student loans and bankruptcy

The most frequent answer to whether or not an individual’s student loans can be discharged through bankruptcy is, unfortunately, no.

With that being said, in very specific circumstances it is possible for student loans to be discharged through bankruptcy. When an individual files for either Chapter 7 or Chapter 13 bankruptcy and wishes to have their student loans discharged, that individual would have to show that the repayment of the student loans would impose an “undue hardship” on the individual and his or her dependents.

The decision as to whether or not the loans constitute an undue hardship is made at an adversarial proceeding in bankruptcy court and the individual’s creditors may be present to challenge the request.

At the adversarial proceeding, the individual would have to show all three (3) of the following:

  1. If an individual is forced to repay the loan, he or she would not be able to maintain a minimal standard of living;
  2. There must be evidence that this hardship will continue for a significant portion of the loan repayment period; and
  3. The individual made good-faith efforts to repay the loan before filing bankruptcy, which usually means the individual has been in repayment for a minimum of five years.

Whether or not an individual’s student loans can be discharged can only be determined on a case by case basis. Although difficult, if an individual can show the above three (3) requirements apply to their situation, discharging student loans is possible.

Contact Moseman Law Office, LLC

The attorneys at Moseman Law Office, LLC understand Bankruptcy laws, and they can help you find the best course of action for your situation. If there is a way to lighten your load, the attorneys at Moseman Law Office, LLC will figure it out. Contact us today and let us help you with your bankruptcy case today.

We are a debt relief agency.

We help people file for bankruptcy relief under the Bankruptcy code. The laws governing legal advertising in the state of Ohio require the following statement in any publication of this kind: “THIS IS AN ADVERTISEMENT.” This web site is designed for general information only. The information presented at this site should not be construed to be formal legal advice nor the formation of a lawyer/client relationship.

 

Moseman Law Office, LLC

Moseman Law Office, LLC is a full-service legal firm located in Mentor, Ohio, serving all of Northeast Ohio and providing personalized legal solutions to its clients.


Contact Us

Moseman Law Office, LLC
8500 Station St., Ste 210
Mentor, OH 44060
Phone: (440) 255-0832