These days, a college education is the key to lucrative and fulfilling career. But as the job market grows tougher, many young adults find it difficult to contend with student loan debt given their current job opportunities. In this case, filing for bankruptcy may be one possible option, and Greene Law PC can help clients in Farmington, CT navigate the process.

Most Student Loan Debt Isn’t Discharged Through Bankruptcy

No matter the type of bankruptcy you choose, student loan debt is not likely to be discharged. This is due to changes in legislation that took place during the 1970s. As a result, both private and government-funded debt are not able to be discharged when filing for bankruptcy unless the student can show that they faced undue hardship, and that repaying debt will contribute further to their poor financial situation.

Understanding Undue Hardship

Your debt may be forgiven if you’re able to prove undue hardship to the court. The court will test your eligibility by applying the Brunner Test. There are certain elements you must satisfy in this case; first you’ll need to show that your current economic state is likely to last the duration of the repayment period.

You’ll also need to show that you’ve made an effort to repay your loans, and that repayment of loans would only increase your hardship further. Even if you satisfy these requirements, the court may still not allow your loans to be discharged unless circumstances are extreme.  

If you’re mired in student loan debt and don’t know where to turn, the bankruptcy attorneys at Greene Law PC may be able to help. Learn how you can arrange a consultation at this Farmington law firm by calling (860) 676-1336 today. You can also visit the website for a complete listing of practice areas, including information on filing for bankruptcy.