Student Loans

If you are thinking of filing for bankruptcy to get rid of your student loans, you must first be warned that the chances of you getting rid of student loans in bankruptcy is almost zero. As you are aware, it is very easy to qualify and obtain a student loan, however when it comes to eliminating them under the bankruptcy code student loans are generally non-dischargeable.

Difficulty of Discharging Student Loans in Bankruptcy:
The general rule is that student loans are non-dischargeable in bankruptcy, however there is a limited exception to this rule. If a debtor can satisfactory demonstrate that his or her payments on student loans would cause an “undue hardship” then the student loan would be discharged.

Undue Hardship in Florida:
The debtor has the burden to prove the following :
1. The debtor must demonstrate that, based upon a “minimal” standard of living, repayment of the student loans is virtually impossible.

2. The debtor must demonstrate that there are “additional circumstances” which will make repaying the student loans just as difficult in the future as it is in the present.

3. The third prong requires a showing that you’ve made a good faith attempt to repay the loans.

Each year very few cases, nationwide, can successfully meet the undue hardship requirement and thus discharge their student loan.

Just because you will likely not be able to eliminate your student loan debts in bankruptcy does not necessarily mean that bankruptcy will not be able to benefit you. Contact Shmucher Law, PL by calling 305.741.5553 or 954.309.5559 to schedule a free consultation.

Shmucher Law, PL, a bankruptcy law firm, represents debtors, creditors, and trustees in bankruptcy matters throughout Broward and Miami-Dade counties.

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