Up until recent years, bankruptcy was not a good option for eliminating debts owed for student loans. While bankruptcy still does not offer a great solution for all cases of student loan debt, there are times when it will help with this particular type of debt. If you owe a lot of money on your student loans and are struggling to pay this off, you may want to consider talking to a bankruptcy lawyer about it, as there is a chance that filing for bankruptcy might offer you some relief from this debt.
Student loan debt is not a qualifying debt
The first thing to understand is that student loan debt is not a type of debt that automatically falls into the category of qualifying debts in terms of a discharge. In fact, in most cases, student loan debt is automatically considered a debt that is not a qualifying debt. There are other types of debts that are similar to student loan debt in this way, such as IRS tax debt. To receive a discharge for debts like these ones, you must take extra steps, and there is still no guarantee that the court will approve it.
You can qualify for a discharge under certain circumstances
If student loan debt is your main struggle, it might be worthwhile to talk to a lawyer about your situation, because you might be able to qualify to have it discharged. To qualify for this, you will need to be able to prove that you are in a situation where paying the debt off would create too much of a hardship for you. You must also prove that there is not really a chance that your financial situation will improve enough to put you in a position where you will ever be able to repay the debt. The Brunner test is a standardized test used by bankruptcy courts and lawyers to see if a person meets these conditions.
Filing might be worth a try
If you believe that you meet these conditions, you can talk to your lawyer about filing a complaint with the court to for this. Once you file, it will be up to the court to approve or deny your request, but it might be worth giving it a try as the court may approve it for you.
If you cannot repay the student loan debt you have and do not know what to do, talk to a bankruptcy lawyer like David M. Todaro Co., LPA. Talking to a lawyer will not obligate you to do anything, but it may help you find answers to your problem.