The reality of a monthly student loan bill can be the harsh price of education. Your current income may not meet the expectations you had in college. And a challenging job market doesn’t help. If student loans are adding to your predicament, bankruptcy may allow you to reorganize your debt.
Newport Law attorneys can help you understand your dischargeable and nondischargeable debt. We will evaluate the terms of any potential bankruptcy and identify burdens that may be lifted.
A Nondischargable Debt
The federal government goes to great lengths to protect lenders for higher education. This debt is considered nondischargeable and is not likely to be forgiven. A bankruptcy may help you devote more income towards this obligation. But despite the hardship, it is very rare to be released from student loan debt.
Living with Student Loan Debt
There are just a few options available to better handle student loan payments.
- Chapter 13 bankruptcy includes provisions to reorganize nondischargeable debt.
- Your lender may offer a loan modification that better fits your income or forbearance for especially difficult periods. It is important to be familiar with the options available to you.
- If you are able to prove that your loan is an insurmountable hardship, or that an injury prevents you from meeting your obligation, it is possible that it may be forgiven through bankruptcy.
Our Experts in Bankruptcy Throughout California
Contact us or call (800) 261-7860. Our attorneys can explain your obligations after a bankruptcy and how specific debts will be affected.