Can I Discharge Student Loan Debt?
Student Loans & Bankruptcy – Know Your Options
Every year, millions of people graduate from colleges throughout the U.S.—meaning
that more and more people are now struggling to pay off the tens of thousands
or hundreds of thousands of dollars they have accumulated in student loan
debt. For many, it is unlikely that they will be able to pay off these
loans for several years to come.
Even so, federal bankruptcy laws have made it increasingly difficult for
debtors to discharge student loans through bankruptcy. While it’s
not impossible, most filers will not be able to eliminate student loan
Chapter 7 or
Chapter 13. In order to do so, one would need to demonstrate that it has caused them
Discharging student loan debt is difficult but not impossible. Discuss
your options with a Dallas bankruptcy attorney at Allmand Law Firm, PLLC
to learn more.
Understanding Limited Exception and How Courts Examine "Undue Hardship"
According to the United States Code Section 523(a)(8) of Title 11, student
loans are not dischargeable unless those loans “impose and undue
hardship” on the loaner. However, it is important to keep in mind that bankruptcy courts will use
different tests to determine whether or not a debtor has experienced undue
hardship. One of the most common is the Brunner test, which examines three
When using the Brunner test, the court will consider the following:
- Can the debtor maintain a minimal standard of living while repaying their loans?
- Would the debtor remain in poverty for the duration of the repayment period?
- Has the debtor made a good faith effort to repay their student loan debt?
If you pass this test, there is a chance that you could have your student
loan fully or partially discharged in
bankruptcy. However, since “undue hardship” is not defined within bankruptcy
law, this decision will be made at the discretion of the court. For this
reason, it is imperative that individuals considering such an option retain
the help of an experienced lawyer. Failure to do so can result in a lesser
chance at receiving a favorable outcome.
If the Limited Exception Does Not Apply, Can Bankruptcy Still Help Me?
The short answer to this question is “Yes, bankruptcy can still help
even if the limited exception does not apply.” How? If you are facing
student loan debt, you have probably been faced with annoying phone calls,
emails, and other notifications that let you know you are behind on payment.
While bankruptcy may not dissolve your student loan debt, bankruptcy can
stop collectors from bothering you for up to 5 years. This can provide
you with enough time to secure a reliable payment plan. Because these
types of situations are highly complex, it is best to speak with an experienced
lawyer regarding your unique situation.
Speak with a Dallas Bankruptcy Lawyer Today
At Allmand Law Firm, PLLC, we help good people struggling with tough situations.
Over the years, we have helped tens of thousands of individuals find relief
from their debt – and now, we are ready to help you. If you are
struggling to repay your student loans, we encourage you to discuss your
options with a bankruptcy attorney at our firm.
- We have more than two decades of legal experience
- We have handled tens of thousands of bankruptcy cases
- We are the largest bankruptcy filing firm in the state
- We have been featured on CBS News, ABC & Fox News
Our lead attorney, Reed Allmand, is also
board certified in consumer bankruptcy law by the Texas Board of Legal Specialization.
For this reason, you can trust that your future will be in good hands.
Contact our team to get started on your case with a free consultation
session. You have nothing to lose and everything to gain.
Have Questions About Student Loan Debt?
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request your free consultation.