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There are very few times when student loans can be discharged in bankruptcy. However, if you are facing a serious hardship such as a permanent disability or evidence that you are unable to give a minimal standard of living to yourself and your dependents, you may be able to discharge a student loan debt. One factor that Bankruptcy Courts have used in the past is whether or not you have made a good faith effort to try to keep up with your student loan payments.
Discharging student loans in bankruptcy is extremely complicated and you should only trust the most experienced and knowledgeable bankruptcy attorneys with your student loan debt needs. Our Pottstown Bankruptcy office has successfully handled numerous student loan discharge cases in Southeastern Pennsylvania.
Student Loan Discharge vs. Deferment
As discussed, student loans may be eligible for discharge in certain extreme cases. Generally, to prove that your student loan debt should be completely discharged, we need evidence that you have a significant medical condition, you have been incapacitated, or have another severe hardship that impedes your ability to work and pay your loan. If we can prove this, we can make all of your student loans disappear.
Even if we are unable to discharge your student loans through bankruptcy, filing for Chapter 7 or Chapter 13 can give you a clear path towards paying off your student loans. While your bankruptcy filing is in process, your loans will be put on deferment which means that you do not have to pay. During the bankruptcy proceedings, we will be able to clear off all other unsecured debt to free up the money you need to pay off your student loans. We may even be able to lump in your student loan debt with other debt and create a manageable repayment plan for you.
Student Loans vs. Personal Loans
Just because you borrowed money to help you get through school does not mean that you have a student loan. Many people take out independent or personal loans to help them get through school. However, unlike student loans, these personal loans are treated like regular unsecured debt and can be discharged normally through a bankruptcy.
Contact Our Downingtown, King of Prussia, Reading, and Collegeville Bankruptcy Attorneys Today
Our attorneys are ready to discuss your concerns and provide answers. Our attorneys represent clients in Montgomery, Chester and Berks Counties.