bankruptcyIf you find yourself facing bankruptcy, the question of what debt will be eliminated comes to mind. Student loan is one of those tough subjects because it is rarely ever discharged through bankruptcy filings. In order to discharge a student loan in this way, you must prove to the court that repaying the loan will cause undue financial hardship on you and anyone who is a financial dependent.

Discharging Debt

One of the ways to prove undue hardship to the court is to provide financial evidence that the student loan payments will create a financial environment that will not allow you to maintain a minimal standard of living. Financial evidence in this case would be income and other necessary expenses. Another way would be to prove that your state of affairs will not be alleviated for a long period of time. And, finally, you would want to prove that you tried your best to make the payments.

A student  loan debt attorney can help you determine the best approach for trying to get student loan debt discharged, but it’s important to know it’s a rarity. If you succeed, the entire balance of the student loan may be cancelled. While student debt is probably not the only reason you should consider filing for bankruptcy, knowing you have a good case for discharging student loan debt can be a factor for choosing to file.

If discharging student loan debt through bankruptcy is not a viable option, under a chapter 13 filing you may be eligible for a repayment plan for your student loans. This could change the amount you are required to pay from month to month and it could extend the amount of time you have to repay the loan.

Leave a Reply

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes:

<a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>