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Can the money from a bursar refund from a federal student loan be seized in bankruptcy? (I know student loans are not dischargeable).

Also, if I am insolvent and know that I won't be able to keep paying my bills and need to consult with someone on bankruptcy, is it best to let things go into default now? Or keep scraping by as long as I can?

Hello Ashley:
I saw your question on the question pool.    Insofar as your question about the bursar refund, whether you can get that money or not has nothing to do with whether the debt is dischargeable or not.  (By the way, student loan debts are not per se non-dischargeable, but it is more difficult to discharge a student loan debt now than it used to be.    You have to file an adversary complaint within the bankruptcy and prove that to pay the loans would be an "undue hardship."   Without knowing more specific facts, the only answer that I or anyone else could give you is that it depends on the circumstances that you don't fully describe here in your question.    In other words, you might be able to recover that money -  but it just depends.

Insofar as the second part of your question (pay the bills or not depending on your filing date), if you are seriously considering filing for bankruptcy it would be a waste of money to pay for bills that are going to be discharged.   

This would all be much easier talking about on the telephone.   I will not charge you just to talk on the phone.    You can call me anytime at this number.     I look forward to hearing from you if you decide to call.

Jack Hall, J.D.
915  261-3893  

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Can answer questions about bankruptcy, lawsuits or judgments that have been filed against you. Also can answer questions about tax issues, property that is facing foreclosure, repossession of vehicles, and wage garnishments. 915 261-3893


Over 30 years experience assisting consumers with lawsuits and bankruptcy matters since graduating from law school.

Numerous published appellate court opinions; Law review publications; Article on consumer bankruptcy in Black Enterprise magazine; was requested to author a book on consumer bankruptcy by Doubleday Publishers

Over twenty years of education including law degree (J.D.); masters and bachelors degrees in political science; author of magazine articles related to consumer bankruptcy; hundreds of hours of continuing education legal education and seminars

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