debt dischargeMany people think that their student loans will be the type of debt that can be discharged in a bankruptcy because it is a unsecured debt. Unfortunately this is not the case.  What has to be done in these cases is a specific action has to be brought before the courts, in order for them to determine if this particular debt should be discharged. The problem is the standards that are in place for this to happen are so rigid that it is near impossible to meet them.

Debt Considerations

Another viable option for student loan debt relief is possibly under the Chapter 13 bankruptcy. In this case you may be able to get a delay on having to pay your debt, or perhaps a reduction in the payments. If the reason you are not able to pay this debt is because you have so many other financial obligations then this may help. The Chapter 13 bankruptcy focuses on payment plans of debt so they are easier for the debtor to handle.

The only way you would be able to get the student loan discharged in a chapter 7 bankruptcy would be by proving undo hardship, which is extremely difficult. Your best recourse is to speak with a student loan lawyer who can advise you on all the options that may be available to you. He can tell you what your rights and obligations are and the best way to tackle this situation.

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