Arizona Bankruptcy Law - Student Loans
11 U.S.C. 525 provides (c) (1) A governmental unit that operates a student grant or loan program and a person
engaged in a business that includes the making of loans guaranteed or insured under a student loan program may not
deny a loan, grant, loan guarantee, or loan insurance to a person that is or has been a debtor under this title
or a bankrupt or debtor under the Bankruptcy Act, or another person with whom the debtor or bankrupt has been
associated, because the debtor or bankrupt is or has been a debtor under this title or a bankrupt or debtor
under the Bankruptcy Act, has been insolvent before the commencement of a case under this title or during the
pendency of the case but before the debtor is granted or denied a discharge, or has not paid a debt that is
dischargeable in the case under this title or that was discharged under the Bankruptcy Act.
Arizona Bankruptcy Law - In Practice
In summary, student loans should not be denied, unless a prior student loan was charged-off, or is subject to
charge-off in a pending case.
The Federal process of filing necessarily incorporates state law requirements. These state law requirements are
set forth in statutes, rules and case law opinions which frequently alter the operation of law. As a result of
these precedents, Arizona bankruptcy cases are unique to the state, as well as unique to each individual who
files. All alternatives provided by law may not be available because of differing individual financial histories
or prior case filings.
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