Bankruptcy & Student Loan Debt
Generally speaking, student loan debts cannot be discharged in bankruptcy. Bankruptcy can be declared, but it is likely you will still need to pay these loans after the process is over. However, there are certain circumstances under which student loans can be eliminated in bankruptcy. Typically, these circumstances require that you have significant debt from other sources, not just student loans.
At the Law Office of Andrew B. Finberg, LLC, our New Jersey bankruptcy attorneys have decades of experience guiding people through the bankruptcy process. We are passionate about helping people regain financial stability through debt relief. We will work diligently to address your student loan debt as well as any other debt that you may have accumulated over the years.
Understanding Bankruptcy and Student Loans
Student loans have become one of the most common forms of debt in the country. In 2012, the amount of outstanding student loan debt exceeded the amount of credit card debt in the U.S. for the first time. That is a trend that seems likely to continue. As your lawyers, we are prepared to evaluate your overall debt and create a plan for dealing with it in a productive way.
When it comes to student loans and bankruptcy, there are a small handful of potential outcomes:
- Your student loan debt is dischargeable because you can prove that you have an extreme financial hardship. The hardship does have to be extreme. For example, if you are unemployed because you cannot find a job, that would probably not be considered extreme. If you cannot work at all because of a disability, that would be extreme.
- Even if you do not have an extreme hardship, filing a Chapter 13 bankruptcy can give you some benefit because the filing will place your student loans into a forced deferral status. You will still have to make your payments when bankruptcy ends, but you will be caught up on other loans by that time.
- You can file Chapter 7 bankruptcy to eliminate other debts, freeing up money to pay student loans. Student loans are not deferred upon filing Chapter 7.
We are committed to doing what is best for you, including communicating with you honestly and openly. We will do our best to help you deal with student loan debt and any other debt that may be causing you difficulty.
Contact New Jersey, Lawyer About Student Loan Deferrals
To talk about the student loan hardship discharge and what a bankruptcy filing can and cannot do for you, please call the Law Office of Andrew B. Finberg, LLC, at (856) 988-9055 or contact us online. Your initial consultation is free. We offer flexible payment plans for your convenience.
The Law Office of Andrew B. Finberg, LLC is located in Marlton, New Jersey and provides skilled legal counsel to individuals needing help with bankruptcy in Cherry Hill, Voorhees, Mount Laurel, Morristown, Maple Shade and serves Burlington, Camden and Gloucester Counties.
We are a debt relief agency. We help people file for relief under the U.S. Bankruptcy Code.