Just Filed Chapter 7 - no choice

[wahoojack13]

Just out of shear curiosity, why cant people file chapter 7 on parent plus loans?? I filed Bankruptcy, obviously i cant afford to pay it, so what do people do?

[SCF]

Federal law states that student loans cannot be discharged in bankruptcy except in unusual circumstances where being required to repay the loan will cause an "undue hardship" for the borrower.  The standard is a high one, and not many people reach it.  It looks like you could apply for the income-contingent repayment plan on Parent Plus loans after they are consolidated.  I would contact the collection agency that currently holds your loans, and let them know you'd like to consolidate them to get out of default.  Then, you can apply for ICR with your new loan servicer.  That will tie the payments to your income, and keep the loan from going late again.