Unfortunately, student loans are not dischargeable through bankruptcy. Instead, individuals normally have to pay back their student loans in full. If you need to repay student loans, then you should talk with a skilled Brandon bankruptcy attorney at The Golden Law Group right away. Options may be available to help reduce the costs of your student loans and eventually pay off these substantial debts.
If you choose to file for Chapter 13 bankruptcy, you can organize the student loans you owe into a consolidated repayment plan. Your plan can be paid over the next three to five years. For many struggling debtors, this may help to reduce the pressure of regular payments on your loans.
Putting your student debt into a repayment plan can also help you to reduce the costs of penalties and interest that would accumulate over the normal length of the debt. Without accruing interest, you could save thousands of dollars! Using this approach, you can ultimately set yourself up for the best possible recovery after a financial setback.
One exception to the rule of not discharging student loans exists. If you can demonstrate that it would be an undue hardship to pay your debts, then you may be able to get them discharged. Some courts utilize the Brunner test to determine whether or not they should discharge student loans.
Most courts are reluctant to authorize the discharge of student loans. You may have a chance if you can show evidence that you have very low income or your loans are from a for-profit trade school.
Talk with a board-certified Brandon bankruptcy attorney at The Golden Law Group if you are interested in more information. With the right attorney there to help you, you will be able to determine the best approach to handling your student loan debt.