How to Discharge Student Loans in Bankruptcy

If you take out student loans every semester, then the amount can accumulate fast. You do not have to pay for student loans until after college. It is important to only take out what you need. After college, you can start to feel the burden of paying students loans when you have other expenses. Read on to find out how to discharge student loans in bankruptcy.

Hire an Experienced Lawyer

If a lawyer tells you that student loans cannot be discharged in bankruptcy, then he or she is not experienced in this area. It is true that discharging student loans are not as straightforward as filing a regular Chapter 7 bankruptcy. However, you have to show undue hardship on you and your dependents. It is a good idea to consult with a bankruptcy lawyer in Pittsburgh to learn about the pros and cons.

Pass the Brunner Test

The courts use different tests to evaluate the whether a borrower shows undue hardship. The Brunner is one of these tests. It requires the borrower to show three things to show hardship. The debtor must be unable to maintain a minimum standard of living based on their current income. Second, additional circumstances must exist that will carry out while paying for the loans. Finally, the debtor must also have made good faith efforts at repaying the loans.

Get Supporting Evidence

You have to show evidence of your income and monthly bills. If you have children and are living on one income, then these things can show difficulty of maintaining a minimum living. Examples of additional circumstances are a divorce, health problems or losing a job. If you are going through a divorce, then it is going to be difficult to maintain the same standard of living.

Many loan companies try to accommodate borrowers with financial problems. If you are having problems making payments, then you should tell your lender. It shows you are attempting to pay your debt.

Filing for bankruptcy protects you from collection actions on your debts. If you can successfully prove undue hardship, then your student loans are completely cancelled.