Many people are struggling with student loan debt. As student loan borrowing passes $1 trillion, many young people are finding themselves saddled with six figures of debt with little chance to pay it back. They may turn to a St. Charles Bankruptcy Lawyer for help, hoping these debts can be discharged in bankruptcy. The only way to discharge student loan debt is to prove an “undue hardship.” This is a high hurdle to cross. An attorney can examine your situation to see if you meet this substantial burden.
Proving Undue Hardship with a St. Charles Bankruptcy Lawyer
There are three elements that a person must prove in order to prove undue hardship”
- That a person cannot maintain a minimum standard of living while repaying the loans
- That circumstances exist that will persist that will prevent repaying the loans
- That a good faith effort was made to repay the loans
It is these second and third elements that are difficult to meet. Since a person has a degree, they are likely to make more as they age, build experience, and develop new skills (even if the recent graduate does not have a job in their field). And if a person has not been able to make a payment or has had their parents or another party make payments for them, this won’t show a good faith effort to repay the loans.
Unfortunately, it is extremely difficult for a St. Charles Bankruptcy Lawyer to prove undue hardship. For almost all college students, barring some kind of catastrophic life events, they will spend many years paying down these loans.
At Westbrook Law Group, we can examine your specific situation to determine if undue hardship applies. If so, it may be possible to get these onerous student loans discharged in Chapter 7. While this is extremely difficult, it is not impossible. To speak with a St. Charles Bankruptcy Lawyer, contact Westbrook Law Group today for a free consultation.