Can Student Loan Debt Be Discharged in Bankruptcy?
Millions of Americans have more student loan debt than they can repay. Some look to bankruptcy as a possible solution.
Unfortunately, in almost every case, student loan debt is not dischargeable. This obviously presents serious issues for people who have taken out large five- and six-figure loans. That said, Chapter 13 bankruptcy allows for the reorganization of debt and the ability to pay off past-due loans over several years.
Know your bankruptcy options. Call 732-988-1500 for a free consultation about dealing with student loan debt.
Student loans are dischargeable in rare circumstances. One must demonstrate that paying the loans creates an undue hardship, meaning that there is no likelihood of earning income in the future and the amount earned does not allow for payment of the loans. In addition, one must show that he or she attempted to pay the loans in the past. While presenting this is challenging, we are ready to work with you to make the strongest possible case if it may be possible to discharge student loans.
A Chapter 7 bankruptcy for other debt and an income-based repayment plan can offer significant help.
Regardless of your circumstances it is important to understand what can and cannot be done about debts. Our attorney and team encourage you to schedule an initial consultation if you have any questions.