Tuesday, November 3, 2009

Can I eliminate my student loans by filing bankruptcy?

The Bankruptcy Code does provide for the elimination or “discharge” of student loan debt under certain circumstances. However, you also ought to consider non-bankruptcy options for eliminating or discharging student loan debt. A skilled bankruptcy attorney should be able to help you understand both options.

The review of each student loan bankruptcy case is fact intensive since the courts must decide whether to discharge or not discharge student loan debt on a case-by-case basis. I urge you to analyze my other student loan blog entries [found in the blog archive to the right] for a review of case law regarding the discharging of student loan debt. Also, you can go to my website at  http://www.schallerlawfirm.com/student_loan_discharge.html  to read more information about discharging student loan debts.
In a nutshell, the bankruptcy option is available for any student loan debtor who could make a three-part showing demonstrating that the payment of the student loan debt would be an undue burden upon the debtor and the debtor’s dependents. The three-part test requires a showing---

1. That the debtor cannot maintain, based on current income and expenses, a “minimal” standard of living for the debtor and the debtor’s dependents if forced to repay the loans;

2. That additional circumstances exist indicating that this state of affairs is likely to persist for a significant portion of the repayment period of the student loans; and

3. That the debtor has made good faith efforts to repay the loans.

For some people, a non-bankruptcy option may be their best choice. While for others, a bankruptcy filing may be what’s best for them. Before making a decision, you should seek the counsel of a skilled bankruptcy attorney to help guide you through the thorny path of eliminating student loan debt.

Contact me to discuss the details of your specific situation.
Your Bankruptcy Advisor Blog
By: Attorney Robert Schaller (Bob's bio) of the Schaller Law Firm
Click for Bankruptcy Lawyer Job Opportunities.

You are invited to contact Attorney Schaller at 630-655-1233 or visit his website at http://www.schallerlawfirm.com/student_loan_discharge.htmlto learn about how the bankruptcy laws can help you.

Bob is a member of the National Bankruptcy College Attorney Network, American Bankruptcy Institute and the National Association of Consumer Bankruptcy Attorneys.

For information about Chapter 7 bankruptcy Click Here

For information about Chapter 13 bankruptcy Click Here

NOTE: Robert Schaller looks forward to the opportunity to talk with you about your legal issues. But please remember that all information on this blog is for advertising and general informational purposes only. Please read Bob's disclaimer.

I recommend that you review a few other blogs that may be of interest to you. These blogs are identified in the right column and are set forth below: bankruptcy issues blog; bankruptcy and family law issues blog; bankruptcy and employment issues blog; and bankruptcy and student loan issues blog.

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