South Florida Bankruptcy Lawyer
Discharging Your Student Loan in Bankruptcy
The time has come. The honeymoon phase of graduation has faded away with the six month grace period you are given before you have to start repaying your loans. The economy is in a slump and the job market is meek. Before you know it, you have defaulted on your student loans and have no idea how to get the situation under control.
Bankruptcy Is an Option
This is not an easy path to take, but depending on your situation, filing for bankruptcy may be necessary to manage your student loan debt. Generally you can only discharge a student loan in bankruptcy only if you can prove that repaying the loan would be a severe hardship for you. It should be noted that this standard is very difficult to meet, but not impossible.
What the Court Looks At
The court considers several factors in determining whether or not you would be faced by a severe hardship by repaying your student loan, including:
- Your income and expenses
- How long your financial problems are likely to continue
- The extent at which you have tried to repay your debt
Hard times fall on everyone, but for some of us the weight is more than we can handle. After spending years of hard work in school, your efforts should be focused on your career and not stressing on how to pay back your student loans.
Speak with a South Florida Bankruptcy Lawyer
If you are facing a financial crisis because of mounting debt from your student loans, considering bankruptcy may be your first step towards gaining control of your money and your life. Contact the South Florida bankruptcy lawyers of Eric N. Klein & Associates, P.A. at 561.353.2800.
