If you're struggling with student loan debt, you may be wondering if bankruptcy is an option for you. While it's not easy to discharge student loans in bankruptcy, it is possible under certain circumstances. Here's what you need to know.
1. The Brunner Test
To discharge your student loans in bankruptcy, you'll need to pass the Brunner test. This test is used to determine if repaying your student loans would cause undue hardship. To pass the test, you'll need to prove that:
- You cannot maintain a minimal standard of living if you're forced to repay your loans.
- Your financial situation is unlikely to improve in the future.
- You've made a good-faith effort to repay your loans.
2. Types of Student Loans
Not all student loans are created equal when it comes to bankruptcy. Federal student loans are generally more difficult to discharge than private student loans. However, if you have private student loans, you may have a better chance of discharging them in bankruptcy.
3. Other Options
Before you consider bankruptcy as an option for your student loans, it's important to explore other options. For example, you may be able to enroll in an income-driven repayment plan or apply for loan forgiveness. These options can help you manage your student loan debt without resorting to bankruptcy.
If you're struggling with student loan debt and considering bankruptcy, it's important to work with an experienced bankruptcy attorney. At Jackson & Oglesby Law LLC, we can help you understand your options and determine if bankruptcy is the right choice for you. Contact us today to schedule a consultation.