You may lean toward filing a bankruptcy petition if you need serious relief from your consumer debts. This is because, with a court-ordered bankruptcy discharge, your obligation toward paying off certain debts may be relinquished and your creditors’ collection activities may be dismantled. However, with this, you must understand that not every debt type qualifies for such a discharge. This is to say that declaring bankruptcy may not be worth it depending on which debts you are struggling with the most. Namely, eliminating student loans through bankruptcy has been a hot topic in recent years, yet it is still a question that many struggle to find the answer to. Well, follow along to find out the possibility of getting student loan debt discharged with bankruptcy and how a proficient Louisville, Kentucky consumer bankruptcy lawyer at Schwartz Bankruptcy Law Center can help you manage your debts at this time.
Is it conceivable to get student loan debt discharged with bankruptcy?
The short answer is, yes, you may possibly discharge your student loan debt through bankruptcy proceedings. However, the extended answer is that achieving this may be easier said than done.
For one, you may have to convince the Kentucky bankruptcy court that repaying your student loans would cause undue hardship. Now, an undue hardship means that you would struggle to meet the minimum standard of living for most of the time you would have to make these repayments. This struggle may be due to extenuating circumstances such as your recent health complications, your recent job loss beyond your reasonable control, or otherwise. Then, you would have to assure the court that you did your due diligence in trying to pay off your student loans until you ultimately filed for bankruptcy.
On the other hand, you may have to file an adversary proceeding. This is considered a separate action to request that the court discharge your student loan debt. These proceedings may look more like a civil lawsuit than a bankruptcy case. This is because it may require a full trial before a judge.
What are the other types of consumer debts eligible for discharge?
As you may see, attempting to discharge your student loans through bankruptcy is no easy feat. This is to say that your efforts may be better spent on discharging your other eligible consumer debts. This way, you may free up funds to pay your student loan creditors. With that being said, below are examples of other consumer debts that may be discharged in a more simplified manner:
- Your credit card debt.
- Your medical bill debt.
- Your past-due utility balances.
- Your personal loans from family members, friends, and employees.
- Your judgment debt or willful and malicious property damage debt.
To learn more about how to handle your student loan debt, please get in touch with a talented Louisville, Kentucky consumer bankruptcy lawyer from Schwartz Bankruptcy Law Center. Better yet, schedule your free initial consultation with our firm today.
