With honesty and integrity, the Campbell Law Firm Family is dedicated to being a leader in our profession by providing our valued clients with dependable and effective legal services. We focus our practice on assisting individuals and businesses that are in financial difficulty.
Although it is can be challenging to discharge student loans in bankruptcy, it is certainly not impossible if you can demonstrate to the Court that to repay
them would cause undue hardship to you. The Court requires a debtor to meet all of the
following three criteria in order to discharge a student loans:
(1) that the debtor cannot maintain, based on
current income and expenses, a “minimal” standard of living for yourself and your dependents if forced to repay the loans;
(2) that 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; and
the debtor has made good faith efforts to repay the loans.
If you want to try to
discharge a student loan in bankruptcy, we will need to bring a separate action
within the bankruptcy case.
In the complaint, we can ask the Judge to rule that
your student loan is dischargeable.
If you have questions about whether you might be eligible for a discharge of your student loan debt, please all our office and set up a free consultation to discuss your situation. There are various options available to deal with your student loan debts inside and outside of Bankruptcy. Please also see the following primer designed to provide an introduction to student loan debt: http://www.scb.uscourts.gov/pdf/initiatives/SLDPrimer.pdf