Handling Student Loan Debt

When filing bankruptcy, many people want to know if they can discharge their student loans. The short answer is "no." Generally speaking, if you have student loans, you do have to pay them. After your bankruptcy is completed, loan companies can come after you for the money you owe. There are a few, very limited circumstances in which a person can discharge his or her student loans.

Establishing "Hardship" Circumstances

Generally, neither federal nor private student loans can be discharged during bankruptcy. However, the question "Can I discharge student loans?" comes up frequently.

The courts will consider discharging student loans under certain "hardship" circumstances, including:

  • Based on current income and expenses, the debtor is unable to maintain a minimal standard of living if forced to pay back the student loans.
  • The debtor's circumstances are unlikely to change during the life of the loan because of circumstances beyond his or her control.
  • The debtor has made good-faith efforts to pay the loan.
  • There are other relevant facts or circumstances.

If you try to discharge your student loans in a Chapter 7 bankruptcy, you must prove to the court that you cannot pay them and will not be able to pay them. This is very difficult to do.

Our lawyers have many years of experience dealing with the bankruptcy courts. They will tell you honestly whether your circumstances can be considered genuine hardship and, if so, how to proceed.

We Can Help You Find A Solution

In our 30-plus years of practice, the attorneys at Levitt & Slafkes, P.C., we have helped thousands of New Jersey residents discharge their debt. We know bankruptcy law and how to use it to find the ideal solution to your debt problems. We will help you discharge that debt and get back on track in your financial life.

You Do Have Options. Make An Appointment To Learn More Today.

Contact us to schedule a free initial consultation with one of our Essex County debt relief attorneys. You can reach us by filling out our online form or by calling our office at 973-323-2953.

We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.