Can Filing for Bankruptcy Help with Student Loans?
For many people, filing Chapter 7 bankruptcy can help them get their financial situation in order. But this may not be the case for those who are facing mounting student loan debt. The hard truth is that discharging student loans is very difficult. To discharge student loans, you must prove you would experience substantial “undue hardship,” meaning you could not maintain a minimal standard of living if you paid off your loans. Our team can help you determine whether a student loan debt discharge may or may not be worth pursuing.
Filing could be worth it for you if you meet the following three criteria:
- Continuing to repay your student loans will cause you to fall below the minimum standard of living
- Your financial situation is unlikely to change in the future
- You’ve made a good faith effort up to this point to repay the loan
If you cannot discharge your student loans through Chapter 7 bankruptcy, another chapter may be more suitable. If you have a substantial amount of other types of debt, for example, Chapter 13 could help you establish a reasonable repayment plan and catch up on delinquent payments.
Get the Help You Need. Call for Help in Orange County & Southern California.
Contact one of our Irvine student loan debt attorneys at McFarlin LLP today to discuss the options for your debt elimination case and find relief from your student loan debt.