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Bankruptcy & Student Loans

Can I get rid of student loan debt?

It may be possible to have your student loans wiped out through bankruptcy, but you will need to demonstrate paying for your loans would constitute an undue hardship for you. You will need to show your income is very low or your loans are from a for-profit trade school to have a good chance of having your loans discharged.

Will declaring bankruptcy discharge my student loan debt?
In most situations, it will not and you will be required to pay back your loans. When you file for bankruptcy, however, you will be granted temporary relief from collector harassment. The temporary relief from collection that comes with bankruptcy can allow you the time needed to catch up with your payments and you may be able to restructure your existing loans to make payments easier. Our

What are the requirements for discharging my student loan debt?
Many court utilize what is known as the Brunner Test in which your loans must meet three requirements to be discharged—you must be unable to maintain a minimal standard of living if forced to repay, you would likely be in persistent dire financial straits, and you have made a good faith effort to repay your loans.

What if my loans cannot be discharged?
With a Chapter 7 bankruptcy, if paying your loans is not an undue hardship, you will still have to repay them when your bankruptcy case is over. Under a Chapter 13 bankruptcy, if you are unable to have your loans discharged, a Chapter 13 bankruptcy can allow you to pay a reduced amount during your Chapter 13 plan although you will be required to pay the amount that is left after your repayment period is over.

Visit our Bankruptcy FAQ page for more answers to your bankruptcy questions.

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