Bankruptcy & Student Loans – Does Filing Bankruptcy Get Rid of Your Student Loans?
Simply mention the phrase “student loans” to many hardworking, young professionals, and watch them shudder in return. Unfortunately, now more than ever, student loans are impacting a huge portion of the population.
The ironic element of this is that while student loans are designed to essentially be a tool to help acquire advanced education and succeed financially and professionally, yet for some, they become a primary reason for ongoing financial issues, which can eventually become crushing. Of course, we’re not here to discuss the need for student loan reform, we’re here to help you understand whether or not you can eliminate student loan debt with bankruptcy.
Most individuals will not be able to discharge student loans with bankruptcy. However, it’s false to say that you can never get rid of your student loans by filing bankruptcy. Student loans, as with many other forms of debt, need to be approached on a case by case basis. No two people or their circumstances are the same, which is why at Goren & Tucci, we deliver a personalized approach which fits your case specifically.
In order to successfully get rid of student loans with bankruptcy, you will need to meet a specific set of criteria. While there are several different “tests” which courts may use to determine this, the biggest takeaway is that continuing to pay your student loans will cause you undue hardship.
How this is defined, and which specific criteria you have to meet, depends on those tests. Our experienced team is well versed in approaching this issue, and will be able to determine whether or not you’re eligible, why or why not, and what the best approach may be for you.
Whether or not you can completely discharge student loans, you can still deal with student loans through reorganization type bankruptcies such as Chapter 11 and Chapter 13, where you may be able to defer payments for long periods or pay them pennies on the dollar.
Call us at 301.718.1892 today, and schedule a free consultation. We’ll be happy to answer your questions about removing student loan debts with bankruptcy, while offering a tailor-made solution so that you can begin to clear up your financial fortunes.