• Free Bankruptcy

    Evaluation

    Start on the road to financial freedom; contact us today for a free evaluation.

    Start Now
  • Read What Our

    Clients Are Saying

    Our results speak for themselves; see what our clients are saying.

    Read More
  • Seven Convenient

    Locations

    We have many locations to serve you, click here to find your nearest location.

    Contact Us
  • Meet Our

    Team

    Our team has 30+ years of experience. Get an experienced team on your side.

    Click Here

Can Education Debts Be Discharged?

Before you make the decision to file for bankruptcy with the help of a lawyer, it’s essential to carefully review your finances. A bankruptcy attorney will evaluate your liabilities to determine which debts may be eligible for discharge during bankruptcy. Unfortunately, in many cases, student loans do not qualify for a bankruptcy discharge. However, certain exceptions do apply.

For example, you may have taken out private student loans from a bank, credit union, or similar type of lender. Just like credit card debt, these loans may be dischargeable through bankruptcy.

Even if you have federal student loans, there is a possibility that you can have them discharged. Your bankruptcy attorney will need to prove that your student loan obligations cause you undue hardship. Bankruptcy courts use the Brunner test to consider whether a hardship exception is called for. This test involves three criteria: Whether paying the loan creates an inability of the borrower to maintain a minimum standard of living; whether the borrower’s financial situation is likely to change in the future; and whether the borrower has demonstrated a good faith effort to pay the loans.

If you are considering filing for bankruptcy, you can receive personalized guidance from the bankruptcy attorneys at Cutler & Associates, Ltd. Call (847) 961-4572 to schedule a consultation at our law offices in Aurora, Schaumburg, or other locations in the Chicago area.

Categories: Debt

FREE Bankruptcy Evaluation

Fill out the form below and one of our experienced attorneys will get in touch with you immediately.