Being overwhelmed by debt that seems insurmountable is not an easy place to be.
If you are in student loan debt and are also thinking about bankruptcy, it’s important to learn about your options and not give up hope.
Getting student loan debt discharged in bankruptcy is difficult, but not impossible. In fact, student loans may be dischargeable if they cause undue hardship.
The relationship between bankruptcy and student loans is a complex one.
In trying to better understand these complexities and decide whether it’s possible for your student loan debt to be discharged in bankruptcy, it’s important to understand the Brunner Test.
Since Congress passed the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005, it’s become much more difficult to get federal or private student loans discharged in bankruptcy when compared to other types of debt.
They can, however, still be discharged if you can prove the loan causes undue hardship.
While undue hardship is a rather arbitrary term that can be defined by the courts in various ways, borrowers often need to pass the Brunner Test in their efforts to have their student loans discharged.
This legal precedent is based on a 1987 federal court decision and often serves as the benchmark for determinations of bankruptcy and student loans.
The three aspects of this test dictate that you must prove:
In trying to prove that your student loans pass the Brunner test, and prior to seeking the legal advice of an attorney, it’s also important to consider the following.
If you are struggling to afford your student loan debt, contact the lawyers at Parker & DuFresne. We provide compassionate guidance for those struggling to make ends meet.
We understand, and we can help you. Contact us today.
Parker and DuFresne