Some individuals may be under the impression that one can discharge student debt in a bankruptcy case, but this is untrue: student loans can’t be discharged in a bankruptcy case. Many wonder what makes this type of debt so much different from credit card or medical debt. With a national student loan debt amount totaling over $1.3 trillion dollars and over 7 million debtors in default this is a logical question.
Just because you can’t discharge student loans in a bankruptcy doesn’t necessary mean that there isn’t a way to deal with this type of debt? Often times, if you are having trouble making the minimum payments on your balance you can request student loan forbearance for a temporary amount of time. It’s often for a year, and if after the year you are still not caught up, you can request an additional forbearance. Deferments are another way to pause your payments on student loans.
While these actions may grant temporary reprieve, they often times only mask the problem. If you are being burdened by debt, seeking the advice and counsel of a debt relief counselor or bankruptcy attorney can often shed light on what would otherwise be a dim situation. Contact your local Dallas bankruptcy attorney today to discuss your situation and make a plan to right your financial situation before it gets worse.