An Ultimate Guide to Get a Student Loan Discharge
Generally, you can’t discharge student loans in bankruptcy, but there is an exception!!!
A lot of debtors are unable to wipe out or discharge student loan debt under Chapter 7 and Chapter 13 bankruptcy. But, if a debtor is able to prove in the court that repaying his or her student loan debts would cause undue hardship to him or her, then the debtor can get rid of his or her student loans in the case of bankruptcy.
Thus, it means that you can’t now say that student loans aren’t dischargeable in bankruptcy. If you met with requirements, then you surely can.
Lately, student loans have exceeded credit cards as the biggest amount of unsecured debt owed in the USA. Unlike credit cards, medical bills, and other unsecured debts, student loans are usually not dischargeable in the bankruptcy. It does not mean at all that you have to face harassing and non-stop phone calls, and messages from collection agencies and lenders.
Get Assistance from Our Maui Bankruptcy Attorney
If you don’t have how to become debt-free when it comes to student loans, then all you need to do is to contact us. We have a team of highly professional and experienced bankruptcy lawyers who can help you to get rid of your student loan debt.
No doubt there are a lot of bankruptcy law firms out there and everyone claims to offer the best service. But, we are totally different from others in terms of knowledge and experience we have in the field of bankruptcy. Our lawyers always stay up-to-date about the latest trends going in the bankruptcy and that’s why we can provide you expert guidance. Now, it is up to you whether you want to take it or not. If yes, then contact us today because we are always ready to help you!!
Let’s Understand the Undue Hardship Exception
In order to get student loan dischargeable in bankruptcy, a debtor needs to prove that it would be an undue hardship for him or her to pay them. In other words, you’ll need to prove that you experience undue hardship. Keep in mind that “undue hardship” interpretation can vary from an individual to individual and thus, the court of bankruptcy might examine your case or situation with the Brunner Test. And preparing for this test makes sure that you are ready to face the court.
Well, the bankruptcy court looks at numerous different things to evaluate the undue hardship in the Brunner Test. So, here are things if you meet them all, then your student loan can be discharged in bankruptcy.
If you are able to make a good faith in order to repay your student loan debt, then you may become eligible to discharge your loan.
Your current financial condition is probably to continue for a remarkable portion of the repayment method.
As per your current expenses and income, you can’t uphold a minimal living standard for yourself and your loved ones if you are compelled to repay your student loan.
Also, remember that getting the bankruptcy courts to remove your student loan debt is quite rare. In general, the court will suggest that you should repay your loan with other federal programs.
However, wiping out your student loans isn’t impossible. In fact, if you are over the age of 40 or 50 or experiencing remarkable financial difficulties, then there are possibilities that you may qualify. Otherwise, we are here to help you to get rid of your student loan debt. Our professional bankruptcy lawyers can help you to qualify for undue hardship.
Process to Wipe Out Your Student Loan Debt in Bankruptcy
So, if you really want to attempt to wipe out your loan in bankruptcy, then you need to file for an adversary proceeding in order to evaluate dischargeability with the court of bankruptcy. However, things don’t end here only. You will have to present evidence and you need to prove the count that if you do payment for your loans, then it would cause an “undue hardship”.
You can contact our Maui bankruptcy attorney who can help you to prepare for adversary proceeding and make you qualify to file for bankruptcy.
Get to Know Potential Outcomes after Qualifying for Undue Hardship
If the bankruptcy court grants your request for “undue hardship”, then there are various and different likely outcomes:
- Your student loans might be completely discharged and you’ll no longer be accountable for the debt.
- Only a part of your student loans might be removed, and you will need to pay back your remaining debt.
- You are accountable for the complete amount, but they’ll lower the interest rate.
What if Your Student Loan Debt Aren’t Discharged?
Sadly, in most cases, your student loans aren’t wiped out in bankruptcy. If you are unable to get a student loan discharge, here is what happens if this is case…
Chapter 7 Bankruptcy
Under Chapter 7 bankruptcy, if your loans payment isn’t an undue hardship, then you will still owe payments after your case of bankruptcy is complete.
Chapter 13 Bankruptcy
If you can’t wipe out your student loans, then Chapter 13 bankruptcy offers some other methods that can help you to get rid of your debt.
However, taking expert guidance and assistance from our Maui bankruptcy lawyers is the best thing you can do in an effort to overcome your student loan debt.
Consider Debt Settlement if Student Loans Aren’t Discharged
As you also got an idea about student loans aren’t easily wiped out in bankruptcy as compared to other types of debts. But, you can have a debt settlement program that can be an ideal solution to remove your financial worries and burdens.
To know more about our debt settlement and bankruptcy services, you can contact us and our lawyer will help you to choose the best solution so that you can come out of your financial problem as soon as possible!!