Student loan debt can follow you for many years, making it difficult to have money left over to pay other bills or save for the future. Unfortunately, student loans are typically not eligible for discharge in bankruptcy. There may be other ways that bankruptcy can help you, however.
To learn more about possible debt relief solutions and what debts can be discharged, speak with a lawyer at Prescott & Pearson, P.A. Our firm has provided bankruptcy representation in Minnesota for more than 40 years.
Will Bankruptcy Help?
Student loans are considered unsecured debt, but they are not dischargeable unless you meet the requirements for a hardship discharge. You must prove that repaying your student loans would cause an undue hardship as defined by federal law. It is extremely difficult to receive a hardship discharge unless you are permanently disabled or have another severe issue that prevents you from working or working to your full potential.
In the majority of cases, student loans will not be discharged in any chapter of bankruptcy. However, if your other debts are dischargeable or if they can be restructured into a repayment plan under Chapter 13, bankruptcy may be an option. By reducing your other obligations, you may be able to repay your student loans.
National Student Loan Data System (NSLDS)
You can contact the National Student Loan Data System (NSLDS) to get a free breakdown of all of your outstanding student loans. Another source for help is IBRinfo.org. It gives helpful information about income-based repayment options for your student loans.
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- Minneapolis-St. Paul Area: 651-968-8096
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We have experience finding ways to help people regain control of their finances and get a fresh start. Call 651-968-8096 (toll free at 888-366-0827) or email us to schedule a free consultation.
We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.