Bankruptcy is a strategic tool that was designed to help individuals regain their financial footing after suffering a major setback, but there are still certain kinds of debt that you cannot typically discharge by filing for bankruptcy. This includes child support payments, spousal support obligations, income tax debt, certain legal settlements, and student loans; however, there are always exceptions, and one of those exceptions applies to student loans. If you want to discharge student debt by filing for bankruptcy, turn to Greene Law PC in Farmington, CT, to determine if you may be eligible to do so.  

What You Need to Know About Filing for Bankruptcy to Discharge Student Loans

Undue Hardship

The only way you can eliminate federal student loan debt by filing for bankruptcy is by proving you cannot pay it without suffering undue hardship. That means you must be able to demonstrate you will not be able to maintain a basic standard of living by making the minimum payments. If you can prove that this hardship will last for most or all of the repayment period and that you genuinely tried to repay the loans, you may be able to discharge them.

In general, the only people who will be able to prove undue hardship when it comes to paying back their student loans are those who are physically unable to work and will never be gainfully employed in the future. As a result, most attorneys simply advise clients to seek other kinds of financial relief when it comes to student debt. For example, you may be eligible for loan forgiveness, or you may be able to restructure the repayment plan so it is more manageable.

Getting Started

If you think you can prove undue hardship regarding your student loans, an attorney can assess your case and help you determine the best way to proceed. Although discharging student debt is challenging, it is not impossible, and there is a chance you are eligible to do so.

If you are considering filing for bankruptcy, turn to Greene Law PC to explore the options. You can learn more about their experience assisting clients with various types of bankruptcy, including Chapters 7 and 13, by visiting their website. To schedule a consultation to discuss your financial situation, call (860) 676-1336.