Facing financial difficulties is stressful, especially when it is tied to student loans. It can also be confusing to know what avenues are available to help reduce or eliminate your student loan debt. You may be wondering if filing for bankruptcy will eliminate your student loan debt. The good news is that it is possible to have your federal student loans discharged. So, how does filing for bankruptcy affect your existing student loans? 

Student Loans in Bankruptcy

Most people are unable to wipe out student loan debt through a Chapter 7 or Chapter 13 bankruptcy. However, this does not mean that it is not possible. First, you would need to file an adversary proceeding. If a court finds that repaying your student loans will create undue hardship on you and your dependents, then it can be discharged through your bankruptcy. This is often determined by the court by using the Brunner Test.

What is the Brunner Test?

The Brunner test is a means of determining if continuing to repay your debt will lead to undue hardship for you and your dependents. You will also need to show that you have made efforts to repay your student loan(s) back.

You will need to speak with an experienced bankruptcy attorney to better understand the bankruptcy process and how it can impact your debt. So, our recommendation is always to “shop around” and meet with different attorneys.

Other Options

Be advised that there are other ways to take control of your student loan debt. There will be instances when pursuing a bankruptcy may not be the best choice for your situation. But, how will you know? Take time to research forgiveness programs and bankruptcy attorneys. Take the time to meet with either option and learn about what options are available to you. Be sure that you choose the best fit your current situation.

Still Unsure What To Do?

At the Law Office of Daniela Romero, we believe in relationships that are based on trust. Before we work together we would like to get to know you and we would like you to get to know us. This is to make sure you are the right fit for us and that we are the perfect fit for you, so that you can be completely comfortable sharing even the most intimate and difficult details of your case with us so we can offer you representation to the fullest extent of the law.

If you are worried about your student loan debt and want information about what you can do to reduce or eliminate it entirely: Call our office today to schedule a consultation. Let our office go over the best options for you to take control of your financial situation.