If you have student debts or student loans there is a very good chance that you are in a situation which is quite similar to other members of the American public. It’s estimated that the average college graduate back in the year 2016 had over $37,000 in student loans that had not been paid.
Most lenders are willing to work with recent graduates so that there can be extremely flexible repayment plans on the debt. What happens to many recent graduates is that they are completely unable to pay back the money that they borrowed while they were in school. Many recent graduates also find themselves in need of other expenses like vehicles, rent values as well as credit card debt. When many recent graduates find it difficult to cover the cost of their student loans they often turn to the idea of bankruptcy to solve the problem.
Student loans with bankruptcy:
A student loan can be discharged but there has to be certain conditions met by the person filing for bankruptcy. A borrower has to have made an ongoing effort to pay down the student loan balance and they need to be able to demonstrate that they are unable to meet the minimal standard for living while they are paying off the balance. If a person can demonstrate that there would be a difficulty in continuing to repay the loans especially for their foreseeable future, this can suggest that it is the optimal time for bankruptcy.
If you are trying to pay down your student loans and you’d like to know more about discharging some of your balance with bankruptcy there are a few main steps that you’ll want to look into. Make sure that you have all of the ongoing records of your student loan back and make sure that you meet the terms of eligibility for the discharge. Keep in mind that you can also work at discharging loans for items like enrollment costs, registration fees, books and tuition.
This post was written by Trey Wright, a bankruptcy lawyer in Tallahassee. Trey is one of the founding partners of Bruner Wright, P.A. Attorneys at Law, which specializes in areas related to bankruptcy law, estate planning, and business litigation.