Student loans seem to never go away. You head off to school to get an education, and whether or not you leave with a degree, there’s a high chance that you’ll have student loans to repay. It may seem as you if you are alone in your hardships, but the statistics for student loan debt in America are staggering and don’t seem to be improving anytime soon. As of 2018:
- S. student loan debt is $1.48 trillion
- Roughly 44.2 million former students live with student loan debt
- $74.9 billion of student loan debt is in default
- $535.6 billion of student loans is in repayment
Living with student loan debt has become the norm for millions of Americans, but it does not have to be. Through bankruptcy, you can dismiss your student loans, allowing you to put an end to frequent debt collection calls, improve your credit, and better your chances of getting a loan approval for a home or car. The Louisiana student loan bankruptcy attorneys at E. Orum Young Law Offices can guide you through the bankruptcy filing process.
The Process of Discharging Debt in Bankruptcy
Many people are under the false impression that it is impossible to discharge student loans in bankruptcy. Discharging student loans is possible, but more likely to happen with the help of a bankruptcy attorney. He or she will inform you that you must first prove undue hardship. Courts interpret undue hardship differently, but it relies on one’s ability to “pass” the Brunner test. Coming as a result of a 1987 court case, the Brunner Test checks for the following:
- The extent of your financial troubles
- If you made an honest effort to manage finances before filing for bankruptcy
- If you will be able to maintain a “minimal standard of living” while repaying the loan
Another major factor in the courts’ decision-making process is whether you are pursuing bankruptcy in good faith. They are more likely to cancel the student loan debts of an individual who has attempted to improve their finances by aggressively pursuing higher wages, rather than someone who allowed debt to pile on without taking action. Many factors can affect the success of your student loan bankruptcy, which is why you should consult with an experienced Louisiana attorney before filing.
How A Student Loan Bankruptcy Attorney Can Help
The student loan bankruptcy attorneys at E. Orum Young Law Offices can assess your circumstances and inform you if you can benefit from filing for bankruptcy. We can also ensure that debt collectors halt all collection efforts during the process and are dealt with accordingly if they refuse to do so. Contact us today for a free case evaluation. Our Trial Guarantee ensures that we will take your case to trial per your request.