Are you struggling with repaying your student loans? Have you seriously considered filing for bankruptcy? Here are some things you need to know about filing for bankruptcy when faced with student loan debt.
What You Need to Prove
In general, most people will not be able to discharge their student loans when filing bankruptcy. In order to discharge student loans in bankruptcy, you have to prove three things. You’ll have to prove that you’re facing considerable hardship with paying back your loans and that you don’t have enough to pay back your loans and support yourself. You also have to prove that this hardship will last for the duration of your loan. In addition, you have to prove that you tried in good faith to work out a solution for paying back your loans.
It’s Not That Easy
Proving the three points above is not as easy as it may seem. Remember, you have to prove that your hardship will last for the duration of the loan. This means that in order to qualify, you might have to show that you won’t be able to work and earn an income for that time period. Today, most student loans are 15-30 year loans.
Other Options
If your only debt is student loans, look at other options that may be available to you. Most Federal student loans have other forgiveness options, income-driven repayment plans, and hardship programs that your vendor may offer. The reality is that getting your student loans discharged in bankruptcy is highly unlikely unless you can show a serious financial hardship.
Call a Minnesota Bankruptcy Lawyer
You need to call an attorney to help you out if you want to attempt to discharge your student loans in bankruptcy. Bankruptcy is a complicated process and requires knowledge and experience. Contact us today for more information or to set up a free consultation.