Many students struggle with paying off their loans after they have received their diplomas. If you are struggling to pay off your loans due to owing a significant amount of money, continue reading to learn more about the potential to discharge student loan debt. Reach out to an experienced bankruptcy attorney to learn about your legal options.
Can student loans be discharged in Chapter 7?
Generally, you cannot discharge student loans by filing for bankruptcy. However, as long as you can prove you are facing undue hardship, in some cases you can.
What is undue hardship & how can I prove it?
An example of undue hardship is a teacher facing a huge amount of student debt while their job only pays them a certain amount of money, making it not possible to balance paying off the debt on top of necessary life purchases for basic shelter, clothing, water, and food. Undue hardship means that the loans an individual is facing will simply not be able to be paid off or would be simply chipped away at for the entirety of the individual’s entire life.
To prove undue hardship for student loans, you will have to prove that you can no longer maintain a minimal standard of living, you are doing your absolute best at paying your student loans, and your current financial situation is set to continue for years to come. If you are able to prove these three factors, you may be able to have your student debt discharged under the Brunner test, named after the Brunner v. New York Higher Education Services Corp. case.
What is the process of discharging student loan debt?
To begin the process of discharging your student loan debt, you will first file an adversary proceeding with the assistance of an experienced bankruptcy attorney. This proceeding will allow the court to determine whether your loans are dischargeable. You and your attorney will prove that your loans are dischargeable to the court by using evidence that your loans are causing undue hardship. It is necessary to have an aggressive, skillful attorney on your side to prove undue hardship and to put your legal matters in the right hands. Contact our firm today; we are confident in our ability to provide for our clients and fight for the relief they require.
Contact our experienced New York firm
Bankruptcy, for many people, is a frightening endeavor. Fortunately, with the help of an experienced attorney, it does not have to be. If you require the services of an experienced Business Law or Bankruptcy attorney, contact the Law Offices of Allen A. Kolber, Esq. today to schedule a consultation and discuss your options. We will have your back every step of the way.