Student Loans and Bankruptcy: 4 Things You Need to Know
In the United States, the average college student graduates with more than $20,000 in student loan debt. This is considered to be an investment, based on the expectation that a college degree will lead to higher paying jobs which will eventually allow the student to pay off this debt. Unfortunately, many college graduates have difficulty finding employment and consequently cannot afford their student loan payments. For some of these students, bankruptcy may be a viable option to returning to financial freedom.
If you or someone you know has significant student loan debts on which you can no longer afford to make payments, you should speak with a qualified legal professional to learn more about whether bankruptcy might be the right option for you. Contact the Boca Raton bankruptcy lawyers of Eric N. Klein & Associates, P.A., at 561-353-2800 to speak with an experienced member of our legal team.
Important Information about Student Loans and Bankruptcy
The following are some important considerations regarding student loan discharge during bankruptcy:
- Student loans can only be discharged if they represent an “undue hardship” for the debtor
- The number of dependents an individual has can significantly affect the decision regarding their case
- Having made a good-faith effort to pay off your loans can improve your chances of successful debt discharge
- You must file a petition called an adversary proceeding to have student loan discharge considered during bankruptcy
If you are considering attempting to have your student loan debt discharged through bankruptcy proceedings, you should keep these considerations in mind.
Contact Us
While bankruptcy may have negative connotations for many people, it is actually a useful tool for many debtors to return to a normal life that is free from excessive financial worry. Contact the Boca Raton bankruptcy attorneys of Eric N. Klein & Associates, P.A., at 561-353-2800 today to learn more about how bankruptcy may benefit you.
