Can You Get Rid Of Student Loans In Bankruptcy?
Can you get rid of student loan debt in bankruptcy? This is a common question asked of bankruptcy attorneys for the simple reason that Americans owe an estimated two trillion dollars in loans incurred for schooling. If you are one of those people who went to college and ended up owing $10,000, $20,000, $30,000 or even more to Sallie Mae or another student loan lender, you know how difficult it can be to survive financially. Paying back student loans can be nearly impossible especially when career jobs are difficult to find, the degree you earned may not be in demand, or you never actually obtained a degree after several years of schooling. In fact, many people carry student loan debt that they will never be able to repay. The result is that you will never be able to build a secure financial future. That’s a very bleak prospect, indeed.
Student Loan Debts Can be Discharged in Chapter 7 or Chapter 13 Bankruptcy if Paying it Back Would Cause You Undue Hardship.
Contrary to what you may have heard, student loan debt is dischargeable in bankruptcy. Bankruptcy law provides that student loans may be discharged (wiped out) if requiring you to pay it back would cause you “undue hardship”. What you have to demonstrate to the Bankruptcy Judge is that it is more than just difficult to repay; it must be nearly unfair under the circumstances. In the U.S. Bankruptcy Court in the Northern District of California, Santa Rosa Division, our Judge presides over all cases filed for people who live from the Golden Gate Bridge to the Oregon border, and west of I-5. My Chapter 7 and Chapter 13 Bankruptcy clients are from Sonoma County, Marin County, Mendocino County, and Lake County. Bankruptcy law allows you to get rid of your student loan debts in Chapter 7 Bankruptcy or Chapter 13 Bankruptcy, i.e., completely wipe them out permanently, if you are physically, emotionally or mentally disabled. If you have a social security disability rating, you are presumed to be disabled, and the Bankruptcy Court Judge will allow you to discharge all of your student loan debt. For most people, discharging their student loan debt would provide a whole new financial future.
Contact an Experienced Bankruptcy Lawyer in Santa Rosa Today
If you would like more information regarding discharging your student loans, contact our experienced Bankruptcy Lawyer Brian Barta today by calling (707) 542-2844. Our law firm serves clients throughout Sonoma County and surrounding areas in Northern California.