Using Bankruptcy to Eliminate Student Loans

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.

About Me

Hiring An Attorney For Commercial Bankruptcy

Hi, my name is Mackenzie Kohler and when my business partner and I were having financial difficulties, we decided that we would file commercial bankruptcy. Since a partnership bankruptcy can be very complicated, we hired an attorney to help us with all the legal aspects of this process. Our attorney made sure that everything was handled properly and this put my business partner and I at ease. If you're considering filing commercial bankruptcy, read my blog to learn what to expect during the process and how an attorney can help you. I hope this blog gives you all the information you need about commercial bankruptcy and hiring an attorney.

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