WILL BANKRUPTCY GET RID OF MY STUDENT LOANS?

WILL BANKRUPTCY GET RID OF MY STUDENT LOANS?

Most student loans cannot be discharged by filing bankruptcy in the U.S.; however, according to 11 U.S.C. sec. 523(a)(8) there are two different exceptions that may allow this rule to be lifted.


First, if the student loan is not insured or assured by a governmental unit, then it may be discharged. If it has been made under any program that was funded in any way by a nonprofit institution or governmental unit, it can NOT be discharged.

Second, student loans may have the possibility of being dismissed if it will create "undue hardship" on the debtor or their dependents. The courts may look at the debtor's poverty level, if their financial situation is not going to improve anytime soon and if they have tried everything in their power to repay their debt. If the court does decide to grant student loan dismissals based on this factor, it is either an all or nothing decision. They will reject the request or discharge the entire amount.

CALL THE DAVID MCCORMICK LAW GROUP FIRST!

If you are struggling with insurmountable debt, allow our Virginia Beach bankruptcy lawyers to help you come up with options. Whether bankruptcy is the right course of action or another alternative would prove to be more profitable, our team can assist you in making the right decision for your unique situation.

Having helped over 17,000 clients in the past 17 years, we have seen nearly everything. There is no case too complex for us to handle. Call our office for a free consultation and alleviate some of the stress you may be under. We offer payment plans and affordable legal solutions so that you can move forward with your life.

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