Since October 7, 1998 the only way that you can include a student loan in a bankruptcy is if you can prove that they are causing you an undue hardship. This is extremely hard to prove.

Any bankruptcy cases before October 17, 2005 if your student loan was given to you by a company that was insured or their aim was for profit or a non government entity you could include it in a bankruptcy. But if those that offered you and gave you the student loan was of a non profit organization or a government funded organization they could not be included in a bankruptcy.

To prove that your student loan is causing you an extreme hardship you must prove three specific points and if you prove all but one you will not have it included in the bankruptcy. The first one is that you have things in you circumstances that show that your current financial state will continue for a very large to all of the repayment period of the student loans.

Second, you have to make good faith effort to be able to repay your debts or your student loans. By making payments for several years and showing that you are trying or did try to pay off your debt. The only exception to this one is if you never had the ability to pay the loan in the past. Lastly you must show that you would not be able to continue based on income and expenses a minimum standard of living for those of your house hold and yourself if you were made to pay this loan off.

While in the bankruptcy court you may have the means to give what is called a partial discharge this is where you have shown because of your income and expenses that you would not be able to pay the entire loan but would be able to pay a portion of the loan. But even to get a partial discharge you must still meet all of the requirements that we have listed previously.

Those that decide what can be included in the bankruptcy and what can not be included will be based upon the decision of the bankruptcy judge. In many cases a ruling is really made by just a gut feeling.

Often times there are other alternatives in apply for bankruptcy on a student loan. Because the negative aspect of applying for bankruptcy with a student loan is that while you are in court your creditors don’t have the ability to send you bills, so if it ends up ruling not in your favor. That next month you would receive a bill will all have the interest and late payments that have accrued while you were waiting for the judgment in your bankruptcy case.

Student loans tend to be one of the most flexible loans out there they have more options that you can pursue then just a standard loan. If you see that you are not going to be able to pay back your loan talk to you lender. Let them know exactly what is happening and more often then not they would be able to help you out of that situation.

Perhaps you are having trouble keeping your checking account full, and you are a little pressed for money. You are a week away from payday, and you just need a little money to get you through until then. So what’s the best way to get that money without having to pay a ton of money in interest and without committing to a credit card account or loan that will last longer than you need it to?

Many people will go to a company providing payday loans. This is the source of the money that many people get so that they can squeak by until they get paid, then pay back the loan and the interest with the check as well. But what is a payday loan, where do you go to get one, how do they work, and are they really the best way to borrow money?

1. How it Works

A payday loan is a loan that you can get basically instantly. You must go to the payday loan officer and write them a check for the amount you want to borrow and the fees they are charging you based on the percentage of the amount you are being loaned. These fees are usually a very high percentage of the amount borrowed, mostly because you are pressed for money and most likely to accept just about anything they’ll charge you, as long as you can get the money you need to get through.

They will then hold your check there for the amount of time that was agreed upon, then they will deposit that check. It is up to you to get your money in the bank in time for that check to go through without bouncing. You can extend the amount of time that you have the loan before you pay it off, but you will be charged extension fees that can be just as much as the original fees, but is most often more expensive.

2. Is it the Best Option?

Payday loans are very convenient because they give you fast access to cash you need now, without the binding ties of a long term loan or a burdensome monthly credit card payment. However, the interest rates are substantially higher than that of a regular loan or a credit card account. If you do not get payday loans often because you are financially stable, perhaps payday loans are not a bad idea if you do not have to deal with the inconvenience of long term loans or credit agreements.

Still, living from paycheck to paycheck and counting on a payday loan between each of these periods is an unwise choice of money management because, though you may be in a tight spot now, money problems can almost always get worse. Owing money during such a short term and with such high interest rates will only add to your potential money problems and result in debt that you could have avoided. If you need to get a payday loan frequently, why not get a regular loan, with lower interest rates and less risk?