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How to Discharge Your Student Loans

In Las Vegas there were over 20,000 bankruptcy filings from 2015 to 2017. It is estimated that less than 1% of the bankruptcy filers received any relief from their student loans. For some, they were told that student loans are not dischargeable, or they don’t qualify for the discharge or were never told anything about their student loans Did you know that in some cases, you can eliminate or reduce your student loan debt in bankruptcy court?

Once you file bankruptcy, you may seek to discharge your student loans by filing an “adversary proceeding”. An adversary proceeding consists of filing a complaint in bankruptcy court seeking to have your student loans discharged because the repayment would impose an undue hardship on you.

The bankruptcy court examines a variety of factors to determine undue hardship. Such factors include (1) you are unable to maintain a minimal standard of living for yourself and your dependents if you are required to repay your loans; (2) your current financial situation is likely to continue; and (3) you made a good faith effort to repay your student loans.

If the bankruptcy court determines that such repayment would cause undue hardship, then your loans could be discharged (you do not have to repay them) and in some cases, the court may partially discharge your loans (you will be required to pay some but not all).

What if you filed bankruptcy and your case is closed, but you were never aware of the procedure to discharge your student loans? It may not be too late. The bankruptcy court is a court of equity and in the right situation, you may be able to seek to reopen your bankruptcy case for the purpose of filing the adversary proceeding.

Isn't it time for you to find out if you can get rid of that student loan debt?

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