Student Loans
Many years ago, student loans could be discharged through a Chapter 13 bankruptcy case filing. Then Congress made it most difficult, if not impossible, to discharge federally funded student loans. Under the revised statutes, the threshold for obtaining a discharge of these debts began with a factual analysis to establish that the student loans created an “undue hardship” for the debtor. Through the subsequent developing case law, establishing this threshold requirement was difficult, if not impossible, to achieve. Now, however, the bankruptcy courts are being a bit more lenient in allowing some, if not all, student loan debts to be discharged and some bankruptcy courts have established special procedures solely for the handling of delinquent student loans. A knowledgeable bankruptcy attorney can help advise you and assist you in trying to manage your student loan debt.