Are thinking about bankruptcy, or have already filed one, but you are concerned about getting loans for a child in college or ready to go? Are you worried that the bankruptcy might interfere with that?

Well, you are not alone! However, this situation does require some planning, since it depends on where the loan or financial aid will be coming from. But, in short, you do have options for student loans after bankruptcy.

Bankruptcy Could Be a Problem

Even after your child has obtained everything he or she can with student loans and grants, you may still need to bridge the gap. This is best done with a federal Parent PLUS loan. Unfortunately, these are credit based, and as suchmay be beyond your reach.

You cannot have an "adverse credit history." This means that you are more than 90 days delinquent on any debt (which you could be even before filing bankruptcy), or in the past 5 years defaulted on a debt, obtained a bankruptcy discharge, foreclosure, repossession, tax lien,wage garnishment, or write-off of a federal student loan.

Is There a Solution?

You may still be able to obtain the loan, but you will need a cosigner who does not have an adverse credit history. This might be possible if you, but not your spouse, filed bankruptcy, and his or her credit is still good.

Even if you are not able to get a Parent PLUS loan, being turned down for one may well result in your child getting an increase in his or her unsubsidized Stafford loan. Therefore applying, even though you will most likely be turned down, is still a good idea.

So What Do I Do?

If you live in southern New Jersey, are considering filing bankruptcy, and are worried about student loand for your children, please feel free to call me at 856-432-4113 or contact me through this site for a free consultation in my Woodbury office to discuss your case.

If you are looking for more information about bankruptcy, then download my free book,Top Questions People Ask About Filing Bankruptcy in New Jersey.

If you would like more information about student loans, you can dowload my free book, I Graduated; Now What? A Guide to Dealing with Your Student Loans.

Steven J. Richardson
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Bankruptcy, Collections, Student Loan, DUI and Traffic Court attorney in Woodbury, NJ.