Filing for bankruptcy usually cannot discharge student loan debt. However, if you can prove that your educational loan payments present an undue hardship for you, your family, and any dependents then you may be able to have them discharged.
Proving that your education loan payments are causing you an undue hardship is very difficult. You essentially must be physically unable to work and / or there is little to no chance of making an income to pay off your loans.
If you think you may have an undue hardship, in order to discharge your student loan debt you will need to file a lawsuit against the student loan company in the bankruptcy court and present your case to a judge. The court ultimately has the final say in whether you have an undue hardship. If the court does make the determination that you have an undue hardship, then your student loan debt will be completely eliminated.
Student debt is a unique type of debt and the solutions involved can be complex. Graduates are often forced to accept any job available simply to make ends meet and pay bills, but sometimes it is not enough. When parents or grandparents have to step in to help pay your bills, the stress can be overwhemling. Don’t let that happen to you. You could benefit from contacting a student loan attorney with Luftman, Heck and Associates.
Listed below is some information which may provide you or your family with more information regarding student debt.
- Student Loan Discharge – Certain federal loans can be discharged, canceling any further repayment obligation for eligible borrowers. You may qualify for student loan discharge if you meet specific requirements.
- Student Loan Forgiveness – Once your student loan is forgiven, you no longer have to pay the remaining balance. You may be eligible for loan forgiveness if you meet the specific requirements.
- Student Loan Consolidation – Consolidating your student loans will streamline your bill payment process, may extend your repayment terms, and lower your interest rate. It is seen as a solution for many but not for all.
- Student Loan Repayment Options – Many people have trouble meeting their repayment obligation, but there are options available for struggling borrowers, including a variety of repayment plans. If you’re having trouble paying your student loans, talk to your lender and consider the following options for repayment.
- Student Loan Default – What does defaulting on your student loans mean for you?Defaulting on student loans may not seem like a big deal, but it carries consequences. If you default on your student loans, you face serious repercussions.
- Student Loan Grace Period – For many people, the end of the grace period is frightening, especially if they are still unemployed or working an unpaid internship. If you are worried about how to pay off your loans after the grace period ends — or are already in default — call today.