Free Case Evaluation

 
 
X Close
Phone Call Us 414-326-9231
608-260-7133
Toll Free 866-678-9352
Text Us 414-277-7742
You can also feel free to text us at 414-277-7742 to set up your FREE appointment with our attorneys today

Student loan debt and bankruptcy: focus on specifics of situation

Bankruptcy law is full of nuances and distinctions.

One such distinction is of course the difference between types of bankruptcy. For example, a Chapter 7 generally involves more discharge of debt compared to a Chapter 13. A Chapter 13, by contrast, involves a debt repayment plan that must be approved by the courts.

Distinctions also abound when it comes to the types of debt that can be discharged. In this post, we will discuss a common type of debt: student loan debt.

The general rule is that student loan debt is not dischargeable in bankruptcy. There are limited exceptions, however, for cases of undue hardship.

It is therefore simply not true to say student loans cannot be discharged in bankruptcy. To be sure, it is difficult. But it is not impossible.

Moreover, even though the undue hardship exception is often difficult to come by, a bankruptcy filing may still make sense for someone who is struggling with student loan debt. This is because discharging other debts in bankruptcy can help free up someone's finances to tackle payments on student loans.

Naturally a lot depends on the details of your specific situation. A number of questions logically come to mind:
• Are you already in default on your student loan or merely behind on the payments?
• Has the lender or loan servicer taken garnishment actions against you?
• Has the debt been turned over to a debt collection agency?
• How might your credit rating be affected by the issue of student loan debt?

These are only some of the questions that may apply in your case. As you weigh the answers, keep in mind that bankruptcy, for all its distinctions, is often a sensible choice for people seeking debt relief.

Source: The Sacramento Bee, "Debt Adviser: How to deal with student loan debt default," Steve Bucci, March 17, 2014

No Comments

Leave a comment
Comment Information

Contact Our Milwaukee Law Firm

Reach Miller & Miller Law, LLC, online or call us at 414-326-9231 to schedule a free initial consultation. Our law office also provides Spanish language services. Se habla español.

To schedule an initial consultation, call 414-326-9231 or contact Miller & Miller today.

Free Case Evaluation

* indicates required field

 
 

Milwaukee Office
735 West Wisconsin Avenue
Suite 600
Milwaukee, WI 53233

Phone: 414-326-9231
Fax: 414-277-1303
Milwaukee Law Office Map

Kenosha Office
6123 Green Bay Road
Suite 210
Kenosha, WI 53142

Phone: 262-326-1669
Kenosha Law Office Map

Brookfield Office
200 S. Executive Drive
Suite 101
Brookfield, WI 53005

Phone: 262-261-0665
Brookfield Law Office Map

Madison Office
2810 Crossroads Drive
Suite 4001
Madison, WI 53718

Phone: 608-260-7133
Madison Law Office Map