Student Loans Among The Most Difficult Debts To Discharge When Filing Bankruptcy
The 2005 revision to the Bankruptcy Code made the collection of domestic support obligations a much higher priority. Domestic support obligations are now specifically excepted from discharge, and the automatic stay does not extend to support obligations.
Student Loans And Bankruptcy
In order to have one’s private student loans discharged in bankruptcy, a borrower must be able to show that repaying the loans would result in “undue hardship,” a legal standard that can be extremely difficult to meet.
In fact, the legal requirements for discharging education loans are so onerous to meet that most bankruptcy attorneys avoid the process altogether.
Lawmakers in both chambers of Congress have proposed legislation that would make private student loans eligible for discharge under U.S. bankruptcy laws, but this law has not yet passed.
How Does Bankruptcy Provide A Solution?
Call 318-752-3733 to learn more about your options from the experienced bankruptcy lawyers at The Cook Law Firm.