You have heard it. Cannot get rid of student loans in bankruptcy. You can’t wipe out student loans. Student loan debt is NOT dischargeable in bankruptcy. (Though more people are calling for the laws to be changed to allow discharging student loan debt in bankruptcy.)
Well, not so fast my friend.
In a chapter 7, or chapter 13, bankruptcy if you prove it would be an undue hardship for you to have to re-pay your student loans, you can get them discharged.
In the 6th Circuit, where the Detroit, and other, Michigan bankruptcy courts are located, you can even get a partial discharge. That is, the court can calculate how much of the student loan debt it would be a hardship for you to be required to pay, and, discharge the rest of the debt.http://stopcreditor.com/wp-admin/post-new.php
Factors considered are: have you made a good faith effort to pay on the loans?
Or did you just get out of school and file bankruptcy right away.
If you have to pay your student loans, can you maintain a minimal standard of living? Would you and your family suffer hardship if you are forced to pay all the student loan debt?
Is this situation permanent? Will your financial condition persist?
Obviously, if you are permanently disabled, and cannot work, you have a good case for discharging student loan debt.
You still have to file the lawsuit, against each entity holding one of your student loans, and prove your case.
What if you can work, but not enough to pay all the debt?
The obvious factors apply.
What income are you earning, and, will be likely to earn in the future, given your job skills and experience?
Many of the people I talk to cannot get a job in the field of their degree, the one for which they owe so much money. Many college students drop out but still owe for the time they were in school.
Are there unusual expenses you or a dependent has, that will impair your ability to repay student loan debt?
I have successfully represented people in lawsuits discharging student loan debt.
If you are stuck, it is certainly worth investigating.
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