Discharging Student Loans During Bankruptcy
When you file for bankruptcy, certain debts might be able to be discharged in order to alleviate the burden it will place on you. While it is not always possible to discharge student loans, it can be accomplished under certain circumstances. The attorneys at Lynch & Belch P.C. in Indianapolis can take a look at your financial situation to determine if your student loan debts can be wiped out. Discharging student loans is generally an all-or-nothing decision, but there may be some cases where part of the loan can be taken care of.
Generally speaking, student loans can only be discharged if it can be proved that the debtor will suffer an undue hardship. You need to demonstrate that having to pay off those loans will prove to be an immeasurable burden on your life, and this can be accomplished by following the Brunner Test. This involves meeting all these factors:
- Good faith: You have made significant efforts to pay back your student loans.
- Poverty: Your current expenses and income will be examined, and if having to pay back your student loans would cause you to live under the minimal standard of living, then those loans may be discharged.
- Persistence: Your financial situation will be examined to see if it is likely to last for the foreseeable future.
Other tests can also be performed; have one of our lawyers review your financial situation to see if you qualify for a discharge.
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Some people will be able to find relief from their student loans while others will not, but the only way to be certain is to call our attorneys at 317-888-0006 to see what your options are. You can also contact us about discharging medical bills during bankruptcy. We have been helping people in Indianapolis, Greenwood and Terre Haute file for bankruptcy since 1993.