Many people seek educational opportunities to further their careers. Many of them have to finance their education with student loans, which can become overwhelmingly burdensome. Some are finding few job opportunities after they get out of school. Others have had a major illness or unexpected expenses show up out of the blue. When this happens you may consider filing for bankruptcy. Bankruptcy is not fun. Your credit gets affected, and you have to be in financial straits for it to make sense. But if you reach that point, you can get your debts reduced or erased through bankruptcy so you can get back on your feet. You may have heard that student loans can never be discharged through bankruptcy, meaning you will still be paying them even after the bankruptcy. Over the years, that myth has taken hold. It is assumed you can’t get student debt reduced or wiped out through bankruptcy. But many bankruptcy judges and legal scholars say that’s wrong and bankruptcy can be a way to get help.
Discharging Student Loans Through Bankruptcy
You may have your federal student loan discharged in bankruptcy only if you file a separate action, known as an “adversary proceeding,” requesting the bankruptcy court find that repayment would impose an undue hardship on you and your dependents. The court will examine a variety of factors when making such a decision.
The factors include…
- If you could not maintain a minimal standard of living by paying your student loans
- If this hardship would last for a significant amount of time over the course of paying back the loan
- If you had made a good faith attempt to pay your student loans before resorting to bankruptcy
We have seen different sets of circumstances from courts….
- Sometimes the entire loan will be discharged
- Sometimes a loan may be partially discharged
- Sometimes the loan is not discharged
- Sometimes the court sets different terms for paying back the loan, such as lowering the interest rate
How an Attorney Can Help You Address Student Loan Debt
Attorneys understand that sometimes you need a fresh financial start, and that filing for bankruptcy is one way to achieve this goal. Hard-working people can fall on tough financial times through no fault of their own. An attorney can provide you with legal advice and guidance regarding your rights and options. A lawyer can help you resolve delinquencies or defaults or apply for student loan discharge. So, if you want to seek help or even discharge of your student loans, you will want to seek the help of a bankruptcy attorney.
We are committed to helping families resolve legal challenges and get back to their lives. We offer the guidance and support that you will need when you are involved with the legal system.
Contact Us (859-371-0730) for a Consultation Today
About Helmer Somers Law
Helmer Somers Law helps individuals and businesses navigate the complex system of rules that accompany all legal situations. We are licensed to practice in both Kentucky and Ohio and offers flexible, affordable payment terms for our services. We welcome the opportunity to earn your trust and become your lawyer for life! It’s a fact of life in the modern world. There comes a time for virtually every adult American when the services of a competent, dedicated lawyer are required. Circumstances such as divorce, bankruptcy, estate planning or an income tax audit demand that your rights be protected, and your long-term interests advocated for with diligence and perseverance. When you call Helmer & Somers Law, you can rest assured that they will be.