For many college graduates who are struggling to pay student loan debts, it can be disheartening to have to handle this burden throughout the bankruptcy process. Because student loan debt can’t be easily discharged through bankruptcy, it can seem like making those monthly payments is impossible. However, don’t give up! There’s hope for anyone who’s trying to pay off student loan debt!
Shaking Student Loan Debt
It is possible. Contrary to what you may have been led to believe, student loan debt can be discharged in bankruptcy. Oftentimes, you’ll hear that it’s completely impossible. While we have made many suggestions here on the blog about how you can get rid of student loan debt through other methods, today we want to focus on getting rid of it through bankruptcy.
Getting rid of student loan debt in bankruptcy is a lot harder than getting rid of credit card debt, or an underwater mortgage. But, to do so you must prove these three things:
- You live in poverty. You have more expenses than income, make a very low income, or will be in this situation if you are forced to repay your loans.
- Your financial situation is not likely to change. If you’ve been struggling for months or years in this lifestyle, and things don’t show any sign of turning around, you can qualify.
- Thirdly, you must have shown a good faith effort in the past to repay your loans. If you’re thinking about filing in the future, make sure that you’re at least attempting to repay your loans now. At the very least, this will help your case when you file for bankruptcy.