Are you the 1 in 4 adults with student loan debt? Many people pay their student loans each month, but they see no end in sight. Interest continues to accrue, and some people may end up paying down their loans for the rest of their lives.
If you’re unable to pay your student loans without facing undue hardship, you may be able to discharge your debt by filing for bankruptcy. Only an experienced bankruptcy attorney can help you take the necessary steps to prove your hardship in court.
Why Student Loans Never Go Away
With college tuition at an all-time high, many individuals need student loans to pay for their tuition each semester. What they don’t realize, however, is how difficult these loans are to pay in full. Interest rates continue to stack up, so very little of each payment is actually applied to the principal. People may pay for decades, only to discover that a very small percentage of their loan has actually been paid off.
How to Prove Undue Hardship
The only way to get a student loan debt discharged through bankruptcy is by proving an undue hardship. The debtor must prove to a bankruptcy judge that paying the loan is keeping them in poverty. While this is difficult to prove, it’s not impossible. Hiring a bankruptcy attorney is the best solution.
There are many things a bankruptcy attorney can prove to the judge:
- Student loans are preventing the debtor from living above the poverty line.
- The debtor’s current financial status is not likely to change in the near future.
- Regular payments have been made in an attempt to pay down the loan.
Steps to Take Before Filing for Bankruptcy
In order to get student loans discharged, the court will need to see that you’ve made a good faith effort to repay your loans. Consider calling the student loan lender to negotiate a lower monthly payment based on your current income. Many lenders are willing to adjust payment plans.
Hire a bankruptcy attorney who has a track record of getting student loan debts discharged. It’s important to choose a lawyer who is familiar with all of the current laws and regulations. Your lawyer will present a fact-based case to the court, showing that you’re facing undue hardship because of your student loans.
Don’t be ashamed if you’re struggling to pay off your student loans. Seek legal assistance if you need to file for bankruptcy. An experienced lawyer will guide you through the entire bankruptcy process, so you’ll know exactly what to expect every step of the way.