Want to pursue higher studies? Earlier, people used to fund higher education through their family savings or selling their assets like land and gold and some of them used to borrow money from their friends and relatives. But, the educational expenses are rapidly rising and it is almost impossible for students to pursue further studies without borrowing money. When you apply for an educational loan, you are very young and generally don’t fully understand the implications of it, so it is advisable to hire a lawyer who can explain as to how a student debt differs from all the other types of debts. Yes, you may take the loan thinking that you will payback once you graduate and start earning, but sometimes due to certain circumstances you are not able to complete your graduation, so what happens to the loan taken?
Can you Discharge your Student Loan Debt in Bankruptcy?
Well, a plain answer for this would be “NO, but not impossible.” An experienced Portland student loan debt lawyer would be able to explain how a student loan law works. If you want to discharge your student loan in bankruptcy, then you will have to show and prove to the Courts that payment of this loan debt would impose undue hardships on you. The Courts will use different tests to determine whether you have shown undue hardship or no and one such test is the Brunner test.
– According to the Brunner test, you will have to prove that if you are forced to repay your student loan then you and your dependents cannot maintain the basic standard of living based on your current income and expenses. You will also have to put forward the facts that despite your best efforts this state of affairs is going to remain true for a portion of your repayment period of your student loan.
With the help of an experienced Portland Student Loan Debt Lawyer, if you are able to convince the bankruptcy judge of undue hardship, then the Courts may grant a partial discharge, more favorable repayment terms or may even completely cancel your student loan. Now, isn’t that some relief for the debtor?
Is filing for bankruptcy in a student loan the best and the only option for you? Agreed, that filing for bankruptcy will put your creditors at bay, which means they cannot take any collection action on your student loan debt; at least not till the case of bankruptcy is resolved in the Courts. So, best would be to consult your bankruptcy attorney to understand all the implications and repercussions associated with declaring yourself bankrupt against your student loan.