Can I get rid of student loans through bankruptcy?

If you're struggling to pay back your student debt, then you may be looking for some debt relief options. Often, people will turn to bankruptcy to discharge their debt; however, before trying to do so, there are a few things that you need to know:

1. Your student loans cannot be discharged in bankruptcy unless they cause undue hardship. 
   While paying back a five figure loan may feel like undue hardship, the courts define undue hardship as living under the minimum standard of living. In addition to having a minimal standard of living, you must also show that you have made a good faith effort to pay back your student loans in the past and that you will maintain a minimum standard of living in the future.
2. You may not need to file bankruptcy to discharge your student loans.
   Non-bankruptcy options are available when it comes to student loans.  You may be able to pursue one of the may administrative remedies.  For example, federal student loans can sometimes be administratively discharged if your school closed-down during your attendance, if you are permanently disabled, if you are employed in specific public service jobs or if you are a relative of a victim of the 9/11 attacks.  You may also find relief under the various repayment plans that exist for federal student loans. What you pay under these plans is typically based upon your income. Examples are the Income Contingent Repayment plan, the Income Based Repayment plan or the Pay-As-You-Earn payment plan.
3. You must take extra steps to discharge your student loans in bankruptcy. 
   In order to discharge your student loans in a bankruptcy, your bankruptcy attorney must first file an adversary proceeding which is a separate lawsuit within your bankruptcy and it is filed against the student loan creditor.  Please keep in mind that this area of law is extremely complex and requires the attention of a seasoned bankruptcy lawyer that has worked with student loan debts in the past.  You can expect your bankruptcy attorney fee will be substantially higher if an adversary proceeding is filed.

Retaining an attorney who is experienced with discharging student loan debt is worth it. Without success, you may be left paying off your debts for years and years to come, all the while interest keeps accruing. Get a fresh start today! Contact Sapinski Law Office, S.C. to find out your bankruptcy and non bankruptcy options.