\n

What are the consequences if I default on my student loan?<\/span> Read More \u00bb<\/a><\/p>\n","protected":false},"author":9,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"default","ast-global-header-display":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","theme-transparent-header-meta":"default","adv-header-id-meta":"","stick-header-meta":"default","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":""},"categories":[12],"tags":[160,87],"acf":[],"yoast_head":"\nWhat are the consequences if I default on my student loan?<\/title>\n<meta name=\"description\" content=\"You may recently have heard that student loan debt now exceeds credit card debt. 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