Can I Discharge My Student Loans In Bankruptcy

Generally, a student loans bankruptcy is not allowed; however their are some cases in which some or all of a debtor's student loan debt can be discharged. You should consult an attorney about the viability of discharging student loans in bankruptcy. Student loans add up, especially if you decided to go to an expensive school or pursue a graduate degree. Some people end up owing the equivalent of a mortgage in student loan debts, and that can take a lifetime to pay back. If you are not making much money due to the down economy, job loss or other circumstances beyond your control, it can be difficult to make even low monthly loan payments and still keep a roof over your head and food on the table.

Discharging Student Loans in Bankruptcy

In most cases, you cannot discharge your student loans in bankruptcy, but you should consult an attorney to make sure that your case does not fall within an exception. Also, there may be other remedies if you are not making enough money to pay your monthly required loan payments.

Consider whether any of the following exceptions or alternatives can help relieve you of some or all of your student loan debt:

• Some lenders have special payment plans for individuals who have such low incomes that they cannot make the required regular monthly payments. This type of plan is dependent on income, and you must work with your lender to determine whether they offer such a program, and if so, whether you qualify for it.
• Deferment or forbearance are also options for some debtors. These are generally only allowed for a certain amount of time and will depend on whether your loans are federal or private. Your income will determine eligibility.
• If you can demonstrate hardship for you and/or your family caused by your student loan debts, you may have a shot at getting them discharged through bankruptcy. This is handled on a case by case basis and will depend on your financial situation, health, likelihood you will be able to make good on the loans in the future and other circumstances the court considers appropriate.

Getting Legal Help

If you have questions about your financial situation and the possibility of filing for bankruptcy on your debts, an experienced bankruptcy attorney can assist you with your questions. An attorney will help you decide whether bankruptcy is right for you given your circumstances.