You may have heard that you cannot discharge student loans through bankruptcy, but that isn’t always the case! The good news is that in some cases you may be able to discharge some or all of your student loans. Your personal circumstances will determine if you are able to discharge some or all of your student loans.
How do I Discharge Student Loans in Bankruptcy?
Speak to your attorney about your loans. You should talk to your attorney about how much you owe on your loans, how far behind you are on your payments, and how old your loans are. Your attorney will be able to tell you what your options are in your home state. It is important that you speak to a local attorney about this issue, because the rules for discharging student loans in a bankruptcy can vary state by state.
Armed with that information, you and your attorney can determine the best way to handle your student loan debt. If you are unable to make the payments on your loans, then your best option may be to discharge them through bankruptcy. Not everyone qualifies to discharge student loans through bankruptcy, so your attorney will need determine your eligibility.
Can I Discharge my Student Loans though Bankruptcy?
What determines if you can discharge your student loans? There are different rules in different states, but one common means to discharge student loan debt in a bankruptcy is to demonstrate what is called Undue Hardship. Essentially, if you can show that your student loan debt prevents you from maintaining a basic standard of living, you may have a better change to discharge that debt in a bankruptcy.
You and your attorney can discuss the standards for your home state to demonstrate Undue Hardship, and with that information you can measure whether you or not you qualify for this consideration. If so, your attorney can hopefully guide you through a bankruptcy to discharge this debt (your attorney can help you determine if this is the best course of action). If you do not qualify under the Undue Hardship consideration, your attorney may be able to advise you of other options.