Are My Student Loans Dischargeable in Bankruptcy?

Are My Student Loans Dischargeable in Bankruptcy?

Student loans place a heavy financial burden on millions of Americans. Combined with credit cards, auto loans, mortgages, and other large payments, student loans can be a major player in creating a massive, unsustainable pileup of debt. Many people who declare bankruptcy do so in order to get out from under the stifling weight of large monthly payments from their student loan provider. However, whether or not your student loans can be discharged via bankruptcy depends on which chapter you file and the specifics of your circumstances.

Discharging Student Debts Under Chapter 13 or Chapter 7 Bankruptcy

If the court determines that your student debts don’t create undue hardship, your student loans will not be discharged under Chapter 7 or Chapter 13. However, if you file under Chapter 13 and your student debts are not discharged, you may at least be able to make minimized payments during the repayment period. However, even with a reduced payment during the life of your Chapter 13 plan, you will still be required to pay the remaining amount of your student debts thereafter.

Proving Undue Hardship

One of the only ways you can successfully have your student loan debts dissolved during bankruptcy is to prove the following:

  • You have made an honest attempt to pay back your student loans.
  • You are not able to simultaneously pay down your student debts and provide a basic, acceptable standard of living for yourself and your dependents.
  • Your financial situation is unlikely to change for an extended period of time.

A court may use other tests to determine whether it can, in good conscience, relieve you of your student loan debts. While courts are typically hesitant to relieve debtors of student loans, the result will depend on your unique circumstances.

Meet with an Experienced Bankruptcy Attorney in Jacksonville

Our team of bankruptcy lawyers at Owenby Law, P.A. has an in-depth understanding of bankruptcy laws and is prepared to help you receive the most desirable outcome possible in your bankruptcy case. Don’t proceed alone—let us help.

Call us at (904) 770-3141 now to request your free consultation, or send us an email.

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