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With the uncertainty in the job market, it is very difficult for freshers to avail jobs, and close their student loans. Many universities that have promised a placement, are not able to fulfill their promise fully leaving a lot of students scampering for a job in helplessness. However, it is unfortunate that declaring bankruptcy also cannot discharge student loans under most circumstances.
The bankruptcy laws had some provisions earlier that allowed for a student loan discharge that was availed from Fed sources. These are nothing but some qualified loans granted by Fed at lower interest rates for eligible applicants. These loans were mostly availed by the people of economically poorer sections and ended up being discharged as per previous bankruptcy codes. However, with the revisions, it is even more difficult to discharge student loans whether privately funded or availed through Fed.
Is there still a way to discharge a student loan?
As per a few experts in the domain, as can be found on https://recoverylawgroup.com/bankruptcy/, there are circumstances in which up to 40% of the loans can be discharged during bankruptcy. So completely giving up hope that student loans cannot be discharged is not the appropriate solution. It is worthy to use expert advice and try for student loan discharge as there is a 40% probability of availing of a discharge. It is sad, however, that as many as 65,000 plus bankruptcy filters in the United States of America failed to discharge their student loans even though they are eligible purely because of a lack of knowledge or presumptions.
What are the scenarios for availing of student loan discharge?
- The applicant is unemployed and has filed for bankruptcy under chapter 7
- The applicant is subject to worse medical hardship
- The applicant had a lower income as per the tax return from the prior years
- The poor financial situation of the applicant is bound to continue for a long may be due to unemployment or medical treatment or any other justifiable reason
- The filer cannot afford even basic shelter and food needs
- The applicant made all possible efforts in good faith to repay the debt
There are various other aspects that get into scrutiny with respect to employment, pay, willingness to work different jobs, etc., that play a vital role in bankruptcy judge ruling. The bottom line is you will have to demonstrate to the court that your situation is very dire, the future remains grim, and it is highly impossible to repay the education loan. If the court finds the slightest way you can repay the loan, it will not discharge the student loan debt. To know more and to find some other smart tips on dealing with bankruptcy, do not forget to dial 888-297-6203 in and around Los Angles and Dallas, TX.