Is Bankruptcy An Option For A Student Loan?

  • Is Bankruptcy An Option For A Student Loan?

Is Bankruptcy An Option For A Student Loan?

Call: 888-297-6203

Though difficult to discharge student loans, showing that the payment of debt will make it difficult for you and your family will help a lot. There are bankruptcy options for people with student loans.

1) Bruner Test
The most common test used by courts to evaluate whether a particular student is facing undue hardship is Bruner Test. Though in recent times, the courts are looking for other options, by far the most used measure is the Bruner Test. This test requires :
a) The debtor to show that neither they nor their family can survive the basic minimum standard of living if having to pay off the debt.
b) the debtor has made honest and hard efforts to pay off the debt prior to applying for bankruptcy. 

 2) Are hardships enough to discharge student loans in Bankruptcy?
Proving undue hardship will be the golden feather to cancel student loans. Filing for bankruptcy gives you added protection against payment of all your debts, and your creditors (until they get permission from the court to start collecting again). But to go forward with it, a good idea is to always consult with a professional to make sure you know the pros and cons well. You can also contact Recovery Law Group from Los Angeles & Dallas, TX for the Same.
Contact – (888-297-6203) There are limits to filing bankruptcy, and costs associated and can add to your credit history. So consulting an attorney is always good. 

3) How does it work?
To get to know if your student loan will be discharged by bankruptcy, a petition (or an Adversary Proceeding) has to be filed. Your attorney will guide you on the same. Even if you have already filed prior, you can still open your file again, and add on to it. But remember, without filing for a petition, don’t expect your student loan to be discharged by bankruptcy. 

4) Look around for an Experienced Attorney
To know if the attorney knows what they are doing, ask a lot of questions. But also remember to tell them that you want to discharge your student loans. And if the attorney tells you this process won’t help, please know that the attorney is not knowledgeable on the topic. Immediately run from there, and look for a new attorney to help you. But till the time you don’t find a good one, don’t pay any charge to them, and don’t get your work started.

An attorney may show to be a lot of things before being hired, so try to know them well. Don’t hurry on that part, and you will not suffer in the latter part.


    2023-04-19T11:53:45+00:00