Unfortunately, even though it is technically possible, student debt is seldom discharged in Chapter 7 and Chapter 13 bankruptcy. When it feels like you are out of options and out of money, The Law Offices of Ronald I. Chorches are there to provide relief.
When you can no longer afford your monthly student loan obligations or have your wages garnished to make up for delinquent payments, you may wonder how you will ever get your debt under control. Many people turn to bankruptcy as a possibility, thinking they will be able to liquefy loans or reduce them to a manageable payment.
When bankruptcy is not an option, there are other alternatives to student debt relief. Solutions range from loan restructuring to forgiveness programs, both of which our skilled and experienced lawyers can discuss with you. In a free case evaluation, we will analyze your scenario and offer a candid opinion of the most effective and affordable way to eliminate student loans.
If you simply need more time to get on your feet financially, you may be able to suspend your student loan obligations while pursuing a Chapter 13 bankruptcy.
Some people assume incorrectly that you can discharge any debt you have in bankruptcy. Others strongly believe that student loan debt is exempt and can never be discharged, even with a successful bankruptcy filing for other types of debt. Which is true?
The reality is somewhere in the middle. One study did find that most people don’t even try, with just 0.1 percent of those who file and who also have student loans attempting to have them discharged. However, of those, a full 40 percent saw at least a portion of the debt erased.
Declaring bankruptcy for student loans is possible, but it can be hard to do, and it won’t work in every case.
Being forced to make those payments is not just difficult, but means the person can’t keep up a minimum standard of living. This doesn’t just mean you don’t have disposable income for things you want, but means you can’t pay for necessities.
As noted, this process can be highly complex. It’s important to know know exactly what you’ll have to show the court and what legal steps are required.
If your loans are from a for-profit trade school, in certain situations, a judge may discharge loans if the institution broke a contract or engaged in deceptive practices.
Regardless of the obstacles you face or the complexity of your case, our law firm is there to help. Reach out to us by calling 860-563-3955 or using our online free bankruptcy consultation form.