Can I discharge student loans through bankruptcy?

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Filing for Bankruptcy to Discharge Student Loans

Huntsville Bankruptcy Lawyers | Crumbley-Blackwell & Associates, P.C.

If you’re considering bankruptcy to eliminate student debt – you may want to reconsider. In most bankruptcy cases – student loans are not forgiven, according to U.S. Bankruptcy Code Section 523 (a)(8). There are some instances, however, that the courts have allowed student loan debt to be discharged citing undue hardship. Undue hardship is defined as any action that causes significant expense or difficulty. The bankruptcy courts in Alabama will assess your case based on three questions that help determine whether your student loan is causing undue hardship.

  1. Will your student loan debt cause you to live below minimal standards?
  2. Will your hardship continue as long as you have to repay said loan?
  3. Have you attempted to repay the loan (in good faith) for at least 5 years before you filed bankruptcy?

If the court determines that these things are true – allowing for student loan debt to be discharged will be considered.

Have questions about chapter 7, chapter 13, or a related bankruptcy case? Schedule a consultation with a bankruptcy attorney from our team. During your initial consultation – a lawyer from our team will meet with you to discuss the details of your case, answer any questions, and advise you of which path will lead to a desired outcome. Get started today by calling (256) 539-4464 or completing a case evaluation form online.

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