Sacramento Bankruptcy & Debt Relief Attorney
Bankruptcy and Student Loans
Bankruptcy and Student Loans
Filing for bankruptcy usually will not wipe out student loans. A student loan can only be discharged when an extreme hardship is shown. These guidelines illustrate how hard it is to eliminate student loans through bankruptcy. Being unemployed, or carrying other debts, will seldom be enough to get a student loan discharged in bankruptcy. As I have told clients over the years, you would not want to face the hardship required to qualify for student loan elimination in a bankruptcy.
There have been attempts to make student loans dischargeable in bankruptcy. So far, however, nothing has changed. The YouTube video below shows the efforts made to make student loans more likely to be discharged through a bankruptcy filing.
So what should you do? If bankruptcy is your best route to debt elimination, your best move is to wipe out as many debts as you can through it. Frequently, clearing other debt makes your student loans manageable.
Whether you could qualify for the student loan hardship that would let you eliminate your student loans in bankruptcy depends on a factual analysis. Because student loans are often the largest consumer debts, a free consultation to find out whether your student loans can be discharged is well worth it!
When you subscribe to the blog, we will send you an e-mail when there are new updates on the site so you wouldn't miss them.
Student loan debt can feel like a permanent burden, but bankruptcy still offers real relief for the debts around it. Clearing credit cards, medical bills and other unsecured obligations can free up the money you need to keep up with student loan payments. If you are unsure where your loans fit into the picture, a conversation about your options is a sensible first step.