Can Student Loans Be Discharged in Chapter 13 Bankruptcy?
Many people wonder: Can I discharge my student loans in Chapter 13 bankruptcy? Americans owe over $1.4 trillion in student loan debt. Student loan debt surpasses credit card debt by about $620 billion. In fact, the average graduate from the class of 2016 finishes college with $37,172 in student loan debt.*
Student loans, by and large, are not dischargeable in Chapter 13. The court would only grant a bankruptcy discharge of your student loans under extremely special circumstances, called “undue hardship.” The burden of proof falls on the Debtor to prove this undue hardship, and few have been successful.
What Are My Options If My Student Loans Aren’t Dischargeable?
Before you can determine if your student loans are eligible for bankruptcy discharge, you should understand your situation. You must have all of your student loan records and financial paperwork to successfully make a case. This is where it is invaluable to enlist the help of a trusted bankruptcy attorney. The bankruptcy process is complex and without the help of an attorney might result in extra time, incorrect filing, or a lost case.
If you owe student loans, this is normally how it works: Your student loan company should file a claim to be paid through your bankruptcy. Depending on the amount you owe, you will probably only pay some of that claim back. Student loan balances might be too large to pay in full in just five years, so you’ll typically only pay part of the loan through your Chapter 13 plan. This means you might still need to make payments on your student loans after your Chapter 13 bankruptcy is over.
Middle Tennesee’s Top Bankruptcy Attorneys
Bankruptcy is complex, and the process can be difficult to navigate without a trusted bankruptcy attorney. When making the decision to file for bankruptcy, the experienced attorneys at Flexer Law will guide you through the process with ease and confidence to provide you with the best options.
Flexer Law has been serving the legal needs of Middle Tennessee residents since 1981. Our experienced bankruptcy attorneys will work diligently on your behalf to provide the best financial outcome for you.
We have three office locations throughout Middle Tennessee to accommodate your legal needs. Contact us for a free consultation, either in person or virtually, and we’ll get started on finding the best solution to get your financial life back on track.