Student Loans in Bankruptcy
It is not easy to get rid of student loans in bankruptcy. If the loans are public loans, you have to prove “substantial hardship”. This has been difficult because of a case called “Brunner”. Under this case, you had to prove that your situation was pretty hopeless. Fortunately, courts are looking at this more leniently now. More and more frequently, public student loan lenders are settling these kinds of cases rather than facing a bad precedent. Don’t give up hope.
Administrative Discharge for Hardship
We have had success in eliminating public student loans if you can establish through your medical provider that you are so far disabled that you cannot make payments under the loan. In such cases, you can avoid bankruptcy altogether.
Relief from Public Loans
There are a variety of programs that are available for relief of public loans including Income Based Reduction and other settlement vehicles. The climate for relief from student loans is favorable. Don’t give up hope. We know the players and we know what to do. For example, public service debt forgiveness has been a giant catch-22. There’s new hope for such borrowers today!
Relief from Private Loans
Recent court decisions have revolutionized this situation! If your private loan covered things beyond tuition and books, like living and travel expenses, for example, there is a very good chance that the loan now can be discharged, in full, in bankruptcy. If this is your situation, contact us. We can help!