Can You File Bankruptcy on Student Loans?

The answer? Maybe.

Read on to learn more about your options when it comes to filing bankruptcy on student loans and how Shaw Defense may be able to assist you in doing so.

How Can You File Bankruptcy on Student Loans?

That’s a great question – and we have the answer(s) to that, too.

As student loan bankruptcy lawyers, Shaw Defense can help evaluate your situation regarding bankruptcy and student loans to see if you qualify for bankruptcy on private student loans and federally guaranteed student loans.

Dealing with bankruptcy, private student loans, and federally guaranteed student loans is not as straightforward as you may think. It’s more complicated than when filing a regular Chapter 7 bankruptcy petition. Filing bankruptcy is never an easy process. That being said, the process becomes especially complicated when dealing with student loan debt. But, under federal law, you have the absolute right to declare bankruptcy relief from your creditors if you qualify.

We can help you determine whether or not you have the option to pursue this course of action. Our defense team is skilled in dealing with bankruptcy as it relates to student loans. If you are facing garnishment of your wages in relation to your student loan, see this.

Because our methods are so unique, we’re happy to schedule a free consultation to help you determine the best way to deal with your student loan debt and whether or not filing for bankruptcy as it relates to your student loans is an option for you.

 

Your Best Bet? Find Knowledgeable Student Loan Bankruptcy Lawyers

If your lawyer tells you that your student loans are never able to be discharged in bankruptcy, he or she may not be knowledgeable in the area. Luckily, Shaw Defense is and wants to help you!

It’s true that student loans are difficult to discharge in bankruptcy – but it’s certainly not impossible. That’s why you need a lawyer who understands bankruptcy law as it relates to student loan debt.

Jed Shaw of Shaw Defense came up with a new approach to helping people struggling with student loans. If you qualify, this new program may be available to help. This is a new program can apply to most student loans — even if you are in default.

Why You Should Consider Consulting with Shaw Defense

Attorney (and former Judge) Jed Shaw created a popular alternative to filing bankruptcy years ago, and has since helped people all across America with his unique approach.

Now, he is able to apply the same process to dealing with student loan debt, and this may include both your private and federally subsidized student loans.

It’s important to note that this program:

  • It is not student loan consolidation
  • It is not a refinance
  • It is not debt settlement
  • It is not a so-called forgiveness program.

Thanks to Shaw Defense, this program is completely different if you qualify. Call to schedule a free consultation to see if you qualify today.

What Does “Undue Hardship” Mean?

Most commonly, if you can prove that repaying your student loans would cause you undue hardship, you are likely able to get rid of your student loans by filing for bankruptcy.

In order to discharge your student loans through bankruptcy, you must show that payment of the debt “will impose an undue hardship on you and your dependents.”

By law, the definition of “undue hardship” an “action requiring significant difficulty or expense” when considered with a number of other factors relating to your current student loan debt situation. Courts use different tests to evaluate whether a particular borrower has shown an undue hardship.

According to the U.S. Department of Education’s Federal Student Aid office, the factors of this bankruptcy test are as follows:

  • If you are forced to repay the loan, you would not be able to maintain a minimal standard of living.
  • There is evidence that this hardship will continue for a significant portion of the loan repayment period.
  • You made good faith efforts to repay the loan before filing bankruptcy.

What happens if I qualify for bankruptcy on student loans?

Assuming you qualify, the process depends entire on the terms of the bankruptcy court’s determination. According to the Federal Student Aid website, examples of these terms include:

  • Your loan may be fully discharged, and you will not have to repay any portion of your loan. All collection activity will stop.
  • Your loan may be partially discharged, and you will still be required to repay some portion of your loan.
  • You may be required to repay your loan, but with different terms, such as a lower interest rate.

Call Shaw Defense to learn more about filing bankruptcy on student loans. The consultation is free and could help you consider your options regarding bankruptcy and student loans. To schedule, give us a ring at 888-982-8609.

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