Your Student Loan Can Be Discharged in Bankruptcy!
Student loans are a booming industry. The government guarantees the loan so schools everywhere saw a wonderful opportunity to raise tuition to the sky. And since it is not easy to discharge a student loan in bankruptcy lenders were almost always standing by ready to lend unsuspecting students large sums of money on a degree that may not be worth the price paid. What can you do if you are being buried by student loans?
It is not easy to get a student loan discharged in bankruptcy. Not easy at all, but it can be done under very specific conditions. It all comes down to the judge’s definition of “undue hardship.”
“Undue Hardship” is the legal standard used in the Bankruptcy Code to determine if a student loan should be discharged in a bankruptcy proceeding. However, Congress never defined what they meant by “undue hardship” so each judge has been left to create their own definition. Almost everyone agrees that an undue hardship is something more than regular hardship, but there are differences of opinion to how onerous the hardship must be.
Most courts have relied on the Brunner test in evaluating undue hardship. Under the Brunner test you may prevail on an undue hardship claim if:
- You can not maintain, based on current income and expenses, a “minimal” standard of living for you and your dependents if forced to repay the student loan;
- Additional circumstances exist indicating that your current state of affairs is likely to persist for a significant portion of the repayment period of the student loans; and
- You have made a good faith effort to repay the student loan(s).
If you believe you satisfy the criteria described above then you may be eligible to pursue a discharge of your student loans. Your Woodlands Bankruptcy Attorney can help review your facts and present your case in the best light to the bankruptcy court. Be prepared if you intend to pursue a discharge of your student loans: the process is longer, more expensive, and there will be more hearings than in your normal bankruptcy case; but this may be your only chance for the next 8 years to get your student loans discharged.
Get Help
The Shea Law Firm is here to help you get through the bankruptcy process and protect your rights to the fullest extent. Don’t risk losing property you may be able to keep. Call (832) 592-7913 and speak with a Woodlands bankruptcy lawyer today.
LoneStarBankruptcy.com provides the latest news and information on Chapter 7 and Chapter 13 bankruptcy in the Southern District of Texas. The Federal Bankruptcy Court for the Southern District of Texas covers many communities including: Houston, Spring, Conroe, The Woodlands, Montgomery County, and Harris County. If you need legal assistance with a personal bankruptcy matter speak with a Woodlands Bankruptcy Attorney today at (832) 592-7913.
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