Can Student Loans Be Discharged in Bankruptcy?
As a general rule, student loans cannot be eliminated in bankruptcy. They are treated as secured loans, which must be repaid (even though the lender can't repossess your college diploma).
If you are like many Americans — on the hook for thousands of dollars in college loans and struggling with other debts — I am an experienced bankruptcy lawyer in Southaven, Mississippi, who can discuss the big picture of bankruptcy and debt relief strategies to deal with your student loans.
The Law Office of Giles W. King handles personal bankruptcy in Tennessee and Mississippi. Call my suburban Memphis office at 662-298-4597 or 888-549-3902 to schedule your free initial consultation, or e-mail me today.
Southaven Student Loans and Bankruptcy Attorney
College loans cannot be discharged in bankruptcy except for extreme hardship such as a permanent disability. Unfortunately, drowning in debt does not qualify as a hardship.
Meanwhile, the lenders and third parties who purchase student loans are very aggressive in collections, and very stingy with forbearances (extensions or grace periods). They will pursue wage garnishment and otherwise harass debtors in their efforts to collect on student loan debt.
Student loans cannot be eliminated, but other unsecured debts such as credit card balances are discharged in a Chapter 7 bankruptcy. By cutting down your other debts, you will hopefully have money to make your student loan payments and catch up on the arrears.
A Chapter 13 bankruptcy allows you to restructure college loan balances over time. Filing for bankruptcy also immediately stops garnishment, repossession, foreclosure and other creditor actions.
Explore Your Debt Relief Solutions Today
Your student loans won't go away. Bankruptcy may or may not be the answer, but your best move is to talk to an attorney today to discuss your options. Talk to a Southaven and Olive Branch student loan debts attorney. Contact my Southaven office to schedule your free initial consultation.
We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.