Student Loans and Filing for Bankruptcy

  1. Personal Bankruptcy
  2. Student Loans and Filing for Bankruptcy

The average undergraduate student takes out $36,500 in student loans to attend a public university. A student pursuing a Masters’ degree will take out an additional $46,600 in loans for graduate school. Doctoral candidates in a Ph.D. program average $160,000 with students attending medical school taking out an additional $203,000.

Student loans can seem crushing and detrimental to your financial success. It doesn’t take long for student debt to begin to add up. At Craft Law Offices we are often asked, can filing for bankruptcy get rid of my student loan debt and would that be a good option for me?

A bankruptcy discharge does not wipe out non dischargeable debts. Student loans are most often considered non dischargeable debts. This makes discharging student loans difficult, but not impossible. You must be able to show that repaying the debt will “impose an undue hardship for both you and your dependents.”

If you are struggling financially, we suggest you call Craft Law Offices and speak with Leslie Craft, a knowledgeable bankruptcy attorney, to discuss your options. Hardship is difficult to prove and only granted in rare situations.

Here are some questions that may be asked for hardship:

  • Are you having to choose between repaying your student loans and maintaining a minimal living standard?
  • Has it been challenging for you to pay back your student loans and maintain a minimal living standard for the better part of your loan repayment period?
  • Have you tried to repay your loans are struggling?
  • Would switching to a different payment plan or having a portion of your student loans waved help your financial situation?

If you answered yes to any of the above questions, filing for bankruptcy may be an option for you.  Contact Leslie Craft at Craft Law Offices today at 252-752-0297 for your free consultation.

Leslie has been helping clients out of bad situations for over 30 years. Let her put her extensive legal experience to work finding a debt elimination solution for you. Call her today!

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