Florida Student Loan Discharge Bankruptcy Lawyer
Bankruptcy is an Option for Discharging Student Loan Debt
Once you have student loan debt, it is impossible to discharge it, right? While many people assume that bankruptcy has no effect on student debt, the truth is that bankruptcy can be used to discharge student loan debt. Only in certain circumstances can bankruptcy be used to accomplish this; the borrower must be able to prove that the debt is causing “undue hardship.” Whether you have federal or private student loan debt, proving undue hardship may be a solution to your mounting debt problems. An experienced Florida student loan discharge lawyer with Nowack & Olson, PLLC can help you through this complex process so that you can start a new, debt-free life.
The Brunner Test
There are various tests that courts use to determine whether a borrower is facing undue hardship. The Brunner Test, named after the case Brunner v. New York State Higher Educ. Serv. Corp., is the most widely used. If using the Brunner Test, the borrower must show the following in order to be eligible for the undue hardship argument, according to the Federal Register:
- The debtor is unable to maintain a minimal standard of living for themselves and their dependents based on their current income and expenses;
- Additional circumstances exist showing that these financial difficulties are likely to persist for a significant portion of the repayment period; and
- The debtor has made good faith efforts to repay the loans.
College tuition has risen at a sickening rate over the last few decades. A recent survey found that, in the prior month, 30 percent of college students had gone without food when they were hungry because they did not have enough money to buy more, according to Business Insider. Furthermore, 14 percent of respondents of four-year colleges and 18 percent of respondents of two-year colleges were homeless. If you are living out of your car, crashing on friend’s couches, or sleeping in shelters or outside, one would think that their student loans must surely be causing an undue hardship. Yet, many courts have been siding with lenders, arguing that it is the responsibility of the borrower to do what it takes to pay back the loan, even at the expense of their or their family’s well-being.
While bankruptcy might not discharge your student loans, the automatic stay that comes from bankruptcy can still help. The stay can last from a couple months to five years, and can help borrowers get back on their feet in the meantime.
Call a Florida Student Debt Bankruptcy Attorneys Today
If student debt is dragging you and your family down, if making monthly payments has caused you to go without food or proper shelter, or if your debt has interfered with your career, ability to pay health insurance, or forced you to forgo other necessities, filing for bankruptcy may be an option to have your debt discharged. To speak with an experienced Florida student debt bankruptcy attorney today, call the law offices of Nowack & Olson, PLLC at 866-907-2970 to schedule a free consultation.