Bankruptcy for Student Loans
For many people across the country, student loans become a major strain on their financial well being, and either directly or partially lead towards bankruptcy. The big question is whether filing bankruptcy on student loans provides you with any benefits, and whether or not student loans are dischargeable.
By and large, filing bankruptcy for student loan debt does not lead to a discharge of the remaining balance on your loans. However, there is one key exception to this, known as undue hardship. If undue hardship is proven, then you actually can discharge your debt with bankruptcy and student loans.
There are several different tests utilized to determine undue hardship, and we’ll help you understand what may apply to you, or what you may qualify for. That’s the only outcome for student loans and bankruptcy Chapter 7, however, Chapter 13 cases may provide another course of action.
Here, even if your student loans don’t get discharged, you may be able to pay a reduced amount as part of your overall payment plan. This will make your finances easier to manage on a monthly level, and will enable you to catch-up over the long haul.
If you’re struggling with your student loan debt, then take action by getting in touch with our firm. Call 301-977-4300 and we’ll provide you with more information on how we can help as your student loan attorney in Maryland, and begin constructing a tailor-made plan for you and your finances.