You may have heard that student loans cannot be forgiven after filing for
bankruptcy. Typically, student loan debt cannot usually be wiped, whether you file
Chapter 7 or
Chapter 13 bankruptcy. However, there are ways to work around this so that your loans
can qualify to get wiped in your bankruptcy, and that is by demonstrating
Life after leaving college is an immense financial struggle for many. If
this is your situation, you may have thought about ways to relieve your
debt, even if it means skipping out on payments. This is never a good
idea. It hurts your credit—much worse than bankruptcy would. So
what do you need to prove that your situation is an “undue hardship?”
Passing Undue Hardship Tests
Bankruptcy is a major decision. You may have already sought legal counsel
and made the determination that it is right for your personal as well
as financial circumstances. The next step is to have the courts grant
relief for your student loan debts by passing the undue hardship test.
You would need to prove that because of your hardship, it would not be
possible to continue making payments.
One of the most common tests that courts use is called the
Brunner standard, which allows student loans to be forgiven if the person’s
situation meets all of the requirements.
- Poverty—You are having trouble sustaining a livelihood for your family
due to your income.
- Persistence—Your financial situation will likely continue throughout
the repayment period.
- Good faith—You have made diligent efforts to repay the loans.
There are several other types of tests that court use, so it is vital that
you speak with a Charlotte bankruptcy attorney about the test your local,
courts use. Having the information ready ahead of time can increase your
chances of successfully getting your student loan debt wiped.
Get Started Today—Contact Us!
At Saffa Law Group, we are passionate attorneys who are committed to helping
our clients overcome their burdens by providing them with sound legal
counsel. We understand that being saddled with debt can weigh heavily
on you. It is our hope that we can take that relieve some of that pressure
for you and help you find the peace you need to move forward.
Call us at (704) 710-8182 to schedule a free case consultation!