Many students with student loan debts in Schaumburg, Chicago, Joliet and
Warrenville area want to know how if it is possible to discharge student
debts. Then asked this question, the experienced Schaumburg Bankruptcy attorneys
at Chang and Carlin tell students that laws appear to be softening, which may
enable them to discharge their student loan debts and lead a tension free life.
In the past, student debts were
unforgivable regardless of the student’s financial situation. If you had
student loans, they’d be with you until you paid them off. But now, it may be
possible to get rid of your student loans in bankruptcy if can prove that
repaying your student loans would cause an ‘undue hardship’ to you.
According to the experienced Chicago
Bankruptcy lawyers at the law offices of
Chang and Carlin, there are some ways to prove that:
The
Brunner’s test
Some courts require you to take ‘the
Brunner’s test’ for determining
whether a student loan is dischargeable in bankruptcy based on a claim of undue
hardship. One needs to prove the following things:
Poverty:
That the debtor cannot maintain, based
on current income and expenses, a minimal standard of living for the debtor and
dependents if forced to pay off student loans.
Persistence:
The additional circumstances exist
indicating that this state of affairs is likely to persist for a significant
portion of the repayment period of the student loans.
Good
Faith: That the debtor has made good faith
efforts to repay the loans.
Totality
of circumstances test
Some courts may ask you to
take-‘Totality of Circumstances Test’. Here, the court will look at all
relevant factors in your case to determine if it is an undue hardship for you
to repay your student loans.
How
to prove undue hardship
If you want to try to discharge your
student loans in bankruptcy, you must file a formal complaint with the
bankruptcy court, called a Complaint to Determine Dischargeability. It is then
up to you to prove to the court that payment of your loans will cause an undue
hardship on you.
This student loan debt outlet is by no
means fully established, as it has only prevailed in a few instances. However,
if your student debt is crushing you and you meet the above criteria, it could
be worth looking into with a Chicago Bankruptcy attorney.
Free
Debt and Bankruptcy Consultation
Our experienced bankruptcy
lawyers in Chicago can help you determine
if you can discharge your student debt and will work with you to get your
finances under control. For more information on Bankruptcy law or to schedule a
FREE initial bankruptcy
consultation,
contact Chang and Carlin, LLP today!
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